OliverWyman – European Corporate Transition

The European Corporate Transition report by Oliver Wyman reveals that only 20% of European companies are making substantial changes towards a greener business model, despite more than half having climate transition plans. The analysis, based on responses from 1,600 European companies, shows progress in reducing emissions over the past four years but highlights significant limitations in implementing transition plans and driving real change in business models. Lack of sufficient investment capital is a key challenge, with 70% of companies dedicated less than a quarter of their capital expenditures to sustainable projects. Accessing finance is also a concern, particularly in industries with higher emissions. While financial institutions are taking steps to align portfolios with emissions reduction goals, green business models still face commercial challenges due to limited demand and policy support. The report focuses on critical sectors like electric utilities, steel, and automotive, which play a crucial role in decarbonization efforts but also face gaps in investment. Financial institutions view climate transition opportunities as significantly greater than risks and are increasing investments in greener areas, although exclusion policies remain limited.