European Companies Increasingly Support Strong Climate Action: Report

In a “profound shift,” a new analysis by nonprofit think tank InfluenceMap has found that companies in the European Union increasingly support climate action, a change analysts said challenges the narrative of businesses viewing green regulations as a threat to their profits.

The report — European Industry and the EU’s Climate Policy 2024–29 — found that there was a shift in corporate attitudes regarding climate policy between the EU Green Deal being presented at the beginning of the legislative cycle in 2019 and the start of last year’s European Parliament elections, a press release from InfluenceMap said.

“Recent polling shows that business leaders overwhelmingly support a rapid transition to renewable energy. Now, this research from InfluenceMap reveals that companies are acting on that strategic direction and treating climate action as material to their business. This is not the preoccupation of a minority, but an increasingly significant portion of the corporate sector that use science-aligned policy engagement as a tool for safeguarding strategic investments in the energy transition. It is incumbent on the rest of the business and investor community to take note of these positive trends,” said Dominic Gogol, director of policy at the We Mean Business Coalition, in the press release.

The findings challenge narratives that certain industry associations have promoted since 2024, which portray industrial competitiveness in Europe as conflicting with the EU’s ambitious climate policy.

The LobbyMap platform tracked 200 of the biggest companies in Europe and 80 industry associations. An analysis of the results revealed that the policy advocacy of 23 percent of the companies is fully aligned with pathways to limit global heating to 1.5 degrees Celsius, compared with just three percent in 2019.

The proportion of companies demonstrating advocacy that is either fully or partly aligned with pathways to 1.5 degrees Celsius also increased from 27 to 52 percent during this time period.

Meanwhile, the proportion of companies with climate policies that are not aligned with limiting heating to 1.5 degrees Celsius has fallen significantly from 34 to 13 percent.

“Those vocally organising to oppose the energy transition achieve outsized importance across public debate,” said Venetia Roxburgh, an InfluenceMap analyst, as The Guardian reported. “However, this research demonstrates that there is a larger, quieter majority that are supportive of decarbonisation and driving progress through climate policy.”

The researchers looked at channels for businesses engaging on climate policy ranging from EU consultation documents to corporate disclosures and social media posts. More weight was given to formal consultations on particular policies, statements from managers and recent evidence.

Industry associations were found to be falling behind individual companies, with their share of climate policies that are aligned or partially aligned with a pathway to 1.5 degrees Celsius rising from two percent six years ago to 12 percent this year.

“Industry associations in the EU appear to be fighting a losing battle against the tide of positive corporate action on climate policies,” Roxburgh said. “[They] need to urgently reassess their priorities if they are to continue to act as true representatives of the majority of their membership.”

A recent poll of business leaders found that almost all executives — 97 percent — support a transition from fossil fuels to an electricity system based on renewables.

“The case is clear: reducing emissions offers a pathway to operational efficiencies, greater resilience and reduced risk. Companies must take proactive steps to ensure their lobbying and association memberships support – not undermine – their business goals,” Gogol said.