Ecological transition: Italy, Spain, France and Germany

To tackle climate change and environmental degradation, Europe is taking action through calls for proposals and funding. Recently published are the new LIFE 2024 calls offering funding for projects related to environmental protection and biodiversity, climate action, circular economy and transition towards clean energy. The total budget available to finance green projects in 2024 amounts to EUR 571 million. The calls include several project categories. For the Sdard Action Projects (SAP) a budget of EUR 303,980,000 has been allocated. This category covers topics such as nature, biodiversity, the circular economy and quality of life, and climate change mitigation and adaptation. The deadlines for submitting projects in these areas are 19 September 2024.

The Corporate Sustainability Reporting Directive (CSRD) is a new directive that came into force on 5 January 2023, replacing the previous Non Financial Reporting Directive (NFRD). The NFRD introduces several novelties with regard to corporate sustainability reporting. The aim of CSRD is to provide clarity and enable investors, analysts, consumers and other stakeholders to better assess the sustainability performance of companies. The reporting CSRD is based on the concept of dual materiality, requiring organisations to disclose information on the impact of their activities on the planet and on people, as well as on how sustainability goals and risks affect the company's financial health.

The ecological transition is a key issue for companies as it offers numerous advantages and opportunities. Companies that demonstrate a concrete commitment to the environment can improve their reputation and build trust with customers, employees and other stakeholders. In addition, adopting green measures can help companies reduce operating costs through energy savings, resource efficiency and waste reduction. Transitioning to more sustainable technologies and processes can generate significant long-term savings. Finally, the adoption of sustainable business technologies and models can confer a competitive advantage, allowing businesses to differentiate themselves in the marketplace and respond to evolving consumer needs. In the following paragraphs, we will examine how companies in Italy, France, Germany and Spain are responding to the ecological transition.

During the EY Sustainability Summit held at the Fondazione Catella in Milan, the new EY study entitled "Seize the Change" was presented. The study found that, despite geopolitical tensions and the associated economic and financial impacts, Italian companies are increasingly integrating sustainability into their business model with structured and ambitious plans and objectives, focusing in particular on issues such as climate change and the circular economy. Despite the context, approximately 60 per cent of the companies continued to implement the activities in their sustainability plans, demonstrating an ongoing commitment to sustainability. Moreover, 15% of companies even seized the opportunity offered by the new context to accelerate the transition towards more sustainable business models.

The Politecnico di Milano has launched the Digital & Sustainable Observatory, which is not only an important research on the phenomena of digital innovation and sustainability, but also a source of perspectives and expectations for institutions, companies and citizens. Alessandro Perego, Vice Chancellor for Sustainable Development and Impact at the Politecnico di Milano and Scientific Head of the Observatory, emphasised how the focus on sustainability encourages everyone to look further afield. Among the reasons that prompted the creation of the new Observatory, Perego emphasised the importance of dealing with sustainability as a way of "taking care" and as a strategic issue that invites us to read and interpret the development of organisations in a more comprehensive way.

France is facing a green transition in industry with the aim of reducing its environmental impact and becoming a European leader in green technologies. The country has experienced deindustrialisation over the past 50 years, but since 2017 it has reversed this trend. Given the urgency of global climate change, French industry must reduce its environmental impact, which currently accounts for 18% of greenhouse gas emissions. The French government on 18 December 2023 signed a joint declaration at the Pentalateral Energy Forum, committing to a complete decarbonisation of its energy system by 2035. The green industrial strategy in France focuses on two main objectives: creating new industries producing green technologies for the decarbonisation of the production system and decarbonising existing industry.

By 2030, the German government commits itself to decarbonisation, advancing the previous target by eight years. However, there is resistance from industry, which could make it difficult to achieve this target. Moreover, Germany expects the use of gas for thermal generation to be stopped by 2040. The government has accelerated the ecological transition, setting the climate neutrality target for 2045 instead of 2050 and increasing the 2030 emission reduction target to 65% (from the previous 55%), with an intermediate target of 85-90% by 2040.

Calls for subsidies in Spain to promote the circular economy in companies. Selected companies will receive aid of between EUR 150,000 and EUR 10 million per project. 52% of the selected projects are led by SMEs, which account for 37% of the aid granted. On 4 March 2024, the Ministry for Ecological Transition and Demographic Challenge (MITECO) announced the third and final partial resolution of the call for subsidies to promote the circular economy in companies, covering the year 2022. From the 351 applications received, 102 projects were selected to receive a total of EUR 165.5 million, with grants ranging from EUR 150,000 to EUR 10 million per project. The 102 selected projects involve 115 beneficiary entities, of which 10 are implemented by groups including 23 companies. 52% of the selected actions are led by SMEs, accounting for 37% of the allocated grants.

The path to sustainable business development is crucial regardless of size. Pursuing ESG goals by understanding the entire corporate supply chain is crucial for companies. A holistic approach to supply chain sustainability promotes collaboration between companies, encouraging the sharing of best practices, transparency and innovation for a system-wide sustainable development. In this context, 3Bee is mainly engaged in the environmental field, accompanying European companies in the implementation of biodiversity monitoring, protection and regeneration projects using proprietary technologies that return clear and measurable KPIs. 3Bee annually provides partners with a detailed report communicating the actions undertaken, which is useful in the context of the corporate sustainability report.