Sustainable business spending 'to grow to £6.8bn by 2015'

31/01/2012

Businesses in the UK are going to increase their spending on green initiatives in the coming years, with green investment set to grow by an average of 16 per cent annually between 2012 and 2015, according to a new market forecast.

The data from independent analyst firm Verdantix suggested that green spending will grow 12 per cent this year, which is 20 times the rate GDP is forecast to increase at.

"Despite the sluggish economy, spending by large firms in the UK on energy, environment and sustainability initiatives is set to increase by 12 per cent in 2012. By contrast the UK economy is only expected to grow by a paltry 0.6 per cent in 2012," commented Susan Clarke, Verdantix analyst and author of the report.

"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."

The sectors which are set to spend the most on making their operations more energy efficient are retail, technology, telecoms and high-tech engineering firms and oil and gas, transport and utilities.

In terms of what these businesses are spending their cash on, smart meters proved the fastest growing area, followed by electric cars, on-site renewable energy, product stewardship and sustainable solution marketing.

Despite the positive data from Verdantix, a recent report by Siemens showed that many companies are not as enthused about making their operations greener.

A third of businesses questioned said that they feel installing energy saving measures is worth the initial investment.

Posted by Sam Williams