Dutch companies less climate ambitious and innovative: study

A portion of Dutch businesses is postponing their climate ambitions, according to researchers from the University of Amsterdam (UvA). The latest edition of the Dutch Innovation Monitor reveals that the number of companies aiming to become climate-neutral by 2030 has decreased by 4 percentage points. The study also found an increasing number of businesses intending to nearly eliminate their impact on the climate by 2050. The number of companies not engaged in such efforts at all is decreasing.

Out of the 719 executives surveyed for this edition, nearly 56 percent state that their organization aims for an "insignificant ecological footprint." In the previous edition, this number was nearly 60 percent. Research leader Henk Volberda associated this trend with high energy prices and shortages of raw materials and other supplies. Such challenges "also undermine the climate ambitions of Dutch companies," he explained.

According to the monitor, the business sector has also become less innovative. Staff shortages also play a role in this. Professor Volberda and his colleagues observed a decline in the number of "radical innovations" for three consecutive years. They believe companies are primarily focusing on minor improvements to existing products and services.

A notable finding is that organizations claiming to be significantly affected by high energy prices show fewer climate ambitions. "The disruptions many businesses are currently facing might be leading to a postponement of their sustainability plans," the researchers suggested.

According to the monitor, the government and organizations in the ICT and service sectors have the most ambitious climate plans. Companies in sectors such as industry, agriculture, and logistics tend to lag behind. Volberda believes this is because it is often more challenging for them to transition to sustainable practices.

Business energy costs, in particular, have surged following the Russian invasion of Ukraine. Survey participants generally believe that this bill should be shared between businesses, the government, and consumers. The executives would ideally place the largest portion, averaging 39 percent, on the government.