2022 FutureBrand Index: climate change is fastest-growing threat to business success

−   Green energy and technology companies fill the Top Five, with NextEra Energy taking top spot, followed by Reliance Industries and CATL.

−   Findings suggest urgent need for re-appraisal of ESG metrics: companies with a focus on decreasing emissions have performed particularly well.

–   B2B brands continue to surge ahead, with the Top Five led by ‘behind-the-scenes’ infrastructure companies.

- Australia’s Commonwealth Bank enters the list for the first time since 2018.

−   Organisations in the East lead the top of the ranking, with Indian giants Reliance Industries (#2) and Tata Consultancy Services (#4) soaring into the Top Five.

−   Beyond just ‘future focus’, organisations perceived to be ‘moving ahead’ with a clear, confident and optimistic vision for the future offer certainty in uncertain times, with Meta Platforms, Inc. the Top Riser in 2022, climbing 44 places from #49 to #5.

−   Brands seen to be ‘moving ahead’, such as Apple (#7), Tesla (#32) and Meta Platforms, Inc. (#5), share a collective focus in positively contributing to ‘people's wellbeing’.

Melbourne, 29 September 2022: The results of the 2022 FutureBrand Index, the annual perception study of PwC’s Top 100 companies, reveal extensive changes in the perception of global companies almost three years after the start of the pandemic. B2B companies – particularly those in the East, focused on innovation around green energy and sustainable solutions – continue their march to the top of the rankings. This reflects the fact that ‘climate change and finite resources’ is now seen as the fastest-growing threat to business success.

The Top Five is concentrated by those focusing on addressing this threat, with clean energy giant NextEra Energy claiming top spot, followed by Reliance Industries (#2) and the electric battery innovator CATL (#3).

There’s also a surprising success story - Meta Platforms, Inc. (#5) has experienced a significant boost in perception, following its rebrand in late 2021. Meanwhile, Apple has fallen out of the Top Five for the first time since our research began. Of the Top Five, only NextEra Energy remains from last year, with the remaining four demonstrating impressive rises to the top of the FutureBrand Index.

The report also reveals a direct reversal of some of last year’s shifts. Walmart (#39) and McDonald’s (#40) have bounced back up the ranking, as predicted in the 2021 report, whilst Amazon (#31) and LVMH (#47) have experienced a decline in fortunes. This underlines what the world already knew: the events of the last 18 months threw up many anomalies.

On the 2022 FutureBrand Index and its implications for businesses and brands, FutureBrand Australia CEO Rich Curtis commented: “With all the instability and uncertainty in the world, it’s never been more important that we study and understand what it takes to transform brands so businesses grow. This latest edition of the FutureBrand Index highlights how the strongest brands are perceived to be ‘moving ahead’ as a result of focusing on people’s wellbeing and inspiring change for the better. Consequently, it’s no coincidence that these brands are solving our world’s biggest challenges. 

“What’s more, we’re seeing B2B brands continue their upward trend, once again leading the way – eight out of the Top Ten in this year’s Index are B2B brands perceived to be at the forefront of the innovations that will shape our future. BHP is a good example of an Australian B2B brand benefitting from a strong vision and clear future focus. It’s these attributes that will make BHP highly resilient if and when a recession hits our local economy, a key benefit of building a strong brand. So too it’s reassuring to see Commonwealth Bank grow its market capitalisation to re-enter PwC’s Top 100 Companies and this financial growth is testament to the increase in the strength of its brand perceptions.

“Year-on-year, our research tells us that brands are created with purpose but they’re ultimately defined by the everyday experience. By strengthening that connection, your brand gives your business a measurable competitive advantage – so that more people will want to work for or buy from you.”

FutureBrand Australia Head of Strategy Victoria Berry added: “With the benefit of almost a decade of FutureBrand Index data to draw from, it is increasingly clear that what it takes for brands and businesses to become future-proof is constantly evolving. What was once all about delivering consistency across every touchpoint is now a question of demonstrating agility and adaptability to suit the needs of your customers and employees alike. 

“It’s in these moments that matter that brands and businesses are able to establish the foundation of trust that’s critical to building competitive advantage. It should come as no surprise that trust is the number one driver for people wanting to work for or buy from a brand, and we’ve all seen how this has intensified the fierce competition for talent and the put pressure on organisations to live and breathe their employee value proposition, authentically and credibly.”

Now in its eighth year, the FutureBrand Index is a global perception study that reorders PwC’s Global Top 100 Companies by Market Cap on perception strength, rather than financial strength, drawing on rigorous research with a global sample of over 3,000 informed professionals.  

Key insights: 

1. Building a more optimistic and resilient future: This year’s FutureBrand Index reveals that in a world of uncertainty people are looking to those who are building a clear and confident future. Not only do the Top 5 Risers all score well on resilience, but equally over-index on mission and innovation. 
2. Putting people first: A renewed focus on people is evident, with all organisations seen to be ‘moving ahead’ driven by their positive contribution to ‘people's wellbeing’. A company that respects and enhances people’s lives is also a top driver for attracting talent. 
3. ESG goes mainstream: ESG is now well and truly part of our collective consciousness. As the public becomes increasingly savvy around corporate commitments to ESG, our findings demonstrate that it's one thing to join the conversation but quite another to practise what you preach.
4. Purpose in practice: Now, more than ever, our professional respondents are saying that it’s not enough for a company to say it has a meaningful purpose and will take action – it must be seen to fulfil its promises, to be fair and honest, to support the community, and to actively contribute to society. In this world, experience has never been more important, as those brands seen to be ‘moving ahead’ all excel in this real-world domain. 
5. B2B branding has never been more exciting: Following in the overarching trend of last year’s FutureBrand Index, this year’s Top Five is largely led by ‘behind-the-scenes’ infrastructure companies, NextEra Energy, Reliance Industries, CATL and Tata Consultancy Services. At the forefront of future innovation, these players are solving the world’s biggest problems by creating the platforms on which human life is maintained and enhanced. 

