Why are Corporates Increasing Green and Digital Investment?

According to the latest European Investment Bank Investment Survey (EIBIS), European companies are increasingly investing in a green and digital transition, driven by a clear desire to demonstrate resilience against global volatility 

The European Investment Bank (EIB) spoke with more than 12,000 EU firms and more than 800 US companies between April and July 2025. 

According to the findings, 92% of EU companies are investing directly in resources that cut greenhouse gas emissions. 

The results were released by the EIB during the annual meetings of the International Monetary Fund and the World Bank Group in Washington DC. 

The annual survey acts as a key indicator of the corporate investment climate across the world's largest trading bloc, with the latest research indicating that European businesses are focusing on environmental sustainability and digital transformation.

Investment resilience amid global volatility

Amid growing trade tensions an investment slowdown can be seen on both sides of the Atlantic – according to the 2025 EIBIS, tariffs are especially impacting those based in the US. 

EU companies are demonstrating greater resilience, with 86% continuing to invest. They are however exercising caution due to ongoing political regulatory and economic uncertainties. 

"While uncertainty weighs heavily on firms, they are so far weathering the shock." explains Debora Revoltella, Chief Economist at the EIB. 

"There is a clear commitment to invest in digitalisation and green initiatives, which are crucial for maintaining competitiveness in the evolving global market. The focus on the green transition is evident, with a considerable portion of investment directed towards sustainable practices."

AI adoption and strategic implementation gaps

European businesses are maintaining their adoption of sophisticated AI technologies at roughly equivalent rates to their American peers the survey indicates. 

The data shows 37% of EU firms implementing Gen AI compared to 36% in the US. 

This could present an opportunity for procurement functions to create value through AI implementation in areas such as sourcing internal process automation supplier risk monitoring and market intelligence. 

European companies have the potential to leverage AI's advantages across a wider spectrum of operations. 

Nevertheless the research indicates that European enterprises are falling behind in AI deployment for customer service internal processes marketing and human resources. In the US 81% of American businesses utilising AI apply it across more than two activities whereas only 55% of European companies do the same.

Overcoming barriers to European investment

The 2025 EIBIS reveals that European investment obstacles persist. 

The survey shows 83% of EU companies reporting uncertainty and 79% highlighting shortages of skilled labour as major barriers to investment. 

Additionally, 75% of European enterprises cite energy costs as a hindrance underlining the critical need to accelerate renewable energy deployment for enhanced competitiveness. 

EU businesses appear likely to emphasise replacement investments rather than capacity expansion. Approximately a quarter (26%) intend to expand operations within the next three years compared with 37% of American firms planning similar growth. 

Notably, European companies are encountering fewer financial constraints than in previous years. 

Roughly 16% of investing businesses benefit from government assistance via grants or preferential financing arrangements. The overwhelming majority of this EU policy support (61%) targets specific objectives with 41% allocated to green transition programmes and 29% directed towards innovation. 

Rising concerns regarding customs and tariff modifications are affecting businesses across the Atlantic though the impact varies considerably. 

According to the survey 77% of US companies perceive these changes as a major obstacle while 48% of EU businesses share this view. 

At present 62% of European companies perceive the EU internal market as fragmented while small and medium-sized enterprises incur bureaucratic costs averaging around 2% of their annual turnover.