Across Europe, sustainability is facing growing political pushback. Concerns about competitiveness, costs and regulatory burdens have prompted the EU to revisit elements of its Green Deal, including legislation intended to strengthen corporate sustainability reporting and accountability.
Much of the debate has been framed as a choice: protect the environment or protect European competitiveness.
But is that what businesses themselves are saying?
New research from WWF and GlobeScan suggests not. The survey of 350 senior business leaders across Europe, spanning different sectors, markets and company sizes, found that an overwhelming 91% believe the transition to a low-carbon, environmentally sustainable economy strengthens Europe’s long-term competitiveness.
Only 4% believe it weakens it.
The findings were discussed at a WWF EU event in Brussels on 29 September, bringing together more than 110 representatives from business, the European Commission and civil society. Business participants included Michelin, VELUX, H&M Group and Robeco, alongside representatives from DG Environment, DG CLIMA and the Cabinets of Executive Vice-President Stéphane Séjourné and Commissioner Jessika Roswall.
The conversation raised an important question: does the current political debate reflect what many businesses actually need?
Sustainability as a Competitiveness Strategy
The GlobeScan findings suggest that many business leaders no longer see sustainability simply as a regulatory or reputational issue.
Among respondents who believe the green transition strengthens competitiveness, 59% pointed to reduced exposure to climate and nature-related risks, 57% to more secure access to energy and raw materials, and 51% to greater cost stability.
In other words, the business case is increasingly about resilience: reducing exposure to volatile fossil-fuel markets, strengthening supply chains and managing the physical and economic risks associated with climate change and nature loss.
That makes the increasingly polarised debate between sustainability and competitiveness look rather outdated.
The Cost of Uncertainty
But the research also reveals frustration.
Only 29% of surveyed leaders reported positive impacts from recent efforts to simplify EU sustainability legislation, while 55% reported negative or mixed effects.
Among those experiencing negative or mixed impacts, 57% cited increased uncertainty about future EU policy. Almost half said resources already invested in preparing for compliance had been wasted, while 30% reported delaying or pausing investment decisions.
This does not mean businesses are asking for ever more regulation. The discussion in Brussels highlighted questions about which policy frameworks are needed, how requirements can be made clearer, and how implementation can be accelerated at national level.
But it does suggest that repeatedly reopening the direction of travel can create costs of its own.
As one business leader surveyed by GlobeScan put it: “Stable and long-term policy with clear financial incentives is needed for the transition.”
From Regulatory Debate to Implementation
So what are businesses asking for?
When respondents were asked what would strengthen Europe’s long-term competitiveness, their priorities included predictable and coherent EU policy, public investment and incentives for the green transition, and access to affordable, reliable and clean energy.
That shifts the conversation from whether Europe should pursue a green transition towards how it can deliver one effectively.
It also raises some bigger questions. Who is shaping the political discussion in Brussels? Is there sufficient clarity about the destination of the green transition? And how can business, government and civil society work together to accelerate implementation while building an economy that is more resilient and less dependent on fossil fuels?
Three Implications for Business
For companies navigating this changing landscape, three messages stand out.
Make the business case visible. Sustainability is increasingly about resilience, access to resources, stable costs and long-term competitiveness, not simply compliance.
Use your voice. If companies want clear and predictable policy, they need to engage in the debate about how the transition is designed and implemented. Otherwise, the loudest voices may not necessarily represent the wider business community.
Move the conversation towards delivery. The most productive question may no longer be whether sustainability and competitiveness can coexist, but what businesses, governments and civil society each need to do to make the transition work.
Perhaps the most sobering finding is that 56% of the business leaders surveyed believe the EU is unlikely to achieve its key sustainability goals under current conditions.
The challenge for Europe, then, is not simply maintaining ambition. It is creating sufficient certainty, investment and collaboration to turn that ambition into action.