CSR PROJECT REPORT ON

“ Ecomark Scheme of India”

Submitted in Partial Fulfillment for the requirement of

MMS degree to University of Mumbai

Submitted by:
Surya Suresh

MMS (Finance )
(Roll No.9111)

Research Guide:
( Prof. Sanjiv Joshi )

Batch:-2018-2020

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 DECLARATION BY STUDENT

I, Surya Suresh, hereby declare that the work presented herein is

original work done by me and has not been published or submitted

elsewhere for the requirement of a degree programme. Any literature

date or work done by other and cited within this thesis has given due

acknowledgement and listed in the reference section.

Ms. Surya Suresh (Student Signature)

Place: Swayam Siddhi College of Management and Research

Date: 15 March 2020

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 CERTIFICATE

Certified that the Corporate Social Responsibility Project Report, entitled

“Ecomark Scheme of India” submitted by Ms. Surya Suresh towards

partial fulfilment for the Master of Management Studies is based on the

investigation carried out under our guidance. The project part therefore has

not submitted for the academic award of any other university or institution.

Name of Student: Surya Suresh

Prof. Sanjiv Joshi

Project Guide.

Dr./Prof.Ginlianlal Bhuril
Director.

Place: Swayam Siddhi College of Management and Research

Date: 15 March 2020

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 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Prof. Sanjiv Joshi,

Associate/Assistant Professor, and Head of Department of Finance for

allowing me to undertake this work and for his continuous guidance advice

effort and inrevertible suggestion throughout the Project.

My utmost gratitude to Dr. Ginlianlal Bhuril Director, Swayam Siddhi

College of Management and Research, University of Mumbai, without their

continuous support this study would not have been possible.

I would also like to thank my friends of Master of Management Studies

Batch 2018-2020 of Human Resource / Marketing / Finance / Operation /

Information Technology for there help throughout the study.

Lastly I would like to express my sincere appreciation to my parents for

encouraging and supporting me throughout the study.

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 TABLE OF CONTENTS

Sr. No CHAPTER
1 Introduction
2 Conceptual Framework
3 Review of Literature
4 Conclusion and Findings
5 Bibliography & References

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 CHAPTER I
INTRODUCTION

1.1 Introduction

1.2 Problem Statement

1.3 Objectives of the Study

1.4 Scope of the Study

1.5 Research Methodology

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 1.1 INTRODUCTION

Today everyone is concerned with environmental issues as they influence all human
activities. One business area where environmental issues have received a great deal of
discussion in the popular and professional press is marketing. As society becomes more
concerned with the natural environment, businesses have already begun to modify their
behavior in an attempt to address concepts society’s ‘new’ concerns.

Some businesses have been quick to accept concepts like environmental management
systems and waste minimization and have integrated environmental issues into all
organizational activities. Some evidence of this is the development of journals such as
“Business Strategy and the Environment” and “Greener management International”,
which are specifically designed to disseminate research relating to environmental
behavior of business houses. Thus terms like “Green Marketing”, “Green Earth Business”
and “Environmental Marketing” appear frequently in the popular press.

The concern of the society for the natural environment and drive for making a “Green
Earth Business” has led to emergence of “Green Activities” that include Green Marketing,
Green Advertising, Green Products, Green Purchasing, Green Supply Chain, and Green
Shopping. Green marketing incorporates a broad range of activities including product
modification, changes to the production process, packaging changes, as well as modifying
advertising. Yet defining green marketing is not a simple task.

Green or Environmental Marketing consists of all activities designed to generate and

facilitate any exchanges intended to satisfy human needs of wants,: such, that the
satisfaction of these needs and wants occurs, with minimal on the natural environment. In
fact, green marketing is the kind of used on the condition of the earth and human life too.
So it teaches us to manage the marketing process for satisfying the needs, wants and
demands of customers and society in both profitable and environmentally sustainable
ways.

The American Marketing Association (AMA) held the first workshop on “Ecological
Marketing” in 1975.The proceedings of this workshop resulted in one of the first books
on green marketing entitled, “Ecological Marketing”. Internationally, environmental
labeling programmes are becoming popular.
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 1.2 PROBLEM STATEMENT

One of the major challenges for the success of any ecolabeling scheme is its
popularization i.e. raising awareness among producers, consumers and the society at large.
Ecomark, as a concept, would not work unless consumers are aware about its importance
and demand products bearing the mark. An appropriate, well-targeted and continuous
communication strategy would play a significant role in increasing acceptance of any
product or service.

The desired awareness of the Scheme among industry, consumers and government
departments was never created. Evidently, the Scheme was launched without any
communication strategy and with consumers not aware, the demand for Ecomarked
products never caught on. There was also no incentive for industry to introduce eco
friendly technologies and products.

1.3 OBJECTIVES OF THE STUDY

1. To know what is Ecomark Scheme of India.

2. To know what is Eco labeling.
3. To know the objective of the Scheme
4. To know the Mechanism of the Scheme.

1.4 SCOPE OF THE STUDY

The scope of the study is to understand the Ecomark Scheme of India, where it is used
and its objectives and mechanisms.

