German companies producing consumer goods, as well as car manufacturers, are putting the transformation of their production to meet environmental and climate safety requirements on the back burner, according to a consultancy study by Horvath, writes on 20 June the German newspaper Handelsblatt.
According to the publication, the new rules put pressure on companies. However, many corporations are delaying or delaying the implementation of environmentally friendly production goals.
Therefore, consumer goods manufacturers and automobile manufacturers began to put these projects on the back burner. In Germany, for example, these trends are manifested at Mercedes, Thyssen-Krupp, as well as the cruise companies Aida and TUI AG.
Consumer goods giant Unilever is also sharply scaling back its green modernization ambitions. Thus, companies producing brands such as Dove, Rexona, Knorr and Magnum planned to use 50% less plastic in their packaging starting next year. However, according to forecasts, in 2026 this figure will be only 30%. The goal of moving to 100% recyclable packaging has been delayed by five years. Unilever CEO Hein Schumacher sees this measure as “necessary new realism.”
Environmental transformation is falling further down the list of priorities, to the point that it is no longer among the five biggest challenges facing German executives.
These are the results of a survey carried out by the consulting firm Horvath among more than 750 companies, reports Handelsblatt.
The most pressing concerns for managers include cost reduction, cybersecurity, talent shortages, digital transformation and liquidity.
It should be noted that in 2022 environmental transformation ranked third. Insiders report that now the boards of directors, in the absence of protests from Greenpeace (an organization recognized as undesirable in the Russian Federation), consider it necessary “downshift again” on environmental issues.
According to the study, the reasons for the slowdown in environmental transformation are several: companies cannot technically cope with the implementation of this project, they complain about inadequate production requirements and the lack of environmentally friendly energy. Furthermore, as the market is experiencing a general drop in consumer demand, many seriously fear for its benefits.
Source: Rossa Primavera
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