How EU Firms Embraced Sustainable Digital Investment in 2025
The general direction across European companies is to invest in a green and digital transition.
In addition, there exists a clear desire to demonstrate resilience against global volatility, according to the latest European Investment Bank Investment Survey (EIBIS).
The European Investment Bank spoke to more than 12,000 EU firms and more than 800 US companies between April and July 2025. It discovered that 92% of EU companies are investing directly in resources which cut greenhouse gas emissions.
EIB released the results during the annual meetings of the International Monetary Fund and the World Bank Group in Washington, D.C.
The European Investment Bank Investment Survey (or EIBIS) acts as a weathervane for the world's largest trading bloc, giving readers an insight into which way the wind is blowing across Europe's financial landscape.
This year's research shows that European businesses are focusing on environmental sustainability and digital transformation, with the two often dovetailing.
What's more, the study shows that, in 2025, companies have been demonstrating a strong intention to build resilience in the face of global instability.
Between April and July, the European Investment Bank (EIB) surveyed more than 12,000 firms across the EU, as well as 800 businesses in the US. The findings show that 92% of EU enterprises are channelling investment directly into resources that reduce greenhouse gas emissions.
The EIB published these findings at the annual meetings of the International Monetary Fund and the World Bank Group in Washington, D.C.
Is geopolitical instability having an effect on investments?
Amid growing trade tensions, an investment slowdown can be seen on both sides of the Atlantic, with tariffs especially impacting those based in the US, according to the 2025 EIBIS.
By the looks of things, EU companies are showcasing their 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," says 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."
The role of Gen AI in European investment strategies
European businesses are maintaining their adoption of sophisticated AI technologies at roughly equivalent rates to their American peers, the survey indicates, with 37% of EU firms implementing Gen AI compared to 36% in the US.
This presents 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.
Across the pond, 81% of American businesses utilising AI apply it across more than two activities, whereas only 55% of European companies do the same.
The challenges and opportunities ahead for investment banks
The 2025 EIBIS reveals that European investment obstacles persist, with 83% of EU companies reporting uncertainty and 79% highlighting shortages of skilled labour as significant 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 significantly: 77% of US companies perceive these changes as a substantial obstacle, while 48% of EU businesses share this view.
Substantial scope exists for enhancement through greater European integration and streamlined complexity.
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.
