Verdantix Global Survey Finds Environmental Management Budgets Will Power Ahead In 2014
NEW YORK--(BUSINESS WIRE)--More than 62% of corporations worldwide will increase spending on environmental management initiatives in 2014 and 31% will increase spend in the double-digits according to a new report from independent analyst firm Verdantix. The survey of 250 heads of environment, health and safety in 13 major economies found that just 3% plan to cut spend in 2014 compared to 2013, whilst 36% will hold spending in line with inflation.
“This global survey indicates there is plenty of growth opportunity in the EH&S market for services firms such as CH2M HILL, DNV, DuPont Sustainable Solutions and Hitachi Consulting”
“Spending on environmental issues such as air, soil and water pollution, permitting, waste, water and GHG emissions is in robust shape in 2014” commented Verdantix CEO, David Metcalfe. “Compared to spend on energy management and sustainability, the EH&S market looks much more attractive. Particular hotspots for global environmental spending in 2014 will be EH&S software provided by suppliers like Enablon, GenSuite and Intelex, environmental reporting, auditing and compliance. Product sustainability has also emerged as a priority theme for 2014.”
The Verdantix report, Global Survey 2014: EH&S Budgets & Priorities, provides insight into trends at a country and regional level.
- 68% of North American EH&S budgets will remain flat in 2014 compared to 2013 with 30% of corporations making increases. Double digit increases will be focused on EH&S software (27% of corporations) and product-level environmental stewardship (42%).
- 14% of corporations in the AsiaPac region will increase EH&S spending by 10% or more and a further 22% will increase by up to 9%. Auditing, compliance, water management and EH&S software will see the biggest spend increases in 2014.
- 36% of corporations in EMEA will increase their EH&S spending in 2014 of which 11% plan a double digit increase. Water, waste and product sustainability top the investment list.
“This global survey indicates there is plenty of growth opportunity in the EH&S market for services firms such as CH2M HILL, DNV, DuPont Sustainable Solutions and Hitachi Consulting” commented Jordan Nadian, Verdantix Analyst. “Whilst 38% of EH&S budgets are spent on employees, a whopping 43% is allocated to services firms for consulting, implementation and support services. And 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 EH&S management.”
According to the global survey data, spending on EH&S information systems is set for a significant increase: 24% of corporate budget holders plan to spend at least 10% more in 2014 compared to 2013 and an additional 31% will increase spend in the single digits. EH&S leaders have the opportunity to improve their understanding of how to invest their growing information systems budgets by attending the Verdantix Summit ‘Getting Value From EH&S Technologies’, to be held on June 25 in Boston. Attendees will hear from a wide range of industry experts on the current state of EH&S software, best practices for deployments and system sustainment.