This document discusses how the correlation between sustainability and brand strength has changed in recent years. It finds that perceived sustainability performance is strongly correlated with several measures of brand strength and operating performance. Data from four organizations (InterBrand, BrandFinance, RepTrak, and Capstone) show that perceived sustainability performance correlates with 22% higher brand strength on average, 29% lower reputational risk, 44% higher engagement on digital communications, and 9% lower cost of credit. While the relationships are complex, the data provides evidence that sustainability positively impacts brands and business operations, especially around environmental and employee issues. Improving sustainability performance can thus create greater market and societal value for companies.

1. Cynthia Figge CSRHub
How the Correlation between Sustainability
and Brand Strength has Changed in the Last
Few Years

2. How the Correlation between
Sustainability and Brand
Strength has Changed in the
Last FewYears
(More Proof That Sustainability Drives Operating
Performance)
By Cynthia Figge
COO & Co-Founder, CSRHub & EKOS
June 2, 2015

3. •Challenge – CSR/sustainability is still
seeking & defining the “nexus”
•Truth – sustainability strongly effects:
- Brand Strength
- Reputation Risk
- Digital Communications
- Cost of Credit
N H
E
S

4. 21%
InterBrand
Three Brand Measures Show Strong Effect
by Perceived Sustainability Performance
15%
BrandFinance
31%
RepTrak

5. Four Different Measures Correlate With
Perceived Sustainability Performance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Brand Strength
22%
(Average)

6. Four Different Measures Correlate With
Perceived Sustainability Performance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Brand Strength Reputational Risk
22%
29%
(Average) (RepRisk)

7. Four Different Measures Correlate With
Perceived Sustainability Performance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Brand Strength Reputational Risk Digital Communications
22%
29%
44%
(Average) (RepRisk) (Investis)

8. Four Different Measures Correlate With
Perceived Sustainability Performance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Brand Strength Reputational Risk Digital Communications Cost of Credit
22%
29%
44%
9%
(Capstone)(Average) (RepRisk) (Investis)

9. But, the Relationships Are Subtle and
Demand Study
Environment Social Governance
Brand
Reputation Risk
Digital
Communications
Cost of Credit

10. We Believed All Along, But Now We
Know
• Sustainability drives brand and
other operating areas.
• Effect is most powerful across
environmental and employee issues.
• Let’s operate at the nexus for
greater market and societal value.

11. Please visit:
www.CSRHub.com
cynthia@csrhub.com
Cynthia Figge