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US Sustainable Business Spending 2009-14

Date: 04 October 2010

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35 pages, 18 figures

EXECUTIVE SUMMARY

Verdantix Critical Moments® is a globally-scalable model that sizes, forecasts and describes the future direction of sustainable business spending. This report, focused on the addressable US market, provides sustainability leaders in market-facing and corporate roles with a fact-based analysis of sustainable business budgets, market size and forecast data. Based on real financial data from 1,833 firms with US revenues of more than $1 billion in 2008/09, the analysis finds that spending on 29 sustainability initiatives will grow from $28 billion in 2010 to $60 billion in 2014. Over the 2009 to 2014 period the US sustainable business market will experience a 19% compound annual growth rate. The sustainable business market forecast finds that growth of 11% in 2010 will increase to 16% in 2011 and 24% in 2012. Growth in spending is driven by improved economic growth, risk drivers, competitive dynamics, innovation diffusion, higher oil prices, state-level GHG regulations and renewable energy policies. The study covers all industries and all sustainability initiatives from energy efficiency to spending on strategy, risk and brand.

RELATED RESEARCH
Climate Change And Sustainability Spending: How To Size And Forecast The Market
UK Climate Change & Sustainability Spending 2009-13

TABLE OF CONTENTS

CRITICAL MOMENTS® QUANTIFIES SUSTAINABILITY SPENDING
Defining And Sizing US Sustainable Business Opportunities
Sustainability Leaders Face A Blurred Picture Of The Market

US SUSTAINABLE BUSINESS MARKET WORTH $27.6BN IN 2010
Spend On Sustainable Business Jumps By 11% In 2010
Three Value Chains Will Account For 74% Of US Sustainable Business Spend In 2010
Financial Services, Automotive And Construction Take A Back Seat In Sustainability Spend

INTIATIVE-LEVEL ANALYSIS SEGMENTS $27.6BN OF SPEND IN 2010
Energy And Carbon Efficiency Spend Reaches $7.5 Billion In 2010
Investments In Sustainable Operations Will Hit $5.8 Billion In 2010
Sustainable Business Innovation Investment Will Reach $5.6 Billion In 2010
Sustainability Strategy, Risk Management And Brand Building Will Comprise $2.2 Billion
Spend On Both Equipment And Employees Will Exceed $8 Billion In 2010

US SUSTAINABLE BUSINESS SPEND WILL GROW TO $59.6BN IN 2014
Economic, Market And Regulatory Factors Influence Sustainable Business Spending
From 2009 To 2014 Sustainable Business Spend Will Grow By CAGR Of 19%
Five Sustainability Initiatives Will Exceed 24% CAGR From 2009 To 2014
Five Sustainable Business Initiatives Sustain CAGRs Of 19% To 23%
Embedded Sustainability Initiatives Will Witness Lower Growth Rates

BUSINESS PLANNING NEEDS TO INCORPORATE BROADER SCENARIOS
Analysis Identifies Key Sensitivities Influencing Sustainability Market Opportunities

TABLE OF FIGURES

Figure 1. Critical Moments® Supports Budgeting, Marketing Plans And Business Strategy
Figure 2.
Critical Moments® Analysis Is Based On Financial Data For 20 Industries
Figure 3. US Sustainable Business Spending Initiative Definitions
Figure 4. Sustainability Maturity Assessment Defines Spending Levels
Figure 5. Analysis Defines Addressable Markets With Five Categories Of Spend
Figure 6. Average Spend Per Category For Sustainable Business Initiatives
Figure 7. US Sustainable Business Market Opportunity 2009-2014
Figure 8. US Spend On Sustainable Business 2010 By Industry
Figure 9. US Sustainable Business Market Opportunity By Initiative 2010
Figure 10. 2010 Addressable Market Across Five Categories Of Spend And 29 Initiatives
Figure 11. US Sustainable Business Spend Split Across Five Key Categories In 2010
Figure 12. Critical Moments® Applies Economic, Market And Regulatory Drivers
Figure 13. Strength Of Regulatory Environment Drives Sustainability Spending
Figure 14. CAGR Of 29 Sustainable Business Initiatives 2009-2014
Figure 15. US Spend ($m) On 29 Sustainable Business Initiatives 2010-2014
Figure 16. Electric Vehicle & Infrastructure Spend Per Firm In 2014
Figure 17. Year-On-Year Changes In US Spending On 29 Initiatives 2010-2014
Figure 18. Sustainable Business Initiative Growth Rates 2009-2014