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Question 8

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Question 8/136

The European Union (EU) Ecolabel:

A. is the official EU voluntary label for environmental excellence

B. targets explicit claims made on a voluntary basis by businesses towards consumers

C. flags products that have a guaranteed, independently verified, high environmental impact

Correct Answer: A

The European Union (EU) Ecolabel is the official EU voluntary label for environmental excellence.
* EU Ecolabel Overview: The EU Ecolabel is a recognized certification that indicates a product or service has a reduced environmental impact throughout its lifecycle.
* Voluntary Participation: Businesses can voluntarily apply for this label, demonstrating their commitment to environmental excellence and compliance with rigorous environmental criteria set by the EU.
* Consumer Trust: The label helps consumers identify products and services that are environmentally friendly and meet high environmental standards, promoting sustainable consumption.
CFA ESG Investing References:
The CFA Institute's discussions on environmental labels and certifications highlight the role of the EU Ecolabel as a voluntary but stringent standard for environmental excellence, helping consumers and investors make informed, sustainable choices.

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