Berlin Research News
Striving for sustainable impact through research transfer
On 24 September 2024, the Economic Advisory Board of the Green Party in the German Bundestag discussed the opportunities and challenges facing small and medium-sized enterprises (SMEs) on their way to climate-friendly business models. Prof. Dr. Florian Lüdeke-Freund, Academic Director of the Centre for Sustainability Transformation & Applied Research (STAR) at ESCP Berlin, was invited to present the results of a recent study conducted by ESCP Business School and the Bertelsmann Foundation.
99% of German companies are SMEs. They employ around 60% of all employees in Germany. These figures make it clear that the sustainable transformation of the German economy will depend on how well SMEs manage the transition from the status quo to climate-friendly, circular and resource-efficient business practices.
The ESCP and Bertelsmann Foundation study shows that 63% of all German companies, and thus the majority of German SMEs, have taken initial steps to change their business models and integrate sustainability considerations into their business activities. On a scale ranging from level 1 ("Starters", 21%) to level 4 ("Transformers", 1%), these 63% are at level 2 ("Adopters"), below the "Innovators" at level 3 (15%).
Apart from the fact that most German companies seem to be starting to change their business models as "adopters", the study also shows that the sustainability transformation of the economy depends on people. Employees, managers and customers (in order of importance) are the most important enablers of sustainable business models. Only cost reductions and efficiency gains are slightly more important, showing that German adopters are looking for win-win potential.
Overall, we see that the "adopters" have significant potential to contribute to Germany's sustainability transformation, and that this transformation depends on people. This is where universities and business schools like the ESCP can have a real impact - if they prepare future business model innovators!
The Economic Advisory Board of the Green Party engages with representatives of SMEs and family businesses in Germany. It provides a platform for dialogue between politicians and business leaders to discuss economic challenges such as labour shortages and the sustainable transformation of the German economy.
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