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EU firms ‘lead the way’ in climate mitigation and adaptation, EIB survey says

Published: 29 October 2024

Businesses in the European Union have boosted their commitments to tackling climate change, according to a survey by the European Investment Bank.

The vast majority of companies in both Europe and the US have taken action to reduce greenhouse gas emissions, according to the EIB survey | EIB headquarters in Luxembourg by Oscar Romero/EIB

Sixty-one percent of firms in Europe have already invested in climate mitigation and adaptation, with 53% planning to do so, according to the European Investment Bank’s (EIB) annual investment survey.

EU businesses are outpacing the US when it comes to investments aimed at dealing with adverse weather or the reduction of carbon emissions, according to the survey, which covered 1,200 European companies as well as a comparison sample in the US.

Thirty-four percent of EU firms view the green transition, which includes stricter climate standards and regulations, as a risk to their business over the next five years, while just over a quarter (27%) see it as an opportunity. This is more favourable than the US, where 42% of companies regard the transition to net zero as a risk.

“The commitment of EU firms to the green and digital transitions illustrates the potential of the European economy,” said EIB president Nadia Calviño. “The survey confirms that public-private partnership is at the heart of strategic investments to sustain the competitiveness, security and autonomy of the EU in global markets.”

Climate risks

The vast majority of companies in both Europe and the US (90%) said they have taken action to reduce greenhouse gas emissions. These include investments in waste reduction, recycling and energy efficiency.

But companies in Europe are more likely to have invested in sustainable transport options, renewable energy generation and set greenhouse gas emissions targets.

“European firms are making strides in addressing both climate change and the digital transformation,” said EIB’s chief economist Debora Revoltella. “But boosting EU investment requires a less fragmented EU single market.”

Two-thirds of European companies said they were being directly impacted by physical risk as a result of climate change, compared to 60% in the US. Still, only 21% of EU firms said they had taken out insurance against climate risks, compared to 19% of their US counterparts.

“As the impact of physical climate risks increases, the lack of focus on adaptation investment and insurance coverage is a concern,” the EIB said in its survey report.

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