Paris—The 2024 Argos x BCG barometer edition reveals that the maturity of European mid-market companies’ approach has increased and their plans to reduce greenhouse gas emissions have made progress. The results of the forthcoming European elections may affect the trajectory of businesses’ climate action. Accordingly, the vast majority of mid-market companies (85%) consider their emissions as important if not critical. For the second year in a row, over two thirds of them actually consider decarbonisation as an opportunity. At the same time, their financial investments in reducing greenhouse gas emissions have increased significantly as a result of demand from clients and the economic benefits they gain. More than ever, they need support from their ecosystem to keep this trend going.
From Awareness to Action
European mid-market companies have demonstrated growing awareness of decarbonisation priorities, with 85% of senior managers regarding them as important, if not critical (up 1 point versus 2023). At the same time, the maturity of the approach taken by businesses has grown this year: 17% stated they had invested strongly based on a structured decarbonisation plan that includes an assessment of their emissions, up from 11% in 2023. In addition, the proportion of laggards that have neither invested in nor launched a roadmap dropped from 27% to 22% this year.
Of the 85% of mid-market companies that regard climate action as important if not critical, 67% view the climate transition as an opportunity and are optimistic about the prospects arising from the decarbonisation of their model. Mid-market companies see economic benefits, such as energy efficiency and related cost savings (58%, up 4 points versus 2023), the chance of winning market share (54%, up 3 points) and attracting fresh talent (40%, up 15 points).
“The trend has now been set,” said Fabien Hassan, Partner at BCG, “despite the uncertain environment, mid-market companies continue to make strides with their decarbonisation. It’s also highly positive for large businesses that need help from their suppliers and their partners to achieve their climate targets.”
Different Paces of Investment
The number of mid-market companies investing in decarbonisation rose by 5 points in 2024 from 38% to 43% in Europe. Managers report that their actions are motivated by the regulations (72%), higher energy prices (62%) and growing demand from certain clients (56%, up 5 points versus the previous year), in particular in B2B value chains, a segment in which large businesses are putting greater pressure on their suppliers to pursue decarbonisation.
Investment in cutting greenhouse gas emissions has gained greater momentum in certain specific sectors. The proportion of mid-market companies that report having invested “heavily” or “significantly” in decarbonisation has risen significantly in the agriculture and food (up 14 points versus 2023), retail (up 9 points) and transportation and logistics (up 7 points). Meanwhile, businesses in the construction (down 2 points) and chemicals (up 2 points) sector displayed a more cautious stance.
Shortage of In-House Resources: Main Challenge
The primary hurdle mid-market companies will have to overcome this year is the shortage of in-house resources (46% of respondents). There are other hurdles, too, albeit less daunting than in the previous year, such as the shortage of financial resources (down 13 points), uncertainty about return on investment (down 8 points) and regulatory complexity (down 11 points).
While 41% of mid-market companies see regulations and especially CSRD as essential or as a way of structuring their approach to reducing GHG emissions, the degree of foresight varies according to the size of businesses. In particular, 28% of businesses with fewer than 250 employees report being unaware of CSRD requirements, even though these will apply to some of them from 2026, demonstrating their need for support with planning ahead and capitalising on the regulations.
“Mid-market companies play an essential role in the environmental transition,” said Simon Guichard, Partner at Argos Wityu. “This edition of the barometer survey confirms the depth of their commitment to the environmental transition. Encouraging and motivating all ecosystem participants to support and amplify these initiatives is crucial if we are to make the economy greener and more resilient.”
