Most Companies Lack an Energy Strategy, Research Shows

While a majority of senior technology leaders from around the
globe (82 percent) closely monitor the issue of global warming, most
do not have a defined energy strategy to deal with it (65 percent),
according to a new global survey released by Hill & Knowlton, Inc. In
fact, more than three quarters of business decision makers surveyed
(77 percent) believe there is a need to expand the C-Suite to include
a Chief Energy Officer (CNO) to manage, implement and measure a
company's return on investment in environmental technology, the
so-called Return on Environment (ROE).

The survey, conducted by global communications consultancy Hill &
Knowlton and polling partner Penn, Schoen & Berland Associates,
examined the viewpoints of 420 senior business decision makers
involved in IT purchases from the United States, UK, China and Canada
to determine how they go about integrating economics and ethics when
it comes to environmental issues. The results provide invaluable
insights for companies as they formulate their own environmental
communications strategies that go beyond traditional marketing and
communications, or corporate reputation techniques.

"Despite the hype, few companies are plotting a measurable action
plan to drive return on environment," said Joe Paluska, head of Hill &
Knowlton's Worldwide Technology Practice. "While the overwhelming
majority looks to the CEO to own the issue, nearly two-thirds of those
polled said no one within their organizations is tasked with defining
the company's energy strategy. We expect reputation, risk and return
to suffer until companies really stand up and take charge and industry
as a whole sets the standard for measuring return on environment."

Defining a corporate energy strategy

Of those polled, 77 percent of Chinese respondents said their
firms have not yet defined an energy strategy. The US came in second
at 67 percent, followed by Canada (62 percent) and the UK (51
percent).

When it comes to the question of who is responsible for defining a
company's energy strategy, again, the results echo similar
uncertainty. Sixty-five percent of those polled do not have anyone
identified within their organization tasked with defining an energy
strategy. In China, such an organizational role is almost unheard of,
with 82 percent of respondents indicating that no one in their company
is responsible for developing an energy strategy. The United States
fared only slightly better, with 70 percent, and the UK is farthest
ahead with more than half of the companies polled (57 percent) having
someone in place to define their energy strategy.

"The research suggests that there is an opportunity to expand the
c-suite to include a Chief Energy Officer," Paluska said. "There's a
growing need for corporate accountability on energy performance as
companies grapple with increasing complexity and expectations of
governments, customers, shareholders and employees. Ultimately,
companies will need to quantify the return on the triple bottom line
-- people, profits and planet -- or their reputation and valuation
will suffer."

"Return on Environment"

When asked how best to measure Return on Environment, more than
half of the survey respondents (52 percent) identified improved
corporate reputation as the most important return on investment for
environmental programs. Actual carbon emission reduction was the most
important metric to 38 percent of respondents globally, and was rated
number one in the UK. More traditional measurements -- such as return
on equity, total cost of ownership and internal rate of return -- also
scored reasonably well. However, it is clear that much work still
remains to be done to accurately determine Return on Environment in a
way in which consumers, investors and policy-makers can universally
validate.

While there are no clear winners in the race to reduce greenhouse
gas emissions, the "green arms race," the United States, Japan and
Germany were identified as the top three countries likely to
contribute the most to clean tech breakthroughs in the coming years.
Not surprisingly, people believe it is their own country that is most
likely to play the largest role in developing clean tech solutions.
The exception to this nationalist trend was China, where 62 percent of
those surveyed see the United States as leading the clean tech debate
rather than their home nation.

Opinions on which industries are most likely to benefit from clean
tech innovations also vary by country. More than half of the Canadian
respondents (55 percent) view the transportation industry as having
the most to gain, U.S. and British respondents view venture
capitalists as benefiting, and executives from China think
policy-makers will be the clean tech jackpot winners.

Methodology

Penn, Schoen & Berland Associates conducted a survey of 420 senior
business decision-makers involved in IT purchases from 19 March - 20
April 2007. The interviews were conducted in the United States, UK,
Canada and China. All respondents worked in companies with revenues of
US$100 million and over (or local country equivalent outside of the
US), with half of the companies defined as Fortune 1000 (or equivalent
outside of the US). The survey was conducted by using telephone,
online and face-to-face interviews.

Hill & Knowlton's clean tech survey results are available online
at www.hillandknowlton.com/roe.

About Hill & Knowlton

Hill & Knowlton, Inc. is a leading international communications
consultancy, providing services to local, multinational and global
clients. The firm is based in New York, with 71 offices in 38
countries, as well as an extensive associate network. The agency is
part of WPP Group plc (NASDAQ:WPPGY), one of the world's largest
communications services groups.

About Penn, Shoen & Berland Associates

Penn, Schoen and Berland Associates (PSB) has nearly 30 years of
experience in leveraging consumer opinion to provide clients with a
competitive advantage, or more simply -- providing clients with
Winning Knowledge(TM). PSB executes polling and message testing
services in over 70 countries for Fortune(R)500 companies and major
political campaigns to develop brand positioning, guide successful
advertising campaigns, generate favorable publicity, and advise in
crisis management decisions.