UK Sustainable Business Spending 2010-2015

Published: 30 January 2012

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 UK market, provides sustainability leaders in market-facing and corporate roles with analysis of sustainable business budgets, market size and forecast data. Built from publicly disclosed 2010 and 2011 revenue data from 421 firms with revenues of more than $1 billion, the model finds that sustainable business spend will grow from $5.9 billion in 2011 to $10.3 billion in 2015. Between 2010 and 2015, UK sustainable business expenditure will increase at a compound annual growth rate of 14%. Growth in spending will be driven by increasingly stringent national and European regulations, such as the EU ETS Phase 3, as well as oil and electricity price increases. Economic recovery, competitive dynamics and innovation diffusion will also boost spending. The analysis covers all sectors and sustainable business initiatives, from manufacturing energy efficiency to cleantech R&D.

TABLE OF CONTENTS

CRITICAL MOMENTS® QUANTIFIES SUSTAINABILITY SPENDING
Defining And Sizing UK Sustainable Business Opportunities
Decision Makers Need A Rich Analytical Framework To Understand Spending

UK SUSTAINABLE BUSINESS MARKET WILL BE WORTH $6.6 BILLION IN 2012
Spend On Sustainable Business Programmes Will Increase By 12% In 2012
Retail And Consumer Brands Will Account For 34% Of Sustainability Spend In 2012
Emissions-Intensive Sectors Will Comprise 25% Of Spend In 2012
Technology Firms Will Add 18% Of Sustainable Business Spend In 2012

INITIATIVE-LEVEL ANALYSIS SEGMENTS $6.6 BILLION MARKET OPPORTUNITY
Strategic Energy Management Spend Will Reach $2 Billion In 2012
Investments In Environmental Performance Will Reach $1.5 Billion In 2012
Investments In Sustainability Innovation Will Hit $1.1 Billion In 2012
Transport And On-Site Renewables Spend Will Total $919 Million In 2012
$6.6 Billion Of Spend In 2012 Splits Unevenly Across Five Categories

UK SUSTAINABLE BUSINESS SPEND WILL TOTAL $10.3 BILLION IN 2015
Economic, Market And Regulatory Factors Influence Sustainable Business Spending
Between 2010 And 2015 Sustainable Business Spend Will Grow By A CAGR Of 14%
Five Sustainability Initiatives Will Exceed 20% CAGRs From 2010 To 2015
Four Sustainable Business Initiatives Will Grow At CAGRs Of 17% To 19%
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 3-1. UK Sustainable Business Spending Initiative Definitions
Figure 3-2. UK Sustainable Business Spending Initiative Definitions
Figure 3-3. UK 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. UK Sustainable Business Market Opportunity 2010-2015
Figure 8. UK Spend On Sustainable Business In 2012 By Industry
Figure 9. UK Sustainable Business Market Opportunity By Initiative 2012
Figure 10-1. Five Categories And 29 Initiatives Define Addressable Segments In 2012
Figure 10-2. Five Categories And 29 Initiatives Define Addressable Segments In 2012
Figure 11. UK Sustainable Business Spend By Expenditure Category In 2012
Figure 12. Critical Moments® Applies Economic, Market And Regulatory Drivers
Figure 13. CAGRs Of Spend On 29 Sustainable Business Initiatives 2010-2015
Figure 14-1. Market Forecast For Spend On 29 Sustainable Business Initiatives 2010-2015
Figure 14-2. Market Forecast For Spend On 29 Sustainable Business Initiatives 2010-2015
Figure 15-1. Year-On-Year Changes In UK Spending On 29 Initiatives 2011-2015
Figure 15-2. Year-On-Year Changes In UK Spending On 29 Initiatives 2011-2015
Figure 16. Sustainable Business Spending Growth Rates Per Industry 2010-2015

ORGANIZATIONS MENTIONED

Accenture, Arup, Atkins, Aviva, Balfour Beatty, Barclays, Best Foot Forward, Boots, BP, British Airways, BT, CA Technologies, Cable&Wireless, Camco, Capgemini, Carbon Trust, CarbonSystems, CBRE, Chargemaster, Cisco, Climate Exchange, Credit360, Deloitte, Department of Energy and Climate Change, Diageo, Dimension Data, Dow Jones, Drax, E.ON, Edelman, EDF Energy, Else Refining & Recycling, Ericsson, Ernst & Young, Esso, Everything Everywhere, FirstGroup, Ford, Foster’s Group, FTSE, Fujitsu, Futerra, Granta Design, GSMA, HM Treasury, HP, IBM, Iceland, IHS, IKEA, IMServ, Infosys, IntercontinentalExchange, Interface, International Monetary Fund, Invensys, Johnson Controls, Jones Lang LaSalle, Kingfisher, KPMG, Logica, Marks & Spencer, Matrix, Morrisons, Motorola, Network Rail, O2, Ogilvy & Mather, Orange, PE International, PepsiCo UK & Ireland, PwC, QinetiQ, RLtec, SABMiller, Sainsbury’s, Salterbaxter, Santander, Schneider Electric, Scotia Gas Networks, Shell, Sky, SSE, Tate & Lyle, Telstra, Tesco, The Co-operative Group, T-Mobile, Toyota, Tullow Oil, United Utilities, University of Nottingham, US Energy Information Administration, Utilyx, Vattenfall, Vauxhall, Veolia, Verisae, Vodafone, Wilbury Stratton, WSP Digital, WSP Environment & Energy