2Sustain

Panel Intelligence, LLC, a market research firm for the CleanTech and Healthcare industries, recently published their first “Quarterly Sustainability Tracking Study.” This survey polled 65 sustainability executives of Fortune 500 companies and found that 80% plan to either maintain or increase levels of sustainability-related spending next year, despite the current downturn in the economy.

It’s important to note that Panel Intelligence conducted this study just a month ago, during the first week of November, and even though the sample size is somewhat small, the results underscore trends I have been seeing throughout the fall. In short, even though economic times are tough, companies are continuing to sharpen their focus on sustainability. Why? Because sustainability initiatives help companies meet both financial and green objectives.

Here are a few of the other key findings from this latest sustainability tracking survey:

• 82% of the sustainability executives polled rated energy efficiency as the most important area for focus and investment.

• Sustainability and clean technology spending (calculated as a percentage of corporate revenues) is expected to increase by 73% (from 0.15% to 0.26%) through 2010.

• Survey respondents estimate that their firms will be spending 20% more on waste management-related green initiatives in 2009, as compared to 2008. Those polled also predicted that their corporations will be spending 11% more on carbon footprint strategies and 4% more on sustainable supply chain management next year.

• 55% of the executives polled reported similar or greater capital availability for sustainability projects compared to last year. 17% reported significantly less, or no, capital available for green initiatives. 

• 48% of respondents ranked “cost savings” as the most important driver for green spending. 36% said the primary driver is “increasing or maintaining revenue by augmenting or preserving brand strength.”

The Panel Intelligence survey also looked specifically at supply chain issues, and the results suggest that corporations are now beginning to tackle the topic of sustainable procurement. For instance:

• 39% of those polled said they are currently working to green their external supply chain. Another 12% said that they plan to start those types of initiatives within in the next year. 40% reported that they are not actively working to force or encourage sustainability in their supply chains.

• Of those who have green supply chain initiatives in place, 24% said these efforts have had a substantial impact. 56% said they are beginning to see an impact. The remaining 20% said they have not yet made a tangible impact.

Taken altogether, Scott Packard, PhD, vice president of quantitative research for Panel Intelligence, sees the survey results as indication that sustainability is becoming part of the framework of any successful business plan.

 “Our Quarterly Sustainability Tracking Study clearly illustrates that sustainability and clean technology initiatives have achieved a tipping point and are no longer perceived by US organizations as an optional expense. Rather, sustainability is an opportunity to achieve a greater competitive advantage and higher efficiency, even in a down economy,” he says. “Similar to competitive pricing, technology and product quality, sustainability is starting to be required by customers and supply chain partners.”