Corporate spending to grow to £6.8 billion by 2015

The amount that UK firms spend on sustainability and energy initiatives is set to grow by 16% a year until 2015. Charlotte Reid has more.

Green businesses will continue to defy what is happening to the rest of the UK’s economy, according to a report from independent analysts Verdantix.

The report says that spending by large UK firms on energy, environmental and sustainability initiatives will reach £6.8bn by 2015.

The research, which looks at sustainable business spending in the UK between 2010 and 2015, says that the amount spent in categories such as sustainability, innovation and environmental performance will be £4.3 billion this year, and gradually rise over the next few years.

Susan Clarke, a Verdantix analyst who authored the report, said, “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”.

However, the report points out that even though sustainable business might be performing better than the traditional economy, it is still feeling the effects of it.

Rodolphe d’Arjuzon, Verdantix’s head of research, said, “Compared to our original forecast in 2009, growth in spending by large UK firms on energy, environment and sustainability has already slipped back by 18 months.

“This picture is likely much worse in the public sector”.

So this report highlights the message of Blue & Green Tomorrow – you can be a business and stand for something more than profit.

This is summed up nicely by one of our Green Dragons, Kelly Evans, who said, “It is my view that you can be a profitable company and be socially responsible”.

“You can in fact have genuine competitive advantage over other businesses by becoming a socially responsible company and we work with companies to achieve this.

“So they stand for something bigger and they are actually contributing to the wider sector and helping the planet”.

If you want to help stand for something bigger then speak to your IFA to find out more about the sustainable investment opportunities available. If you don’t have one then fill in our online form and we will put you in touch with a specialist ethical adviser.