Global executives 'planning climate change investments'

A new survey has indicated that global executives are preparing to engage with the environmental agenda by increasing their spending on climate change initiatives over the next two years.

The Ernst & Young report challenges recent claims that climate change investment will slow in the face of ongoing economic uncertainty and legislative delays.

According to the survey, 70 per cent of global respondents expect to spend more money on climate change projects between 2010 and 2012.

The study also suggested that environmental factors are playing an increasingly important role in business processes, with 40 per cent of senior executives believing equity analysts now consider climate change-related information in company valuations.

Sudipta Das, Ernst & Young's climate change and sustainability services leader for India, said the issue represents an opportunity for corporate leaders to shape the future of their organisations.

"Executives must collaborate across internal functions to optimise investment decisions, whether they lead to new revenue opportunities ... or decrease costs through a company's operational activity, such as the supply chain," he commented.

Last week, the Guardian reported on the growing number of international companies linking their executive remuneration policies to environmental factors.