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Australian Sustainable Business Spending 2009-2014

Date: 19 April 2011

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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 Australian 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 139 firms with Australian revenues of more than US$1 billion in 2009/10, the model finds that sustainable business spend will grow from US$1.7 billion in 2010 to US$3.1 billion in 2014. Between 2009 and 2014, Australian sustainable business expenditure will increase at a compound annual growth rate of 13%. Growth in spending is driven by economic recovery, oil and electricity price risks, innovation diffusion, competitive dynamics and other risk factors. Regional government incentives also drive spending, but the Australian government’s unclear direction on energy and climate change policy 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 Australian Sustainable Business Opportunities
Sustainability Leaders Face A Blurred Picture Of The Market

AUSTRALIAN SUSTAINABLE BUSINESS MARKET WORTH $1.9 BILLION IN 2011
Spend On Sustainable Business Programmes Increases By 9% In 2011
Emissions Intensive Sectors Will Comprise 43% Of Spend In 2011
Consumer Brands Will Make Up 25% Of Sustainable Business Spend in 2011
Technology And Engineering Firms Will Add 14% Of Sustainable Business Spend

INITIATIVE-LEVEL ANALYSIS SEGMENTS $1.9 BILLION MARKET OPPORTUNITY
Energy And Carbon Efficiency Spend Will Reach $513 Million In 2011
Investments In Sustainable Operations Will Hit $505 Million In 2011
Fuel And Emission Reductions Investment Will Reach $319 Million In 2011
Sustainability Strategy, Risk Management And Brand Building Spend Will Total $126 Million
$1.9 Billion Of Spend Splits Unevenly Across Five Categories

AUSTRALIAN SUSTAINABLE BUSINESS SPEND WILL TOTAL $3.1 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 13%
Five Sustainability Initiatives Will Exceed 21% CAGR From 2009 To 2014
Four Sustainable Business Initiatives Sustain CAGRs Of 16% 
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. Australian Sustainable Business Spending Initiative Definitions
Figure 4. Firm-Level Maturity Assessments Define Three Levels Of Sustainability Spend
Figure 5. Market Segments Are Split Into Five Categories Of Spending
Figure 6. Average Spend Per Category For 29 Sustainable Business Initiatives
Figure 7. Australian Sustainable Business Market Opportunity 2009-2014
Figure 8. Australian Spend On Sustainable Business 2011 By Industry
Figure 9. Australian Sustainable Business Market Opportunity By Initiative 2011
Figure 10. Five Categories And 29 Initiatives Define Addressable Segments In 2011
Figure 11. Australian Sustainable Business Spend By Expenditure Category In 2011
Figure 12. Critical Moments® Applies Economic, Market And Regulatory Drivers
Figure 13. CAGR Of 29 Sustainable Business Initiatives 2009-2014
Figure 14. Australian Market Forecast For 29 Sustainable Business Initiatives 2010-2014
Figure 15. Year-On-Year Changes In Australian Spending On 29 Initiatives 2010-2014
Figure 16. Sustainable Business Industry Growth Rates 2009-2014