Sustainability’s role in shaping consumer choice is beginning to stabilise across global markets after a period of decline, according to Brand Finance’s latest Sustainability Perceptions Index. The findings suggest that while sustainability influence continues to soften, the pace of decline has slowed, pointing to limits in the so-called ESG backlash.

Brand Finance analysed 48 sectors and found that 24 recorded a drop in sustainability influence between 2025 and 2026. This compares to 38 sectors in the previous reporting cycle, indicating a more moderate shift in consumer priorities.

Robert Haigh, Strategy & Sustainability Director at Brand Finance, commented: “Although there has been a continued decline in the role of sustainability in 2026, this is less pronounced than in 2025, suggesting limits to the so called ‘ESG backlash’ and perhaps a shift towards more focused and credible sustainability engagement on the part of brands.”

The data reflects a broader adjustment in how sustainability is perceived by consumers. Rather than disengagement, the trend points to a more selective and critical approach, where credibility and clarity of action are becoming more important than broad messaging.

Google leads global rankings for sustainability perceptions value

Among global brands, Google ranks highest for Sustainability Perceptions Value, reaching USD41.9 billion. This metric captures the proportion of brand value linked to perceived sustainability performance, based on consumer views rather than measured environmental or social outcomes.

The rise comes amid continued investment in artificial intelligence and digital infrastructure, sectors that are increasingly under scrutiny for their environmental and societal impacts. Brand Finance emphasised that the figure does not indicate superior sustainability performance, but rather reflects consumer belief that the company is taking appropriate steps to address its impacts.

The distinction between perception and performance remains central to the index methodology. Sustainability Perceptions Value is derived from survey data combined with ESG performance metrics, offering insight into how brand reputation translates into financial value.

Apple identified as having largest ‘gap value’

Apple recorded the highest Sustainability Gap Value of any brand, exceeding USD2.6 billion. This figure represents the difference between a company’s actual sustainability performance and how it is perceived by consumers.

A positive gap suggests that a company’s sustainability actions are stronger than public perception reflects. In Apple’s case, the findings indicate potential for increased brand value through more visible communication of its sustainability efforts.

The concept of gap value highlights a recurring issue for large multinational brands. Even where performance improves, consumer awareness may lag, limiting the reputational and financial benefits associated with sustainability initiatives.

Tesla’s sustainability-linked value continues to decline

Tesla, once closely associated with environmental leadership, has seen a continued decline in sustainability-related brand value for a third consecutive year. The company lost USD7.7 billion in sustainability-linked value, with declines recorded across most major markets.

Between 2024 and 2026, perceptions of Tesla’s environmental commitment fell in nearly all regions tracked by Brand Finance. Countries including the UK, Denmark, the United States, Norway, France, Canada, the Netherlands, and Germany recorded double-digit percentage drops over the period.

Robert Haigh said: “Tesla has undoubtedly played a major role in accelerating global EV adoption and advancing sustainability. However, its sustainability scores lag the sector average due to governance and labour concerns and continued controversies surrounding Elon Musk. Brand Finance’s research shows the decline extends beyond the environmental dimension, with Tesla’s social and governance scores falling just as much. As we previously warned, this deterioration has had a significant financial impact: Tesla’s brand value fell from USD66.2 billion in 2023 to USD27.6 billion in early 2026, while sustainability-linked value dropped from USD17.8 billion to USD2.7 billion. This clearly highlights that EV leadership alone is no longer enough to protect the Tesla brand, even as climate awareness continues to rise.”

The findings reflect a broader shift in how sustainability is assessed by consumers and stakeholders. Environmental credentials alone are no longer sufficient, with governance and social factors playing an increasingly visible role in shaping brand perception.

Regional variations in sustainability perceptions

The index also identifies leading brands across key regional markets, showing variation in how sustainability is understood and prioritised. In the United States, apparel brands Patagonia and The North Face achieved the highest sustainability perception scores.

In the United Kingdom, The Body Shop and LUSH ranked highest, while Rolls-Royce performed strongly on governance. Germany’s Alnatura led on environmental and social perceptions, with dm recognised for governance.

In France, Michelin and La Roche-Posay were top performers on environmental and social measures, while Hermès led on governance. In India, Tata Group, Taj, and Amul were among the most positively perceived brands, reflecting long-standing corporate social responsibility practices.

In China, BYD and State Grid led on environmental sustainability, while Huawei scored highly on governance. In Australia, Goodman and Aesop stood out for environmental perceptions, with Australia Post recognised for governance performance.

These regional differences underline the importance of local context in shaping sustainability perceptions. Consumer expectations vary across markets, influenced by regulatory frameworks, cultural factors, and levels of economic development.

Methodology and broader context

The Brand Finance Sustainability Perceptions Index 2026 is based on research with more than 175,000 respondents across 41 countries. The analysis combines consumer survey data with ESG performance ratings from CSRHub to assess both perception and underlying performance.

As sustainability reporting and regulation continue to evolve, the relationship between perception, performance, and financial value remains a key focus for businesses. The findings suggest that while sustainability may no longer be a rapidly growing driver of consumer choice, it remains a material factor in brand valuation.

The moderation in decline may indicate a period of recalibration rather than retreat. Companies are likely to face increasing pressure to demonstrate measurable outcomes, align communications with performance, and address governance and social considerations alongside environmental commitments.