Spending On Climate Change Said To Rise

Climate Change Spending To Rise Significantly

It is said that 50% of the 300 corporate executives that responded to a survey for Ernst & Young stated that their climate change spending would rise from 0.5% to upwards of 5% of total revenue by 2012. The increase is quite significant, sparking much debate.

Further details on the survey conclude that four out of five of the respondents [82%] stated that they plan on investing in energy efficiency in the next year, and 92% stated that the costs of energy are an important driving factor during the next 12 months.

Corporate executives were committed to taking action even though they said complying with regulations that vary from state to state or country to country would make that a challenge.

Even though executives are committed to moving forward with changes, they have stated that differing laws and regulations change from country to country as well as state to state, creating a difficult path to travel on towards better energy solutions. With 70% of the executives planning on spending more for climate change measures, it is no wonder that media outlets are stunned.

A telephone interview with Melanie Steiner [Ernst & Young] had yielded statements that reflected a shift in mentality for executives. Even though there is uncertainty in the air, "companies are really taking action anyway, because they're seeing that this is a business issue and an opportunity to generate new revenue," Steiner commented in a telephone interview.

It's noted that in the past, any actions made by corporations to deal with climate changes were simply public relations related, it is now becoming a money making movement that is allowing new product creation while saving money through the idea of efficiency and a limited risk.

The signs of change are spread throughout the recent survey, with over 90% responding that top executives are the true play makers involved with any real commitment to changing infrastructure, while 36% stated that the CEO is the sole person responsible for actions of change. It is important to realize that high levels do not guarantee a wide understanding of change initiatives or policies, according to one respondent.

Time will tell if the actions taken by major corporations will in fact reflect the survey results.

In the end, the survey, which was conducted by an independent analyst research firm, named Verdantix, utilized a certain anonymity in dealing with responses, with no respondent's name quoted or utilized in any form in reply. The survey was sent to sixteen major countries, including: Australia, Canada, China, Denmark, Finland, France, Germany, Iceland, India, Japan, Norway, South Africa, Sweden, Switzerland, the United Kingdom and the United States. The survey was sent to executives of 18 industry types that range from airlines, media, consumer goods manufacturers and real estate firms.

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The author regularly writes about ways to learn from home and also on the environment.

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