Brand Protection - The New Frontier of ESG

The push for brand investment into ESG continues to grow, from greener packaging to cleaner production processes - all supported by more educated consumers.

However, counterfeit goods actively undermine these efforts.

While legitimate manufacturers invest in sustainable sourcing, renewable energy, and waste reduction - counterfeit operations bypass these standards, prioritizing profit over the planet.

The removal and prevention of counterfeits is no longer just an intellectual property issue - it is now a critical component of any brand's ESG and sustainability strategy.

The scale of the problem

The problem is undeniable: between January and April 2026 alone, Corsearch Revenue Recovery teams litigated against 23k sellers who had previously accumulated over $4 million in sales.

But quantifying the problem within the entire market is notoriously difficult - OECD models based on customs seizures provide scale estimations, but may underestimate domestic distribution.

Furthermore, because different counterfeit goods (like handbags versus watches) have vastly different footprints regarding material sourcing, chemical use, and carbon emissions - making a precise calculation of the environmental impact of counterfeit luxury almost impossible. 

Environmental Protection

Counterfeiters operate outside any boundaries committed to the fundamentals of environmental regulations; operating in almost wholly unregulated supply chains.

As a result, counterfeiting impacts a variety of environmental concerns, including:

Pollution and climate energy

Counterfeiters will attempt to cut costs as much as possible by using inexpensive, hazardous materials and outdated, pollution-heavy production methods. Toxic materials, low-grade plastics and substandard manufacturing can violate more global environmental regulations.

These manufacturing processes are unlikely to consider their contribution to polluting the environment at this initial stage, and further impact through small parcel international deliveries throughout the supply chain.

This illicit production will contaminate air, water, and soil during multiple levels of production.

When considering that the majority of fashion and luxury brands have committed to improved sustainability and carbon neutral initiatives, the counterfeit goods trade significantly undermines these goals and objectives. 

The impact of waste

Counterfeit products, in their nature, are likely to be of much lower quality; reducing their lifespan significantly. Inexpensive products encourage the temptation to buy more and waste more, leading to increased manufacturing and ultimately increased landfill.

An increasingly popular practice is also for counterfeit products to claim to be sustainable items, this may include reusable bottles or upcycled apparel.

Again, this activity misleads consumers, and dilutes brand integrity. Legitimate, high-end, high quality goods, encourage a reseller market, due to their durability and exclusivity, discouraging ‘fast fashion’ and in turn reducing the volume of waste. 

The destruction of seized goods

In an aim to protect consumers from potentially harmful products, when law enforcement seize counterfeits goods, products are often incinerated. 

Although necessary, this can have an impact on the carbon footprint. Most local authorities and recycling charities will be reluctant to accept illicit goods, and as a result, incineration and landfill options are ultimately the only viable alternatives.

Brand owners are obligated to follow strict disposal guidelines, often recovering materials or using more environmentally friendly options to dispose of unwanted goods. 

Understanding the scale of the disposal of illicit goods is difficult to accurately quantify - but we can gain an understanding through individual cases: 

• Greater Manchester Police’s ‘Operation Vulcan’, which resulted in the seizure of 1050 tonnes of counterfeit items. 
  
  
• The European Union Intellectual Property Office (EUIPO) seizure of 22,000 tonnes of fake food and 850,000 alcoholic drinks
  
  
• A joint operation ahead of the 2025 Women’s Euros that captured over 67,000 fake football shirts

The seasonality of counterfeiting

These numbers change at certain times of the year, with Christmas being a key driver in the rise of online counterfeit sales and Customs seizures.

Corsearch data shows us that: 

• Our takedown notices increase by >25% between October and December on global marketplaces, with platforms such as TikTok Shop, Vinted and Etsy seeing significant increases
  
  
• Social Media Account enforcements increase by an average of 32% during the holiday period, where consumers create Accounts to target holiday shoppers
   
• Domain and Website enforcements increase by >17%, particularly for ‘print-on-demand’ websites 

By being aware of trends in counterfeiting and the shift in consumer behavior, brands can better react to infringement and contribute to making the consumer market a safer and fairer place. 

Social responsibility

Labor exploitation and public safety risks are key concerns within an ESG initiative. 

The majority of organisations have a strong social responsibility stance, and incorporate this into their operations.

When considering social responsibility, counterfeiting can significantly damage an organisations goals:

Brand integrity

Counterfeit goods can be associated with forced, child, or unregulated labor. Raids within factories as well as videos posted online, including on social media networks, show evidence of unsafe conditions, poor safety equipment and unhygienic environments.

