Utilities are frontrunners in digital and ecological transitions among German companies – survey

As Germany seeks to support and promote the “twin transition” towards environmental sustainability and digitalisation, a survey found that companies in the energy and water sectors have made the largest progress. One in ten of all companies – most in the energy and water sectors - have strategically linked the two areas, according to the survey among more than 1,500 companies, which was commissioned by the network agency BNetzA and the environment agency UBA to better understand and coordinate the use of digital technologies in achieving climate and environmental goals.

Most companies view both digitalisation and ecological sustainability as important for competitiveness, but they have barely established direct links between the two, the survey found. As Tagesspiegel Background reported, some 56 percent of companies surveyed rate both sustainability and digitalisation as at least "somewhat important" for their competitiveness, yet only one-third of them have developed digitalisation strategies, and just over a quarter have adopted sustainability strategies.

While digital technologies can be used to reduce energy and resource consumption, only 25 percent of companies are using technology to make processes, products or services more environmentally friendly. Just five percent said they use digital technologies to measure their own environmental impact, or to share environmental data with other companies. Most firms remain unaware that digitalisation and sustainability can be combined. Some 40 percent of companies are looking at how digitalisation can be made more sustainable, or which digital tools can ensure greater sustainability.

The authors of the report called for better linking of the two areas through training opportunities, practical application examples, and financial support. Digitalisation has long been seen as crucial for the transition towards climate neutrality.