1.5 RESEARCH METHODOLOGY

 Books
 Magazines
 Journals
 Internet Sites

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 CHAPTER -2

CONCEPTUAL FRAMEWORK

2.1 Introduction

2.2 Eco - Labelling

2.3 Ecomark Scheme

2.4 Objectives of the Scheme

2.5 Mechanism of the Scheme

2.6 Criteria for Product Categories

2.7 Application Procedure

2.8 Current position: Indian Ecomark Scheme remains a non-starter

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2.1 INTRODUCTION

The Government of India and few other organizations have made efforts to promote
Green Marketing. In 1991, the Government of India instituted a voluntary scheme to label
consumer products as environment friendly and to label a green product; the government
adopted a sign of “Ecomark”. The concept was developed but it never picked up. The
main reasons may be that people are not aware of this concept or they have never been
made to understand the importance of this concept. The issue of environmental protection
has brought the Consumers, The Industry, and The Government to a common platform
where each has to play its own role. The government and legislatures are using their
influence to reduce environmental and health hazards due to industrialization and to
stimulate the development of clean(er) technologies. ‘Green products’ balance
environmental and compatibility with performance, affordability and convenience. They
are typically durable, non toxic, recyclable and are often made from recycled materials.
Green products have minimal packaging; little embodied energy and carry low
environmental impact.

The first Ecomark was awarded some five years ago to a ‘Godrej’ product, “Ezee,” a
liquid detergent for washing special /delicate fabrics (such as silk and wool). To increase
consumer awareness, the Government of India launched the eco-labeling scheme known
as ‘Ecomark’ in 1991 for easy identification of environment-friendly products. Any
product which is made, used or disposed of in a way that significantly reduces the harm it
would otherwise cause the environment could be considered as Environment-Friendly
Product. The criterion follows a cradle-to-grave approach, i.e. from raw material
extraction, to manufacturing, and to disposal.

The ‘Ecomark’ label is awarded to consumer goods which meet the specified
environmental criteria and the quality requirements of Indian Standards. Any product
with the Ecomark will be the right environmental choice. Environmental labeling is being
promoted in a number of countries to encourage cleaner production and raise awareness
among consumers of the environmental implications of consumption patterns.

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2.2 ECO-LABELING

An eco-label is a label which identifies overall environmental preference of a product or

service within a particular product/service category based on life cycle consideration.
An eco-label is awarded by an impartial third party to products or services which are
found to meet established environmental leadership criteria. In India, we come across
many advertisements which make false claims about their product and we term this as
self-styled “green claims” which have got no authenticity. ISO has identified three
major environmental labelling

Type I: Environmental labelling (“eco labels”)

Type II: Self declaration claims

Type III: Environmental declaration like report cards / information labels.

In a typical eco-labelling program, product categories and criteria are established by an

independent organization and technical advisory group. Generally, once a category is
chosen, life cycle review of a product is conducted and for products this review includes
the process of raw material extraction, manufacturing process, distribution process and
criteria, use and final disposal of product. The basic differentiating parameters like
energy use and toxicity are given maximum importance as they are directly linked to the
environment.

Organizations which want to participate in such eco-labelling programs are required to

pay the licensing fee for seeking permission to use the program’s distinctive eco label
symbol for a specified period. It must be noted that use of eco label is restricted to the
approved products and is usually monitored by managing agency

• To assist consumers to become environmentally responsible in their daily lives by

providing information to take account of environmental factors in their purchase
decisions.

• To encourage citizens to purchase products which have less harmful environmental

impacts

• Ultimately to improve the quality of the environment and to encourage the sustainable
management of resources

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2.3 ECOMARK SCHEME

The Ministry of Environment and Forests, Govt. of India has instituted a scheme on
labeling of Environment Friendly Products through Gazette Notification No. 71 dated
21st February 1991. The scheme is operating on a national basis and provides
accreditation and labeling for household and other consumer products which meet certain
environmental criteria along with quality requirements of the Indian Standards for that
product. The Scheme is known as “ECOMARK”. Any product which is made, used or
disposed of in a way that significantly reduces the harm it would otherwise cause to the
environment, are categorized as environment friendly product. The scheme is voluntary
and invites participation from common citizens and concerned industrial sectors in the
larger interest of environment.

2.4 OBJECTIVES OF THE SCHEME

The specific objectives of the scheme are as follow:

• To provide an incentive for manufacturers and importers to reduce adverse

environmental impact of products.

• To reward genuine initiatives by companies to reduce adverse environmental impact of

their products.

• To assist consumers to become environmentally responsible in their daily lives by

providing information to take account of environmental factors in their purchase
decisions.

• To encourage citizens to purchase products which have less harmful environmental

impacts.

• Ultimately to improve the quality of the environment and to encourage the sustainable
management of resources.

