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Sustainable Brand Perception vs.
Performance: Reducing the Gap
¡    Tom Zara, Global Practice Leader of Corporate
      Citizenship, Interbrand




                Sustainable Brands
                London Conference
BEST GLOBAL
GREEN BRANDS
2012
27 November 2012
Agenda



                                                           1.  Introduction to the Interbrand
                                                               Best Global Green Brands rankings

                                                           2.  Brand value perception methodology

                                                           3.  Sustainability performance methodology

                                                           4.  Value of sustainability reporting and disclosure
                                                               strategy




2 | Best Global Green Brands | London | 27 November 2012
The world is moving to a new center of gravity
A glut of promotion and hype has created a cynical audience




4 | Best Global Green Brands | London | 27 November 2012
Yet, there is clearly a lot of noise around
sustainability
We call this new paradigm ‘Corporate Citizenship’



                                                           How a Company treats….


    Government                    Employees                 Customers     Suppliers   Community   Planet




                                                           …defines their perceived
                                                           “Corporate Citizenship”


6 | Best Global Green Brands | London | 27 November 2012
Critical examination of a key constituent



                                                           How a Company treats….


    Government                    Employees                 Customers     Suppliers   Community   Planet




                                                           …defines their perceived
                                                           “Corporate Citizenship”


7 | Best Global Green Brands | London | 27 November 2012
Methodology




8 | Best Global Green Brands | London | 27 November 2012
Our Starting Point
79 Brands Evaluated

Performance Score



 The performance score is calculated by Deloitte based on these 6 pillars:

     Governance                                             Stakeholder Engagement
     Policies and mechanisms put in place by                The degree to which the company recognizes
     the company to manage environmental                    and engages with the various relevant
     impacts and successfully set and execute               stakeholder groups associated with the
     environmental programs.                                company.

     Operations                                             Supply Chain
     The company’s performance across operations as         The company’s performance in measuring,
     measured in energy efficiency, GHG emissions,          reporting, and mitigating the environmental
     water management, waste management, and toxic          performance of their supply chain.
     emissions management.


     Transportation and Logistics                           Products and Services
     The company’s performance in measuring,                The product portfolio of the company and an
     reporting, and mitigating the environmental            evaluation of the green attributes of its
     performance of their transportation and logistics,     products, including product efficiency,
     business travel and commuting.                         sustainable production, and use of
                                                            life cycle assessment.

11 | Best Global Green Brands | London | 27 November 2012
Green perception assessment is based on a survey



   •  We interviewed a total of 10,000 consumers via an
      online survey
   •  Each brand was rated by at least 125 consumers per market (a total of
      1,250 respondents per brand)
   •  The markets included the top 10 countries in terms of economic impact
      (highest percentage of global GDP)


      United                                                                United
                        Japan            China          Germany   France             Italy   Brazil   Spain   Canada
      States                                                               Kingdom




12 | Best Global Green Brands | London | 27 November 2012
Perception Score



 The perception score is calculated by Interbrand based on the 6 external
 factors of our brand strength components:

     Authenticity                                           Relevance
     The perceived credibility of the brand’s               An assessment of the relevance of brand’s
     environmental claims.                                  environmental claims. This involves comparing the
                                                            perceived importance of green activities for the
                                                            category with the brand’s green perception.

     Differentiation                                        Consistency
     How differentiated the brand’s green efforts           The consistency of the brand’s
     are perceived to be relative to other                  various green communications
     competitors in the category.                           across all touchpoints.


     Presence                                               Understanding
     Consumer awareness of the brand’s                      The level of understanding of the brand’s
     green activities and its green                         green activities as a whole.
     reputation in the market.



