Jan. 15, 2008 Corporate voluntary environmental programs (VEPs) like IS0 14001, the chemical industry's Responsible Care, and EPA's Climate Leaders are popular with industry, but are they effective? Triple Pundit reports on a surprising new study that shows VEPs have only moderate impact among program participants, but have a longer reach than you might think.

"Assessing the Performance of Voluntary Environmental Programs: Does Certification Matter?" examines two kinds of VEPs: those that are self-monitored and those that require third-party verification of results. The report finds that third-party VEPs, such as ISO 14001, perform moderately better than self-monitored VEPs. Perhaps more surprisingly, the study also shows that companies that don't participate in VEPs actually perform a bit better than VEP members within the same sector.

The report's authors point to the second finding as evidence that VEPs are actually very effective tools for communicating green strategies, not only among other players within the industry but also among stakeholders and policymakers. In addition, VEPs serve as catalysts for change at the management level.

The study identifies three key factors that prevent many VEP participants from making significant gains in environmental performance:

1. Lack of public accountability. Of VEPs that call for third-party certification, only a few require companies to publicly disclose the verified outcome.
   
2. Few consequences. Just a handful of VEPs cancel the memberships of companies that fail to follow through on their commitments.
3. Absence of "low-hanging fruit." Companies that participate in VEPs are likely to have already implemented the most accessible strategies for improving environmental performance.

The report concludes that improvements in VEP design, such as strengthening reporting requirements and sanctioning mechanisms, can make VEPs a more effective instrument for companies seeking to adopt sustainable practices.