2.5 MECHANISM OF THE SCHEME

The MoEF has constituted two committees namely Steering Committee and Technical
Committee to identify product categories, develop criteria and to coordinate related
activities. The Bureau of Indian Standards is to assess and certify products and draw up a
contract with the manufacturer, allowing the use of the label, on payment of a fee. The

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terms of committees shall be for three years or until reconstituted. Of these, the CPCB is a
registered member of the Global Eco-labelling Network.

A Steering Committee, set up in the Ministry of Environment and Forests, to determine

the product categories for coverage under the scheme and also formulate strategies for
promotion, implementation, future development and improvements in the working of the
scheme. Determine the product categories to be taken up under the scheme. Create mass
awareness for promotion and acceptance of the scheme. Formulate strategies for future
development of the scheme. The functions of the Steering Committee shall be as follows

a. Selection of the logo for the ECOMARK.

b. Activities related to creation of mass awareness for promotion and acceptance of the
scheme.

c. Determining the product category to be taken up under the scheme.

d. Co-coordinating ways of ensuring that industry is actively involved in the scheme.

e. Securing the involvement of other Ministries, Government Departments, Industry

Associations and other Non-Governmental Organisations and Consumer Organisations.

f. Formulations of strategies for future development of the scheme.

g. Identifying institutions in India or outside which are engaged in the standardization of

any article or process or improvement of quality of any article or process and
recommending assistance to build consumer awareness.

h. Promoting programmes of Comparative Testing of products by Consumer

Organisations and disseminating their results to the general public.

i. Supporting any research for the formulation of ECOMARK products in the interest of
Consumer groups.

In case of special requirement of expertise in specific fields, the committee may invite
experts as special invitees. The terms of the Committee shall be for three years or until
reconstituted. Besides above central Govt. shall nominate not more than five non-officials
to represent the interests of industry, consumer groups or other NGOs of which at least
two will represent consumer groups. ii. A Technical Committee shall be constituted by
the Central Government to identify the individual products and determine the criteria for
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awarding the ECOMARK. The Committee shall function in the Central Pollution Control
Board, Delhi. The following shall be the functions for the Technical Committee:-

i. Identification of specific products for classifying as environment friendly.

ii. Reviewing the existing state of knowledge and the environmental criteria being
followed in other countries.

iii. Recommend the most appropriate criteria and parameters to designate various
products as environment friendly, including the most important criteria or individual
products that have been specified for the purpose and their inter-se priority, whenever
possible

iv. Review the various technologies available for determining the criteria.

v. Recommend various laboratories and analysts for product assessment to the Ministry of
Environment and Forests.

vi. Evaluation of the environmental impact of the products and criteria from time to time.

vii. To review from time to time the implementation of the schemes by the Bureau of
Indian Standards (BIS), including the sample inspections done by it

viii. Set up sub-committees for each product category if so required, including

formulation of test programmes for comparative testing of products by consumer
organisations.

ix. The technical committee may set up expert panels to advise it for specific products.

The Bureau of Indian Standards (BIS) shall implement the scheme. Following shall be
functions of the BIS:

1. Assess the product for Ecomark; certify the product for award of the Ecomark.

2. Review suspends or cancels a license, for the use of the Ecomark.

3. Mark inspections, and take such samples for analysis of any material or substances as
may be necessary to see whether any article or product in relation to which the Ecomark
has been used, conforms to the contract or whether the Ecomark is improperly used in
relation to any article or process with or without a license.

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a. Certification and Licensing

Under the scheme, the manufacturers shall apply for testing and certification of products
which fall under the notified categories in terms of their compliance with published
environmental criteria in the prescribed form. The terms and conditions governing
operations of licenses including fees shall be as per the Bureau of Indian Standards Act
and the regulations framed there under. Testing and certification shall be carried out by
the Bureau of Indian Standards. For product categories which have the Indian Standards
mark, the Bureau of Indian Standards will ordinarily complete the task of certification
within a period of three months. Products certified as eligible for the ECOMARK shall be
licensed to carry the ECOMARK for a prescribed time period. The product shall be
reassessed after the prescribed period and the license fee shall have to be paid again for
the mark.

b. Criteria for Ecomark

The criteria are based on the cradle-to-grave approach, i.e. from raw material extraction to
manufacturing and to disposal. The basic criteria cover broad environmental levels and
aspects but are specific at the product level. A product is examined in terms of the
following main environmental impacts:

• They have substantially less potential for pollution than other comparable products in
production, usage and disposal.

• They are recycled, recyclable, made from recycled products or bio -degradable, where
comparable products are not.

• They make significant contribution to saving non-renewable resources including non-

renewable energy sources and natural resources compared with comparable products

• The product must contribute to a reduction of the adverse primary criteria which has the
highest environmental impact associated with the use of the product, and which will be
specifically set for each of the product categories.

c. Product General Requirements

The product general requirements deal with the issues of compliance of the pollution
control acts; raising environmental awareness among consumers etc.,in addition to safety,
quality and performance of the products.
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d. Product Specific Requirements

While determining the product specific requirements, the following issues have been
taken into account:

• Production process including source of raw materials.

