social labelling scheme

A social labelling scheme is a third-party certification system that verifies goods have been produced under decent working conditions and in compliance with fundamental labour standards. These schemes are typically anchored in the ILO core conventions and audited by independent certification bodies. Well-known examples include Fairtrade, Rainforest Alliance, and UTZ.

How does a social labelling scheme work?

Article 43 of EU Directive 2014/24/EU allows contracting authorities to require a specific label as proof that works, supplies, or services meet particular social, environmental, or other characteristics. This means public buyers can use social labels as a documentation tool when setting requirements for social procurement.

For example, a contracting authority purchasing coffee or textiles can require products to bear a Fairtrade certificate or equivalent social label. The requirement can be included in the requirements specification, used as an award criterion, or set as a contract performance condition.

For a label requirement to be lawful, the labelling scheme must meet the conditions set out in Article 43:

• The label requirements must be linked to the subject matter of the contract
• The criteria must be verifiable and non-discriminatory
• The label must be established through an open and transparent procedure
• Certification must be carried out by an independent third party

Accepting equivalent labels

Contracting authorities must accept other labelling schemes that confirm equivalent requirements are met. Tenderers without the specified label can also provide alternative evidence — such as test reports or a technical dossier — demonstrating compliance. This ensures equal treatment and prevents any single certification scheme from becoming a gatekeeper to public contracts.

Tools like Cobrief can help suppliers identify tenders where social labels are required or rewarded, so they can prepare their documentation ahead of time.

Summary

Social labelling schemes give public buyers an efficient way to set and verify social requirements without having to build proprietary audit mechanisms across the entire supply chain. The CJEU's Max Havelaar ruling (C-368/10) and Article 43 of Directive 2014/24/EU have established a clear legal basis for using social labels in public procurement — provided the conditions for transparency, equal access, and non-discrimination are met.