Net Zero’s Rising Role in Corporate Brand Identity

Corporate boardrooms have witnessed a fundamental shift as climate targets migrate from sustainability reports to strategic planning sessions. Environmental performance now influences brand perception, consumer loyalty, and competitive positioning across industries. Companies that once treated carbon neutrality as regulatory compliance now leverage it as a core differentiator, responding to stakeholder demands for authentic environmental accountability. This transformation reflects a broader evolution where sustainability credentials determine market success alongside traditional financial metrics
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Molly Ferncombe

Features Editor at The Executive Magazine

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For much of the last decade, climate targets were tucked into the back pages of sustainability reports. Today, they occupy a front-row seat in boardroom discussions. Across sectors, carbon neutrality is no longer viewed as a compliance exercise but as a key driver. Investors, customers, and employees are aligning with companies that treat Net Zero not as a marketing message, but as a core business priority.

In terms of business, achieving Net Zero means balancing emissions with equivalent reductions or removals, resulting in no net impact on the climate. As environmental targets move to the forefront of corporate strategy, supply chains, materials, and manufacturing processes are being reassessed with carbon impact in mind.

Carbon Consumerism

As environmental impact is becoming an increasingly influential factor in purchasing decisions, a brand’s carbon footprint and its efforts to reduce is widely recognised as a sign of integrity and long-term value.

According to McKinsey, over 70% of consumers are willing to pay a premium for products from companies that show a clear commitment to sustainability. For brands operating at the higher end of the market, carbon performance is no longer peripheral, but central to maintaining consumer trust and competitive relevance.

Many hallmarks of luxury such as craftsmanship, longevity, and limited production, are inherently aligned with sustainability. These qualities provide a strong foundation for credible, measurable progress toward Net Zero.

Rewriting the Narrative for Net Zero

Consumers are less interested in pledges and more so in progress. Brands that articulate their Net Zero journey with specificity through product life-cycle assessments, emissions audits, and independent verification, are more likely to earn credibility.

Carbon credentials should be woven into a brand’s core story, not just treated as a footnote. For example, fashion brands are detailing the impact of each garment, tech companies are publishing emissions data per device, and automobile manufacturers are building entire campaigns around hybrid and electric vehicles.

Avoiding the Greenwash Trap

The rise in sustainability claims has been accompanied by a rise in greenwashing, a marketing tactic where companies deceptively portray their products or services as more environmentally friendly than they actually are. It can involve making misleading claims or using green-themed marketing to give the impression of sustainability without genuinely making environmentally conscious changes.

Ironically, acknowledging its complexity can build more trust than portraying perfection. Brands that communicate the challenges of their Net Zero journey often appear more credible than those offering overly polished narratives.

Third-party certifications, adopting science-based targets, and aligning with standardised disclosure frameworks are all ways in which companies are providing transparency with their investors and customers.

Acknowledging the journey to Net Zero rather than claiming flawless implementation, is often viewed as the more trustworthy approach.

The Carbon Conversation

As the 2050 Net Zero target approaches, companies will be judged by the rigour and honesty of their environmental commitments. Financial performance still matters, but increasingly, it is complemented by the transparency and ambition of a company’s environmental commitments.

This is not about appeasement, it’s about aspiration, positioning sustainability as a driver of innovation, corporate responsibility, and long-term value.

Luxury, long defined by craftsmanship and exclusivity, is now incorporating sustainability. True prestige reflects not just what a brand creates, but what it preserves.

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