• Use of natural resources.

• Likely impact of the environment;

• Energy conservation in the production of the product

• Effect and extent of waste arising from the production process

• Disposal of the product and its container

• Utilization of “Waste” and recycled materials

• Suitability for recycling or packaging

• Biodegradability.

An earthen pot has been chosen as the logo for the Ecomark scheme in India. The familiar
earthen pot uses a renewable resource like earth, does not produce hazardous waste and
consumes little energy in making. Its solid and graceful form represents both strength and
fragility, which also characterizes the eco-system. As a symbol, it puts across its
environmental message. Its image has the ability to reach people and can help to promote
a greater awareness of the need to be kind to the environment. The logo for the Ecomark
Scheme, signifies that the product which carries it does the least damage to the
environment.

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The Government of India has notified the final criteria for the following 16 product
categories.

1. Soaps and detergents.

2. Paper

3. Food items

4. Lubricating Oils

5. Packaging materials

6. Architectural Paints and Powder Coatings

7. Batteries

8. Electrical/Electronic Goods.

9. Food Additives.

10. Wood Substitutes

11. Cosmetics

12. Aerosols Propellants

13. Plastic Products

14. Textiles

15. Fire extinguishers

16. Leather.

f. Incentives

As per notification issued by Department of Housing and Environment, Government of

Madhya Pradesh, dated 28th Aug.1998 all such industries which have been awarded
ECOMARK label for their products shall be given an exemption of 50% fee in the
consent/renewal of consent under Water Act / Air Act, Ecomark Criteria of the Product
Categories covered under the scheme.

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2.6 CRITERIA FOR PRODUCT CATEGORIES

Once the product categories are selected under the scheme, the next task for any Type I
eco labelling programme, such as the Indian Ecomark, is to determine criteria and set
stringency levels so that there is an incremental environmental improvement for the
selected product. However, stringency of criteria is a double-edged sword and unless
handled properly could lead to difficulty in the implementation of the Scheme. The two
possible scenarios are:

• On the one hand, if the stringency levels are too high, market impact will be minimal i.e.
companies will not apply and participate in the ecolabelling scheme and there will be no
positive environmental impact.

• Conversely, if the stringency levels are too low, there will be no incentive for companies
to voluntarily participate and/or modify their products in order to qualify for the ecolabel,
as the market will not accept and acknowledge the ecolabeled products as ‘leadership’
products

1. Soaps & Detergents

Soaps and detergents have a special significance in the current Indian Ecomark Scheme.
This is not because the first product to be awarded the Ecomark was a detergent, but
because the history of the development of this product category’s criteria is full of
controversies. When the criteria were being developed, according to official records,
‘eutrophication,’ biodegradability’ and ‘dermatological safety’ were the major issues that
were addressed.

2. Food Items

Under the Scheme, the criteria for food products have been developed in two phases. In
the first phase, criteria were developed for edible oils , tea and coffee, while in the second,
criteria for beverages, infant foods, processed fruits and vegetable products were set out.
It appears that the concern associated with the food products category was that of human
safety and not so much related to environment as the Ecomark criteria stresses
contamination by toxic metals viz. lead, arsenic, cadmium, mercury and pesticides. Other
issues of concern are the use of antioxidants and shelf life of products. Human safety calls

18
for mandatory standards and there are provisions for inclusion of such food items under
the Food Safety and Standard Act, 2005.

3. Paper

The existing criteria limit paper and paper boards manufactured out of pulp, so that the
same contain not less than 60 percent by pulp weight made from materials other than
bamboo, hard woods, soft woods and reed. Otherwise, the criteria insisted that recycled
paper and paperboard must be made from 100 percent waste paper.

4. Lubricating Oils

The major concerns that led to criteria development were proper use, storage, transport,
after use disposal, safe handling precautions and biodegradability. As no Indian testing
standards were available, it was decided that biodegradability was to be tested as per the
OECD test method

5. Packaging Materials

This product category is very crucial for international trade, because of the conditions
imposed by rich countries on import of packaged goods, as they do not wish to import
‘pollution’ in their country through packaging, which requires easy disposal, and which
does not contain pollutants etc.

The Indian Ecomark Scheme has developed the criteria into two components for the
‘packaging materials and packaging’ product category. The first part consists of
developed criteria for paper, paper boards and plastics (excluding laminates) to be used
for food products. The second part is comprised of developed criteria for laminates and
products to be used in packaging products other than food.

6. Architectural Paints and Powder Coatings

The main consideration behind criteria development was to restrict the use of volatile
organic compounds (VOC) in paints. The other requirements were that products should
not be formulated with mercury and mercury compounds or be tinted with pigments of
lead, cadmium, chromium and their oxides. While criteria have been finalised for seven
sub-categories, six were under revision. Under the Ecomark Scheme, “Architectural
Paints and Powder Coatings” has been further sub-categorised into: a) Architectural
19
Paints and Powder Coatings, b) Water Based Coating, c) Solvent-based High Solid
Coatings and d) Powder Coatings.

