SEA brands lack sustainability credentials, report finds

Forty-three percent of Southeast Asian brands lack sustainability credentials, according to a new report, with the figure for global brands at 25%. 

The report* revealed Southeast Asia's top 30 most valuable brands, as ranked by market research company Kantar. It found that only 3% of SEA brands are currently leading in sustainability credentials, compared with 11% of global brands.

Why it matters

Building consumer trust is paramount. Southeast Asian brands must anticipate and meet the evolving needs of customers in this rapidly growing region. The opportunity to drive brand difference via sustainability is currently under-tapped but carries with it a myriad of benefits ranging from increased sales volume to price justification. Driving corporate responsibility can take the form of sustainable efforts that tackle environmental and social issues.

At the same time, consumers are also becoming more adept at discerning if brands are genuine in championing sustainability or merely indulging in greenwashing and paying lip service to it. 

Key findings

• Sustainability is fast becoming vital to consumer decision-making: 98% of people want to live a sustainable lifestyle, according to Kantar’s Sustainability Sector Index 2022.
• Brands must walk the talk as they push for sustainability efforts. Credibility is crucial to overcome consumer scepticism.
• There is a first-mover advantage for brands to use sustainability as an “X factor” to build brand difference.

Key quote

“While there are not many Southeast Asian brands leading on this [sustainability] front at the moment, some have already begun on the journey and are making a difference” – Jane Ng, General Manager of Insights, Kantar Singapore.

*The Kantar BrandZ Top 30 Most Valuable Southeast Asian Brands’ 2023 ranking draws on the opinions of 98,048 respondents, about 1,744 unique brands across 78 categories and six markets: Indonesia, Singapore, the Philippines, Thailand, Vietnam and Malaysia.