Unofficial translation by Business & Human Rights Resource Centre; German original available via the above buttons.

‘Political uncertainty is slowing down sustainability in companies’

Sustainability is firmly anchored in many companies - but momentum is stalling because politicians are not providing a stable framework. This is the result of the Sustainability Transformation Monitor 2025, a survey of almost 600 sustainability managers in the German economy.

German companies are more concerned than in previous years about the uncertainty surrounding political requirements and regulation. In the real economy, 71.4 per cent of respondents stated that this issue is slowing down their commitment to greater sustainability. In the financial sector, the figure is as high as 79.4 per cent. ‘This uncertainty is an alarm signal,’ says our sustainability expert Jakob Kunzlmann. ‘Without planning certainty, the transformation of the economy will get stuck halfway.’

At the same time, the topic of regulation is quite ambivalent for companies. Although many companies perceive the current uncertainty associated with it as an obstacle, many of those responsible also see politics as a driver of transformation. In the real economy, 62.1 per cent say this, in the financial sector even 70.6 per cent. [...]

More companies know their own CO2 footprint

Important progress is also evident in the collection of emissions data. Almost 91 per cent of the companies surveyed now know at least the basics of their carbon footprint. Almost 60 per cent even record their emissions up to Scope 3, i.e. along their entire value chain. This represents a significant increase compared to the previous year and suggests that companies are increasingly responding to regulatory requirements such as the upcoming CSRD (Corporate Sustainability Reporting Directive) and the EU taxonomy. [...]

In the financial sector, on the other hand, it continues to be perceived positively; banks need the data from companies to manage their portfolios. Therefore, 56.9 per cent say that CSRD reporting is very useful for them.

Even as the exact design of CSRD and other sustainability regulations remains unclear, sustainability experts have made good progress in anchoring their topic. More than half of companies in the real economy (51.5 per cent) now say that they are well positioned to implement the CSRD requirements. This is an increase of 25.8 per cent compared to the previous year. ‘More independent sustainability departments, links to the Executive Board, more routine in dealing with the requirements:All of this shows that the topic of sustainability is deeply rooted in companies,’ says our sustainability expert Fritz Putzhammer.‘Even if progress is currently slower, one thing is certain: sustainability is increasingly becoming a central component of our economy.’