Clean Tech News > Mergers and Acquisitions >
Topics:  ,

Three-quarters of Global Corporations Plan to Increase Cleantech Investments

Apr 06, 2011 12:06 AM est    Location: London, United Kingdom


LONDONApril 5, 2011  -- Three-quarters of large international corporates plan to increase or significantly increase cleantech budgets between 2012 and 2014, according to Ernst & Young's second annual global survey of cleantech adoption. The survey questioned 300 corporations across all sectors with revenues of US$1bn or more. This year 44% of survey respondents anticipate their organizations will spend over US$50 million on cleantech while 12% expect their spend to exceed US$250 million.


The research clearly shows corporate cleantech investments evolving from a mechanism to cut costs and achieve operational efficiency to becoming a means of revenue growth. The survey respondents highlighted that research and development (R&D) for cleantech-enabled products and services will receive 40% of corporate cleantech spending while nearly 20% of respondents cited revenue opportunities as the most important reason for increased investment. Additionally, 77% expect the cleantech focus of their R&D departments to increase over the next three years.


Gil Forer, Ernst & Young Global Cleantech Leader, comments: "During the financial downturn, businesses looked to cleantech for cost savings and efficiency improvements.  But now that energy efficiency practices have become a competitive given, the corporate focus on cleantech is beginning to target revenue generation opportunities – top-line growth through new products and markets."


Corporations look to acquisitions

Acquisitions are still a popular corporate cleantech strategy. Nearly three-quarters of those surveyed have acquired a cleantech company or plan to consider it in the near future. Historically, corporations acquired cleantech companies for the short-term, demonstrable return on investment. However, 40% of respondents predicted this reasoning will change over the next five years as cutting-edge technologies increasingly become a justification for acquiring a cleantech start-up.

Senior executives with operational oversight demonstrated an even stronger preference for acquisitions of breakthrough technologies over the next five years (48%). In addition to merger and acquisition activity, partnerships are still an avenue to boost in-house cleantech innovation and increase revenues through new customers and new markets.


As executives of multinational corporations become more focused on cleantech as a way to drive revenue growth, they are seizing transformational opportunities in several ways, including:

  • -  Incorporating clean technologies into existing products to improve environmental performance
  • -  Entering cleantech segments that are adjacent to existing business units/operations
  • -  Creating entirely new cleantech-driven product and service offerings, and ultimately new industries.


Forer concludes: "There are exciting and transformational opportunities opening up in the cleantech arena. Corporations are increasingly recognizing the potential of cleantech to deliver both long-term investment and considerable competitive advantage. The challenges for corporations will not only be how to survive, but how to thrive in the increasingly competitive resource-efficient and low-carbon economy."



About the report - Ernst & Young annual Global corporate cleantech adoption survey

The statistics cited in this report are derived from Ernst & Young's 2010 annual global survey on cleantech adoption. Key demographics include:

  • Respondent location: Americas (46%), Europe/Middle East/Africa (29%), Asia Pacific (25%)
  • Executive level: CEO / President (20%), other C-level executive (32%), EVP/VP (14%), department head (13%), business unit head (8%), board member (3%), other (10%)

  • About Ernst & Young

    Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

    Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit

    This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.