While European companies are making steady progress on climate action, other areas of sustainability remain overlooked, a new study by Position Green has found.
According to the study, which surveyed 1,900 European companies, climate-related matters continue to dominate boardroom priorities, however biodiversity, employee resilience and governance diversity are ‘still treated as secondary issues’, despite their clear link to long-term business stability.
‘Broader issues’
“European companies have come a long way on climate, but our report reveals real gaps on the broader issues that put a company on a truly sustainable path,” commented Daniel Gadd, CEO and co-founder of Position Green.
“Right now, most can tell you their carbon footprint but not how their people are doing or how their business impacts ecosystems. Those are critical blind spots in a world where resilience depends on the people and natural resources that underpin each businesses’ long-term success. The social and biodiversity challenges our economies face are the two key areas where the next risks and opportunities will emerge.”
According to Position Green’s Sustainable Business Playbook, some 98% of companies identify climate change mitigation as a material issue, while 73% consider it ‘double material’, meaning it affects both business performance and environmental outcomes.
Other topics that are highly regarded include the working conditions of a company’s own workforce (96%) and energy use (93%).
At the same time, just 11% of firms regard pollution of living organisms and food resources as material, while just 5% recognise the importance of marine resources. Animal welfare is regarded as material by 10% of businesses surveyed.
Regional variations
Regional differences are also evident, with Nordic companies leading in terms of renewable electricity use, however these firms also record some of Europe’s highest emission intensities.
Firms in the Benelux region lead in terms of board diversity, with women holding 39% of seats, but have higher employee turnover than the European average (17%). Elsewhere, DACH firms (in Germany, Austria and Switzerland) excel in terms of social data and governance, while the UK and Ireland have the lowest workforce turnover (12%) but the highest overall emissions intensity.
“The next phase of the sustainable business transformation will be defined by integration,” Gadd added. “Companies that connect climate, nature, people and governance to core business strategy will be stronger, more resilient and better positioned to earn investor trust, and to navigate the real-world challenges from climate change, nature depletion and geopolitical tensions we all face.”
The benchmark analysed 1,900 European companies across 11 sectors and seven regions, combining Position Green’s proprietary data with public sustainability disclosures from 2023-2024. Read more here.
