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Impact of Sustainability Reporting on Brand Value: An Examination of 100 Leading Brands in Singapore

Author

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  • Lawrence Loh

    (Centre for Governance, Institutions and Organisations, NUS Business School, National University of Singapore, BIZ 2 Building, #05-01, 1 Business Link, Singapore 117592, Singapore
    Department of Strategy and Policy, NUS Business School, National University of Singapore, 15 Kent Ridge Drive, Singapore 119245, Singapore)

  • Sharmine Tan

    (Centre for Governance, Institutions and Organisations, NUS Business School, National University of Singapore, BIZ 2 Building, #05-01, 1 Business Link, Singapore 117592, Singapore
    NUS School of Design and Environment, National University of Singapore, 15 Kent Ridge Drive, Singapore 119245, Singapore)

Abstract

The recent sustainability reporting (SR) mandate by the Singapore Exchange has heightened stakeholder awareness and propelled sustainability disclosures. Albeit encouraging, more than half of listed companies in Singapore do not produce sustainability reports. This signifies a lack of sustainability commitment, or perhaps, local companies have limited understanding on the potential value of sustainability. Our study aims to fill this gap by examining if (1) the 100 leading brands in Singapore similarly benefit from a higher brand value when they produce sustainability reports; (2) if more disclosure leads to higher brand value; (3) if a lagged effect is present. The methodology of this study included the collation of sustainability information from the 100 leading brands in Singapore, scoring each company’s sustainability performance using the Global Reporting Initiative (GRI) framework. Finally, we examine the correlations using regression analysis to compare the companies’ sustainability performance with the reputed brand rankings by Brand Finance. Our findings revealed that one-fifth of the 100 leading brands in Singapore do not engage in sustainability, despite the positive correlation between sustainability reporting and brand value. Our results also suggest that greater disclosure leads to higher brand value, yet social and environmental indicators are undermanaged. Moreover, there is a lagged effect as public perceptions take time to shape. Internalising a company’s sustainability vision through a multi-stakeholder consultative approach is critical. Brand managers and sustainability practitioners must be aware that failures to meet stakeholder expectations today may consequently impact investors’ decisions.

Suggested Citation

  • Lawrence Loh & Sharmine Tan, 2020. "Impact of Sustainability Reporting on Brand Value: An Examination of 100 Leading Brands in Singapore," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7392-:d:410945
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    References listed on IDEAS

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    2. Zoltán Csedő & József Magyari & Máté Zavarkó, 2022. "Dynamic Corporate Governance, Innovation, and Sustainability: Post-COVID Period," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    3. Lee, Michael T. & Raschke, Robyn L., 2023. "Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations?☆," Journal of Business Research, Elsevier, vol. 155(PB).

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