Today, most companies—driven chiefly by a practical need to reduce operational costs—are making efforts to “go green.” While the usual areas of focus like energy efficiency and water conservation remain key components of a greener business, these measures don’t always leave a strong impression on consumers. If a brand’s idea of corporate citizenship is a one-off philanthropic gesture now and then or if sustainability efforts are behind the scenes and only focused on mitigating risk or reducing costs, a brand may be missing opportunities to educate, inspire, engage and ultimately lift brand value.

In Interbrand’s just-released Best Global Green Brands 2013 report, we examine sustainability performance, but also how consumers perceive the sustainability efforts of top brands. In the study we conducted, we found that, overwhelmingly, consumers look to the products and services that a brand offers as proof of their commitment to environmental sustainability. This is one explanation for the high performance of the automotive sector in this year’s report. These brands have invested in creating innovative products that serve as clear evidence of their commitment to sustainability (e.g., Toyota Prius, Ford EcoBoost, Nissan LEAF) and as a result, are receiving more recognition from consumers.

People tend to trust what is more visible to them, what is real and tangible—which is why the products and services they actually use, along with marketing and messaging for those products and services, make more of an impact on them than corporate claims of sustainability. In fact, in our study, a third of respondents globally agree that the environmental activities of different companies seem very similar (31 percent) and 35 percent do not trust information given by a company about its environmental efforts. So, if operational performance is not enough to gain favor with consumers because a significant number don’t trust corporate reporting or have no awareness of what a company is doing—what lever can a brand pull to build and truly capitalize upon its green reputation?

Our research around consumer perception of brands’ sustainability efforts in ten countries shows that it’s a small but significant influential factor that, all other attributes being equal, the perception that a brand is a good employer, good to the earth, practices what it preaches, and otherwise displays the characteristics of a good corporate citizen, it will be chosen versus a competitor. (Read more in Emily Grant and Chloe Frank’s article, The Contribution Equation.)

At the end of the day, having the power to influence choices translates into money. The key to that power is the brand, its image, reputation and the multitude of messages, gestures, and efforts that build the collective perception of who it is, what it stands for—and how trustworthy it is. Today, it's no longer enough to make progress toward sustainability targets and publish these accomplishments in a sustainability report—and, in the age of social media, greenwashing is no longer an option either.

To stay socially relevant, businesses need to give back in significant ways, communicate about these actions and work to overcome cynicism, while building a reputation that fosters trust and inspires both admiration and participation. As Interbrand’s global Corporate Citizenship practice leader, Tom Zara, puts it: “With all this power to influence, drive demand, and inspire loyalty, brands are uniquely positioned to bring solutions to the marketplace…[And] as concern about the environment, the treatment of workers, and long-term sustainability grows—corporate citizenship will increasingly determine which brands consumers invite into their lives.”

Erica Velis is the content editor and lead writer for Global Marketing and Communications at Interbrand.

As part of the Best Global Green Brands 2013 (BGGB) launch this week, Interbrand hosted an event at The Guardian newspaper's headquarters in London. With luminaries from the world of sustainability and branding in the room, and a panel-based format, the debate was always likely to be engaging and interesting. Here were the stand-out points I took note of:

Firstly, Jez Frampton asked the crowd who had three or more old mobile phones in their drawers and cupboards at home and the majority of the audience put their hand up (including me). This illustrated why Apple, among our top global brands, slipped down the BGGB ranking: product disposal is not something they are addressing actively enough.

Jake Backus, Customer Sustainability Director for Coca-Cola was a panelist. Coke is more interested in what they call casual greens rather than dark greens, as there are more of them, plus they’re looking for brands to help them be better consumers. They want their preferred brands to be more sustainable, rather than looking for the most sustainable brand in the marketplace. There’s an opportunity for leading brands to take note from Coke.

The panellists agreed that sustainability is a genuine unfulfilled business opportunity. Consumers do want great products that are better for the world. But they don't want to compromise on quality, performance or convenience. This is a huge opportunity for businesses and brands with R&D resources at their disposal. An example cited by Jake Backus was Coke’s I LOHAS water product, which has taken Japan by storm, in part because of its environmental credentials (although dark greens would probably be uncomfortable with claiming imported bottled water qualifies as "sustainable").

