Consumers are doubting whether brands are truthful about their sustainability efforts. Operating in a field seen in a positive light may help gain the trust of consumers.
The Sustainable Brand Index™ report for 2024 reveals a shift in consumer perceptions toward sustainable brand images. There has been a strong positive trend – brands have been perceived more positively regarding sustainability over time – but now the numbers show a clear decline.
The Sustainable Brand Index™ is Europe’s largest independent brand study on sustainability and it has been conducted annually since 2011. A Swedish insight agency SB Insight compiles a study that covers the Nordics, the Netherlands and the Baltics.
Strong market position and clear communication improve consumers’ perception of the sustainability of brands
According to SB Insight, one of the biggest reasons for consumers viewing brands less favourably when it comes to sustainability is the lack of communication. Many brands have cut back on the communications department in difficult economic times. Thus, consumers are not exposed to the brands’ messages, which leads to a poorer assessment of the brand’s sustainability.
On the other hand, a fear of potential criticism also plays a significant role. Concerns over being accused of greenwashing lead brands to reduce their communication. This fear of potential backlash can even extend to brands that are genuinely making positive efforts, causing them not to communicate (greenhushing).
However, this negative trend is also attributed to a mix of scandals, greenwashing allegations, and a growing consumer awareness. Consumers are increasingly questioning how truthful companies are about their efforts. There’s a noticeable gap between what companies say they’re doing in regards to sustainable development and what is actually happening globally, which leads to a trust deficit and confusion. Despite this, certain brands have demonstrated resilience to these changes.
These brands share some or all of these traits:
- Robustness and safety: Brands with a strong heritage, market dominance, or distinct public responsibility are holding their ground.
- Distinctiveness and simplicity: Those that can articulate their sustainability impact clearly maintain their strong position.
- Passive drivers: Brands are also upheld by factors such as public ownership or belonging to a positively perceived industry, which drives perceptions beyond their sustainability efforts alone.
Read more about the sustainability perceptions of consumers and get deeper insight by downloading the report in English, for free. The report focusing on Finland can be found here. Other countries’ rankings can be found on SB Insight’s website.
Published: 3rd June 2024
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