Key sector snapshot:

Energies & Utilities / Basic Materials

-    Energy & Utilities has seven businesses in this year's Top 100 with no decrease in attribute scores since last year. Sustainability and resource management are key here as companies seek new and innovative energy solutions.

-    NextEra Energy is the standout business this year, having gone up four places to number one. With a rise of seven places, Reliance Industries is in second place.

-    Saudi Aramco (up 12 places to 16) and PetroChina (up 39 places since it last appeared in the report in 2020 to 55th spot) have also made strong gains in the rankings.

-    BHP (up 1 place to 59) improved its performance across all Experience attributes and over-indexed on authenticity, mission and individuality. 

Technology

-    Technology is the dominant sector this year. A total of eight tech companies are in the Top 20, with 20 tech firms in the Top 100. Across the board, the majority of attribute scores have risen this year.

-    Tata Consultancy Services has risen 16 places to number four, while Nvidia Corporation is up 16 places coming in at sixth. Broadcom Inc. has climbed 23 places, settling at 61, and Qualcomm has soared 38 places to number 36.

Healthcare 

-    Healthcare continues to do well in an era of mounting health issues and wellbeing needs. Danish Pharmaceutical company Novo

-    Nordisk leads the sector, taking 34th spot, a rise of 34 places year-on-year.

-    US firms Thermo Fisher Scientific and Abbott Laboratories have also climbed ranks, moving up 21 places to 14 and 22 to 18 respectively. 

Financials 

-    Trust in the sector is returning as 18 companies appear in the 2022 Top 100. Financials also has four new entries, all of which are American: S&P Global, Blackstone Inc, Charles Schwab, and Morgan Stanley.

-    Canadian financials have a good showing too with Royal Bank of Canada (65) up 17 places year-on-year and Toronto Dominion Bank (72) up 19 places since it last appeared in 2014.

-    Commonwealth Bank re-enters the Index for the first time since 2018. Sitting at 91, Australia’s largest bank scores well on indispensability, innovation, mission and respect.

Consumer Discretionary

-    In total, the consumer discretionary sector has 16 brands in the Top 100 with pleasure standing out on the experience side.

-    Most companies in this sector provide wants and needs on an everyday basis. The headline this year is CATL. The Chinese battery manufacturer and tech business has entered the Top 100 at third place.

-    Netflix is at 12 having risen 22 places, with both Walmart and McDonald’s recording an increase of 36 places to land at 39 and 40 respectively.

Consumer Staples 

-    Pleasure and consistency are the strongest attributes in this sector, with six businesses in the Top 100, however only Nestlé and PepsiCo have gone up.

-    Despite doing well in previous years, Kweichow Moutai has dropped down 14 places in 2022 and is now just outside of the Top 20 at number 21.

Telecoms

-    While the telecommunications sector has six businesses in the Top 100, none are ranked higher than 42, with only AT&T, T-Mobile and Verizon rising up the ranks this year.

-    Cisco Systems is a big faller, down 29 places to 77.

Industrials

-    There are nine industrial businesses in the 2022 FutureBrand Index, with sector average scores all higher than 2021.

-    Raytheon Technologies is a new entry at number 17. Meanwhile, PayPal is up 22 places, making its way into the Top 20, as Accenture is up 19 places to number 75.

-    US firms Visa and Mastercard have both fallen in the rankings.

- ENDS –

NOTES TO EDITORS:

Methodology

Now in its eighth year, the FutureBrand Index is a global perception study that reorders PwC’s Global Top 100 Companies by Market Capitalisation on perception strength rather than financial strength. Unlike most other ratings, the FutureBrand Index offers a rigorous assessment of how future-proof the world’s 100 most prominent companies are, based on the views of an informed and professional sample. Using 18 indicators that, in FutureBrand’s experience, provide the most relevant signals of success (including ‘purpose’ and ‘experience’), the rankings are determined with precise and proven parameters. In previous years, our research has conclusively demonstrated that organisations who top the FutureBrand Index have a measurable competitive advantage, in part due to their standing on national and international stages. Importantly, our rankings show that financial strength does not necessarily translate into perception strength. This year’s fieldwork took place between Monday 20th June and Monday 4th July, 2022.

About FutureBrand Australia:

FutureBrand Australia is a brand transformation company. The company exists to strengthen the connection between brand purpose and everyday experience, giving brands a measurable competitive advantage that helps businesses grow. FutureBrand Australia has been locally owned since July 2020, when CEO Rich Curtis acquired the business from Interpublic Group and transformed the business into an entrepreneurial and independently-minded team with the global relationships and resources of FutureBrand worldwide. Rich and his team are investing locally to help build brands and develop proprietary brand transformation methods that provide better outcomes for clients. For more information, visit FutureBrand.com.au and connect with Rich Curtis on LinkedIn.

About FutureBrand Index’s partners:

QRi

QRi Consulting is FutureBrand’s global research partner for the FutureBrand Index. Working in close collaboration, QRi helped to define the research approach against FutureBrand’s initial hypothesis, as well as managing recruitment, questionnaire development, and providing in-depth analysis of the qualitative and quantitative data underpinning the report. This is informed by QRi’s extensive research, brand and sector knowledge and experience as well as its proprietary QualiQuant methodologies.

PwC

FutureBrand has worked with the Capital Markets division of PwC in the UK, who kindly provided its Global Top 100 Companies by market capitalisation ranking as the data source for this research and report. The report and its findings have been informed by Capital Markets’ data, but FutureBrand is responsible for all views, opinion and data emerging from this research unless otherwise stated.