Achieved Tangible Goals in Sustainability: European Businesses Only Represent 16%
European businesses are increasingly embracing sustainability, with the majority of medium and large companies either already implementing or planning sustainability initiatives, according to a recent study by Interzero, the European leader in the circular economy.
The research, which analysed the behaviours, investments, and obstacles to sustainable transition in around 250 European managers, revealed that 85% of these companies have either initiated or are planning sustainability initiatives. The electronics and Food & Beverage sectors are the most inclined to activate sustainability initiatives in the next three years.
However, the study also highlighted that while companies are making progress, there are still significant challenges to overcome. Almost 40% of the companies interviewed declare that they also implement the reuse of packaging solutions, but reuse of packaging is the least implemented action in terms of reducing the environmental impact of packaging.
The use of recycled or biodegradable materials is implemented by more than 50% of companies, and regarding the reduction of the environmental impact of packaging, the use of recycled materials, the minimization of non-sustainable materials, and the use of biodegradable materials in packaging are among the most implemented practices.
Regarding sustainability reporting, more than 95% of large European companies comply with the basic requirements of the EU's Corporate Sustainability Reporting Directive (CSRD), which mandates sustainability reporting. However, only about 65% of these companies use the reporting strategically for management and decision-making rather than merely for compliance.
Key sustainability initiatives focus on climate change, resource use, and workforce issues, while areas like biodiversity, affected communities, and end consumers receive less attention. In sectors such as electronics, food & beverage, construction, retail, and logistics, sustainability efforts centre on these common themes but detailed sector-specific progress is less documented.
Companies still face challenges in ESG data quality and digital tool adoption, impacting the effectiveness of sustainability initiatives. In Italy, most of the companies interviewed (56%) do not have a dedicated sustainability team, and Italian companies are almost exclusively engaged on the environmental front and much less on the social and governance aspects.
Despite these challenges, the study found that in Italy, compared to the previous three years, 90% will certainly invest more in sustainability activities, with a greater use of external consultants. The reduction of emissions is the most widespread action (75%), and the most widespread practice among companies is monitoring compliance with environmental regulations (72% of respondents).
In conclusion, while European businesses are making progress in implementing sustainability initiatives, there is still a long way to go. The study revealed that a majority of European companies have not yet achieved concrete sustainability objectives or made a sustainability report, and companies still face challenges in ESG data quality and digital tool adoption. However, with increased investment and a focus on strategic use of sustainability reports, European businesses can continue to make progress towards a more sustainable future.
In the pursuit of a more sustainable future, construction, retail, electronics, and logistics industries in Europe are assembling sustainability initiatives, particularly focusing on climate change, resource use, and workforce issues. However, despite the investments in sustainability, a considerable number of companies are yet to achieve tangible sustainability goals or publish comprehensive sustainability reports. This necessitates efforts to improve ESG data quality and digital tool adoption to bolster the effectiveness of these initiatives. In Italy specifically, even though there are challenges, 90% of companies plan to enhance their investments in sustainability activities, with a greater emphasis on reducing emissions.