As the above example demonstrates, sustainability can be part of a growth strategy. This is particularly true in developing markets, where consumers credit brands that innovate in sustainability with technical excellence and therefore assume their products are superior.

There was an interesting contrast between BMW and Nissan. BMW recognised that to build a successful ground-up electric car they had to set up a business unit that was entirely outside of the core business. Nissan, meanwhile is looking to put sustainability much more at the heart of the business.

And I loved the idea that we, as brand stewards, should be looking at foresight rather than insight. The consumer wants to be led, and asking them what they want now will not result in leadership.

Finally, leadership itself was a key topic. I heard Coke talk about being very aware of its "social license to operate." Taking a leadership position on the issues it can and should be influencing – child obesity being the obvious one – is a responsibility they’re not ducking.

If last night’s event was anything to go by, our BGGB study is stimulating exactly the kind of debate we had in mind. I’m looking forward to following the feedback.

Fred Burt is the Managing Director of Global Accounts at Interbrand.

As the world of luxury has turned its attention more seriously to the imperative of sustainability, continued initiatives of a number of leading brands demonstrate how their culture of excellence is fostering a more responsible business model, from the early stages of the supply chain through to the more microscopic touchpoints. Here we take a look at inroads that are being made by Best Global Brands Cartier, Hermès and Tiffany & Co.

Sourcing of materials is an environmental challenge for brands and one that is creating new approaches in the process. Amongst its various endeavours in this effort, Hermès has adopted a beautifully literal approach to sustainability, repurposing materials with its line that would have otherwise been discarded for not meeting its quality of excellence criterion. An innovative and worthy approach that is manifest under the moniker of Petit h.

Cartier works to source gold from ethical and artisanal miners such as Goldlake’s Eurocantera. As a member of the Sustainable Luxury Working Group since 2009, the brand extends sustainable sourcing beyond the core of its jewelry portfolio to all aspects of its creations.

Tiffany & Co. has continued to play a leading role in its efforts with the mining industry, working with IRMA (Initiative for Responsible Mining Assurance). Currently 98% of all of the brand’s stones are directly traceable to a known miner, and an increasing number of these conform to high standards of social and environmental responsibility.

Expanding their efforts across touchpoints, these brands have worked to address items from light bulbs to shopping bags. Cartier redesigned its entire lighting concept, has had its red box and bag paper content FSC-certified and commits to keeping both solvent and plastic free. Tiffany & Co.’s NY headquarters have been consolidated into a LEED-CI Platinum office space and its iconic blue box and bags are also FSC-certified.

Tiffany & Co. has been awarded the US EPA’s Goal Achievement Award for excellent in greenhouse gas (GHG) management. The brand also works with NGOs such as EARTHWORKS and Human Rights Watch and has signed the United Nations Global Compact.

“Corporate responsibility is integrated into every aspect of our business,” says Tiffany & Co. CEO Michael J. Kowalski. His words set the tone for a brand that is at the vanguard of a commitment to sustainability.

The Fondation d’Entreprise Hermès, through its work with the French Institute for Sustainable Development and International Relations (IDDRI), supports a number of initiatives promoting the value of local traditional skills to help preserve communities and environments. Its internal brand engagement efforts include an “eco-action” day, to raise awareness across the business.

Addressing supply chain, communicating their commitment and integrating their values throughout their organisations are the new imperatives for brands. Hermès, Cartier and Tiffany & Co. are demonstrating a combined breadth and depth that are setting a foundation for many years to come.

Rebecca Robins is Director, EMEA LatAm, for Interbrand.

With the opening of the 2013 EcoChic Design Award, a sustainable fashion design competition, talent from Hong Kong, China, Taiwan, Singapore, UK, France, Belgium and Germany will be “cutting the waste out of fashion.” Spotlighting sustainable sourcing, the competition is open until August 15.

Prizes include an educational trip to jewelry brand John Hardy in Bali, the opportunity to show original collections at Hong Kong Fashion Week and have work featured in a global traveling showcase.

At this year’s Fashion Week previews of Autumn 2013 collections in London and New York, designers such as Britain’s Louis Gray played with repurposed materials in a collection referred to in the press as “derelict chic.” Leanne Mai-ly Hilgart’s emerging label, Vaute, became the first all vegan fashion label to show during New York Fashion Week.

