Photo by Shelby Murphy Figueroa.
As ethical and sustainable consumption becomes more mainstream, consumers increasingly demand transparency and responsibility from businesses. In 2023, studies show that 30% of consumers have re-evaluated their shopping habits, actively avoiding brands and products with poor ethical or sustainability practices.
This global trend, referred to as "eco-wakening," has led to a 71% increase in online searches for sustainable products over the past five years, demonstrating a growing demand.
Understanding fair trade
Certifications are a common way to identify whether a product is ethically and sustainably made. While several sustainability certifications exist, fair trade certifications are also worthy of consideration. But what exactly does fair trade mean?
Fair trade, broadly speaking, is a movement focused on creating equitable trading conditions and empowering marginalized producers, particularly in lower-income nations. Several fair trade networks agreed to the following definition in 2001:
Fair Trade Organizations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.”
Important: “Fair trade” is distinct from “Fairtrade” or “Fair Trade,” which are separate certifying organizations.
Sustainability in fair trade
Fair trade is about more than just fair wages; it also promotes environmental sustainability. Many fair trade standards encourage eco-friendly farming practices, such as minimizing pesticide use and preserving biodiversity. Some certifications also support climate adaptation, helping producers face challenges like deforestation and climate change. Funds generated from fair trade initiatives are often reinvested in community development projects, enhancing sustainability for both people and the planet. Fair Trade USA, for instance, highlights environmental responsibility through its certification program, which requires adherence to environmental laws, sustainable resource management, and biodiversity conservation.
In contrast, foreign companies often invest in farming and production in lower-income countries, at the expense of environmental sustainability. This can result from multinational corporations seeking to minimize costs or local producers competing with these larger companies. Fair trade agreements help mitigate this by holding companies accountable for their environmental impact
A sample of organizations and certifying bodies recognizing the 2018 International Fair Trade Charter
The challenge of inconsistent labeling standards
One of the challenges with fair trade certifications is the sheer number of labeling systems, which can confuse consumers. Each fair trade label has its own standards, and this inconsistency can make it difficult for shoppers to know exactly what they’re supporting.
For example, Fairtrade America operates under Fairtrade International, a global, producer-centered model with strict certification thresholds. In contrast, Fair Trade USA allows products with as little as 20% certified ingredients to carry its label and includes workers from larger producers that are not part of organized collectives.
In addition, anyone can claim to be fair trade without any real verification, further muddying the waters. Consumers might come across labels that don’t actually guarantee the ethical practices they imply. To address this, the 2018 International Fair Trade Charter was established to create a unified vision for fair trade organizations, based on the United Nations’ Sustainable Development Goals. Consumers can also check whether the organization is part of the World Fair Trade Organization (WFTO) network for added assurance.
Photo by Dan Crile
Greenwashing and consumer vigilance
While fair trade labels and certifications are helpful, especially in signaling consumer demand, it’s important not to rely on them alone. Some brands may use fair trade claims to attract socially conscious shoppers without delivering meaningful change, a practice known as greenwashing. Consumers should go beyond the label, researching how companies and fair trade organizations truly implement fair trade principles.
Ultimately, it’s essential to do your homework. Research the brands you support to ensure they genuinely align with your values and contribute to a more sustainable and fair global economy.
