This represents a striking change — and it is not just cheap words. On average, the companies participating in the study aim to achieve climate neutrality by as early as 2035, not only on their factory premises but across their global value chains. German corporate leaders are under no illusions that this will be easy; most recognise that their actions have yet to catch up to their attitudes.
In the context of the broader climate challenge, Germany makes a particularly interesting case study. With its highly industrialised economy, Germany wants to become a pioneer in decarbonisation without losing its international competitiveness. From the average German chief executive’s perspective, progress is being held back not by a lack of green technologies or support from key stakeholders, but by high upfront costs. For 60% of those surveyed, sustainability and profitability remain at odds.
The German companies we surveyed offer good examples for sustainable corporate action. Some of them use “green digital twins” in product development to quantify a product’s climate effects even before a prototype is built. Others report on their “product carbon footprint” to provide suppliers and customers with transparency about emissions and enable informed choices between alternatives. Many businesses co-operate across sectors to operate and finance sustainable projects.
But we also need more companies to take it upon themselves to adopt science-based targets. This applies not only to cutting carbon-dioxide emissions but also to conserving other limited resources, especially water, biodiversity, food and soil.
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