Today, brand-valuation consultancy Brand Finance unveiled the 2025 edition
of its Sustainability Perceptions
Index — an
annual study that measures the financial value of sustainability perceptions and
reveals where brand reputation and ESG performance are out of sync.
Based on research with over 150,000 respondents across 40 countries, the study —
now in its third year — articulates how the public’s perception of a brand’s
commitment to sustainability can drive (or threaten) financial value by
determining whether public perceptions (Sustainability Perceptions Value
[SPV]) align with the actual performance of each brand — and the financial
risks associated with any gap (Gap Value). Brand Finance calculates
Sustainability Perceptions Value and Gap Value by combining survey data with ESG
performance ratings from CSRHub.
“Brand Finance’s Sustainability Perceptions Index (SPI) links sustainability
perceptions with financial value; and every year, the research is
enthusiastically endorsed by the IAA,” says Dagmara
Szulce, Managing Director at the
International Advertising Association. “It’s easy
to understand why we’re passionate about this report — not only do the insights
become richer and more robust with each iteration, but it’s increasingly evident
that SPI data is a vital tool for businesses across sectors to fully realise
the value of the sustainability work they are already
doing.”
How perception, not performance, shapes brand value
The Index assesses public perception of brand sustainability efforts, not their
actual performance; the two brands with this year’s highest SPV illustrate the
power of customer belief in shaping brand value:
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Apple retains the highest total SPV of any brand at US$39.0
billion. This reflects strong public belief that Apple is acting
sustainably, despite ongoing criticism around labor conditions and
environmental
impact.
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Microsoft ranks second in overall value but leads on untapped potential:
With a positive Gap Value exceeding US$5.6 billion, Microsoft’s
actual sustainability performance is significantly
stronger
than it is perceived to be. This gap represents brand value that could be
unlocked through clearer communication of the company’s progress in these
areas.
As Robert Haigh, Strategy
& Sustainability Director at Brand Finance, points out: “Brands are increasingly
walking a tightrope on sustainability. Overstating progress creates reputational
risk, but failing to communicate genuine action means leaving millions in brand
value on the table. As pressure from investors and regulators grows, clarity and
consistency will become the key differentiators.”
Another unique case is Tesla — which Brand Finance estimates has lost over
US$7.3 billion in sustainability-driven brand value in the past year. In
2023, Brand Finance identified US$4.1 billion of sustainability value at
risk
for Tesla, due to a widening gap between its strong environmental image and
weaker governance and social
performance.
That risk has now become reality: Tesla’s total brand value has dropped from
US$66.2 billion to US$43.0 billion, with its SPV falling from US$17.8 billion
to just US$10.4 billion.
While the brand is still associated with environmental innovation, its
sustainability perceptions have declined significantly across global markets.
According to Brand Finance research, perception of Tesla’s environmental
commitment saw double-digit drops in China, Denmark and Norway —
with further declines of more than 5 percent in key markets including the
US, UK and Australia — following growing scrutiny of Tesla’s labor
practices; supply chain oversight; and the erratic, self-serving public actions
of its
CEO,
particularly in the US.
Other SPI 2025 highlights
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Brands with strong and consistent sustainability communications continue to
lead. Huel, Dove, Trader Joe’s, Patagonia, The
North Face and Tata are among those with the highest
sustainability perceptions in their sectors.
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Greenhushing, where brands hold back from communicating genuine
sustainability achievements to avoid criticism, remains widespread. Brand
Finance analysis shows that 98 of the 500 brands have a positive Gap
Value — value that can be captured from enhancing communication about
sustainability to align perception with performance — of over US$100
million, a jump from the 85
brands
assessed to be leaving that significant value on the table in 2024.
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Sustainability continues to influence brand
choice,
particularly in premium sectors. In the luxury auto category,
sustainability accounts for 23 percent of brand choice — double the figure
for the broader automotive market. Similarly, high drivers are seen in
champagne and luxury cosmetics — where sustainability plays a
stronger role than in their respective mass-market counterparts.
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In B2B markets, sustainability is also gaining ground. In IT services —
where brands such as HCL, Infosys and TCS have long invested in
ESG messaging — sustainability now accounts for 16 percent of brand choice.
“The boardroom discussions on sustainability have long been contentious — as
business leaders navigate (sometimes opposing) demands around profitability,
investor expectations, regulatory scrutiny and building long-term brand value,”
says IAA President & Chairman Sasan
Saeidi. “These decisions have only
become more complex in the past year or so, as there has been rising political
attacks and media attention on corporate DEI and ESG.
“In addition to considering greenwashing and greenhushing, boards must also
factor in the current political environment and potential backlash when
determining their communications strategy on corporate sustainability. Data is
the antidote to chaos, empowering brands to ensure sustainability is a true
driver of brand equity.”
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Sustainable Brands Staff
Published Jun 5, 2025 8am EDT / 5am PDT / 1pm BST / 2pm CEST