Integrating credible sustainability standards into trade policy is crucial to global sustainability. Our Geneva workshop convened policymakers and experts to promote collaboration, share best practices, and address the challenges to fair, sustainable global trade.

A collaborative path forward

ISEAL and the International Institute for Sustainable Development (IISD) recently organised the ‘Integrating Credible Sustainability Standards into Trade Policy’ workshop.

It brought together policymakers, trade experts, and representatives from voluntary sustainability standards to address a critical question. How can credible sustainability systems be effectively integrated into trade policy to advance global sustainability goals? 

The interactive workshop fostered open dialogue, shared knowledge, and explored pathways for leveraging voluntary sustainability standards to create a more sustainable and equitable trade landscape. 

The key takeaway: voluntary sustainability standards are not trade barriers, but powerful tools for promoting sustainable practices and unlocking new market opportunities.

Why credible sustainability standards matter in trade

The integration of voluntary sustainability standards into trade policy is becoming increasingly vital as the world grapples with climate change, social inequality, and environmental degradation. 

Trade policies can play a powerful role in promoting sustainable practices across global supply chains, but this requires careful consideration of which standards are genuinely credible and effective. 

The workshop recognised that not all standards are created equal, and that the credibility of voluntary sustainability standards is crucial for ensuring they contribute to real, measurable improvements in environmental and social outcomes.

Building trust

Participants reiterated the importance of addressing misconceptions through clear communication, transparency, and stakeholder engagement. 

By translating technical data into compelling narratives, sharing success stories from the field, and involving diverse voices in the standard-setting process, voluntary sustainability standards can build trust and demonstrate their value to policymakers and trade actors.

Key elements of credibility and effective integration

The workshop identified key elements for ensuring the credibility and effective integration of voluntary sustainability standards into trade policy:

• Governance and operations: Voluntary sustainability standards should have transparent governance structures, robust monitoring and verification processes, and inclusive stakeholder engagement.
• Alignment with internationally recognised standards and principles: Voluntary sustainability standards should align with recognised international frameworks and guidelines, such as the ISEAL Code of Good Practice, the Organisation for Economic Co-operation and Development (OECD), and other United Nations frameworks when available.
• Independent assurance: Voluntary sustainability standards should undergo independent third-party assurance to ensure their processes are trustworthy and their claims are verifiable.
• Adaptability and local relevance: Voluntary sustainability standards should be adaptable to different contexts and relevant to local realities, accounting for the needs and capacities of producers in developing countries.
• Impact measurement: Voluntary sustainability standards should be able to demonstrate tangible and measurable impacts across environmental, social, and economic dimensions.
• Comprehensive integration strategy:The integration of voluntary sustainability standards into trade agreements should involve a comprehensive process with specific environmental clauses and provisions designed to promote sustainable practices. For instance, for palm oil where tariff benefits were directly linked to sustainable production in the Switzerland-Indonesia Comprehensive Economic Partnership Agreement (CEPA).
• Benchmarking process: Voluntary sustainability standards should be evaluated against clear criteria to determine which are aligned with sustainability requirements. For example, the CEPA leveraged WWF's Certification Assessment Tool and added their own filter to identify standards that aligned with the agreement's objectives. This ensured that preferential market access was tied to palm oil production that fulfilled stringent sustainability criteria — ultimately prioritising standards with independent certification and traceability to bolster credibility and monitor compliance across the supply chain.

The unique role of collaboration and knowledge-sharing

The workshop underscored the importance of collaboration and knowledge-sharing among governments, standard-setting organisations, businesses, and civil society. 

Participants emphasised the need for greater coordination at national and international levels to align voluntary sustainability standards with trade policy objectives and ensure a level playing field for all actors.

The workshop also noted the value of platforms like the ITC Standards Map and the OECD Typology Framework for understanding and comparing sustainability initiatives. 

These tools can support policymakers and businesses to navigate the complex landscape of voluntary sustainability standards and identify the most credible and relevant systems.

A path forward: towards a more sustainable trade future

The Geneva workshop offered a valuable platform for dialogue and knowledge-sharing on the integration of credible voluntary sustainability standards into trade policy. 

By embracing credible voluntary sustainability standards and working together to build a more transparent, inclusive, and sustainable trade system, we can create a future where trade benefits both people and planet. 

ISEAL and IISD have produced a report. It covers how to assess the credibility of various voluntary sustainability standards and make informed decisions on which standards to integrate into trade policies.

ISEAL will continue to facilitate dialogue to shape the future of sustainable trade and global value chains.