Survey: Retailers Embracing Green Practices

Chicago, October 1, 2007--According to a new study by BDO Seidman, two-thirds of chief financial officers (CFOs) at leading U.S. retailers say their company is actively involved with "green" or environmentally friendly practices, and 44% of those said they have increased their investments in these practices during the past two years.

Among the top 100 largest retailers, 83% are involved in green practices and a majority of those (62%) have increased their green investments during the past two years.

The BDO Seidman Retail Compass Survey asked the opinions of 140 chief financial officers at leading retailers located throughout the country. The retailers in the study were among the largest in the country, with revenues of more than $100 million, including 23% of the top 100 based on annual sales revenue. The survey was conducted in August of 2007.

"Retailers are focused on the importance of implementing environmentally friendly and energy efficient business strategies, commonly referred to as going green," said Catherine Fox-Simpson, a partner in the retail and consumer products practice at BDO Seidman LLP. "These businesses reap a two-fold benefit from pursuing green practices - consumer appeal and substantial tax breaks."

Among those retailers involved with green practices, more than a third (34%) are pursuing internal activities (environmentally modifying operations and structures) exclusively; while 9% are focused solely on external practices (selling green products). A majority (57%) of these retailers are pursuing a combination of both external and internal green practices.

Two-thirds of the CFOs cited the company's corporate image as the main reason for going green. Tax breaks or tax incentives was the greatest "green" motivator among 15% of the CFOs, followed by 10% citing city/state or zoning regulations.