Under reporting of ESG achievements is costing brands millions of dollars in lost revenue, according to Brand Finance.
Brands that under-communicate their sustainability efforts, known as greenhushing, are missing out on millions in potential brand value, according to the 2025 Sustainability Perceptions Index released by Brand Finance.
The global study found that 98 out of the top 500 brands could unlock more than $145 million each by more clearly promoting their environmental, social, and governance (ESG) achievements.
Woolworths topped the Australian rankings with a Sustainability Perceptions Value (SPV) of $978 million, credited to its strong ESG actions and transparent reporting.
However, Brand Finance estimated the retailer could unlock an additional $132 million in brand value through clearer communication of its ESG achievements.
“Brands are increasingly walking a tightrope on sustainability,” said Robert Haigh, strategy and sustainability director at Brand Finance.
“Overstating progress creates reputational risk, but failing to communicate genuine action means leaving millions in brand value on the table.”
Commonwealth Bank followed closely with an SPV of $955 million, while Telstra ranked third at $594 million and was also listed among the top 20 global telecom brands for sustainability perception.
“Australians care deeply about environmental and social impact, and they reward brands that lead by example,” said Mark Crowe, managing director of Brand Finance Australia.
“At the same time, there’s still room for brands to unlock even greater value through more effective ESG communication.”
Other notable Australian performers included NRMA Insurance, with a $138 million SPV based on its social and governance credentials.
Harris Farm Markets led in environmental sustainability among supermarkets, noted for its local sourcing and low-footprint products.
Globally, Apple topped the index with an SPV of $56.7 billion despite criticism over its environmental and labour practices.
Microsoft ranked second and led the world in unrealised ESG value, with $8.3 billion in brand value attributed to under-communicated performance.
Tesla, by contrast, saw its SPV plunge from $25.9 billion to $15.2 billion amid declining public perception around governance and social issues.
Toyota held the highest SPV among brands perceived positively by Australian consumers, valued at $11.8 billion and underpinned by strong governance and environmental focus.
The report also highlighted the growing influence of sustainability on consumer choice, particularly in premium sectors.
ESG considerations accounted for 23% of brand preference in luxury auto markets, more than double the average across the broader automotive sector.
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