Environmental management budgets to surge in 2014 says report
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.
Independent analyst firm Verdantix surveyed 250 heads of environment, health and safety (EH&S) in 13 major economies and found that just 3% plan to cut spend in 2014 compared to 2013, whilst 36% will hold spending in line with inflation.
"Spending on environmental issues such as air, soil and water pollution, permitting, waste, water and GHG emissions is in robust shape in 2014" said Verdantix CEO, David Metcalfe.
Particular hotspots for global environmental spending in 2014 will be EH&S software, environmental reporting, auditing and compliance, while product sustainability has also emerged as a priority theme for 2014.
The report found that 68% of North American EH&S budgets will remain flat in 2014 compared to 2013 with 30% of corporations making increases.
In the Asia Pacific region, 14% of corporations will increase EH&S spending by 10% or more and a further 22% will increase their budgets by up to 9%. Auditing, compliance, water management and EH&S software will see the biggest spend increases in this region in 2014, the report finds.
In Europe, the Middle East and Africa, 36% of corporations will increase their EH&S spending in 2014 of which 11% plan a double digit increase. In this region, water, waste and product sustainability top the investment list.
Verdantix analyst Jordan Nadian said: "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."