Nearly 40% of Portuguese companies allocate less than 25% of their capital expenditure to decarbonization initiatives, according to an analysis by CDP and Oliver Wyman published on Tuesday.
These findings are the result of an analysis based on data from 1,600 European companies, representing 89% of the region’s market capitalization, provided by CDP – Disclosure Insight Action, a non-profit organization that manages the global environmental disclosure system.
More than half of companies in key high-emission sectors say access to capital is a key challenge in decarbonization efforts, according to the analysis.
“Many companies are still failing to reduce their carbon emissions at the scale and pace we currently need, with only one in five making meaningful progress in key areas,” says the Get the Money Moving report.
In many industries, the fundamental economics are not moving fast enough to make a rapid, large-scale transition to more sustainable business models attractive, companies say.
They note that electricity companies, which are needed to electrify and decarbonize transport and heavy industry, could have a €285 billion shortfall by 2030 to achieve the €1.9 billion investment needed in renewables.
“If investment does not match demand for environmental products and services, 20% of European companies expect to lose customers to alternative solutions,” the report warns.