Marketing & Communications

EU Consumers the Most Skeptical of Corporate Sustainability Claims

Brand Finance Europe 500 2024 ranking reveals the 500 most valuable European brands, with insights on European perceptions of brands’ sustainability efforts.

Published 1 month ago | About a 4 minute read

Image: Mercedes-Benz has the highest Sustainability Perceptions Value (€13.7B) of any brand in this year's ranking. | Mercedes-Benz

European consumers are significantly more discerning about a brand’s commitment to sustainability than consumers in other regions, according to new research from brand-valuation consultancy Brand Finance.

Brand Finance’s Global Brand Equity Monitor (GBEM) — which surveyed over 150,000 respondents across 16 European and 24 non-European markets — reveals that European respondents are 25 percent less likely to agree that a brand is committed to environmental sustainability, 26 percent less likely to buy into social sustainability claims, and 22 percent less likely to agree on governance, compared to non-European respondents.

Further analysis shows significant differences within Europe itself. Swiss consumers are the most skeptical — with 23 percent disagreeing that brands are committed to environmental sustainability — followed by consumers in the Netherlands (21 percent), Denmark (20 percent), and Norway (20 percent).

“Brand Finance’s research consistently shows that perceptions of corporate brands vary significantly across regions, with sustainability being a key area where European consumers set a higher standard,” explains Rob Haigh, Strategy & Sustainability Director at Brand Finance. “Sustainability has been a demand driver in Europe for longer than anywhere else; consumer awareness of a range of sustainability issues is high; and Europe continues to lead in sustainability regulations, particularly with the EU’s Corporate Sustainability Reporting Directive (CSRD).

“Sustainability claims must always be genuine and supported by real practices," he added. "But this is particularly true in Europe — where any real or perceived greenwashing is likely to be more rapidly exposed.”

Europe’s strongest and most valuable brands

Brand Finance defines “brand value” as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. “Brand strength” is the efficacy of a brand’s performance on intangible measures relative to its competitors.

Deutsche Telekom retained its title as Europe’s most valuable brand for the second year in a row — its brand value rising 13 percent to €68.4 billion — with fellow German brand Mercedes-Benz (brand value €55.5 billion) in second position. UK semiconductor brand Arm saw its brand value increase to €1.1 billion — nearly five times its 2023 value — making it the fastest-growing European brand, driven by the global AI boom and more recently, generative AI.

The latest Brand Finance Europe 500 ranking finds Switzerland’s Rolex is now Europe’s strongest brand with a Brand Strength Index (BSI) score of 90.2 out of 100 and an AAA+ rating. Rolex’s brand strength is underpinned by its strong performance for familiarity and reputation — the watchmaker achieves a perfect score of 10 for both metrics.

Italy’s Ferrari (brand value up 38 percent to €9.9 billion) is now Europe’s second-strongest brand, with a BSI of 90.0 out of 100. France’s Chanel made a significant leap, with its brand value increasing 30 percent to €24.3 billion and its BSI ranking catapulting from 48th to fourth place with an AAA rating. Fellow French brand Dior and Germany’s Porsche have also joined the ranks of Europe’s top ten strongest brands — securing eighth and ninth positions, respectively.

Sustainability Perceptions Value

Brand Finance also uses its GBEM research to compile its Sustainability Perceptions Index — which determines:

the role of sustainability in driving consumer choice
which brands consumers believe to be most committed to sustainability
the proportion of brand value attributable to sustainability perceptions, and
the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.

At €13.7 billion, Mercedes-Benz has the highest Sustainability Perceptions Value (SPV) of any brand in the ranking, followed by Porsche (SPV EUR9.8 billion) and BMW (SPV €9.4 billion). Brand Finance research finds that sustainability is a crucial driver of choice for consumers in the luxury auto and auto sectors — at 23.8 percent and 11.5 percent, respectively.

The firm’s perceptual research is analyzed alongside CSRHub’s ESG performance data to determine a brand’s “gap value” — the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance — which Brand Finance estimates can be in the billions. At €696 million, Chanel has the highest positive gap value among European brands — suggesting that Chanel could generate up to €696 million in additional value through enhanced communication of its sustainability impact and accomplishments. Louis Vuitton, with a positive gap of €558 million, and Aldi (€498 million) have the second- and third-highest positive gap values.

The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Europe 500 2024 ranking.