With global attention on sustainable luxury and fashion, we take a look at luxury brands and how committed to sustainability, as a key component of corporate citizenship, they are today. When it comes to corporate citizenship, many luxury brands are seeing the necessity – and opportunity – to be socially responsible.

Starting in 2011, for example, a number of Italian high-end fashion brands have invigorated efforts to restore Italy’s cultural landmarks. Designer Kenneth Cole is Chairman of the Board of Trustees of amfAR, The Foundation for AIDS Reserch and sits on the board of HELP USA, dedicated to helping the homeless. Donna Karan created the Urban Zen Foundation, partnering with New York’s Beth Israel, supporting the Department of Integrative Medicine and Medical Center’s Continuum Center for Health and Healing to change the environment of the oncology unit, introduce yoga therapy and conduct research.

While there is much activity among luxury brands and designers in corporate citizenship, and it is becoming well understood that it’s a vital part of the life of brands today, environmental sustainability remains a painful issue in the luxury space. Because of the scarcity of raw materials and the special production techniques required to create luxury products, for example leather, the production lines of luxury brands strongly impact the environment.

When it comes to environmental sustainability, today the world of luxury can in some ways be divided into “Davids” and Goliaths.” The “Davids” are new upcoming brands that have sustainability at the core of their vision and mission, and that cannot comprise on it.

Monique Péan is well-known for its sustainable jewelry. ECOALF develops their own textiles from the innumerable discarded plastic bottles fishing nets, and even coffee grinds, repurposing them into soft wearable fabric and it has recently been included into Barneys’ assortment.

Svilu, founded in 2012 by Britt Cosgrove and Marina Polo, seeks to revisit the fundamentals of a woman’s wardrobe by offering timeless staples that are mindfully sourced and locally produced. These are great examples of sustainable luxury.

For the global, long-heritage luxury brands that populate everyone’s imagination, or the “Goliaths,” taking their commitment to becoming eco-friendly from intent to process throughout their supply chains has been slow and difficult.

In 2012 the luxury brands group PPR, for example, announced a series of environmental targets to reduce its footprint. The five-year plan, which covers all the company's brands, includes reductions of CO2 and waste production, controlled water and hazardous chemicals usage, as well as regulated sourcing of raw materials and precious materials.

Despite efforts of these global brands, GREENPEACE asked them to provide detailed information about their sustainability practices and many have been reluctant to do so. Why with so much conversation about the importance of sustainability and the threat of a shame campaign would some big brands not respond and in some cases continue to perpetuate unsustainable practices?

The answer may lie not solely in the cost and logistics of changing supply chains and manufacturing practices, but in what brands observe in consumer behavior. While consumers list the environment as a priority, purchases point to contradictory choices.

An article published in 2012 on Fashion Theory shows that even consumers that say they care about sustainability engage in behaviors that are not sustainable when it comes to choosing what to wear. Style is mandatory for many and may override other priorities.

Brands that once shied away from the ethical and sustainability problems of fur are coming back to it, while at the same time designing eco-friendly products within their collections. This dissonance reflects the real challenges consumers themselves experience in choosing between what seems luxurious and being fully sustainable.

For luxury brands to be authentically committed to sustainability, environmental campaigns threatening them with negative PR and lost customers does not seem a powerful way to go. What will likely motivate brands is seeing the success of those that are seriously acting on sustainability.

GREENPEACE has ranked Valentino top eco-friendly luxury brand. In the luxury world, Tiffany has taken sustainability very seriously and is committed to obtaining precious metals and gemstones in ways that are socially and environmentally responsible. Tiffany & Co. not only ranked in the top 100 brands in Interbrand’s Best Global Brands 2012 report, it saw a 15 percent increase in brand value from the 2011 report.

Threatening doesn’t work; we need positive, fiscally sound arguments to convince luxury brands. As brand consultants, it is our job to build a strong case for the ROI of sustainability and corporate citizenship as a whole.

To push luxury brands to take sustainability more seriously, we should help them to see the value that can come from being an authentically sustainable brand. Once we bring luxury brands on board, they can shape the idea of “coolness” and style for consumers.

Ottavia Pelloni is a Senior Consultant for Interbrand.

In an age where every PR blunder is transmitted across social media, generating petitions and raising the ire of the public, does it still hold that, “There’s no such thing as bad publicity?” Recently reporting a loss of $7.2 million or nine cents per share and investors’ love for the brand waning, Abercrombie & Fitch, the focus of continued negative attention for weeks, might demonstrate not all press is good.

