Ernst & Young CleanTech Trends Report

New Energy World Network (Newnet) reported yesterday on Ernst & Young’s second annual global cleantech insights and trends report.

Newnet says 80 per cent of entrepreneurs (which in this context seems to include venture companies) expect to increase their cleantech spend over the next five years and that… [emphasis added]

nearly half (44 per cent) have budgeted at least $1m for climate change investments over the next five years and six per cent anticipate spending upwards of $20m during the same period.

They also note that the business response to climate change is more about the business opportunities than the risks, with companies expecting to break even or make a profit on their CleanTech initiatives.

In terms of financial return, the majority of respondents (69 per cent) said that their response to climate change would have a positive or neutral impact on the bottom line over the next ten years. Only 31 per cent expected to see a net additional cost to the bottom line.

This only makes sense as sustainability is all about efficiency, and a more efficient business is a more profitable one. But companies are not just interested in the bottom line, building your corporate brand and expanding your customer base are also perceived benefits of investing in CleanTech.

Sixty-seven percent cite the opportunity to enhance competitive position as an important strategic driver. Other key opportunities identified include contributing to a wider climate change solution (65 per cent), brand enhancement (63 per cent), gaining customers (61 per cent) and enhancing efficiency (56 per cent).

Not surprisingly, with such a wide range of opportunities and key areas for global businesses to focus on, climate change and CleanTech are moving up the priority list.

Climate change has moved to the top of the CEO agenda at many leading companies. Of those surveyed with a climate change agenda or one in development, most (69 per cent) kept overall responsibility for climate change response at the full board level.

So, the bottom line of the CleanTech trend is that it is gaining momentum, achieving a considerably higher priority for boards of directors than just a few years ago, and it helps the company improve its bottom line and brand. What more could you want from a new business field?