Climate change is a growing strategic concern for many cutting edge young businesses and the majority are increasing their focus on clean technology as a result, according to an Ernst and Young survey of leading entrepreneurs.
The survey polled the 48 World Entrepreneur Of The Year honorees and found that more than 60 per cent now view climate change as a vital strategic concern.
In addition, seven out of 10 said they have increased their focus on climate change in the past 12 to 24 months, while 80 per cent expect to increase investment on initiatives that will help tackle global warming over the next five years.
Gil Forer, global director of cleantech at Ernst & Young, said companies cannot afford to ignore the pressures that are increasingly forcing them to engage with climate change.
"Current and expected government regulation combined with consumer demand and technological innovation is catalysing the corporate response," she said. " Climate-smart companies recognise that investing in new technologies and focusing R&D spend or partnering with customers and suppliers to create new initiatives can create significant competitive advantage – from both revenue generation and cost-cutting perspectives.”
The survey also found that nearly half of those surveyed have budgeted at least $1m for climate change investments over the next five years, while six per cent anticipate spending upwards of $20m (£13m). Water efficiency, solar power and smart grid technologies were identified as the prime areas for investment.
The polled entrepreneurs said their investement decisions were driven largely by commercial considerations with more than two thirds citing the opportunity to enhance competitive position as an important strategic driver behind climate change initiatives.
Meanwhile, 69 per cent said they expected green investments to to have a positive or neutral impact on the bottom line over the next 10 years, with only 31 per cent claiming that climate change responses would represent a net cost to businesses.
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