European business leaders see sustainability as key to competitiveness and investment growth
The recent E3G-commissioned YouGov survey conducted between August 14-26, 2025, provides valuable insights into European business leaders’ views on sustainability and its role in enhancing competitiveness. With 2,543 respondents across five European countries—France, Germany, Spain, Italy, and Poland—the survey delves into how businesses perceive the relationship between sustainability, investment, and long-term competitiveness, particularly in the context of European Union (EU) corporate sustainability and due diligence rules.
Sustainability’s Impact on Competitiveness
The survey revealed that a significant majority of European business leaders recognize the competitive advantages of adopting more environmentally sustainable practices. Specifically, 55% of respondents agree that sustainability boosts their company’s competitiveness, with this belief being even more pronounced among mid-to-large firms (77%) and very large companies (65%). Interestingly, companies with operations or supply chains outside the EU are particularly aware of the importance of sustainability, with 69% agreeing that it positively impacts competitiveness.
Sustainability and Investment Opportunities
When asked about the role of sustainability in attracting investment, 50% of business leaders affirmed that sustainability reporting enhances their investment opportunities. This sentiment was especially strong among larger companies, with 68% of mid-to-large firms and 62% of very large firms recognizing sustainability data as a key factor in attracting investors.
EU Leadership in Global Sustainability Standards
A strong majority (68%) of business leaders expressed a desire for the EU to set a global example for sustainability standards, underlining the importance of Europe leading the way in aligning business practices with environmental goals. This view is especially prevalent among mid-to-large companies (74%) and very large firms (74%), with 66% of SMEs also agreeing with the notion.
The Role of Due Diligence in Strengthening European Competitiveness
The survey highlights that EU regulations focused on environmental and social standards are seen as advantageous for Europe’s long-term competitiveness, particularly in comparison to the US and China. About 48% of respondents agree that such regulations would provide a competitive edge over these global powers. This viewpoint was particularly strong among companies with global operations (59%) and those with indirect supply chain risks (54%).
Climate Transition Plans for Large Companies
The survey also reveals that a clear majority (63%) of business leaders believe it is fair for large companies to implement climate transition plans. This aligns with the growing consensus that sustainability practices should be embedded within company strategies, especially for those with significant environmental footprints.
The Importance of Meaningful Sustainability Reporting
A substantial 62% of business leaders think that large companies should be required to conduct meaningful sustainability reporting. Furthermore, the survey found that most business leaders, including SMEs, support sustainability reporting as long as it is proportionate to the company’s size and meaningful. Specifically, 59% of business leaders support sustainability reporting if it is relevant and manageable for smaller firms.
The Need for Simplified Reporting Rules
Despite the growing importance of sustainability, many business leaders expressed concerns about the complexity of EU regulations, particularly around sustainability reporting. A significant 42% of respondents agreed that the Omnibus proposal risks diverging from international standards, potentially adding costs and uncertainties for businesses.
The findings from this survey clearly indicate that European business leaders see sustainability not only as a way to enhance their company’s competitiveness but also as a critical factor in attracting investment and fostering long-term growth. While there is broad support for EU leadership in global sustainability standards, companies also emphasize the need for balanced, pragmatic policies that help streamline compliance without compromising on environmental and social standards. The results underscore the pivotal role of sustainability in shaping the future of European business and its global competitiveness.
