1. Commitment is growing - but implementation lags

According to the TÜV-Ipsos Sustainability Study, four out of five German companies have set a climate neutrality goal and have already taken steps such as waste reduction, use of renewable energy, or sustainable materials.
However, many report significant barriers, primarily cost pressures, limited internal resources, and lack of a clear strategy.

A study by the German Economic Institute (IW Köln) found that two-thirds of companies see green investment as essential for long-term competitiveness, while almost 90% fear rising costs from the transition.

Meanwhile, a survey of over 50 major German companies showed that nearly 60% plan to rethink their entire business model for sustainability.

2. Investment in climate action is rising - unevenly

Despite the energy crisis, German businesses invested around €72 billion in 2022 in measures to reduce greenhouse gas emissions, an 18% real increase compared to the previous year (KfW Climate Barometer, 2023).

But there’s a gap: large corporations lead the way, while small and medium-sized enterprises (SMEs) remain hesitant, often due to tight budgets and administrative complexity. Still, the trend is clear: sustainability is now tied to financial performance and future market access.

3. Reporting and transparency: A new era of accountability

Since 2017, large EU-based companies have been required to disclose environmental and sustainability data under the Non-Financial Reporting Directive (NFRD) (European Commission / Umweltbundesamt, 2021).
This is now being expanded through the Corporate Sustainability Reporting Directive (CSRD), which will apply to tens of thousands more companies - including many mid-sized firms with stricter standards and comparability requirements (CSR in Deutschland, 2024).

According to the German Environment Agency (UBA), while over 80% of large listed companies report on climate measures, only about 45% include specific targets, and fewer than 20% disclose climate-related risks in detail (Umweltbundesamt, 2022).

The takeaway? The age of vague sustainability claims is ending. Data-driven, verifiable communication will define credibility going forward.

It’s not just about responsibility - it’s about long-term value creation.

• Economic ROI: Economist Claudia Kemfert (DIW Berlin) found that every euro invested in climate protection yields a societal benefit of €1.80 - €4.80,  from reduced damage costs to new jobs (taz, 2024).
  

• Brand & Reputation: Sustainability builds trust. A credible climate strategy strengthens employer branding and customer loyalty.
  

• Risk Management: Companies with climate strategies are more resilient to CO₂ pricing, supply chain volatility, and regulatory shifts.

• Flexible Energy Systems: Studies show that integrating flexibility (e.g. energy storage, smart load management) can reduce decarbonization costs by up to 80%, depending on energy prices and emissions factors (arXiv, 2023).
  
  

• Collaborative Sustainability: Initiatives like Better Earth demonstrate that many firms can act fast, from optimizing building energy systems to redesigning supply chains (Klimawirtschaft e.V., 2024).

This is an opportunity - not just to “green up” communication, but to help shape credible climate narratives. Here’s how:

1. Prioritize transparency
   Back up claims with numbers and milestones. Nothing builds trust like verified progress.
   
   

2. Tell transformation stories
   Go beyond policies and pledges, show the people, challenges, and innovation behind the journey.
   
   

3. Educate and engage
   Use your platforms to make complex topics accessible. Sustainability doesn’t have to sound bureaucratic.
   
   

4. Measure and share
   Continuous reporting (CO₂ dashboards, visual KPIs, annual summaries) can double as engaging marketing content.

1. The “Say-Do Gap”: Sustainability Intentions vs. Real Purchases

Although about 80% of German consumers say they consider environmental impact when shopping, actual buying data tells a different story: the market share of sustainable products like organic food remains around 10%. This highlights a classic attitude-behavior gap. People express concern for sustainability but don’t always follow through at the checkout.

2. Perception Matters More Than Labels

The NIM researchers argue that this “gap” is partly explained by differences in perception:
Consumers don’t buy “unsustainable” products out of hypocrisy. They may simply not perceive certain brands as genuinely sustainable.

3. Sustainability Helps - But Customer Benefit Helps More

In cooperation with a major German retailer, NIM analyzed over 1,000 customers and 84 brands, matching their brand perceptions with real shopping data.

Findings:

• Brands perceived as more sustainable had a larger share in customers shopping carts.

But brands perceived as strongly customer-focused performed even better.

Sustainability sells, but only when it’s perceived as part of a better product experience.

German companies are standing at a crossroads: those who see climate action as a burden will struggle, those who see it as a growth driver will thrive.

• Ipsos / TÜV Sustainability Study (2023)

• TÜV-Verband, 2023
  
  

• KfW Climate Barometer (2023)
  
  

• IW Köln Study on Climate Investment (2023)
  
  

• German Environment Agency (UBA), 2022 Report on Corporate Climate Reporting
  
  

• DIW Berlin / Claudia Kemfert Study (2024)
  
  

• Corporate Sustainability Reporting Directive (CSRD) Overview, Federal Ministry for Labor & Social Affairs
  
  

• Klimawirtschaft e.V. Research (2024)
  
  

• arXiv Research Paper on Energy System Flexibility (2023)

• Sustainable consumption: What German consumers really care about | NIM