Greentech Lead U.S: Corporate spending on initiatives to
enhance energy, environment and sustainability management will grow by less than
10 percent in 2013 according to a new Verdantix survey.
The global survey of 250 heads of sustainability found
that 72 percent of responding firms have a sustainability leader who reports
into the CEO or another member of the executive committee.
“Only 11 percent of Heads of Sustainability
anticipate increasing spend by more than 10 percent in 2013 compared to 2012″ commented Patricia Satkiewicz, Industry Analyst at Verdantix and author of the
report.
“We found that 46 percent of the 250 budget holders
expect their spend on sustainability to increase by up to 10 percent in 2013,
39 percent face flat budgets and 4 percent will receive less cash than in 2012.
On a global basis, we anticipate growth in sustainability budgets of 5 percent
to 7 percent in 2013.”
According to the survey, 21 percent of CEOs view energy,
environment and sustainability as issues that already impact the quarterly and
annual financial performance of their firms, but 50 percent of CEOs view
sustainability as a long-term issue or new concept.
The Verdantix report, “Global Sustainability Leaders
Survey: Budgets And Priorities” interviews 250 heads of Sustainability in
Australia, Brazil, Canada, China, France, Germany, India, Mexico, the Middle
East, Russian, South Africa, the UK, and the US.
21 percent of CEOs view energy, environment and
sustainability as issues that already impact the quarterly and annual financial
performance of their firms, but 50 percent of CEOs view sustainability as a
long-term issue or new concept
A quarter of firms spend at least 2 percent of revenues
on the full range of energy, environment and sustainability initiatives and
another quarter estimate those expenditures range from 1 percent to 2 percent
of revenues
Up to 47 percent of respondents lacked the budget to fund
core sustainability initiatives, requiring them to “tin cup” around other
budget holders to get funding
Sustainability innovation, marketing and employee
engagement will receive the biggest boost in investment in 2013, while
consulting and software implementation rank bottom, the survey said.
Energy management and EH&S management are the key
areas to improve in 2013, reflecting the desire of Heads of Sustainability to
muscle in on the operational areas which impact their results.
“Global GDP growth of 3.6 percent, electricity prices,
oil prices, new environmental regulations and business innovation lie behind
the growth in sustainability spending in 2013. But a 5 percent to 7 percent
increase will not trigger transformational change,” said Metcalfe, Verdantix
CEO. “To achieve their ambitions, Heads of Sustainability need to identify new
ways to connect with the CFO.”