Paris: 4 out of 5 european companies The report published on Tuesday shows that the EU is not reducing its carbon emissions at the pace or scale needed to meet its climate targets.
The cost of adaptation is one of the factors holding back business, even though 20% expect to lose more customers to the environment. Climate-Friendly CompetitorsThe findings were made in a report by non-profit CDP and management consulting firm Oliver Wyman.
Many companies have adopted transformation plans but “are struggling to change their business models at the speed and scale needed,” James Davis, partner at Oliver Wyman, said in a statement.
“The key challenge is that green business models are generally less attractive and riskier than the traditional business models they are replacing,” he added.
But the report said “the need to significantly accelerate efforts could not be clearer” to meet the EU's target of reducing emissions by 55% by 2030 compared to 1990 levels.
The results of this study are the result of an analysis of 1,600 European companies, accounting for 89% of the market capitalization of continental Europe, including the UK.
Insufficient investment, including access to capital, has been a major obstacle to a faster transition.
Less than a quarter of capital spending has gone into transition plans or projects that meet European standards for the environmental performance of economic activity in the bloc.
At the same time, “government policies have yet to decisively shift the economic environment in favor of greener products and services” and could provide more support to certain sectors, the report said.
For European utilities, which already face a funding gap to replace oil and coal power with renewables, “this investment gap will widen to €285 billion by 2030.”
The report said greater collaboration was needed across the financial sector to spread risk across many players, from banks to charities working on the green transition.
The cost of adaptation is one of the factors holding back business, even though 20% expect to lose more customers to the environment. Climate-Friendly CompetitorsThe findings were made in a report by non-profit CDP and management consulting firm Oliver Wyman.
Many companies have adopted transformation plans but “are struggling to change their business models at the speed and scale needed,” James Davis, partner at Oliver Wyman, said in a statement.
“The key challenge is that green business models are generally less attractive and riskier than the traditional business models they are replacing,” he added.
But the report said “the need to significantly accelerate efforts could not be clearer” to meet the EU's target of reducing emissions by 55% by 2030 compared to 1990 levels.
The results of this study are the result of an analysis of 1,600 European companies, accounting for 89% of the market capitalization of continental Europe, including the UK.
Insufficient investment, including access to capital, has been a major obstacle to a faster transition.
Less than a quarter of capital spending has gone into transition plans or projects that meet European standards for the environmental performance of economic activity in the bloc.
At the same time, “government policies have yet to decisively shift the economic environment in favor of greener products and services” and could provide more support to certain sectors, the report said.
For European utilities, which already face a funding gap to replace oil and coal power with renewables, “this investment gap will widen to €285 billion by 2030.”
The report said greater collaboration was needed across the financial sector to spread risk across many players, from banks to charities working on the green transition.