To accelerate the transition towards a sustainable society, changes in consumption and production decisions are crucial. Eco-labelling type I is an instrument with a potential to create incentives for changes towards strategic life cycle management along value chains to achieve products that aid society's compliance with sustainability principles. But the mere existence of this instrument is not enough to utilize this potential. In a previous study, applying a Framework for Strategic Sustainable Development as a foundation for the analysis, we have pointed at deficiencies in theory and process of eco-labelling which hamper cohesiveness, transparency and comprehension. In this paper, we present a prototype criteria development process and discuss it in relation to current processes. From this comparison we conclude that the new criteria development process has the potential to support strategic life cycle management