Sustainability influence stabilizes across global industries

Sustainability’s role in shaping consumer choice is stabilizing across global industries, according to the latest Sustainability Perceptions Index from Brand Finance, pointing to a more measured influence after recent declines.

The report shows that 24 of 48 sectors recorded a drop in sustainability influence between 2025 and 2026, compared with 38 sectors in the previous cycle, indicating that the pace of decline is slowing.

Shift towards focused engagement

Robert Haigh, Strategy & Sustainability Director: "Although there has been a continued decline in the role of sustainability in 2026, this is less pronounced than in 2025, suggesting limits to the so called ‘ESG backlash’ and perhaps a shift towards more focused and credible sustainability engagement on the part of brands."

The findings suggest brands are refining how they approach sustainability, with greater emphasis on credibility and targeted initiatives rather than broad positioning.

Tech brands lead sustainability-linked value

Google holds the highest proportion of brand value linked to perceived sustainability commitment, reaching USD41.9 billion. The valuation reflects consumer belief that the company is taking appropriate steps to reduce negative impacts and invest in environmental and social initiatives, rather than a direct measure of performance.

This trend coincides with increased investment in artificial intelligence across industries, which continues to shape brand perception and value creation.

Perception gaps highlight communication opportunities

Apple records the highest Gap Value in the index, exceeding USD2.6 billion. This metric captures the difference between perceived sustainability and actual performance, with a positive figure indicating potential for stronger value through clearer communication of sustainability efforts.

The findings point to a broader opportunity for brands to align perception with performance through more effective messaging.

Tesla faces continued reputational decline

Tesla has seen its sustainability-driven brand value fall for a third consecutive year, dropping by USD7.7 billion. Perceptions of its environmental commitment declined across most tracked markets, including the UK, U.S., and Germany, with many registering double-digit percentage decreases over three years.

Robert Haigh, Strategy & Sustainability Director: "Tesla has undoubtedly played a major role in accelerating global EV adoption and advancing sustainability. However, its sustainability scores lag the sector average due to governance and labour concerns and continued controversies surrounding Elon Musk. Brand Finance’s research shows the decline extends beyond the environmental dimension, with Tesla’s social and governance scores falling just as much. As we previously warned, this deterioration has had a significant financial impact: Tesla’s brand value fell from USD66.2 billion in 2023 to USD27.6 billion in early 2026, while sustainability-linked value dropped from USD17.8 billion to USD2.7 billion. This clearly highlights that EV leadership alone is no longer enough to protect the Tesla brand, even as climate awareness continues to rise."

Regional brands shape local leadership

In the United States, Patagonia and The North Face rank highest for sustainability perceptions.

In the UK, The Body Shop and Lush lead, while Rolls-Royce scores strongly on governance. In Germany, Alnatura leads on environmental and social factors, while dm ranks highest on governance.

In France, Michelin and La Roche-Posay lead on environmental and social measures, while Hermès tops governance rankings.

Across Asia-Pacific, Tata Group, Taj Hotels, and Amul stand out in India. In China, BYD and State Grid Corporation of China lead environmental perceptions, while Huawei ranks highly on governance. In Australia, Goodman Group and Aesop stand out on environmental measures, while Australia Post performs strongly on governance.

www.brandfinance.com

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