Ford tops 50 best global green brand index

Ford Motor Company’s commitment to sustainability has paid off, with the automaker being the new No. 1 on Interbrand’s 2014 list of the 50 Best Global Green Brands.

Toyota, which had held the top spot since the report debuted in 2011, falls to #2 with Honda (#3), Nissan (#4) and Panasonic (#5) rounding out the top five. Along with Toyota, the new No 1 beat corporate heavyweights Johnson & Johnson, Coca-Cola and Microsoft.

The findings reveal automotive brands make up 20 percent of the top 50 brands and represent four of the top five brands in the report – Ford (#1), Toyota, (#2), Honda (#3) and Nissan (#4). Automotive, electronic and technology brands occupy nearly 50 percent of the overall ranking; while 10 brands come from the automotive sector, 12 brands belong to the electronics and technology sectors.

The demand for electric vehicles is growing and is forcing automakers to enter into this market and expand their product lines. With new electric and hybrid models available each year, consumers now have more fuel-efficient options than ever.

Ford claims the #1 position in this year’s Best Global Green Brands report thanks to new environmental action committees in place, improved employee engagement around sustainability, better water/energy/emissions intensities, enhanced green build policies and increased waste recycling. The company’s portfolio also boasts five electric vehicles: two plug-in hybrids, two hybrids and one all-electric. It has also put considerable effort into hydrogen and fuel cell research. Recyclable material is used in 41 different fabrics across Ford’s different lines and soyabean-based foam cushions are used in all of its North American-made vehicles. (The soyabean initiative saves the company approximately 5 million pounds of petroleum annually.)

"Over the past few years, Ford has proven to be a sustainability leader," said Jez Frampton, Interbrand's Global CEO. "Sustainability is fully integrated into Ford's overall business strategy. As such, the company is able to swiftly identify and address its impact on the environment and society across every facet of its operations. Continuing to invest in alternative energy sources and fuel-saving technologies – and educating consumers on its benefits, will be key to enhancing its business and brand value over time," added Frampton.

Toyota falls to the #2 spot after reigning as the top Best Global Green Brand for the past three years. The Japanese carmaker continues to pioneer and innovate in the fuel-efficient automobile market. It boasts more than two million hybrid vehicles in the US, which is more than any other automotive manufacturer.

Honda (#3) is involved in a variety of corporate citizenship and sustainable activities. The company has remained transparent over the years about its efforts and, as a result, has witnessed a high score in regards to perception. In September 2013, the company earned one of the highest disclosure scores among all global companies in the CDP Global 500 Climate Change report. The report analyzes how the world’s 500 largest companies go about addressing global warming and disclosing information around greenhouse gas (CHG) emissions.

Chevrolet (#49) along with Disney (#49), and Heineken (#50) is among the three new brands which have joined the 2014 ranking. Sony (#7) and adidas (#8) enter the top 10 for the first time, while Johnson & Johnson falls six places to #12 and Volkswagen falls nine places to #16.

This year, Chevrolet (#32) announced a major milestone, achieving 7 million metric tonnes of carbon reduction. The company is also promoting the widespread adoption of a new methodology. The methodology is financed by the automaker and aims to reward US-based colleges and universities for renewable energy and energy efficiency projects. The methodology, developed under the Verified Carbon Standards (VCS), helps to quantify reductions in combustion and electricity emissions.

When identifying the top 50 Best Global Green Brands each year, Interbrand starts with the 100 brands that make up its annual Best Global Brands report. Brands that appear on this annual ranking have a global presence and a demonstrated record of delivering value to their stakeholders. Interbrand then conducts extensive consumer research to capture public perception of the brands’ sustainable or green practices and compares that to environmental or sustainability performance data collected and analysed by Deloitte Consulting LLP.

To become one of the top 50 Best Global Green Brands, organisations must perform well in terms of both sustainability performance and perception. Brands are measured against two sets of criteria:

Performance: Organisations must demonstrate that they source, produce, and distribute products and services in an environmentally-responsible manner.

Perception: Organisations must work to build value amongst key audiences by credibly conveying the benefits of their environmental practices.

What Interbrand refers to as ‘the gap’ is the difference between a brand’s performance and perception scores. A positive gap indicates sustainability performance is actually higher than consumers perceive it to be. A negative gap indicates consumers perceive a brand to be more of a sustainable leader than it actually is.