Sustainability is firmly rooted in many companies – but the momentum is faltering because politics do not provide a stable framework. This is a key result of the Sustainability Transformation Monitor 2025, a survey of almost 600 sustainability managers in the German economy.
German companies are increasingly concerned about uncertain political requirements and regulations. In the real economy, 71.4 percent of the respondents stated that this issue is slowing down their commitment to greater sustainability. In the financial sector, the figure is as high as 79.4 percent. “This uncertainty is alarming,” says Jakob Kunzlmann, sustainability expert at Bertelsmann Stiftung. “Without reliability, economic transformation gets stuck halfway.”
At the same time, regulations are quite ambivalent for companies. Although many perceive the current political uncertainty as an obstacle, politics are also considered a key driver of transformation. In the real economy, 62.1 percent agree with this, in the financial sector it’s 70.6 percent. However, as in previous years, other important drivers from the company’s perspective are young people and future employees. Almost three-quarters of respondents named these two groups as the most important inducement.
“It is an important signal that those responsible are not driven solely by regulation, but also by other factors such as future generations and the expectations of future employees,” says Incken Wentorp, sustainability expert at the Peer School for Sustainable Development.
Sustainability projects put on hold
Economic transformation is stagnating in many areas. Although sustainability is now firmly anchored in the strategy of most companies, the implementation of new measures is lagging expectations. For example, only 13 percent of companies that planned to set specific climate targets have implemented these plans. 77 percent have not implemented their measures and 10 percent of companies have abandoned their sustainability targets altogether. A large number of companies also continue to lack financial incentives.
For example, 82 percent of companies in the real economy and 75 percent in the financial sector state that they do not link the achievement of sustainability targets to the compensation of managers or other relevant decision-makers. “By integrating sustainability-related KPIs into compensation systems, the topic of sustainability is gaining management relevance in companies. Reasons for this reluctance include the complexity of selecting suitable criteria and potential conflicts of interest with financial indicators,” says Manuel Reppmann, an expert at the University of Hamburg.
Sustainability is also becoming less important in financing decisions: For about half of the companies, the topic is “unimportant” or “rather unimportant” in financing discussions. The proportion of companies that rated the topic as important or very important in the previous year has fallen by 15.3 percentage points. However, more companies have their own sustainability department. Their share in the real economy has risen by 15.1 percentage points to 51 percent.
More companies aware of CO2 footprint
Important progress can also be seen in the collection of emissions data. Almost 91 percent of the companies surveyed know their carbon footprint, at least in general terms. Almost 60 percent even record their emissions up to Scope 3, i.e. along with their entire value chain. This represents a significant increase compared to the previous year and suggests that companies are responding to regulatory requirements such as the upcoming reporting obligation, CSRD, and the EU taxonomy.
“The improved collection of emissions data is a decisive step forward. Companies can now reduce emissions in a more targeted manner, manage risks, and facilitate sustainable investments. If you know your data, you can not only report on sustainability – you can manage it strategically,” says Laura Marie Edinger-Schons, Professor of Sustainable Business at the University of Hamburg.
From the perspective of many companies, especially smaller ones, the costs of the CSRD nevertheless outweighed the benefits at the time of the survey. “Politicians need to find a compromise between the bureaucratic burden and meaningful reporting obligations, especially for SMEs,” explains Philipp Wesemann, the responsible project manager at the Essen-based Stiftung Mercator. In the financial sector, on the other hand, it continues to be perceived positively; banks need data from companies to manage their portfolios. This is why 56.9 percent say that CSRD reporting is very useful for them.
Even if the exact structure of CSRD and other sustainability regulations remains unclear, sustainability experts have made good progress in anchoring their topic. More than half of companies in the real economy (51.5 percent) now say that they are well-positioned to implement the CSRD requirements. This is an increase of 25.8 percent compared to the previous year. “More independent sustainability departments, links to the Executive Board, more routine in dealing with the requirements: All of this shows that the topic of sustainability is deeply rooted in companies,” says Fritz Putzhammer, sustainability expert at Bertelsmann Stiftung. “Even if progress is currently slower, one thing is certain: sustainability is increasingly becoming a central component of our economy.”
Sustainability Transformation Monitor
592 companies took part in the online survey for the Sustainability Transformation Monitor 2025 (STM). It aims to provide evidence-based support for the sustainability transformation of the economy. A particular focus is on the effective interaction between the real and financial economy in the transformation. It is reissued annually. The STM was created for the third time in cooperation with the Bertelsmann Stiftung, Stiftung Mercator, the University of Hamburg, and the Peer School for Sustainable Development. The STM is supported by a broad network of partners: the German Council for Sustainable Development, the UN Global Compact Network Germany, the German Sustainable Economy Association, B.A.U.M., the Sustainable Finance Science Platform, and CRIC.
CONTACT
Prof. Dr. Laura Marie Edinger-Schons | T +49 40 4 28 38-22 73
laura.marie.edinger-schons@uni-hamburg.de
Philipp Wesemann | T + 49 02 01 2 45 22-702
philipp.wesemann@stiftung-mercator.de
Jakob Kunzlmann | T +49 52 41 81 81-337
jakob.kunzlmann@bertelsmann-stiftung.de
Alexander Kraemer | Tel + 49 1 77 1 98 75 75
kraemer@peerschool.de
PRESS CONTACT
Lothar Kuhn | Director Communications
T +49 201 245 22 36 | lothar.kuhn@stiftung-mercator.de
ABOUT STIFTUNG MERCATOR
Stiftung Mercator is a private, independent, and non-profit foundation that acts on the basis of scientific expertise and practical project experience. Since 1996, it has been advocating for a society based on solidarity and participation. To this end, it supports and develops projects that improve participation and cohesion in an increasingly diverse community. Stiftung Mercator stands up for a cosmopolitan, democratic Europe, a digital transformation of state and society based on fundamental rights, and socially just climate change mitigation. Stiftung Mercator pursues activities in Germany, Europe, and worldwide. It feels particularly connected to the Ruhr area, home of its founder’s family and the foundation’s headquarters.
