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Australias Sustainable Business Market Will Be Worth $2.9 Billion In 2014

9 September 2014

The Australian sustainable business market will grow to $US3.5bn in 2018 from $US2.9bn in 2014, according to a new report from independent analyst firm Verdantix. The study predicts that the market will increase at a compound annual growth rate (CAGR) of 4 percent due to the expansion of energy management programs and incremental growth in sustainability programs.

The forecast is built from publicly disclosed 2013 revenue data from 225 corporates with revenues of more than $US1 billion. The Verdantix model categorises spending by 29 initiatives including energy efficiency, sustainable supply chains, cleantech and sustainable product innovation and is segmented across 20 industries.

The Verdantix report finds that out of a total 29 sustainable business initiatives, spending on industrial energy management, office energy management, water management along with electric vehicles and infrastructure will grow the fastest over the six years out to 2018. Expenditure on compliance and sustainability strategy will be driven down however, due to the axing of the formal carbon market.

The study notes that corporates will use energy efficiency as a cost reduction initiative and will account for 37 percent of total sustainability spending in 2014. When interviewing 20 Australian-based corporate energy managers in 2013, they heard that cost reduction is the most significant investment driver for energy management, given a steep increase in energy prices in recent years. While the repeal of the carbon price will initially cause a drop in end electricity prices, they forecast that prices will track upwards as long term network companies try to recover the costs of multibillion dollar investment programs.

About Verdantix
Verdantix is the fastest-growing, independent, analyst firm focused on sustainable business strategies and market opportunities. For more information visit www.verdantix.com.

Author: GreenBizCheck Authorised Distributor Anne Pellegrino of Green Business Co.

By Carolyn Wall, GreenBizCheck

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