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Big brands failing on climate change

Mar 16

Written by:
16/03/2011 16:31  RssIcon

EIRIS analysed companies in Interbrand's Top 100 list and found that 69% of those with high climate change impacts were failing to adequately address the issue.

Leader of the pack?

Gillette (ranked 3rd in Interbrand's top 100) achieved the highest overall climate change rating in EIRIS' analysis. The brand has established long-term targets on emissions reduction and displayed strong reporting against those targets

Porsche, on the other hand, (ranked 72nd in Interbrand's top 100) achieved one of the lowest climate change scores in EIRIS' climate change analysis. This contrasts with other leading brands in the automobile and parts sector such as Toyota.

Apple vs Dell

Big differences exist in the extent to which leading technology brands are tackling climate change. Dell (Interband rank 42) has linked executive remuneration to climate change performance, established both long and short-term targets and has improved product-related climate change emissions.

However, Apple (Interbrand rank 17) has failed to implement any of these measures. On the other hand, Apple has shown an improvement in reducing its GHG emissions whilst Dell's GHG gas emissions have increased. However, it should be noted that other factors such as new business acquisitions, fluctuations in turnover, etc, can account for increases/decreases in GHG emissions.
Find out more about the ethics of computer companies in our new Buyer's Guide

Pepsi challenged?

Coca-Cola is at the top of the Interbrand 100 list, while PepsiCo is positioned at number 23. However, when looking at their relative responses to climate change a different picture emerges. While Coca-Cola has an assessment of 'intermediate', with a number of unidentified or unmanaged risks, PepsiCo scores 'good' according to EIRIS' methodology. Unlike Coca-cola, PepsiCo is therefore considered to have adequately managed its climate change risks.

Find out about the ethics of soft drink manufacturers

According to Carlota Garcia-Manas, Head of Research at EIRIS: "The potential reputational damage to brand value associated with a failure to respond to the risks from climate change can have a direct impact on a company's profitability. A lack of mitigation measures can also lead to the loss of business productivity and business interruption"


"In the face of increased regulation, growing consumer expectations and greater investor awareness, climate change and other sustainability issues will become increasingly important factors in the determination of brand value," said Garcia-Manas. "Investors in top brands need to consider the extent to which companies are safeguarding their brands by addressing both current and future climate change risks" she continued.

Click here to download a copy of the full research report.

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