Launched in Davos in January 2023, the International Advertising Association proudly presents: The Brand Sustainability Perception Index - 2023!

In association with the IAA, Brand Finance reveals a first of its kind, global study covering 36 countries and 4,000 brands that places a financial value on a brand's reputation for sustainability.

As consumers become more aware of environmental and social issues, they are increasingly taking into account a company's sustainability practices when making purchasing decisions. If a company is perceived as not being environmentally or socially responsible, it may lead to negative perceptions of the brand and ultimately result in a decrease in sales and customer loyalty. CMOs should therefore consider incorporating sustainability, in an authentic way, into their marketing strategies to appeal to conscious consumers and mitigate brand value erosion.

Brand Finance Strategy and Sustainability Director Robert Haigh commented, “For the first time, companies can now see the financial value that is tied to a reputation for acting sustainably. Whether they are seen as sustainability champions or not, the world’s biggest brands have hundreds of millions of dollars’ worth of value contingent on how sustainable they are perceived to be”

Report reveals consumers are fairly trusting of brand's sustainability related communication, with 62% believing claims about sustainability made by brands.

However, 79% of consumers also said that they had reduced their use of a brand having discovered it was acting in an unsustainable way, reinforcing the imperative for brands to communicate clearly, authentically and accurately. So #greenwashing is a risky business.

Commenting on the report, Sasan Saeidi, the IAA's World President & Chairman said: "We're extremely proud to be associated with Brand Finance on the release of its first Sustainability Perception Index in Davos. We want to ensure sustainability becomes an even bigger focal point for us at IAA in 2023".

Sasan added: "Measuring the sustainability perception of some of the world's biggest brands is quite unique as it opens up areas of self-reflection as a means to assess progress or the dialing up of efforts. We need more brands to commit authentically to the sustainability cause and this report from Brand Finance really helps us put the topic of sustainability into perspective".

Dagmara Szulce, Managing Director, IAA Global commented, “We see this as an incredibly potent tool to incentivize action against the UN SDGs and wider aims of the UNGC. By highlighting the financial value that is contingent on sustainability perceptions, we hope to harness businesses’ profit motive, moving them past the point where they see sustainability as a ‘hygiene factor’, to a point of rapid, concerted action.”