The global survey of 312 EHS executives found that 10 percent of firms will increase spending in 2016 by double digits and 21 percent will spend between 5 percent and 9 percent more next year. Three quarters of respondents expect budgets to increase in 2016, which is an increase from 62 percent who increased spend in 2015.
According Verdantix’s complimentary report, which breaks down budget increases by country, 54 percent of firms surveyed in India will increase spend by at least 5 percent, 48 percent will do the same in the Middle East and 47 percent of UK respondents will boost EHS spending by at least 5 percent next year.
“The survey findings point to robust spending increases on EH&S initiatives in 2016” says Trevor Bronson, Verdantix analyst and author of the report. “In the next budgetary cycle only 3 percent of EH&S decision-makers in our survey will decrease spending. The highest priorities for environmental budgets are hazardous waste management, product stewardship, water and waste water initiatives. Occupational safety and employee health top the list of health and safety priorities for 2016.”
Key insights include:
60 percent of respondents see incident management as a high priority, 59 percent put risk analysis as a high priority and 45 percent say the same for EHS auditing.
Good news for employees: training and hiring will see the biggest increases in spending in 2016.
Voluntary certifications will see the lowest increases in investment.
Primary drivers of increased EHS budgets are operational excellence programs, CEO focus on sustainability and improved financial performance.
57 percent of respondents expect spending to stay flat for environmental consulting, 40 percent anticipate higher spend in 2016.
A Verdantix survey published in October found ERM has the highest brand preference in the EHS consulting sector, the Bureau Veritas brand ranks highest in the verification sector, SAP tops the brand preference list in the EH&S software sector and IBM has the highest brand preference for EH&S technology services.