Verdantix Says The French Sustainable Business Market Will Grow To €7 Billion in 2015 From €4.4 billion in 2011

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The sustainable business market in France will grow to €7bn in 2015 from €4.4bn in 2011, according to a new report from independent analyst firm Verdantix. The report forecasts that sustainability spending will exceed €4.8bn in 2012, grow to €5.4bn in 2013 and reach €6.2bn in 2014.

London, November 22, 2011.The sustainable business market in France will grow to €7bn in 2015 from €4.4bn in 2011, according to a new report from independent analyst firm Verdantix. The report forecasts that sustainability spending will exceed €4.8bn in 2012, grow to €5.4bn in 2013 and reach €6.2bn in 2014. The forecast is based on analysis of spending by 278 firms with French revenues of at least $1bn and cross-industry research into over 1,000 French corporate sustainability initiatives. The Verdantix model categorises spending by 29 initiatives covering energy management, fuel and emissions reductions, environmental performance, sustainability innovation, strategy and risk management and human capital.

“Investments in sustainable business initiatives by French firms are driven more by regulation than by competition” commented Emilie Beauchamp, Verdantix Industry Analyst and author of the report. “But by playing it safe they risk losing out on multi-million euro growth opportunities in areas of business activity such as energy management, smart grid and electric vehicles. Firms like Atos Origin, Capgemini, Enablon and Orange are leading the way with a focus on market opportunities created by European Union regulations, sustainability criteria in public procurement and a business demand for more energy efficient processes and equipment.”

According to the Verdantix report,France Sustainable Business Spending 2010-15, the market will experience an 11% CAGR from 2010 to 2015. Sustainability spend will increase by 8% in 2012 compared to 2011. This positive trend will continue with a year-on-year increase of 13% in 2013. Regulations including the Grenelle II environmental laws, the Bilan Carbone and phase 3 of the EU Emissions Trading Scheme will hit the French market in 2013. Since French firms respond to the regulatory stick, these changes will stimulate an increase in investment from 2013 onwards.

Across 29 sustainable business initiatives the Verdantix market forecast finds that spending on energy and carbon data management will grow fastest, increasing at 18% a year to €473 million by 2015. Spend on smart grid will grow at a 16% CAGR to reach €123 million in 2015. Electric vehicles and infrastructure will increase at a 15% CAGR to reach €189 million in 2015.

Energy and emissions intensive industries will spend most on sustainability in 2012, accounting for 36% of sustainable business spending. Utilities will spend €516 million, accounting for 11% of spend. Construction and materials firms account for 11%, oil and gas for 9% and travel and transport 5%. The consumer goods and manufacturing sectors will make up 27% of spend in 2012.

“France, like most other European countries, faces a period of economic uncertainty. Our forecast for a 11% CAGR between 2010 and 2015 assumes national economic growth of between 1.5% and 2.1% over the five year period,” stated Rodolphe d’Arjuzon, Verdantix Director. “The deregulation of the French electricity market, as well as marginal increases in global and national economic growth will drive up the price of electricity, fossil fuels and other natural resources. Spending on initiatives such as energy efficiency, sustainability communications, lobbying and renewable energy production will be even higher if economic growth is above current forecasts.”

The Verdantix report,France Sustainable Business Spending 2010-15, launched today and is available to Verdantix clients atwww.verdantix.com.

About Verdantix

Verdantix is the fastest-growing, independent, analyst firm focused energy, environment and sustainability. Through our global primary research and deep domain expertise we provide our clients with strategic advice, revenue generating services, best practice frameworks, industry connections and competitive advantage. For more information visit:www.verdantix.com.

Tuesday, 22 November 2011

News Source : Verdantix Says The French Sustainable Business Market Will Grow To €7 Billion in 2015 From €4.4 billion in 2011