From profit to purpose: Evaluating green investment strategies in luxury brands

Abstract

This study evaluates green investment strategies among seven prominent luxury brands—Taj Hotels, Fabindia, Forest Essentials, Emirates, Tesla, Gucci, and Louis Vuitton—highlighting their adoption of sustainability practices. The research investigates key areas, including carbon offsetting, renewable energy integration, eco-friendly branding, and sustainability certifications, utilizing a secondary data approach. Data were sourced from publicly available sustainability reports, industry white papers, market analysis reports, and peer-reviewed literature, with results analyzed using descriptive and inferential statistical methods via SPSS.The findings reveal Tesla and Emirates as leaders in carbon offsetting and renewable energy adoption, reflecting their industries' proactive approaches to sustainability. Indian brands like Fabindia and Forest Essentials excel in regional and cultural contextualization, leveraging sustainable materials and enhancing consumer trust. Financial analyses demonstrate the economic viability of green investments, with Tesla achieving a 20% ROI and Fabindia following closely at 18%. Consumer trust indices highlight a growing alignment between green initiatives and purchasing preferences, with Tesla, Fabindia, and Forest Essentials scoring highest in trust and positive perception. However, challenges such as high initial investments and supply chain complexities remain significant barriers.This research addresses critical literature gaps by quantifying green investment efforts across sectors and contextualizing them within the Indian and global luxury markets. The findings emphasize the importance of innovation, transparency, and collaboration, providing actionable insights for luxury brands seeking to balance exclusivity with environmental stewardship.