Research Finds Sustainable Labels Boost Product Sales

As consumer interest in eco-friendly products rises, many retailers are adding sustainability labels to their offerings. Notable examples include Amazon’s “Climate Pledge Friendly,” Target’s “Target Zero,” and Wayfair’s “Shop Sustainably” badges. These labels provide shoppers with clear insights into the environmental benefits of their purchases.

Study Overview

A recent Harvard Business Review article by Caroline Wang, a Northwestern University PhD candidate, and Sherry He, an assistant marketing professor at Michigan State University, investigated whether such sustainability labels actually influence buying behavior.

Key Findings

• Increased Sales Performance: Products marked with sustainability certifications tend to sell better than those without such labels.
• Enhanced Consumer Awareness: Labeling improves transparency, helping shoppers make more informed decisions aligned with their environmental values.
• Retailer Adoption: The growing prominence of sustainability badges reflects a broader shift toward integrating social and environmental responsibility into brand management and marketing strategies.

Implications for Brands and Retailers

This research highlights the powerful role of authentic sustainability messaging in driving consumer preference and purchasing. Businesses aiming to capture eco-conscious audiences should consider incorporating credible environmental credentials into product packaging and online storefronts.

For sustainable product brands and retailers, clear labeling offers both a marketing advantage and an opportunity to promote environmental responsibility—factors that increasingly resonate with today’s buyers.

Source: Harvard Business Review, June 23, 2025

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