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Rising Fuel Costs Spur Companies to Embrace Green Solutions

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percent of chief financial officers in the U.S. say the high price of oil is
negatively affecting their firms, with 61 percent describing the effects as "significant." Companies in Europe, Asia and China report similar concerns,
spurring a range of initiatives aimed at cutting fuel consumption.

findings are included in the most recent Duke University/CFO Magazine Global
Business Outlook Survey, which was released last week (see
Complete survey details and data tables are available at

may be reaching a tipping point on the cost of traditional fuels," said John
Graham, professor of finance at Duke's Fuqua School of Business and director of
the survey. "We're seeing more companies embrace 'green' initiatives and
position themselves to become less reliant on oil in the future."

in the U.S. have already instituted or plan to institute a number of policies
to manage higher oil prices: 53 percent say they are increasing
telecommuting/teleconferencing; 51 percent are improving facilities management,
including reduced lighting and improvements to HVAC systems; 48 percent are
reducing business travel; and 39 percent are turning to more efficient shipping
methods such as consolidating shipments.

percent of U.S. CFOs say their companies have already passed on fuel price
increases to consumers by raising prices, or have made plans to do so.

some companies are hesitant to raise prices due to the relatively weak economy,
a substantial number are deciding to add fuel surcharges, meaning customers
will have to absorb these increased costs," said Kate O'Sullivan, deputy editor
at CFO Magazine.

Among European companies, 71 percent of CFOs say they have been negatively
affected by high oil prices, with even higher responses in Asia (78 percent)
and China (88 percent).

a result, European CFOs are increasing telecommuting/teleconferencing (60
percent of companies), reducing business travel (49 percent) and raising prices
on products and services (44 percent).

Asia, 72 percent of firms have reduced or plan to reduce business travel, 76
percent are increasing the use of teleconferencing/telecommuting and 73 percent
are improving facilities management. Consumers in Asia will likely feel the
pinch from higher fuel prices; 58 percent of CFOs say their firms will pass on
the increased costs.

finance executives say their companies are using more efficient production
processes (61 percent) and improving facility management (60 percent) to manage
high oil prices. Fifty-three percent are using more efficient shipping methods,
and 55 percent are covering higher fuel prices by raising prices.