Climate KIC publishes report on European business' strategies for climate change
The EIT's Climate KIC (Knowledge and Innovation Community) has published a report on how European businesses respond to climate change. The study shows that most European business leaders have prepared strategies to respond to climate change, but with a lack of focus on innovation, those strategies are likely to be ineffective for a 2°C trajectory.
According to the study, 63% of European business leaders acknowledge the regulatory and physical risks posed by climate change, and the same percentage also believes that responding to climate change would drive growth as demand for environmentally sound products and services increases. To address the identified risk and opportunity, most businesses (59%) said they have a strategy to respond to climate change, but only 29% see a large amount of scope to respond to climate change using innovative technologies and ways of working, and only 14% believe there is a large amount of scope to evolve their business model to reduce resource consumption and carbon emissions. Amongst other issues, the study also found that R&D departments were found to lack the skills and resources to meet the challenges of climate change, with only 38% of R&D departments having sufficient expertise in this field. As regards the budget, 63% of the businesses only dedicate 5% or less of their R&D budget, and 11% none of their budget, to innovation to respond to climate change,
According to Climate KIC, scientists estimate that by deploying technologies, businesses can potentially reduce the emissions intensity of industry by approximately 25%, with innovation reducing this by up to another 20 percent, before technological limits are approached in some energy-intensive sectors.
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