Sustainability systems have evolved dramatically over the past 30 years. Once limited to certifying and labelling products, they are now powerful tools for tackling critical global challenges – from poverty and human rights violations to climate change and deforestation. So what’s fuelled this transformation? And how is new sustainability legislation reshaping the role of voluntary systems?

The historic role: filling gaps, raising the bar

Sustainability systems are market-based tools designed to address the most pressing social and environmental challenges of our time. For decades, they have been key partners to businesses in improving their practices and demonstrating accountability.  

First emerging in the 1980s, sustainability systems filled the gap in areas where legislation was weak or absent – but where consumers, civil society and NGOs demanded higher environmental and social standards.  

One early example was the Global Exchange campaign, which pushed companies to reject goods made in ‘sweatshop’ conditions. This movement helped spur the emergence of social welfare standards like SA8000, which provides a framework for ethical labour practices.  

Similarly, NGO campaigns and consumer concerns about illegal and destructive logging led to the formation of the Forest Stewardship Council (FSC). The FSC scheme introduced both a standard for certifying responsible forest management, and a traceability and labelling system so customers could be sure the timber products they were buying came from responsible sources.

By providing credible, voluntary mechanisms for companies to meet stakeholder expectations, systems like these became recognised benchmarks for corporate responsibility. Today, there are over 300 voluntary sustainability systems (according to the ITC Standards Map), spanning nearly all sectors, from agriculture to textiles to extractives.  

From niche to mainstream

As understanding of sustainability issues increased during the first decades of the 21st century, expectations on businesses to tackle these challenges increased significantly. But pressure wasn’t coming only from activists or concerned consumers. International conventions, governments, investors and businesses themselves were increasingly demanding that companies address sustainability risks in their supply chains, recognising that this isn’t just the right thing to do but also brings business benefits.

In many sectors and markets, sustainability systems are no longer seen as a ‘nice to have’ but as an essential precondition for doing business. By promoting continuous improvement, they’ve raised the bar for how responsible businesses should operate. Many have expanded their scope to tackle further challenges, while helping to drive progress through collaborations, capacity building, advocacy and innovative tools.  

Governments also started to take a much more active role in legislating company performance, particularly around due diligence and claims. CSR frameworks gained traction, supported by policy incentives and stakeholder demand. In 2015, the adoption of the UN Sustainable Development Goals (SDGs) added momentum, pushing businesses to commit to global sustainability targets and be held accountable.  

Amid these shifts, ISEAL has played a critical role. For over 20 years, we’ve supported and strengthened the credibility of sustainability systems. Today, we have a membership of 49 organisations across sectors ranging from seafood to mining to tourism, all committed to increasing their impact and effectiveness.

"I’ve been with ISEAL since the beginning and have witnessed first-hand the evolution of sustainability systems. It’s a truly exciting time. These systems now carry a real responsibility: not just as tools for businesses, but as signals to governments and policymakers that sustainability must be taken seriously. And they come with decades of practical field experience that can inform and shape effective policy interventions." Patrick Mallet, Director, Innovations & Credibility.

Policy shift: regulation on the rise

Today, we’re seeing another significant shift. Voluntary systems once filled the gaps left by a lack of regulation, but governments are now taking a much more active role in addressing sustainability issues.

Businesses increasingly have a legal responsibility for what is happening in their supply chains. New legislation in the EU and elsewhere requires businesses to carry out due diligence on issues such as human rights and deforestation, while sustainability claims are also being regulated.  

The rise in legislation is welcome, but it’s also complex. Companies need help navigating overlapping rules, operationalising due diligence and demonstrating compliance.  

Credible sustainability systems are well placed to support this shift – bringing years of practical experience, established frameworks and trusted verification systems to the table.

The case for a smart mix

What’s needed is not a choice between regulation and voluntary action, but a smart mix of both.  

A smart mix recognises that effective sustainability governance relies on complementary tools:

• Mandatory measures, such as due diligence laws or environmental disclosure requirements, provide clear legal obligations and set the floor for minimum performance.
• Voluntary sustainability systems help push performance beyond compliance. They bring in technical expertise, stakeholder engagement, continuous improvement mechanisms and independent assurance – all of which are difficult to replicate in legislation alone. And they continue to raise the bar, going beyond legal requirements to address issues like smallholder inclusion and living wages.  

A turning point

Sustainability systems are no longer niche tools for responsible businesses. They are central actors in the global sustainability infrastructure enabling accountability, credibility and continuous progress.

Their evolution reflects a deeper recognition that sustainability is multi-dimensional and urgent. From corporate reporting to smallholder inclusion, and from climate resilience to supply chain due diligence, voluntary systems are shaping how sustainability is understood, measured and achieved.

As governments look to scale action through new policies and regulation, it’s time to fully recognise what these systems offer and to use them wisely as part of a smart, ambitious, and effective sustainability agenda.