7. Batteries

During the criteria development, batteries were sub-categorised according to the kind and
type of batteries. Currently, the Scheme has developed criteria for lead acid batteries and
dry cell batteries. The concerns behind the criteria development were proper use so as to
maximise the product performance and safe disposal.

8. Electrical/Electronic Goods

The existing criteria require that products display a list of critical components and
cautionary notes. In the case of refrigerators, the existing criteria require that refrigerants
and foam blowing agents should not contain any ODS (CFCs) relevant to refrigeration
industry as identified under the Montreal Protocol. Under the Scheme, the rated
maximum power consumption in watts for colour and black & white television receivers
is specified according to the screen size. The criteria also specify electro-magnetic
radiation from colour television. There have been subsequent developments in television
technology and the current criteria have not taken into account such occurrences, being
too reliant on the BIS. Even the conventional CTV tube is being displaced by Thin-Film
Technology and Plasma Displays.

9. Food Additives

Under the Food Additives product category, criteria have been developed for nine sub-
products. The main concern behind criteria setting was the use or presence of certain
ingredients like assay, acetic acid, phosphorus pentoxide and nitrogen, and contamination
i.e.arsenic, lead, iron, copper and non-volatile residue like tridodecyclamine and 4-
Methylimidazole

10. Wood Substitutes

The Scheme recognizes briquettes, biogas, liquid petroleum gas (LPG) and natural gases
as substitutes for fuel-wood. Briquettes made from agricultural and wood residues (like
saw dust) and domestic wastes (like garbage) without synthetic binders are eligible for
Ecomark. The Scheme specifies that such briquettes should not be manufactured from
20
any waste material, which contains any hazardous constituents as specified under
Hazardous Wastes (Management and Handling) Rules, 1989. However, bricks made out
of fly ash or concrete made of High Volume Fly Ash remain excluded from the scheme as
wood substitute although the use of the same has been made mandatory through
environmental legislation. Criteria have been developed for building boards, which are
used for different purposes such as partitioning, panelling, cladding and false ceiling.
Such boards need to be made from agricultural or industrial wastes such as phospho-
gypsum, red mud, baggase, cotton stalk, rice husk, coir fibre, sisal fibre or wood residues,
or wood from sources other than natural forests or environment friendly plastics to be
eligible for the Ecomark.

11. Cosmetics

The main concerns behind criteria development for this product category were a)
biodegradability of surfactant agents as per the limits under the Ecomark for synthetic
detergents b) presence of heavy metals like lead and arsenic, and c) dermatological safety.
Apart from these criteria, the product has to meet the relevant clauses under the Drugs
and Cosmetic Act, 1940. Notably, the first and second main concerns of this criteria
development can be linked to environmental concerns, while the issue of dermatological
safety relates more to immediate human health and not the environment.

Criteria have been developed for 18 sub-product categories and criteria for 24 other
products are under process as per official records. The existing sub-product categories
include products such as skin powder, tooth paste, tooth powder, shampoo, skin cream,
hair oil, hair cream, hair dyes, cologne, nail polish, after shave lotion, pomades and
brilliantine’s, chemical depilatories, shaving cream, cosmetic pencil and lipsticks.

12. Aerosol Propellants

The main concern behind the criteria development for aerosol propellants was
restriction/prohibition of ODS that are relevant to the aerosol industry as identified under
the Montreal Protocol. The ozone depleting potential (ODP) listed as a single value are
determined from calculations based on laboratory measurements.

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13. Plastic Products

The Ecomark criteria developed for this product category has been broadly divided into
plastic products for food, pharmaceutical and drinking water, and secondly, recycled
plastic products meant for products other than the ones mentioned under the first category.
As a part of the requirement, the product, wherever necessary, also needs to comply with
the regulations under the PFA Act, 1954, and the Drugs and Cosmetic Act, 1940.

The plastic products identified in the above sub-categories (excluding fillers and
reinforcing agents for construction) need to be made from a minimum of 90 percent by
weight of compatible plastic wastes in order to qualify for the Ecomark. Plastic products
used as construction material (excluding fillers and reinforcing agents) need to be made
from minimum 60 percent by weight of compatible plastic wastes.

14. Textiles

Textiles have a special significance under the Scheme for two reasons. Firstly, the
manufacturing process of various textiles results in wastes that are environmentally
hazardous and secondly, Indian organisations have acquired foreign ecolabels in this
product category.

The criteria developed on textiles under the Indian Ecomark Scheme can be divided into
three sub-product categories including: a) criteria for cotton, wool, man-made fibre and
blends b) criteria for jute and jute products and c) criteria for silk and silk products.

Neither the MoEF nor the BIS formally approached the Ministry of Textiles to co-
ordinate the Scheme.