Videos and photographs can clearly show well-known branded products being produced in these conditions. As a result, this can significantly dilute the brand's integrity and reputation.

The removal of these manufactured products, and zero-tolerance stance against sub-standard conditions of unauthorised factories will help solidify the brands value of the social responsibility agreements. 

Sustainability 

Brands continue to invest heavily in environmentally friendly innovation and initiatives. This includes recycled and reusable materials, and non-toxic ingredients. Brand owners take measures, and often risks, to lead the industry forward.

Counterfeiters dilute that progress, replicating the products at a substandard quality, and without the ethics.

The result of this practice is fake sustainable products; with no environmental benefits, that mislead consumers, and dilute the impact of ethically produced products. 

Consumer safety

Protecting consumer safety is imperative.

From pharmaceuticals, electronics, children’s toys, cosmetics to apparel, these products can cause injuries or long-term health conditions. Investing in the destruction and prevention of these products protects consumers.

Brand trust

When customers accidentally buy fakes, they lose money and trust in the brand.

Taking action against counterfeits shows responsibility and dedication to customer welfare. What is clear is that whenever a customer purchases a counterfeit product unintentionally, they lose money and trust, often laying the blame at the door of the brand itself.

In some cases, duped consumers may attempt to make a claim against an authentic business rather than the counterfeiter, as the former is liable for injury or property damage caused by a defective product.

Governance

When considering consumer protection and corporate ethics, the development of a Brand Protection is fundamental to those efforts.

Counterfeit goods are often linked to organized crime and money laundering - something no brand wants an unintentional association with.

Two additional mechanisms to help combat this are:

1. Transparent Supply Chains

A proactive Brand Protection strategy requires a transparent and traceable supply chain, which sets a high standard for overall operational governance.

2. Supplier Management

Implementing strict audits for all associated suppliers helps avoid connections to potentially illegal activities and mispractises. 

Brand Strategies 

There are several methods to support the long-term prevention and detections of counterfeit goods, both online and offline: 

Track-and-Trace

Using blockchain technology or digital IDs allows for products to be verified through their lifecycle.

This could be in the form of a QR code or serial number, for example, which allows consumers and resellers to verify the authenticity of the goods.

Digital Authentication

Implementing ‘tags’ that can be checked with a device such as a smartphone can also help consumers verify whether the product is authentic.

Proactive Monitoring and AI enabled technology

Adopting an online detection program, specifically using AI and machine learning, is an incredibly effective strategy for the identification and removal of counterfeit listings from all online channels, including marketplace, social media and Domains or websites.

By working with expert partners who understand this changing landscape and leveraging tools such as AI monitoring software, luxury brands can determine exactly where their products are being advertised.

Taking this approach will allow the brand to take immediate action to shut down the counterfeiter’s operations.

Tamper-evidenced packaging

This ensures consumers can detect interference and trust that the product remains authentic.

It provides an additional criteria for establishing whether a product is genuine through the integration of known product security measures. 

Education

Engaging and empowering customers to recognise authorised sellers and understand the dangers of counterfeits is a fundamental aspect of any brand protection program.

By reducing demand and encouraging responsible behaviours - such as buying from certified sellers, scanning verification codes, and reporting suspicious online listings - brands can create a ripple effect that amplifies the movement toward sustainable consumption.

Ultimately, through education and awareness, luxury brands can effectively join forces with their customers to fight the rising tide of counterfeiters.

Encouraging regulations and penalties

Treating environmental harm as seriously as economic fraud would have an incredible impact

This includes stricter penalties for environmental violations, and better detection and tracking mechanisms. The absence of accountability means that there’s no responsibility or motivation to make products more sustainable. Unlike genuine items, they usually can’t be recycled, repaired or repurposed safely.

When environmental accountability becomes a legal requirement not just an ethical one, it could significantly impact the value and demand for counterfeiting operations.

Conclusion

Operating to combat counterfeit goods isn’t just about low quality products entering the market, it's about protecting essential ESG initiatives.

It’s imperative that we start talking about Brand Protection strategies and successes, not just as a brand risk, but also as an obstacle to developing a more sustainable existence.

A multifaceted, multi-dimensional strategy should encompass regulation, security technology, consumer education, and sustainable innovation. 

By integrating anti-counterfeiting measures into ESG strategies, companies can protect their reputation, strengthen and defend their brand, and contribute to a much more sustainable and safer future.

Speak to Corsearch today to find out how we protect the world’s most valuable brands by creating a safer world for consumers.