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Economic as well as environmental reasons are driving the global green movement, according to a survey of technology executives released today.
PricewaterhouseCoopers ‘Technology Executive Connections - Going Green: Sustainable Growth Strategies’ revealed 60% of respondents cite energy savings as one of the most important factors in their company’s environmental decision-making process.
Additionally, 40% of technology executives claim the green movement creates significant market opportunities for their companies, as evidenced by a noticeable increase in customer demand for green products and services.
Barry Murphy, technology tax partner, PricewaterhouseCoopers LLP, commented:
“The growing demand for environmental products and services is now translating into new markets that technology businesses can address.
“For technology companies to incorporate this demand into opportunities to drive growth, they must ensure their green initiatives are in line with their business strategy.”
According to the survey, 61% of executives feel it is very important (29%) or important (32%) that their companies take steps to reduce their environmental impact. This shift towards green products, services and business operations is having a direct impact on the level of collaboration and innovation found throughout the entire technology value-chain, including marketing, human resources, research and development processes, manufacturing, and supply chains.
As organisations continue to evaluate their own business practices, they are paying closer attention to the actions of their partners and suppliers as well. Barry Murphy, technology tax partner, PricewaterhouseCoopers LLP added:
“One in five executives claim their companies practice environmentally preferred purchasing, where organisations select products and services that have a lesser impact on the environment than competitive products and services.
“What is encouraging though is that within the next two years, this figure will rise to over half of all executives.”
Technology organisations are also taking steps to safeguard themselves from stringent government legislation and regulations in the future by proactively imposing their own green-oriented controls. Twenty percent of survey respondents say their companies maintain a formal and widely distributed environmental policy. This figure will increase significantly over the next two years, jumping to almost 50%. To further reduce the risk of government regulations, technology companies are implementing a range of other environmental processes such as auditing internal green practices, appointing senior executives to oversee green programmes, and creating a clearer linkage between green initiatives and performance.
The effect of the green movement on hardware manufacturers compared to software companies varies substantially. According to the survey, 60% of technology manufacturers are developing green products and services, compared to only 33% of non-manufacturers.
Technology manufacturers are taking aggressive steps to expand their portfolio of green products and services by pursuing energy efficiency, implementing designs that reduce or eliminate the use of hazardous materials, using recycled or recyclable materials, building products that last longer, and creating packaging that meets or exceeds global environmental standards. A growing focus on reducing the weight of products and improving their capacity for recycling is also helping manufacturers better address end-of-life issues such as the recovery and disposal of products that have run their course.
The green movement also presents software and service-oriented technology companies with sizeable growth opportunities. The need for green technology consulting services and software aimed at helping organisations conduct business virtually to reduce travel and the carbon footprint will increase substantially in the coming years.
“The pendulum swing towards green technology is unleashing a creative disruption within the global technology market. The pressure is on for companies to respond quickly, make the most of new opportunities and manage their own environmental risk.”
ENDS
Contacts: Barry Murphy, partner, PricewaterhouseCoopers LLP Tel: +44 (0) 20 7804 5284, Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Anna White, media relations, PricewaterhouseCoopers LLP Tel: +44 (0) 20 7804 9719, Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Notes to Editor: 1. Survey Methodology: The quantitative findings presented in the PricewaterhouseCoopers “Technology Executive Connections: Going Green: Sustainable Growth Strategies,” report are based on a survey conducted by the Economist Intelligence Unit (EIU) in September 2007. The survey garnered 148 responses from senior executives based in five principal regions: 28% Asia; 31% Europe; 35% North America; 5% the Middle East and Africa and 1% Latin America.
About PricewaterhouseCoopers PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
For further information contact: Anna White T 020 780 49719 E This e-mail address is being protected from spam bots, you need JavaScript enabled to view it W www.pwc.co.uk
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