15. Fire Extinguishers

The main concerns behind criteria development for fire extinguishers were ozone
depletion and global warming. The existing criteria restricts the use of ODS relevant to
fire extinguishers industry as identified under the Montreal Protocol. Chemicals used in
fire extinguishers should also not have a global warming potential.

Further, the metallic body and other metal parts of the fire extinguishers need to be free of
lead or lead alloys. The coatings used for the metallic part are not to be formulated with
22
mercury and mercury compounds or be tinted with pigments of lead, cadmium, chromium
VI and their oxides.

16. Finished Leather Goods

Recognising the potential for environmental damage by the Indian leather industry and
further recognising the importance of the leather and leather goods sector to Indian
exports, it was included as a product category under Indian Ecomark. Leather was the
only product category to be delinked from the BIS.

However, it is felt that the Indian Ecomark has not been widely adopted, mainly due to
inertia and want of promotional efforts in the industry. Leather manufacturers claim that
the average Indian consumer will not pay extra for goods produced at a sustainable rate,
although they have not determined whether sustainable production would lead to
increased costs.

17. Coir and Coir Products

The suggested criteria set limits on residual pesticides viz. Carbaryl and Monocrotophos,
pH of aqueous extract, percentage of total chloride content, and percentage of total
sulphate content and sand content. One of the general requirements under the criteria is
that the manufacturers of these products must produce the consent clearance, as per the
provisions of the Water (Prevention and Control of Pollution) Act 1974, and the Air
(Prevention and Control of Pollution) Act 1981, and the authorisation, if required, under
the Rules notified under the Environment (Protection) Act, 1986, as applicable, and the
rules made there under, to BIS while applying for Ecomark.

23
2.7 APPLICATION PROCEDURE

The procedure for obtaining a license to use the mark is as follows:

A manufacturer desirous to obtain a license to use the Ecomark has to apply to Bureau of
Indian Standards (BIS) on the prescribed form with a fee of Rs.500/- per application. The
application form may be obtain from BIS directly or its regional/ branch offices. A
separate application has to be made for each commodity covered by a particular standard.
If the standard consists of various parts, separate applications are required for each part.
On receipt of an application, BIS arranges a preliminary inspection of the factory to check
the testing facilities which the applicant has, and the manner in which the quality control
of the product is being exercised during the manufacturing process. Samples are also
drawn for testing in an independent laboratory to see whether they conform to the
relevant standards. The costs of the samples and the testing are borne by the applicant. A
draft scheme of testing and inspection, which specifies the control the applicant is
required to maintain for obtaining and operating the license for standard marking, is
prepared by the BIS and communicated to the applicant. The rate of marking fee of the
product is also communicated to the applicant. A license to use the Ecomark is granted
when:

• Full testing facilities are available with the applicant.

• Samples conform to Indian Standards

• Formal acceptance of the scheme of testing and inspection and marking fee rate is
received from the applicant. On grant of a license, the manufacturer is authorized to apply
for the Ecomark on the product which conforms to the relevant Indian Standard when
tested as per the agreed scheme of testing and inspection appended to the license. The
Bureau arranges periodic surprise inspections to check whether the scheme of testing or
inspection is being enforced properly. Samples are drawn by the inspecting officers of the
Bureau during inspection from the production line/store for testing in BIS and other
independent laboratories. In addition, the Bureau arranges to purchase samples of
certified products directly from the market or bonafide consumers for testing purposes.
The license is granted initially for a period of one year and is renewable subsequently for
the same period. The licensee has to apply for renewal one month before the expiry of the
validity period of the license. The Bureau may not renew the license if it finds that the

24
scheme has not been complied with or may defer the renewal till such time the applicant
is able to operate the scheme satisfactorily.

2.8 CURRENT POSITION: INDIAN ECOMARK SCHEME REMAINS A NON-

STARTER

The overall response to the Ecomark program within India itself has been quite limited
and manufacturers are hesitant to apply for the Ecomark label. Several factors are seen as
possible causes for this hesitation.

• First, the Ecomark scheme is a self-financing program, requiring manufacturers to pay

for the application, testing, licensing fee, and renewal costs involved in certification.
Some estimates indicate that these costs can amount to a 10 percent increase in a
manufacturer’s production costs which are not guaranteed to be returned in increased
profits.

• Second, products have to comply with BIS’s quality standards before being able to
apply for the Ecomark. The BIS standards add another layer of regulation and approvals
for manufacturers, which are perceived as a burden with few immediate benefits.
Additionally, industry has complained that India’s Ecomark has not done enough to
involve it in product criteria development. Industry feels the Indian Government has
‘rushed through’ with the Ecomark. Industry feels that the labeling program will not help
environmental improvement if criteria concentrate on single issues, or if they are based on
other programs that do not take the local situation into account. Industry also says that the
labeling program inhibits innovation that comes with consumer goods production and can,
therefore, be a hindrance to environmental improvements. Finally, industry feels that
because of the lack of consumer awareness of environmentally preferable products, the
Ecomark program may send consumers the ‘wrong’ message by indicating to consumers
that non-Ecomark labeled products are not environmentally safe.

