Corporate ‘Green’ Spending Up, Despite Weak Economy
by Jennifer Berry
Published on November 26th, 2008
1 Comment
According to the first-ever Quarterly Sustainability Tracking Study by Panel Intelligence, LLC, 80 percent of corporate sustainability executives surveyed in North America plan to maintain or increase levels of sustainability-related spending in 2009.
Although current economic conditions are forcing companies to cut back on many expenditures, the 65 executives of Fortune 500 companies surveyed still find sustainability issues worth their time and dollars.
Some key findings include:
- Sustainability and clean technology spending (as a percentage of corporate revenues) is expected to increase 73 percent through 2010.
- 82 percent of those surveyed rated energy efficiency as the most important area of focus and investment.
- Corporate spending on sustainable waste management initiatives is expected to grow by 20 percent in 2009. This is the highest percentage increase of any subcategory.
- Cost savings, revenue generation and brand strength are the most important drivers of environmental and clean technology initiatives.
The report comes at a time that, while the immediate outlook for the U.S. economy remains dreary, the future of “green” initiatives is bright. Companies such as Nokia, GE, Dunkin’ Donuts and Pepsi are looking to revamp their image and policies using tactics such as cutting carbon emissions, recycling, reducing water usage and using sustainable packaging, while companies like RecycleBank are already capitalizing on Americans’ desire to reduce their impact on the environment.
“Our Quarterly Sustainability Tracking Study clearly illustrates that sustainability and clean technology initiatives have achieved a tipping point and are no longer perceived by U.S. organizations as an optional expense. Rather, sustainability is an opportunity to achieve a greater competitive advantage and higher efficiency, even in a down economy,” said Scott Packard, Ph.D., vice president of quantitative research for Panel Intelligence.
The data was compiled during the first week of November, before the election.
Neo Wee Wu
posted on November 27th, 2008 at 4:33 am
it is delighting to hear that large companies are doing their part for our environment. Despite weak economy, they are spending more in “greener production”. Besides building better corporate image, could it be because these companies want to go inline of the government which are promoting green initiative?