Future CSR investment in Canada poised to accelerate per new report

As with many things gauging corporate commitment to Corporate Social Responsibility (CSR) is partially a matter of measuring the financial investment to CSR business expansion. According to a new report from the independent analyst firm Verdantix that investment looks set to increase in Canada at a tremendously encouraging pace over the next few years. Corporate responsibility of course involves far more than just talking about it, but requires an investment in processes that improve energy use, ethical supply, workers rights, corporate donations and fair trade to name just a few arenas. Each step on the path towards more robust CSR involves both commitment from the individuals who work for a company but also the investment to realign those daily practices.

This report far exceeds my expectations as a barometer for just how committed to CSR Canadian corporations are, which can only be good news. More than 160 firms with Canadian revenues in excess of $750 million were studied to compile the investment projections for the sustainable business market the annual numbers forecast are as follows:

$2.8 billion in 2012
$3.2 billion in 2013
$3.7 billion in 2014

The data was compiled by studying detailed industry research that applies to more than a thousand corporate sustainability initiatives in Canada, to pinpoint the investment the Verdantix Study selected the anticipated spend as applied to 29 individual sustainability sectors or initiatives. These initiatives included; risk management, sustainable operations, energy efficiency, carbon management and reductions in emissions for industrial companies. The year-to-year increases are projected to be in the vicinity of 12 percent between 2009/2014 with many investments being independent of those driven by federal energy and climate policies which have not been clearly outlined quite as far into the future. The part the government plays is also a factor based upon location as different provinces were to reach guidelines that are set out specifically for their locality.

Wind turbines in Ontario

This study compiles data from 20 different industries that represent a large portion of the Canadian economy which further reinforces just how cohesive the approach to CSR investment has become in recent years. Aggregate spending of course does vary from one initiative to the next with growth as high as 27 percent for smart grid development and implementation, whilst on-site renewable energy shows a growth rate of 25 percent over the period studied. The other thing to consider is that the investment is by no means conservative when compared with overall economic growth which is projected to run at 2-3% over the same time-span, the fact that corporate investment in CSR is projected to run at a rate that is 4 to 6 times higher than overall growth contradicts the cynics who feel the CSR is perhaps a fad of some sort. Corporations are evidently convinced that investment in social responsibility is not only a good thing to do but also a will be a critical component of staying competitive.

To a certain extent it’s apparent that the ongoing concerns about energy costs and sources helped to drive these investments but at last it seems that longer-term strategies are winning out with regards to energy and corporate executives are seemingly on board based upon the data with finding a new path.

I strongly encourage you to visit the Verdantix website where some key findings of this report and many others in a similar vein can be reviewed.

For the latest CSR and nonprofit fundraising news please follow us on Twitter!

[poll id=”9″]