Environmental Budgets Growing in 2014

Mar 9th, 2014 | By | Category: Environmental Management

EHS Journal - Employee Team by Gabriella Fabbri

More than 62% of corporations worldwide will increase spending on environmental management initiatives in 2014, and 31% will increase spending in the double-digits according to a new report released by independent analyst firm Verdantix.

The survey of 250 heads of environment, health, and safety (EHS) in 13 major economies found that just 3% plan to cut spending in 2014 compared to 2013, while 36% will hold spending in line with inflation. According to the survey data, spending on EHS information systems is set for a significant increase: 55% of the respondents plan to increase spending in this area; 24% are targeting double digit increases in 2014 compared to 2013.

According to David Metcalf, CEO of Verdantix,

Spending on environmental issues such as air, soil, and water pollution, permitting, waste, water, and greenhouse gas (GHG) emissions is in robust shape in 2014. Compared to spend on energy management and sustainability, the EHS market looks much more attractive. Particular hotspots for global environmental spending in 2014 will be EHS software, environmental reporting, auditing, and compliance. Product sustainability has also emerged as a priority theme for 2014.

The report, Global Survey 2014: EHS Budgets & Priorities, also provides insight into trends at a country and regional level.

“This global survey indicates there is plenty of growth opportunity in the EHS market for services firms,” commented Jordan Nadian, Verdantix Analyst. “While 38% of EHS budgets are spent on employees, a whopping 43% is allocated to services firms for consulting, implementation, and support services. Risk mitigation is driving increases in spending. The 250 budget holders we spoke with said that financial risks, regulatory risks, and operational risks had the most significant influence on getting additional budget for EHS management.”

About Verdantix

Verdantix is an independent analyst firm that provides data, analysis, and advice to help its clients resolve their energy, environment, and sustainability challenges.

Photograph: Employee Team by Gabriella Fabbri, Italy.

 

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