SB11 - Brand Logic New - James Cerruti

Sustainability leadership Measuring percep4on vs. reality

James Cerru4 BrandLogic

Michael Muyot, CRD Analy4cs

Supported by

Sustainability leadership

SUSTAINABLE BRANDS CONFERENCE Monterey, California June 7-10, 2011

Measuring perception vs. reality

Copyright © 2011 Brandlogic, Inc. and CRD Analytics

Context

• Increasingly, corporate reputation = corporate brand

• Sustainability practices impact brand

• Sustainability initiatives cut across functions

• Reactions to specific pressure groups vs. strategic

• Paucity of non-anecdotal data for fact-based prioritization


Goal: Help corporations identify sustainability risks, opportunities, and investment priorities

• Measuring gaps between actual and perceived performance on E, S and G factors

• Measuring gaps on these dimensions among competitors/peers and industry sectors

• Establishing statistically valid benchmarks for longitudinal study of performance

• Adding new insights and tools for managing sustainability investments

Highly attentive stakeholder groups: •  Purchasing/supply

professionals •  Investment

professionals •  Graduating

college/university students

Countries covered: •  China •  Germany •  India •  Japan •  United Kingdom •  United States


The Sustainability IQ Matrix


Sources at a glance

Source of the Sustainability Reality Score (SRS) used in the Sustainability IQ Matrix

175 environmental, social and governance metrics for rating companies

5 key performance indicators per ESG dimension

1200 rated corporations

Source of the Sustainability Perception Score (SPS) used in the Sustainability IQ Matrix

16000+ company ratings

2400 respondents from 3 highly attentive stakeholder groups (800 respondents in each)

100 prominent global corporations covering 9 of the 10 global industry categories (GICS)

6 major countries covered (400 respondents in each)

June 7, 2011 Copyright © 2011 Brandlogic, Inc. and CRD Analytics


Sustainability IQ Matrix Global 100 Prominent Brands

June 7, 2011




Sustainability IQ Matrix Information Technology

June 7, 2011 Copyright © 2011 Brandlogic, Inc. and CRD Analytics

Apple’s perceived sustainability performance scorecard

By segments

Benchmark Comparisons

64

51

48

46

66

Investment professionals

Purchasing professionals

Pending graduates

Developed countries

Newly developed countires

Total ESG (SPS) Score

74

59

69

61

79

47

48

45

47

57


Social Score

Environmental Score

Governance Score

Overall performance

Total sample Information Technology Computers/IT Services

= Apple score is significantly higher/lower than the particular group of companies at 90% confidence level

Social Score Environmental Score Governance Score Overall performance

64

52

49

48

66

63

48

45

43

66

64

51

49

47

67

39

40

36

39

48

Developed countries Newly developed countries

Overall performance

Rank 8

Environmental Score

Rank 15

Governance Score

Rank 13


Rank 14

Social Score

Rank 15

64

65

62

64

74

50

51

47

50

61

50

51

47

50

59

54 54 51 54 67



Apple’s real vs. perceived sustainability performance scores on E, S and G factors


Apple’s real vs. perceived sustainability performance scores on E, S and G factors


Apple and two competitors: Ratings on social performance


Apple and two competitors: Perceived and actual performance on various social responsibility factors

CRD Analytics components of Social Performance Indicator (SPI) score

Perceptions among Purchasing Professionals


Q & A

Our sustainability consulting services

• Customized reports from study findings

• Sustainability workshops

• Stakeholder research

• Sustainable brand strategy

• Materiality mapping

• CSR/sustainability reports

• Integrated reporting

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