• Indian exporters feel that many of the product categories chosen for Ecomark, with the
exception of textiles and certain food items do not reflect India’s major export products
for which an Ecomark might be of value. Several manufacturers have, in fact, adopted the
ecolabeling standards of their importing customers’ countries in order to operate in those
markets.

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• The lack of awareness about the Indian Ecomark scheme is evident from the fact that
hardly anyone in the industry knows of the existence of such a label. The BIS is the
certifying agency, but there is no mention of this label even on its website. And a number
of high ranking officials of the three agencies are unaware of the label.

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 CHAPTER 3

REVIEW OF LITERATURE

3.1 Review related to Ecomark Scheme of India

3.2 Review related to Green Marketing

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3.1 Review related to Ecomark Scheme

1. Mattoo and Singh (1997) have analysed the trade effects of the mutual recognition of
labelling schemes. The authors conclude that ‘in certain situations, the introduction of
ecolabelling worsens the terms of trade and reduces the welfare’ of a given country. They
also state that when the environmental problems are local, ‘mutual recognition may be
advantageous for a country if there is significant environmental concern amongst foreign
consumers’, because it might be desirable to obtain foreign recognition for a domestic
label to encourage local exporting firms to use more friendly technologies.

2. Morris (1997) for example, concludes ‘Ecolabelling schemes result in the distortion of
information, the distortion of prices and the distortion of trade flows. They inhibit product
development and result in the consumption of more scarce natural resources and more
harmful emissions to the environment than would be the case if they were absent’.

3. Kiker and Putz (1997) note that, regarding forestry issues, certification is one of
many actions to be taken to protect the environment, though, as such, ‘it is highly unlikely
that certification will be the ultimate solution to forest depletion’.

4. Nadai and Morel (1999, 2000) incorporate imperfect competition into the analysis of
labelling programmes. Nadai and Morel (1999) deals with the case of heterogeneous
industry; i.e. before labelling, each firm’s products have different environmental
performance. The paper shows that it is possible to generate green innovation if the
labelling scheme is very selective. That is ‘granting very few products with the eligibility
for the eco-label without innovation’.
Nadai and Morel (2000) deals with the case of a homogeneous industry. They conclude
that ‘as far as the ‘‘homogeneous industry’’ is concerned, a major result is that the eco-
label will leave all firms better off, even if it might affect the relative competitiveness of
some of them. Despite these possible differences in profits, firms will most often
converge on the criteria maximizing their individual profit. There will be few or no
tensions among them and the industry will be willing to co-operate with the regulator in
order to develop the eco-label.

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3.2 Review related to Green Marketing
1. Alwitt, L.F. & Berger, I.E. (1993) in their article have examined the structure and
behavioural implications of a model of attitude in an environmentally sensitive product
domain. The study measured attitude valence and the dimensions of attitude strength with
respect to a single product category – single-serve aseptic fruit juices and puddings. Data
was collected from 134 undergraduate students with the help of a survey instrument. The
structure of attitude strength and its relationship with purchase intentions were examined.
It was inferred from the analysis that general attitude toward environment is not
significantly related with purchase intention whereas attitude towards the product is
positively related to purchase intention. Regression analysis was also performed on
behavioural intention as a function of attitude valence, attitude accessibility and extremity.
The results of the attitude strength dimensions can be used by policy makers who want
consumers to take environmentally positive actions.
2. Roberts, J.A. & Bacon, D.R. (1997) in their research paper have attempted to explore
and measure the relationship between the New Environmental Paradigm (NEP) and the
Ecologically Conscious Consumer Behaviour (ECCB). NEP is the set of beliefs and
values where the focus is on the desirability of restricting growth, protecting the integrity
of ecosystems, and living in harmony with nature. NEP variables were the desire for
balance in environment, allusions to biblical statements, concern for limited growth and
human adaptation to nature. ECCB is defined the behaviour of a person who purchases
(avoids) products and services which he or she perceives to have a positive (negative)
impact on the environment.
3. Shukla, S, Shah, D., Mehra, P., Muralikrishna & Gupta, A.K. (1998) in their
research paper have presented their findings of an action research experiment conducted
in their campus to find out the response of their own colleagues to certain products such
as organically grown wheat, pulses, oil seeds etc. The study was undertaken to test issues
such as the image of eco-friendly products which consumers have in their minds,
attributes that consumers look into in green products, factors influencing the purchase of
green products, actual purchase behaviour and the premium they were willing to pay for
green products. The study suggested that only about one fourth of the respondents were
concerned about environmental safety and the rest were either concerned about their
health and also about cost which became a crucial factor when the willingness to pay a
premium for green products is concerned.

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 CHAPTER 4

CONCLUSIONS & FINDINGS

4.1 Conclusion

4.2 Findings

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4.1 CONCLUSION

‘ECOMARK’ is the buzzword for the environment conscious consumer of today.

