MANILA, Philippines - How green the provenance of a designer purse has become as important as how gorgeous it would look on the arm of its buyer. But American and European executives of luxury companies seem to think Asians don?t care.

In November last year, World Wide Fund in the United Kingdom published a study authored by its consultants, Dr. Jem Bendell and Anthony Kleanthus, that showed global luxury firms failed to make the grade in the environmental, social and governance (ESG) performance index. The report made headlines in Europe.

Called ?Deeper Luxury,? the study ranked the 10 largest publicly listed luxury companies via the research firm Ethical Investment Research Service based on several criteria: environment, human rights, corporate governance and stakeholder relations. L?Oreal, whose luxury division includes brands like Lancôme and Kiehl?s, emerged with a C+ rating, the highest mark reached by any luxury company. Hermes and LVMH (owner of Louis Vuitton, Givenchy, Marc Jacobs, Tag Heuer, etc.) got a similar C+; Tods and Bulgari were both at the bottom with F marks.

Emerging markets

The release of the study hastened the companies to release their sustainability reports. In meetings with Bendell, top brass in these firms said they would like to do more in ensuring their outfits adhere to ethical and environment-sustainability standards. However, the same execs claimed there?s no market support in emerging markets like China, which is pegged to become the biggest luxury consumer in the world in the next few years.

?Asians don?t care, that?s what they said,? according to Bendell, speaking before WWF Philippines and guests at the Ayala Museum in Makati on Tuesday. Their own research showed otherwise, however. ?We said it?s a false assumption,? he added, noting Asia?s increasingly maturing markets that can now ?look beyond logos.?

?In Japan, 76 percent say luxury isn?t defined by the brands; it has more to do with the lifestyle,? he said. Even more compelling, analysts found Korea to have matured as a market quicker than Japan, taking them only 10 years what it took their neighbor 25 years. ?They are now more conscious about the heritage, where it comes from, what it stands for, why it should deserve that price tag.? Those, and coupled with traditional Asian values, strong community ethic and even religion.

Bendell said it?s imperative to get Asians involved considering how the region?s emerging middle class is faring in the ecological footprint index. A report in November showed Malaysia?s carbon emissions increased by 221 percent, the highest growth in the world. To sustain current lifestyles, the average American will need the resources of five planets, Bendell noted, while the average European will need three. Recent studies showed the average Indian middle class has a higher carbon footprint per capita than the average Briton.

Educated consumers

But why focus on luxury companies?

It?s the report?s stand that ?luxury consumers are part of an affluent, global elite that is increasingly well-educated and concerned about social and environmental issues? who view luxury goods as symbols of their success. ?Many successful people now want the brands they use to reflect their concerns and aspirations for a better world,? the study said.

?What I want you to do is to talk to the brands that you admire,? Bendell urged. ?Express interest, say that you care, say that you?ll be proud to carry these brands if they embody social environmental excellence.?

The study noted that these days, ?added value? is no longer so much exclusivity as so-called luxury brands have become democratized. ?[T]heir added value for consumers could be derived from superior environmental and social performance, expressed through ?deeper? brand values and more sustainable business practices.?

Bendell also criticized celebrities who, if unwittingly, associate themselves with and promote companies that show poor ESG performance. For instance, he said, there?s George Clooney, widely admired for his high-profile campaign for the cause of Darfur; he endorses the luxury watch brand Omega, a Beijing Olympics sponsor. Speaking publicly before the Olympics, the actor pressed China to reconsider its investments in Sudan, which is a major trading partner.

?There?s the reputation risk,? Bendell said. Omega is owned by the Swatch Group, which got a D rating in the ESG performance.

In his talk, Bendell lauded the efforts of renowned Cebu furniture designer Kenneth Cobonpue and his use of sustainable materials like rattan and bamboo, and fashion designer Puey Quiñones, who has been working with prison inmates in creating his garments to ?encourage self-esteem.? ?It?s a fantastic idea,? Bendell said. ?Many of the European brands will not risk having anything to do with a social problem like that.?