Do Sustainability Labels Actually Boost Sales? Research Explained | ESG Decoded #202

<p>That small green leaf next to certain Amazon products may be doing more work than shoppers realize. </p><p><a href="https://www.climeco.com/our-team/emma-cox/" rel="ugc noopener noreferrer" target="_blank">Emma Cox</a> is joined by <a href="https://www.linkedin.com/in/sherry-he-0393b7a5/" rel="ugc noopener noreferrer" target="_blank">Dr. Sherry He</a>, Assistant Professor of Marketing at Michigan State University, to unpack her research on Amazon’s Climate Pledge Friendly program. Her findings show that sustainability labels were associated with a 13–14% average increase in product demand—but the reason may not be what brands, retailers, or consumers expect. </p><p>The lift did not come from Amazon’s search algorithm or from shoppers actively filtering for more sustainable products. Instead, Dr. He explains what may be happening at the point of purchase, when a credible sustainability signal appears alongside a product.</p><p>In this episode, learn:</p><ul><li><p>Which sustainability labels showed no measurable demand lift—including one of Amazon’s own.</p></li><li><p>The two product characteristics associated with a stronger consumer response.</p></li><li><p>Why credible third-party certification could become even more important as AI increasingly shapes product discovery and purchasing decisions.</p></li><li><p>What brands, sellers, retailers, and certification organizations can take from the findings.</p></li></ul><p>If you buy, make, sell, market, or certify products, this episode offers a practical look at when sustainability claims can influence demand—and when they may not.</p><p>Don't miss an episode—subscribe to ESG Decoded on your favorite podcast platform and follow us on social for the latest updates!</p><p><strong>Episode Resources</strong></p><ul><li><p>Harvard Business Review - Research: Products Labeled as Sustainable Sell Better: <a href="https://hbr.org/2025/06/research-products-labeled-as-sustainable-sell-better" rel="ugc noopener noreferrer" target="_blank">https://hbr.org/2025/06/research-products-labeled-as-sustainable-sell-better</a> </p></li><li><p>Do Judge a Product by Its Sustainability Label: Evidence from the Amazon Marketplace: <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5009666#" rel="ugc noopener noreferrer" target="_blank">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5009666#</a> </p></li><li><p>Amazon Climate Pledge Friendly:  <a href="https://www.aboutamazon.com/planet/climate-pledge" rel="ugc no