By Fotios Kalantzis
The European Union’s plan to “build back better” after COVID-19 could be the impetus businesses need to invest in climate measures and prepare for the transition to a net-zero carbon future. Before firms embark on those massive investments, however, they need clear government regulations to guide their decisions.
The European Union’s new taxonomy, which provides a list of environmentally sustainable economic activities, should provide some clarity, as should proposed climate reporting requirements for large companies. As the realities of climate change sink in, firms are gradually beginning to include climate risks in their investment strategies, operations and asset valuations.
Our new climate report, European firms and climate change 2020/2021: Evidence from the EIB Investment Survey, looks at how prepared EU businesses are to meet the challenges of climate change and the energy transition. The report’s findings are based on the EIB Investment Survey (EIBIS 2020), a survey of 13 500 firms, primarily in the European Union. The new climate report provides a brief overview of firms’ perceptions of climate risks, investment to address those risks and the main factors influencing their decisions.