Study shows how action on climate change will impact on 'brand value'

Fri 07 January 2005 View all news

A new report suggests that climate change is becoming a significant business risk factor, particularly for companies with strong brand value. Organisations or sectors who fail to constructively address climate change issues in the next five years could see there market value fall by up to 50%.

The quantitative survey undertaken by US brand consultancy Lippincott Mercer for the Carbon Trust focused on six sectors - airlines, food and beverage manufacturing, food retailing, telecoms, oil and gas and banking - but did not include car manufacturers.

The report concluded that, of the sectors studied, airlines and the food and drinks companies are at particular risk with 50% and 10% respectively of their market value potentially threatened. Aviation is most at risk, it said, because of the significant effect that aeroplanes have on the climate, the extent to which airlines rely on their brands, and the potential for customers to switch companies on the basis of their approach to climate change.

Tom Delay, chief executive of the Carbon Trust (and a member of the LowCVP board) said: "Brand value will be affected by climate change but as yet we don't know to what extent.

"What is certain is that business needs to start thinking about it now. This report is a real attempt to quantify the impact on brand that climate change may have."

Related Links

Carbon Trust press release
Full report download

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