The latest findings from the Grant Thornton International Business Report (IBR) released to coincide with World Environment Day on Tuesday show that energy and raw material costs are an increasing worry for global businesses.

44% of global businesses report the increasing cost of raw material as having the greatest impact on cost pressures, making it the biggest worry for businesses globally. Other threats to cost pressures are the cost of staff (41%), energy (37%) and transport (34%).

Property costs (15%) are expected to have a lesser impact over the coming year.

In South Africa, 69% of respondents reported the cost of staff as having the most impact on operating costs. Raw material costs were ranked second (53%), followed by transport (49%), energy (38%) and property (19%).

When it comes to managing energy costs newly industrialising countries appear to have done more than the service oriented economies of Western Europe and North America. 7,200 privately held businesses in 32 countries were measured by whether they had undertaken six energy and environmental initiatives*.

Out of a maximum score of 600, companies in the Philippines (410) lead the way, followed by Brazil (360), mainland China (341) and Malaysia (307).

There are, however, some surprises with Singapore (143), Thailand (178) and Taiwan (207) featuring at the foot of the table.

South Africa only scored 230 points and is identified as a country to have done little to manage its energy cost pressures while major impacts are anticipated.

- FIN 24