Whiplash Team, 8th March 2024
Spanish brands lose millions by failing to communicate their sustainability effectively
The recent Brand Finance Sustainability Perceptions Index 2024 report reveals that Spanish brands are missing out on millions of dollars in opportunities by not effectively communicating their sustainability efforts. Discover how lack of transparency can impact brand value and areas where improvement could reverse this trend.
According to the recently published Brand Finance Sustainability Perceptions Index 2024 report, Spanish brands are not fully leveraging their potential in this regard. Renowned brands like Zara, Santander, and Mercadona are among those that could greatly benefit from better communication about their sustainability efforts. Overall, according to the report, major Spanish brands are losing $755 million in sustainability value.
The ranking includes the top 500 brands worldwide, with 9 Spanish brands included: Zara (ranked 100th), Santander (127th), Mercadona (262nd), Movistar (304th), Iberdrola (343rd), BBVA (356th), El Corte Inglés (425th), CaixaBank (453rd), and Repsol (478th). These are the most perceived Spanish brands in terms of sustainability.
According to market studies, 62% of consumers trust brand sustainability claims. However, 79% also stated they would reduce their consumption if they discovered unsustainable practices by a brand. This underscores the need for clear and authentic communication by brands.
Lost opportunities: the cases of Zara and Santander
Zara, a fashion leader, and Santander, a banking giant, are among the Spanish brands with the greatest potential for sustainability growth. Both brands could significantly benefit from better communication about their sustainable initiatives. For example, the brand has launched a second-hand service in Spain, demonstrating its commitment to the circular economy, but could communicate such initiatives more effectively.
According to the report, the Spanish fashion firm “is the Spanish brand with the greatest potential for growth in sustainability. With a Sustainability Perception Value (USD 1.5 billion) and a Real Sustainability Value (USD 1.7 billion), it is letting go of over USD 200 million in sustainability communication.”
Santander, according to Brand Finance, is in a very similar situation. “Its Sustainability Perception Value is USD 1.3 billion and the Real Sustainability Value is USD 1.4 billion.”
According to the Dow Jones Sustainability Index (DJSI) 2023, Santander is among the 27 most sustainable banks worlwide, with 80 points out of 100 in 2023 and has been listed in the Index of the most sustainable companies for 23 consecutive years.
The role of communication in sustainability perception
The Brand Finance report also highlights the importance of communication in consumer perception of sustainability. Toyota, Prada, and Iberia are some of the brands most perceived in different aspects of sustainability in Spain. These results underscore how effective communication can influence consumer perception of a brand regarding sustainability.
Finally, the report emphasizes the importance of transparency and effective communication in brand sustainability. Lost opportunities are significant but can be reversed with a clearer focus on communicating sustainable efforts.
In a world where sustainability is increasingly important to consumers, Spanish brands can stand out if they can effectively communicate their commitments and progress in this area.
