Firms keen to invest in sustainability

13th February 2012


Related Topics

Related tags

  • Mitigation ,
  • Management/saving ,
  • Management

Author

IEMA

Spending by large UK firms on energy, environment and sustainability initiatives will grow at an average of 16% a year between now and 2015, according to analysts Verdantix

The predicted growth in sustainable business spending in 2012 will be 12%, which is 20 times faster than the forecast growth of the UK economy, at 0.6%. The study finds that such spending by 421 UK firms, with revenues greater than £1 billion, will grow from £4.3 billion in 2012 to £6.8 billion in 2015.

“The UK’s sustainable business market is continuing to grow at a healthy rate because firms have aligned sustainability strategies with operational efficiency.

"Energy cost savings and more efficient use of natural resources now underpin sustainability investments – not philanthropic commitments to fight climate change,” commented Susan Clarke, Verdantix analyst and author of the report.

It concludes that some initiatives will experience significant growth over the next four years, while others will barely keep pace with inflation. Areas of spending expected to grow significantly up to 2015 include smart meters (23%), electric vehicles (22%), on-site renewable energy (22%) and product stewardship (21%).

Areas forecast to experience slower growth rates include spending on social responsibility (5%), and environment, health and safety (6%). Taken as a whole, strategic energy management will be the largest area of spend in sustainable business budgets, finds the study.

Despite the buoyant predictions in some areas, Verdantix warns that a further economic contraction in the UK could see some planned investments culled.

“If the UK economy falls back into recession in 2012, spending on capital-intensive initiatives will be delayed or cancelled,” commented Rodolphe d’Arjuzon, Verdantix’s global head of research.


Transform articles

Local authorities could have saved Green Homes Grant

The Green Homes Grant is set to deliver only a fraction of the jobs and improvements intended, leading to calls for more involvement from local authorities in future schemes.

23rd September 2021

Read more

COVID-19 recovery packages have largely focused on protecting, rather than transforming, existing industries, and have been a “lost opportunity” for speeding up the global energy transition.

23rd September 2021

Read more

None of England’s water and sewerage companies achieved all environmental expectations for the period 2015 to 2020, the Environment Agency has revealed. These targets included the reduction of total pollution incidents by at least one-third compared with 2012, and for incident self-reporting to be at least 75%.

30th July 2021

Read more

The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.

30th July 2021

Read more

Billions of people worldwide have been unable to access safe drinking water and sanitation in their homes during the COVID-19 pandemic, according to a progress report from the World Health Organisation focusing on the UN’s sixth Sustainable Development Goal (SDG 6) – to “ensure availability and sustainable management of water and sanitation for all by 2030”.

30th July 2021

Read more

The oil and gas industry is set to burn through its allocated carbon budget 13 years early unless decisive action is taken immediately, new analysis has found.

22nd July 2021

Read more

The UK will no longer use unabated coal to generate electricity from October 2024, one year earlier than originally planned, the Department for Business, Energy & Industrial Strategy has announced.

2nd July 2021

Read more

The UK government is not on track to deliver on its promise to improve the environment within a generation and is failing to stem the tide of biodiversity loss, a damning new report from MPs has revealed.

1st July 2021

Read more

Renewable energy will account for nearly 40% of the world's power mix by the end of this decade, overtaking coal within the next few years, according to research by GlobalData.

24th June 2021

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert