PRIVATE R&D DRIVING GROWTH OF GLOBAL GREEN ECONOMY
St. Augustine, FL, August 29, 2012 – As of July 2012, $3.6 trillion has been privately invested in a greener, global economy, since 2007. The Green Transition Scoreboard® reports research conducted by Ethical Markets Media tracking private investments in creating cleaner, greener economies globally. As the world continues to invest at least $1 trillion per year until 2020, we are leaving the fossil fueled industrial era and entering a new solar age based on principles of equity, sustainability, and design based on nature.
The August 2012 Supplement to the February 2012 report focuses on investments companies are making in green research and development (R&D). The Green Transition Scoreboard® (GTS) tracks investments in Renewable Energy, Green Construction, Smart Grid, Energy Efficiency, Cleantech and R&D. Of these, R&D accounts for 6.7% of the total gts at the end of Q2 2012, more than Smart Grid, energy efficiency or Cleantech.
The gts research is the most comprehensive assessment of corporate, green R&D performed to date, derived from sustainability reports, company financial statements and media reports. This Supplement identifies companies responsible for more than $241 billion in green R&D.
“I believe $241 billion understates by half real global R&D private investments,” says Rosalinda Sanquiche, ethical markets executive director. R&D goes unreported for competitive reasons, international companies’ R&D not making it into the media, and because of the tens of thousands of middle-market and smaller companies with R&D budgets below reporting thresholds.
Major investment from large corporations evidences management’s bet on increasing revenues from consumers purchasing green products. R&D investments result in new products that meet human needs while minimizing the impact on the natural environment. The GTS data identifies and supports innovative companies ahead of the curve in responding to heightening environmental risks and regulations. Significant investments in green R&D validate that a company has integrated sustainability into its core strategy.
The Supplement includes country and sector analysis. Breakdown by country shows Germany, Japan and the USA leading the way among the top 24, with China, brazil and India, three of the BRIC, making a strong showing. R&D is strongest in the automotive, semiconductor, and electrical components and equipment sectors. Electronics and computer sectors are 4th and 5th, above environmental controls and building materials, pointing toward consumer-driven demand for greener everyday products.
Companies large and small around the world are recognizing a competitive advantage, and are making big bets on green innovation. They see significant growth potential in green markets, and are positioning themselves to profit from a larger market share. The transition to a green economy is happening, and it is the world’s most innovative companies that are driving it forward.
Rosalinda Sanquiche, Executive Director
Ethical Markets Media
904-829-3140, [email protected]
Timothy Jack Nash, Director of Sustainability Research
Ethical Markets Media
416-821-9179, [email protected]