Large firms in the UK will spend over $5.3 billion (£3.5bn) on climate change and sustainability initiatives in 2010, according to a new report from independent research firm Verdantix.
The market forecast covers sustainable business investment in employees, equipment, consulting, project implementation and support services by 457 UK firms.
Based on assumptions for GDP growth, energy prices, carbon prices, innovation diffusion and regulatory decisions, the model forecasts that the UK climate change and sustainability market will grow by 14% a year to reach $8.4 billion in 2013.
“Business spending on initiatives directly linked to climate change and sustainability goals fell by 3% in 2009” commented Verdantix Director, David Metcalfe. “The good news is that in 2010 the market will bounce back and grow by 8%.
“Our unique market analysis combines financial data for 457 firms, 200 surveys of corporate budget-holders and a fact base of 1,200 initiatives.
“A key finding is that on average large UK firms with annual revenues greater than $1 billion will spend 0.16% of revenue on their climate change and sustainability programme. This equates to an average of $11.7 million per firm.”
The Verdantix report, UK Climate Change & Sustainability Market Forecast helps executives to benchmark their sustainability budgets, optimise sales and marketing strategy and validate business plans. Highlights of the Critical Moments report:
* UK climate change and sustainability market will grow by 13% in 2011 and by 18% in both 2012 and 2013. From 2009 to 2013 the compound annual growth rate will be a healthy 14%.
* Biggest spending industries in 2010 are retail ($944 million), oil and gas ($639 million), industrial goods and services ($473 million), utilities ($412 million), technology ($379 million) construction and building materials ($363 million).
* Most significant initiatives in 2010 are building energy efficiency ($701 million), sustainable product and service marketing ($427 million), industrial emissions reduction ($419 million) and sustainable product and service development ($319 million).
* Between 2009 and 2013 the fastest growing segments will be smart grid (31% CAGR), carbon data collection and management (28%), cleantech R&D (26%), electric vehicles and infrastructure (24%) and sustainable product development (23%).
“Expectations for UK economic growth between 2010 and 2013 are in the 1% to 2.5% range. So the 14% growth rate in the climate change and sustainability sector makes it an attractive market” continued Metcalfe. “Beyond 2013 we expect higher oil prices, tighter CO2 regulations and the diffusion of cleantech innovations will accelerate climate change and sustainability spending.”
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