Canadian Sustainable Business Spending 2009-2014

Published: 01 March 2011

38 pages, 16 figures

EXECUTIVE SUMMARY

Verdantix Critical Moments® is a globally scalable model that sizes, forecasts and describes the direction of sustainable business spending. This report, focused on the Canadian market, provides sustainability leaders in market-facing and corporate roles with analysis of sustainable business budgets, market size and forecast data. Built from publically disclosed revenue data from 163 firms with Canadian revenues of more than US$750 million in 2008/09, the model finds that sustainable business spend will grow from US$2.3 billion in 2010 to US$3.7 billion in 2014. Between 2009 and 2014 Canadian sustainable business expenditure will increase at a 12% compound annual growth rate. Growth in spending is lifted by economic recovery, oil and electricity price risks, innovation diffusion, competitive dynamics and risk drivers. Regional government incentives also drive spending but the fragmented nature of Canadian energy and carbon regulation at the national scale creates uncertainty for firms. The analysis covers all sectors and sustainable business initiatives from building energy efficiency to assurance and verification.

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 Canadian Sustainable Business Opportunities
Sustainability Leaders Face A Blurred Picture Of The Market

CANADIAN SUSTAINABLE BUSINESS MARKET WORTH $2.5 BILLION IN 2011
Spend On Sustainable Business Programmes Increases By 12% In 2011
Emissions Intensive Sectors Will Comprise 43% Of Spend In 2011
Consumer Brands Will Make Up 28% Of Sustainable Business Spend in 2011
Technology And Engineering Firms Add 18% Of Sustainable Business Spend

INITIATIVE-LEVEL ANALYSIS SEGMENTS $2.5 BILLION MARKET OPPORTUNITY
Energy And Carbon Efficiency Spend Will Reach $719 Million In 2011
Investments In Sustainable Operations Will Hit $596 Million In 2011
Fuel And Emission Reductions Investment Will Reach $501 Million In 2011
Sustainability Strategy, Risk Management And Brand Building Spend Totals $170 Million
Spend On Both Equipment And Employees Will Exceed $1.4 Billion In 2011

CANADIAN SUSTAINABLE BUSINESS SPEND WILL TOTAL $3.7 BILLION IN 2014
Economic, Market And Regulatory Factors Influence Sustainable Business Spending
Between 2009 And 2014 Sustainable Business Spend Will Grow By A CAGR Of 12%
Four Sustainability Initiatives Will Exceed 15% CAGR From 2009 To 2014
Four Sustainable Business Initiatives Sustain CAGRs Of 11% To 14%
Embedded Sustainability Initiatives Show Lower Growth Rates

BUSINESS PLANNING MUST EXPLORE SUSTAINABILITY 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. Canadian Sustainable Business Spending Initiative Definitions
Figure 4. Firm-Level Maturity Assessments Define Three Levels Of Sustainability Spend
Figure 5. Five Categories Of Spending Describe Market Segments
Figure 6. Average Spend Per Category For 29 Sustainable Business Initiatives
Figure 7. Canadian Sustainable Business Market Opportunity 2009-2014
Figure 8. Canadian Spend On Sustainable Business 2010 By Industry
Figure 9. Canadian Sustainable Business Market Opportunity By Initiative 2010
Figure 10. Five Categories And 29 Initiatives Define Addressable Segments In 2011
Figure 11. Canadian Sustainable Business Spend By Category Of Spend In 2011
Figure 12. Critical Moments® Applies Economic, Market And Regulatory Drivers
Figure 13. CAGR Of 29 Sustainable Business Initiatives 2009-2014
Figure 14. Canadian Market Forecast For 29 Sustainable Business Initiatives 2010-2014
Figure 15. Year-On-Year Changes In Canadian Spending On 29 Initiatives 2010-2014
Figure 16. Sustainable Business Industry Growth Rates 2009-2014