A relatively new concept within demand management for time window assignment is green labeling; time windows which contribute to improving the routing performance in terms of sustainability. Certain time slots are given a so-called green label. From literature, limited information is known about the choice preference with regard to green labeling and its impact on routing performance. Via choice modeling, certain attributes are estimated based on a data set from an e-grocer. Together with a beta estimate on green labeling from literature, the effect of green labeling on choice behavior is analyzed. The results are used for route optimization where the effect of various static and dynamic approaches are tested. Results show that dynamic green labeling has the most promising effect on routing performance in terms of costs and sustainability. Especially when customers are more nudged toward the largest time windows in less popular day parts. The CO2 emissions decrease by 127.4 CO2 per order and the costs decrease by 1.03 euro per order on average. These results are based on the specific situation of the e-grocer in the case study. With regard to choice modeling, this research is limited to only time window characteristics. The improvements in terms of costs and sustainability per green labeling approach, based on the attributes resulting from real-data choice modeling, contribute to more knowledge on the effect of green labeling on routing performance.