13 | Best Global Green Brands | London | 27 November 2012
The gap
 Two frequent scenarios

 Internal                                                       External




                                                            >
                                                                                    Company is engaging in
                  Green                                                  Green      meaningful green
               Performance                                             Perception   initiatives, but the
                  Score                                                  Score      marketplace doesn’t
                                                                                    know about it




                                                            <
                  Green                                                  Green      Company is engaging in
                                                                                    greenwashing or is
               Performance                                             Perception
                                                                                    benefiting from a strong
                  Score                                                  Score      brand halo effect




14 | Best Global Green Brands | London | 27 November 2012
Sustainable Brand Perception vs. Performance: Reducing the Gap - Tom Zara
Sustainable Brand Perception vs. Performance: Reducing the Gap - Tom Zara

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Sustainable Brand Perception vs. Performance: Reducing the Gap - Tom Zara

  • 1. Sustainable Brand Perception vs. Performance: Reducing the Gap ¡  Tom Zara, Global Practice Leader of Corporate Citizenship, Interbrand Sustainable Brands London Conference
  • 3. Agenda 1.  Introduction to the Interbrand Best Global Green Brands rankings 2.  Brand value perception methodology 3.  Sustainability performance methodology 4.  Value of sustainability reporting and disclosure strategy 2 | Best Global Green Brands | London | 27 November 2012
  • 4. The world is moving to a new center of gravity
  • 5. A glut of promotion and hype has created a cynical audience 4 | Best Global Green Brands | London | 27 November 2012
  • 6. Yet, there is clearly a lot of noise around sustainability
  • 7. We call this new paradigm ‘Corporate Citizenship’ How a Company treats…. Government Employees Customers Suppliers Community Planet …defines their perceived “Corporate Citizenship” 6 | Best Global Green Brands | London | 27 November 2012
  • 8. Critical examination of a key constituent How a Company treats…. Government Employees Customers Suppliers Community Planet …defines their perceived “Corporate Citizenship” 7 | Best Global Green Brands | London | 27 November 2012
  • 9. Methodology 8 | Best Global Green Brands | London | 27 November 2012
  • 12. Performance Score The performance score is calculated by Deloitte based on these 6 pillars: Governance Stakeholder Engagement Policies and mechanisms put in place by The degree to which the company recognizes the company to manage environmental and engages with the various relevant impacts and successfully set and execute stakeholder groups associated with the environmental programs. company. Operations Supply Chain The company’s performance across operations as The company’s performance in measuring, measured in energy efficiency, GHG emissions, reporting, and mitigating the environmental water management, waste management, and toxic performance of their supply chain. emissions management. Transportation and Logistics Products and Services The company’s performance in measuring, The product portfolio of the company and an reporting, and mitigating the environmental evaluation of the green attributes of its performance of their transportation and logistics, products, including product efficiency, business travel and commuting. sustainable production, and use of life cycle assessment. 11 | Best Global Green Brands | London | 27 November 2012
  • 13. Green perception assessment is based on a survey •  We interviewed a total of 10,000 consumers via an online survey •  Each brand was rated by at least 125 consumers per market (a total of 1,250 respondents per brand) •  The markets included the top 10 countries in terms of economic impact (highest percentage of global GDP) United United Japan China Germany France Italy Brazil Spain Canada States Kingdom 12 | Best Global Green Brands | London | 27 November 2012
  • 14. Perception Score The perception score is calculated by Interbrand based on the 6 external factors of our brand strength components: Authenticity Relevance The perceived credibility of the brand’s An assessment of the relevance of brand’s environmental claims. environmental claims. This involves comparing the perceived importance of green activities for the category with the brand’s green perception. Differentiation Consistency How differentiated the brand’s green efforts The consistency of the brand’s are perceived to be relative to other various green communications competitors in the category. across all touchpoints. Presence Understanding Consumer awareness of the brand’s The level of understanding of the brand’s green activities and its green green activities as a whole. reputation in the market. 13 | Best Global Green Brands | London | 27 November 2012
  • 15. The gap Two frequent scenarios Internal External > Company is engaging in Green Green meaningful green Performance Perception initiatives, but the Score Score marketplace doesn’t know about it < Green Green Company is engaging in greenwashing or is Performance Perception benefiting from a strong Score Score brand halo effect 14 | Best Global Green Brands | London | 27 November 2012