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Forecasting US Corporate Spending On Energy, Environment & Sustainability - 2013 to 2017 (Webinar)

Date: 08 May 2013

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Executive Summary

Forecasting US Corporate Spending On Energy, Environment & Sustainability - 2013 to 2017 (Webinar)What is the future shape and direction of spending by large US corporates on 29 energy, environment and sustainability initiatives over the next 5 years?

This webinar draws on the updated Verdantix US Critical Moments model that sizes and forecasts spending by more than 2,800 firms with revenues in the US market of at least $1 billion. The market forecast is built bottom-up from company financial data and covers spending on employees, consulting, equipment and support services split across energy management, environmental management, strategy and branding, sustainability innovation, sustainable transport and human resources. This webinar provides heads of sustainability with an understanding of how to build a robust framework to benchmark their budgets and will enable product and service suppliers to build business plans on independent market data.


How can we best understand the structure of spending by large US firms on energy, environment and sustainable business initiatives?

What does spending on Energy, Environment and Sustainable business consist of?
Key challenges in understanding sustainable business spend
Critical Moments® Methodology
Our analysis focuses on US firms with annual revenues of at least $1bn which represents 2,856 firms
Sustainability spending assumptions need to be discounted due to the wide variance between spending by leaders, opportunists and laggards
Green Quadrant® analysis of Sustainable Telecoms (2012 US) clarifies the divergence in sustainable business programmes and spending
Sustainable business spending as a % of revenues varies significantly between leaders, opportunists and laggards 
Our global primary research of corporate sustainability programmes identified 29 sustainable business initiatives across all industries
Grouping 29 sustainable business initiatives into 6 top-level categories helps clarify commonalities across strategic programmes
Strategic energy management initiatives account for 37% of US spend in 2013, environmental performance account for 35%
Sustainability innovation initiatives account for 7% of US spend in 2013, transport accounts for 2%
Strategy, risk and brand initiatives account for 14% of US spend in 2012, human capital account for 3%

What are the key factors influencing or holding back growth in spending by large US firms on energy, environment and sustainability initiatives?

The Critical Moments® model includes factors that increase spending, decrease spending or can result in both increases and decreases
Innovation diffusion increases sustainable business spending if the innovations deliver tangible business benefits
Competitive dynamics trigger increased spending on market-facing sustainability initiatives with some impact on internal programmes
Changes in GDP have the most comprehensive impact on sustainable business spending – other factors affect specific initiatives 

How will the US market evolve over the period from 2013 to 2017?

US sustainable business spending will grow from $34.6bn in 2012 to $43.6bn in 2015 representing a CAGR of 5%
In 2013 the 29 sustainable business initiatives will range from $5.5bn spend on environmental remediation to $188m on sustainable travel
In 2013, legal and compliance expenditure will total $1.7 billion 
A breakdown of 2013 spend by category clarifies the addressable market for different types of providers
Initiative compound annual growth rates from 2012 to 2017 reflect the low base of new areas of spend
Growth will result in 12 sustainable business initiatives with spend above $1 billion in 2017 (figures in table in $m)
Energy, Environment & Sustainability business spend is split across 5 categories of spend ($m)
Energy, Environment & Sustainability business spend is split across 6-top level categories of initiatives ($m)
Strategic energy management spend will grow from $13.1bn in 2012 to $16.5bn in 2017, a CAGR of 5% ($m)
The Mix Of Corporate Spending On The Six Categories Of Energy, Environment & Sustainable Business Initiatives Varies Significantly By Industry
Adding Value To Sustainable Business Programmes Requires Insight Into The Allocation Of Spend By Industry
The growth and maturity of energy, environment and sustainability business spending will continue to vary by industry, initiative and category of spend

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