Receive our newsletter – data, insights and analysis delivered to you
  1. Finance
  2. Corporate strategy
3 September 2021updated 05 Nov 2021 9:17am

EU, US firms unprepared for energy transition business risks – report

Companies in the EU and the US are unaware of potential risks to demand, supply chains and reputation arising from the shift to a greener economy, the European Investment Bank in a new report.

Adapting to the impacts of climate change and moving away from fossil fuels could increase the cost of doing business or lead to stranded assets, underlines analysis by the European Investment Bank (EIB). However, most EU and US firms are “unaware of the challenges ahead,” states the report.

European Investment Bank (EIB) President Werner Hoyer attends the inauguration of the EIB’s offices in Athens, September 2017. (Photo by Louisa Gouliamaki/AFP via Getty Images)

Over half of companies on both sides of the Atlantic believe the transition to a greener, more sustainable economy will have no impact on their supply chains, demand or reputation.

Transition risks can be hard to identify due to uncertainty about future policies and regulations, and the long-term nature of their impacts, the report states. Indeed, 43% of firms surveyed cited uncertainty about regulation as the biggest obstacle to making climate-related investments.

Nonetheless, companies must not adopt a wait-and-see attitude, insists the EIB in its report, calling on the US and EU governments to implement policies that incentivise corporate spending on climate action.

Content from our partners
How investing in Scotland can help to drive a low-carbon future
Beyond smart: How the grid-interactive building will form an essential component of the new energy system
The power of gaming: Inside Abu Dhabi’s winning esports ecosystem
Topics in this article: , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Switch on the week and Switch it off again with our round-up, sent Mondays and Fridays
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy