Sustainability developments are declining, yet almost three-quarters of companies have set themselves a target for reducing greenhouse gas emissions.

Sustainability continues to play a role in the business context for the vast majority of domestic companies – although its importance has declined slightly compared to the previous year. While in 2024 almost a quarter (23 %) stated that climate protection and sustainability strongly influence their company's actions, this figure was only ten percent this year. Three out of ten companies (28 %) agree that environmental issues play only a minor role or no role at all in their decision-making processes. However, it remains true that the larger the company, the greater the influence that climate protection and sustainability issues have on its business activities – in 2025 this applies to both company size by number of employees and by revenue. In a sector comparison, the importance of sustainability is highest in consumer goods manufacturing (29 % "very high") and lowest in the construction industry (5 % "very high").

These are the results of a survey conducted by the auditing and consulting firm EY. For this survey, over 200 large Austrian companies from all sectors with 100 or more employees were interviewed between July and August 2025.

Sustainability is less frequently a fully integrated component of corporate strategy in 2025 than in 2024 (51 vs. 55 %). However, the proportion of companies that have at least partially integrated the topic has increased again by four percent.

„Sustainability issues have lost prominence and are increasingly limited to individual business units instead of being holistically integrated. A clear pattern is emerging: larger companies implement sustainability strategies much more consistently than smaller ones,“ comments Peter Linzner, Partner at EY denkstatt. „Sustainability is still a topic that is hierarchically controlled from the top down – be it through directives from corporate headquarters or the personal convictions of the C-suite.“.

Sustainability: Decisions are the responsibility of the boss, but the market also has an impact.

Headquarters guidelines are the biggest influencing factor on sustainability measures – in nine out of ten companies (92 %) they have a very strong or fairly strong impact on implementation. At the same time, the personal conviction of decision-makers plays a central role in strategic direction (80 %), followed by legal requirements and regulations (79 %). Three-quarters see a strategic necessity for securing growth and profitability (76 %) as well as a strong demand from consumers and customers (74 %).

Not only is decision-making located at the top, but responsibilities surrounding sustainability also lie with the board of directors or management. In almost half of the companies surveyed (47 %), the board of directors or management will be responsible in 2025 – compared to only 34 percent in 2024. Four out of ten companies (38 %) still had a dedicated department in 2024, but this number has decreased to less than a quarter (22 %) by 2025. Instead, more companies have created their own positions (25 vs. 17 %).

To strengthen their own ESG corporate culture, which encompasses the main areas of sustainability under Environmental, Social, and Governance, the majority of domestic companies rely on training and coaching: Six out of ten companies (60 %) plan training and coaching measures as well as increased communication of ESG goals, both internally and externally. Smaller companies with fewer than 500 employees are particularly focused on training and coaching, while the largest companies rely more heavily on the role model function of their managers. External consulting is also more frequently used by companies with fewer than 500 employees. Incentive systems that reward sustainable behavior and the achievement of ESG goals currently play a subordinate role (24 %).

Sustainability governance is declining

All the structures and processes that companies use to manage, monitor, and integrate their sustainability strategy fall under the umbrella of sustainability governance. Compared to the previous year, this is declining in Austrian companies in 2025. For example, 44 percent of companies had created a sustainability management plan, compared to 54 percent in 2024. The trend for actively involving stakeholders is also slightly downward – from 50 to 46 percent.

The economic, social, and environmental perspectives of sustainability remain an important factor in corporate actions. "The set of measures varies from company to company, but sustainable efforts are already being comprehensively implemented, especially in social dynamics – be it in employment relationships, training and further education programs, or the support of social projects," Linzner summarizes.

Implementation of measures lags behind goals

Nearly three-quarters (73%) of companies have set themselves at least one target for reducing greenhouse gas emissions – nine percent more than last year. The primary focus is on reducing absolute emissions (40%) or greenhouse gas intensity (13%). A comparison across sectors reveals significant differences: While eight out of ten companies (79%) in the automotive & logistics/infrastructure/transportation sector are already planning to reduce greenhouse gas emissions, this figure is only 57% in the construction/real estate sector.

Planning for climate targets based on the 1.5°C target pathway has clearly been postponed indefinitely: Only two percent of companies have set themselves a 1.5°C target for 2025. In 2024, this figure was still 30 percent of all companies surveyed. Just under one in five companies has set climate targets for 2030. Among companies with more than 500 employees, this figure rises to 29 percent.

„The notion that sustainability costs money and time is stubbornly persistent in the business world. This stands in stark contrast to many practical examples of implementation – think of energy reduction and material efficiency measures. While last year the complete, traceable supply chain was the biggest challenge, in 2025 financial constraints and the integration of sustainability measures into existing processes are seen as by far the biggest challenges in implementing sustainability measures,“ says Linzner, adding an example: „The number of companies that calculate the CO2 footprint for the entire value chain has decreased significantly by ten percent compared to 2024 – the majority instead calculate the CO2 footprint exclusively for their own business activities and thus miss the opportunity to reduce their business's CO2 balance through measures in the upstream or downstream value chain with comparatively little effort. This means that decarbonization is increasingly taking an inward focus: 60 percent plan to adjust energy efficiency within their own company, and 15 percent want to reduce the procurement of "Set CO2 certificates."“

Omnibus package transforms NH reporting

The EU's Omnibus Package consolidates new rules for sustainability to reduce bureaucratic hurdles and strengthen competitiveness. The most concrete impact is seen in sustainability reporting. Nearly two-thirds (63 %) report that they have not changed their practices since the Omnibus Regulation came into effect (April 2025), while 36 percent have completely, significantly, or somewhat reduced their sustainability activities. The shift is most noticeable in the construction and automotive sectors, with 50 and 48 percent of companies, respectively, having implemented sustainability measures.

In 2024 and 2025, (just under) half of the companies surveyed produced a sustainability report. However, in this year's 2025 survey, fewer companies were required to do so. This year, companies with more than 500 employees and more than €200 million in revenue were leading the way. Nevertheless, there is still room for improvement. As in 2024, the biggest challenge in producing a sustainability report is acquiring data of sufficient quality (67 %). Producing a sustainability report consumes resources – this also poses a challenge for 46 percent of the companies, even more than in 2024 (31 %).

Due to the omnibus package, half (51 %) of the companies surveyed indicate they will focus on developing and updating existing concepts, goals, and KPIs. This is planned more intensively, especially among companies with high revenues. For 13 percent of all companies surveyed, the omnibus package and its implications mean that time and resources will initially be allocated to areas other than sustainability issues. This percentage is highest among the companies with the lowest revenues.

„Sustainability is no longer just a trend, but a strategic tool for long-term competitiveness – those who only act superficially will fail. We can see in larger companies that those who understand sustainability as a compliance exercise struggle with resource problems and substantive difficulties, while those who use the topic as an innovation driver systematically develop their concepts in line with customer requirements and thereby create real market advantages,“ says Linzner.