Today’s headlines bring more bad news for the embattled brand, as The Huffington Post spotlights Heather Arnett and a group of teenage girls’ presentation at the Abercrombie & Fitch “campus” in Ohio to convince the brand in 2005 to shift its focus from exclusionary products to inclusive, empowering messages for girls. The line of shirts the brand was selling at the time that had inspired the visit featured messages such as, “I had a nightmare I was a brunette.” and “Do I make you look fat?”

Less than two months after Arnett’s visit, at which time she and her group were directed to look for the brands’ statement of diversity & inclusion to be found on its website, Salon published the now infamous remarks from CEO Mike Jeffries declaring Abercrombie & Fitch to be a brand proud of being exclusionary. “We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong in our clothes, and they can’t belong. Are we exclusionary? Absolutely?”

To the criticism of many, Mike Jeffries made his brand’s values crystal clear when he said he only wants “thin and beautiful people” to shop in his stores. Although he later took to Facebook to apologize, the fact that the story won’t go away in a world where the 24-hour news cycle gives stories an ever shorter lifespan, indicates maybe it’s time for a larger conversation on brand purpose and the role of the CEO in communicating and executing against a brand’s values.

Strong brands are clear and consistent. They invest the time, energy, and resources to building value systems that transcend into every facet of their operations.

From developing an employee-training manual, the design of a retail flagship, or crafting the message behind an advertising campaign – the world’s leading brands know that these sets of values need to be woven into every touchpoint and experience, which ultimately, consumers come to know and love. Now, in the heat of the backlash spurred by Jeffries’ comments, is an opportunity for Abercrombie & Fitch to turn its attention inward and reaffirm what it stands for as a brand.

While the brand does have a statement on diversity and inclusion on its site, that statement needs to become the blueprint for how it behaves externally. That being said, every A&F employee, from its sales representatives, to Jeffries himself, needs to take the company’s diversity and inclusion policies to heart and walk the talk.

As Interbrand’s Global Practice Leader for Corporate Citizenship Tom Zara tells me, what could be making the difference now in the way the press and public are responding to A&F and the way the world responded in 2006 when the comments were first published in Salon may be the role social media has played in changing how the world relates to brands. Jeffries’ comments have gone viral on Twitter and Reddit and an avalanche of open letters to A&F have appeared in the blogosphere, being shared across Facebook.

While in the past A&F weathered scandals, including thongs aimed at tweens, charges of racism with what were seen as anti-Asian shirts and criticisms that its “maglog” resembles soft porn, in today’s post-digital world as angry consumers take to the blogosphere and social media, the sharing of their outrage can become exponential.

“Without the perception of an authentic effort to turn the brand around, what has been exposed,” Zara says, “is an extreme and ugly take on niche marketing.” Not all brands appeal to all people, and targeted marketing isn’t new, but to deliberately take the power of choice from the consumer to select products based on price points, style and taste and declare a position seen as discriminatory is another thing.

Some have suggested this is just how business is and gone so far as to ask if perhaps Jeffries is a genius. Forbes contributor Roger Dooley wrote a post entitled, The Perverse Brilliance of Abercrombie & Fitch’s CEO, but has followed it with This Abercrombie & Fitch Blowup Could Be Different. As Tom Zara points out, “Consumers today want to see that their brands share their values. Values matter more now than ever before.”

Brands that celebrate inclusion have received significant positive public attention. Marks & Spencer, for example, was praised for its 2012 holiday campaign featuring a young model with Down’s Syndrome. Brands like Ikea, JC Penney, Ray Ban and Kindle have famously featured LGBT couples. While Cheerios’ recent ad celebrating diversity in an ad with an interracial couple and biracial child has received some vile backlash, it has also received considerable praise.

As Abercrombie & Fitch’s Todd Corley, Senior Vice President & Global Chief Diversity Officer said in a video on Abercrombie.com, “It’s about making sure we value the person that’s here. It’s about making sure we create diversity champions. Diversity champions, that person, who really makes sure that inside or outside of work they are making certain they are representing the brand in a way that is inclusive to everyone.”

But remember Abercrombie: Everyone means everyone.

Lindsay Beltzer is Senior Associate, Global Marketing & Communications for Interbrand.