The main reason we encourage labels is to create a trustworthy information channel from food producers to their consumers, where they can transparently communicate that they work on climate change as well as their progress.
The labels are not only participation trophies but quantitative values to facilitate transparency in how well food producers perform. These quantifiable values hold producers accountable and enable consumers to navigate between products on that same ground: Which producer puts little effort into the issue and who is making major investments.
The added value of the labels is that food producers leverage the consumer demand for climate-friendly products with a transparent and reliable communication channel; with information that makes a distinction between greenwashing and the real thing accessible to consumers.
Transparency is followed by accountability. When the company claims to improve or be best-in-class, they need to back it up with data on the consumer-facing front. They can only look the best by being the best. Their consumers can start demanding further improvement and tell when it is delivered.