Sustainable business market to hit $60bn by 2013
Analysts suggest growing spend and increased recognition of benefits will see green business sector reach a “tipping point”
The world’s largest firms are set to spend $60bn on green initiatives such as energy efficiency and clean tech innovation by 2013, according to new research.
Analyst firm Verdantix examined spending rates of 2,500 firms with revenues over $1bn and operations in North America, the UK and Australia, and forecast that growth rates for investment in sustainable business programmes will be between 50 per cent and 100 per cent higher in 2013 than this year.
In two year’s time, spending will reach a tipping point, triggering a further rapid expansion in investment likely to benefit clean tech innovators and entrepreneurs, the company said in a statement.
“Spending on sustainable business initiatives… is positively correlated with global economic growth,” said Verdantix director David Metcalfe. “By 2013, a powerful mix of market drivers, led by the forecasted global economic rebound, will significantly increase strategic investment in sustainability programmes.”
Verdantix predicts the sustainable business market is emerging from a period where cost control topped the agenda and spending on sustainability moved sideways.
However, strong Asian demand, proven benefits from clean tech innovation and an increasing body of climate change legislation have changed the picture, it says.
The report added that these factors, combined with the recession-forged link between resource efficiency and cost saving, meant that the benefits associated with green spending are now broadly supported by senior executives who are increasingly likely to sanction large investments in sustainable business initiatives.
Janet Lin, a senior manager at Verdantix, said companies who were already well placed to take advantage of the sustainability boom would benefit the most when the 2013 tipping point kicks in.
“The last four years have been a roller-coaster ride for people working in sustainability and clean tech,” she said. “In 2007, many investors and executives believed global policy on climate change would create a vast new carbon market and consumers would demand ‘green’ brands. Today, the perspective is more complex and the market opportunity is more significant.”
The world’s largest firms are set to spend $60bn on green initiatives such as energy efficiency and clean tech innovation by 2013, according to new research.
Analyst firm Verdantix examined spending rates of 2,500 firms with revenues over $1bn and operations in North America, the UK and Australia, and forecast that growth rates for investment in sustainable business programmes will be between 50 per cent and 100 per cent higher in 2013 than this year.
In two year’s time, spending will reach a tipping point, triggering a further rapid expansion in investment likely to benefit clean tech innovators and entrepreneurs, the company said in a statement.
“Spending on sustainable business initiatives… is positively correlated with global economic growth,” said Verdantix director David Metcalfe. “By 2013, a powerful mix of market drivers, led by the forecasted global economic rebound, will significantly increase strategic investment in sustainability programmes.”
Verdantix predicts the sustainable business market is emerging from a period where cost control topped the agenda and spending on sustainability moved sideways.
However, strong Asian demand, proven benefits from clean tech innovation and an increasing body of climate change legislation have changed the picture, it says.
The report added that these factors, combined with the recession-forged link between resource efficiency and cost saving, meant that the benefits associated with green spending are now broadly supported by senior executives who are increasingly likely to sanction large investments in sustainable business initiatives.
Janet Lin, a senior manager at Verdantix, said companies who were already well placed to take advantage of the sustainability boom would benefit the most when the 2013 tipping point kicks in.
“The last four years have been a roller-coaster ride for people working in sustainability and clean tech,” she said. “In 2007, many investors and executives believed global policy on climate change would create a vast new carbon market and consumers would demand ‘green’ brands. Today, the perspective is more complex and the market opportunity is more significant.”
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