subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Apple CEO Tim Cook attends the annual developer conference event at the company's headquarters in Cupertino, California, US on June 10 2024. PIcture: REUTERS/CARLOS BARRIA/FILE
Apple CEO Tim Cook attends the annual developer conference event at the company's headquarters in Cupertino, California, US on June 10 2024. PIcture: REUTERS/CARLOS BARRIA/FILE

A new Brand Finance report reveals a slight decline in the influence  of sustainability's influence on consumer choice, though it remains a key factor globally. From 2024 to 2025 the influence of sustainability declined in 38 out of 48 industry sectors. Brand Finance’s Sustainability Perceptions Index 2025 says this may be driven by environmental, social and governance (ESG) backlash, cost of living concerns or a mix of other factors.

Apple registered the highest sustainability perceptions value,  at $39bn.  This is despite regular criticism the brand faces about issues such as labour conditions, its sourcing of key minerals in conflict zones and greenhouse gas emissions.

The report says: “Apple’s position at the top of the table is not an assessment of its actual sustainability performance, nor does it imply that Apple is perceived to have an exceptional commitment to sustainability. Rather, it reflects the fact that the preponderance of consumers around the world believe that Apple is making efforts to minimise its negative effects. They feel Apple is committed to sustainability — or at least committed enough for them to continue using its products.”

In the apparel sector, The North Face and Patagonia enjoy strong sustainability perceptions, with both brands promoting their lower-impact and circular products. In the personal brands sector, Dove, The Body Shop and L’Occitane are among the most highly recognised for sustainability across the US, the UK, Germany, India, China and France. Brand Finance says The Body Shop helped set early standards for sustainability through its advocacy against animal testing and environmental campaigning.

Electric vehicle manufacturers are perceived to be strong on sustainability. Even Tesla — despite facing setbacks — netted high environmental perceptions in the US and China. Interestingly, however, as perceptions have fallen Tesla has lost $7.3bn in sustainability-driven brand value.

In the luxury and premium market segment, sustainability continues to play a bigger role in driving choice, according to Brand Finance research. Sustainability as a demand driver is 50% more important in luxury cosmetics than in the wider cosmetics market and 23% more important in the luxury automotive market. Brand Finance says a brand’s sustainability commitments may imply a slight cost increase that necessitates more premium positioning.

[Consumers]  feel Apple is committed to sustainability — or at least committed enough for them to continue using its products
Brand Finance Sustainability Index 2025

Though sustainability is often seen to be most salient in consumer decision-making, the research indicates that it has an equally powerful role in a business-to-business context. Sustainability accounts for a 15.8% choice variation in IT services — up 1.7% from 2024. IT services brands such as TCS, HCL and Infosys have made sustainability a significant theme in their marketing for many years, backed by commitments to educate their staff and improve the efficiency of their own operations.

The brands that are best perceived across the ESG dimensions of sustainability are those that overtly make ESG part of their positioning, says the report. “In the food sector, common themes among brands with sustainability-led positioning include the health and environmental benefits of local ingredients and lower-carbon plant-based alternatives.”

The report adds that supporting small businesses and local producers not only reduces environmental influence through shorter supply chains but also empowers consumers to align their purchases with their values, reinforcing both environmental and social sustainability.

The research finds that performance and perception are often not aligned. Microsoft, for example, demonstrates leadership on sustainability, especially relative to many of the world’s largest brands. However, it has the highest “gap value” of any brand in the index. The gap value represents the difference between perceived sustainability and actual sustainability performance. A positive value indicates that a brand’s sustainability performance is better than its perceptions suggest.

Brand Finance says that scaling back communication about  sustainability in fear of stakeholder criticism — greenhushing — has drawbacks. Brands that fail to convey their progress on sustainability are leaving money on the table, reducing value for shareholders.

The big take-out: Brands that fail to convey their progress on sustainability are leaving money on the table, reducing value for shareholders.

Read more:

 

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.