However, lack of information and ineffective regulation has resulted in ‘green washing’ -
corporations making misleading claims about the environmental benefits of their products
or organization. Vague and misleading claims leave the consumer confused and
distrustful of such labels. Ecolabeling schemes which are voluntary, market based
schemes have been implemented in some countries, with varied degrees of success. In
1991, the Government of India instituted the Ecomark scheme to help consumers identify
products that have a reduced environmental impact. Ten years on, few consumers are
aware of the existence of the scheme, and almost no products bear the Ecomark label.
Targeting and reaching consumers in a developing country like ours is an extremely
difficult task even today. It is because the population is still largely rural, poor and has
less access to various media than in more developed countries. As a result they have less
information about new products. More over because of poverty, ignorance and illiteracy
they often prefer low quality and sometimes hazardous products to fulfill their needs
rather than take care of their environment. On the other hand how industries develop,
advertise, manage and promote environmentally friendly products is related to both
internal firm characteristics and external factors. The environment is under tremendous
stress from rapid industrialization, unplanned urbanization and changing consumption
patterns in the race to achieve better living standards. It is amply clear that regulatory
actions by pollution control agencies alone cannot restore the environment to its pristine
state. Pro-active and promotional roles should also be geared up in harmony with the
overall environmental protection strategy. The time has come for consumers to take the
lead in prompting manufacturers to adopt clean and eco-friendly technologies and
environmentally-safe disposal of used products, along with preventive and mitigate
approaches.

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4.2 FINDINGS
Some of the guiding principles should be:
1. Voluntary participation
2. Compliance to environmental and other relevant legislations.
3. It must be based on sound scientific and engineering principles.
4. Criteria must be credible, relevant, attainable and measurable.
5. It should be open and accountable.
6. It must be consistent with ISO guidelines.
India urgently needs policy concepts, legal requirements and market strategies to promote
product stewardship, producer responsibility and waste minimization. Many lessons can
be drawn and adapted from legislation around the world - such as California’s deposit-
return systems, or Mexico’s requirement that 50% of Coca-Cola be sold in reusable
bottles - and from market strategies like ‘lotteries’ using ring-tabs on PET bottles to bring
in post-consumer waste. As with battery take backs, the eco-friendly criteria for Ecomark,
if not the certification itself, need to become a time-bound requirement for the 16
industries covered to date. India also needs to explore economic instruments to prevent
pollution, promote waste minimization and require life-cycle responsibility on the part of
manufacturers and marketers of all products. The government, central and state, quasi
government bodies and other local institutions, which constitute nearly 80 per cent of
buyers of goods, should set an example by insisting on eco-products giving a price and
priority preference to them. If the government and other state institutions do not have
faith in certified goods, be they ISI or Eco-marked, then the common consumer too will
not choose such products. The industry puts a scare that ecolabeled products will cost
more and hence, consumers will shift to others (unlabeled), particularly in price-sensitive
ones. The alternative is compulsion, which in the present scenario of liberalization, is not
acceptable Worldwide, social responsibility has been awakened only by legislation. Civil
society in India has yet to take the lead in drafting and lobbying for waste reduction laws
like those prevalent in North America and Europe. India is, for instance, a strong player in
the information technology market, so it is especially important for this industry to track
and keep pace with some self regulation, to stay ahead of global requirements. The media
has a real role to play to spread the message of environmental safety. Needless to say, the
environmental regime has to be reoriented and strengthened with more expert mechanism
to deal with the larger spectrum of problems hitherto unattended by law.

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 CHAPTER 5
BIBLIOGRAPHY & REFERENCES

5.1 Bibliography

5.2 References

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4.1 BIBLIOGRAPHY

1. Newspapers

2. Books

3. Magazines

4. Internet Sites

4.2 REFERENCES
1. Akitsune K and Takae T (2003), “Abatement of Prilling Tower Effluent”, Chemical
Engineering Progress, Vol. 69, pp. 73-90.

2. Alien J Danzig (2003), “Environmental Auditing: Reaching the Bottom Line in

Compliance”, National Environmental Enforcement Journal, Vol. 2, No. 1.

3. Arthur D Little (1983), “Benefits to Industry of Environmental Auditing”, National

Technical Information Service, Springfield.

4. Badrinath S D and Raman N S (1993), “Certification Scheme for Environmental

Audit”, Chemical Business, Vol. 7, No. 4, p. 47.

5. Jonathan Plaut (1980), “Environmental, Health and Safety and Concerns in Acquisition
Review”, Toxic Substances Journal, Vol. 2, No. 3

6. Khanna P (1989), “Sustainable Development”, Journal of Indian Association for

Environmental Management”, Vol. 16, No. 1

7. Paritosh C Tyagi (2004), “Environmental Audit in Practice in India”, Indo-British

Workshop on Environmental Impact and Risk Assessment of Petrochemical Industry and
Environmental Audit, NEERI, pp. 99- 101, Nagpur.

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