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Sustainability	
  leadership	
  
Measuring	
  percep4on	
  vs.	
  reality      	
  




James	
  Cerru4	
     Michael	
  Muyot,	
  
BrandLogic	
          CRD	
  Analy4cs	
  
Sustainability leadership
Measuring perception vs. reality




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




                                       Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Goal: Help corporations identify sustainability risks,
opportunities, and investment priorities

• Measuring gaps between actual and                        Highly attentive
                                                           stakeholder groups:
  perceived performance on E, S and G                      •  Purchasing/supply
  factors                                                     professionals
                                                           •  Investment
• Measuring gaps on these dimensions                          professionals
                                                           •  Graduating
  among competitors/peers and industry                        college/university
  sectors                                                     students

• Establishing statistically valid benchmarks              Countries covered:
  for longitudinal study of performance                    •  China
                                                           •  Germany
• Adding new insights and tools for managing               •  India
                                                           •  Japan
  sustainability investments                               •  United Kingdom
                                                           •  United States




                                      Copyright © 2011 Brandlogic, Inc. and CRD Analytics
The Sustainability IQ Matrix




                 Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Sources at a glance


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

175                                    16000+
environmental, social and governance   company ratings
metrics for rating companies
                                       2400
5                                      respondents from 3 highly attentive
key performance indicators             stakeholder groups (800 respondents in each)
per ESG dimension
                                       100
1200                                   prominent global corporations covering 9
                                       of the 10 global industry categories (GICS)
rated corporations

                                       6
                                       major countries covered (400 respondents
                                       in each)

                                               Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Copyright © 2011 Brandlogic, Inc. and JuneAnalytics
                                      CRD 7, 2011
Sustainability IQ Matrix
Global 100 Prominent Brands




                              Copyright © 2011 Brandlogic, Inc. and CRD Analytics
                                                                  June 7, 2011
Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Sustainability IQ Matrix
Information Technology




                         Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Copyright © 2011 Brandlogic, Inc. and JuneAnalytics
                                      CRD 7, 2011
Apple’s perceived sustainability performance scorecard

   Total ESG (SPS) Score               Social Score                         Environmental Score                        Governance Score               Overall performance




          54                                      54                               51                                        54                             67

       Rank 14                               Rank 15                            Rank 15                                   Rank 13                         Rank 8


               By segments Total ESG (SPS) Score        Social Score                    Environmental Score                  Governance Score         Overall performance

 Investment professionals                    64                       64                               63                                  64                      74

 Purchasing professionals               51                        51                              48                                  52                         59

       Pending graduates                48                        49                              45                                  49                           69

     Developed countries               46                        47                               43                                  48                         61

Newly developed countires                    66                        67                              66                                  66                         79



Benchmark Comparisons         Total sample              Developed countries             Newly developed countries            Information Technology   Computers/IT Services

  Total ESG (SPS) Score                  47                       39                                         64                             50                     50
               Social Score              48                       40                                         65                             51                        51
     Environmental Score                45                        36                                         62                            47                      47
       Governance Score                  47                       39                                         64                             50                     50
     Overall performance                     57                        48                                         74                            61                      59


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

                                                                                                            Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Apple’s real vs. perceived sustainability performance
scores on E, S and G factors




                                  Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Apple’s real vs. perceived sustainability performance
scores on E, S and G factors




                                  Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Apple and two competitors: Ratings on social
performance




                                 Copyright © 2011 Brandlogic, Inc. and CRD Analytics
Apple and two competitors: Perceived and actual
performance on various social responsibility factors
Perceptions among             CRD Analytics components of
Purchasing Professionals      Social Performance Indicator (SPI) score




                                    Copyright © 2011 Brandlogic, Inc. and CRD Analytics
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



                                    Copyright © 2011 Brandlogic, Inc. and CRD Analytics
SB11 - Brand Logic New - James Cerruti

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SB11 - Brand Logic New - James Cerruti

  • 1. Sustainability  leadership   Measuring  percep4on  vs.  reality   James  Cerru4   Michael  Muyot,   BrandLogic   CRD  Analy4cs  
  • 2. Sustainability leadership Measuring perception vs. reality SUSTAINABLE BRANDS CONFERENCE Supported by Monterey, California June 7-10, 2011
  • 3. 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 Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 4. Goal: Help corporations identify sustainability risks, opportunities, and investment priorities • Measuring gaps between actual and Highly attentive stakeholder groups: perceived performance on E, S and G •  Purchasing/supply factors professionals •  Investment • Measuring gaps on these dimensions professionals •  Graduating among competitors/peers and industry college/university sectors students • Establishing statistically valid benchmarks Countries covered: for longitudinal study of performance •  China •  Germany • Adding new insights and tools for managing •  India •  Japan sustainability investments •  United Kingdom •  United States Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 5. The Sustainability IQ Matrix Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 6. Sources at a glance Source of the Sustainability Source of the Sustainability Reality Score (SRS) used in Perception Score (SPS) used in the Sustainability IQ Matrix the Sustainability IQ Matrix 175 16000+ environmental, social and governance company ratings metrics for rating companies 2400 5 respondents from 3 highly attentive key performance indicators stakeholder groups (800 respondents in each) per ESG dimension 100 1200 prominent global corporations covering 9 of the 10 global industry categories (GICS) rated corporations 6 major countries covered (400 respondents in each) Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 7. Copyright © 2011 Brandlogic, Inc. and JuneAnalytics CRD 7, 2011
  • 8. Sustainability IQ Matrix Global 100 Prominent Brands Copyright © 2011 Brandlogic, Inc. and CRD Analytics June 7, 2011
  • 9. Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 10. Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 11. Sustainability IQ Matrix Information Technology Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 12. Copyright © 2011 Brandlogic, Inc. and JuneAnalytics CRD 7, 2011
  • 13. Apple’s perceived sustainability performance scorecard Total ESG (SPS) Score Social Score Environmental Score Governance Score Overall performance 54 54 51 54 67 Rank 14 Rank 15 Rank 15 Rank 13 Rank 8 By segments Total ESG (SPS) Score Social Score Environmental Score Governance Score Overall performance Investment professionals 64 64 63 64 74 Purchasing professionals 51 51 48 52 59 Pending graduates 48 49 45 49 69 Developed countries 46 47 43 48 61 Newly developed countires 66 67 66 66 79 Benchmark Comparisons Total sample Developed countries Newly developed countries Information Technology Computers/IT Services Total ESG (SPS) Score 47 39 64 50 50 Social Score 48 40 65 51 51 Environmental Score 45 36 62 47 47 Governance Score 47 39 64 50 50 Overall performance 57 48 74 61 59 = Apple score is significantly higher/lower than the particular group of companies at 90% confidence level Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 14. Apple’s real vs. perceived sustainability performance scores on E, S and G factors Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 15. Apple’s real vs. perceived sustainability performance scores on E, S and G factors Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 16. Apple and two competitors: Ratings on social performance Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 17. Apple and two competitors: Perceived and actual performance on various social responsibility factors Perceptions among CRD Analytics components of Purchasing Professionals Social Performance Indicator (SPI) score Copyright © 2011 Brandlogic, Inc. and CRD Analytics
  • 18. 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 Copyright © 2011 Brandlogic, Inc. and CRD Analytics