According to the Investment Survey 2024 by the European Investment Bank, European firms are taking bold steps toward climate action. 61% of firms are already investing in climate mitigation and adaptation.
Europe’s commitment to a sustainable future is clearly evident through EIB’s latest survey. EIB President Nadia Calviño said: “The commitment of EU firms to the green and digital transitions illustrates the potential of the European economy.” As more companies recognize the urgency of ESG practices, the need for streamlined ESG reporting tools becomes critical.
Investing in a resilient supply chain
In response to recent trade disruptions and geopolitical uncertainties, EU companies are focusing on building resilient supply chains. According to the ESG survey, many firms are prioritising replacement investments over expanding capacity, with only 26% planning to scale their operations in the next three years.
EIB Chief Economist Debora Revoltella said: “European firms are making strides in addressing both climate change and digital transformation, but boosting EU investment requires a less fragmented EU single market.”
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Opportunities and challenges in the green transition
As Europe shifts towards a net-zero economy, 27% of firms view this as a growth opportunity. Moreover, EU companies are more likely than their US counterparts to implement green transportation, renewable energy solutions, and emissions-reduction targets.
However, challenges remain, with 46% of businesses reporting high energy costs. 60% of exporters also cite difficulties with market fragmentation due to varying standards across EU states. EIB President Nadia Calviño said: “The focus of EU companies on innovation is welcome and must be supported. That is why the EIB Group is working on a new Action Plan to reinforce the integration of Europe’s capital markets and thereby channel private savings into productive investment in Europe.”
Embracing digital transformation for competitive advantage
The EIB report also reveals that 74% of European companies have adopted advanced digital technologies, up by 4% since last year. While this is significant, the US still leads slightly, with 81% of firms embracing digital tools.
The transition to digital solutions is vital to stay competitive and relevant in today’s economy. With challenges like high energy costs, fragmented markets, and labour shortages, effective ESG reporting has become essential for European SMEs.
Integrating ESG reporting within their digital system has become more important. Tools like IMPAKTER PRO can help SMEs streamline processes and reduce administrative burdens.
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This article is referenced from 61% of EU Companies Invest in Climate Action: EIB Investment Survey 2024 by ESG News
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Zbynek Burival
