As the economy begins to show signs of recovery, 47 percent of CEOs interviewed for PricewaterhouseCoopers’ Private Company Trendsetter Barometer survey are focusing their attention on addressing improvements in energy efficiency and reducing waste throughout their organizations, with 36 percent expecting a greater focus on sustainability over the next 12 to 18 months. Among these, larger private firms ($100 million or more in revenues) are more active in this area than are their smaller counterparts: among large firms, 46% are implementing energy efficiency and waste reduction programs and 13% were developing them; among smaller firms, 31% implementing and 10% developing.

According to the survey, private companies are focused on recycling, energy audit and usage-reduction goals, and on exploring new energy-efficient technologies and innovative equipment for heating, cooling and lighting systems. Fifty-six percent of companies will be creating incentives for their employees to reduce usage of energy, paper and other materials, while relatively few companies are considering purchasing carbon credits.

Climate Change and Carbon Management

46 percent of Trendsetter CEOs consider green practices or response to climate change important to the success of their businesses over the next 3-5 years. Focusing in on climate change, however, only 27 percent believe climate change will have a definite impact on their company’s profits over the next 3-5 years, while 66 percent see little or no profit impact.

A minority (15 percent) have either measured the carbon footprint of their companies or plan to do so over the next 12-18 months (8 and 7 percent, respectively). Not surprisingly, larger private firms expect to be more proactive about their carbon footprint than smaller firms.

	Taking Steps	Considering	Any Potential Action
Introducing recycling programs	86%	3%	89%
Exploring new energy-efficient technologies and equipment (heating/cooling/lighting systems)	68%	7%	75%
Conducting an energy audit and setting usage-reduction goals	61%	10%	71%
Incentives for employees to reduce usage of energy, paper and other materials	46%	10%	56%
Exploring new travel and transportation options	36%	5%	41%
Setting carbon-management goals	17%	10%	27%
Rethinking product packaging	17%	3%	20%
Purchasing carbon credits	1%	12%	13%
Any other?	4%	1%	5%

Focus on sustainability

Over the next 12 to 18 months, 36 percent of private company CEOs believe there will be a greater focus on sustainability within their businesses (36 percent), despite the fact that only 15 percent issue a sustainability report for their company presently (9 percent) or plan to issue one over the next 12 to 18 months (6 percent).

While a majority of CEOs (67 percent) reported the current economic climate has not impacted their companies’ level of planned investment to reduce its environmental impact, only 15 percent believe there has been some definite (6 percent) or probable impact (9 percent). Not surprisingly, the 36 percent of private businesses that expect greater company focus on sustainability in the near future are larger businesses, averaging $231 million in enterprise revenue.

PricewaterhouseCoopers works with a majority of the leading private companies in the U.S. Our 2,000 private company individuals focus on understanding the strategy and business objectives of private companies and their owners, working together to add value while reducing risk. Our professionals are provided with cross training to enable them to connect the dots across a number of private company issues such as compliance, controls, access to cash flow, expansion, exit strategies, succession, wealth management and the many areas that can help build or diminish long term success and value. For more information about PwC's private companies services please visit www.pwc.com/pcs.

PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across out network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

“PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.

For more information about Barometer surveys, including recent economic trend data and topical issues, please visit our web site: www.barometersurveys.com