European mid-market firms accelerate climate action despite uncertainty, Argos-BCG Study Finds.
Nearly 90 percent of European mid-sized companies are actively advancing their ecological transition, despite facing political and economic headwinds, according to the third edition of the Argos – BCG Climate Transition Barometer.
The study surveyed 700 firms across seven European countries—including the UK for the first time—and found a significant rise in the number of companies viewing decarbonisation as a strategic opportunity, up 18 points from 2024 to 85 percent.
The commitment to climate action remains strong, with 88 percent of firms rating the ecological transition as "important" or "critical".
Priorities include reducing greenhouse gas emissions, minimizing pollution, and promoting the circular economy. Investment in decarbonisation is also increasing: 48 percent of companies are investing, and 32 percent now do so with structured plans—three times more than in 2023.
Customer expectations are the top motivator, cited by 63 percent of respondents, especially in B2B markets. Regulation is another key driver, though its complexity is often seen as a barrier. Financial constraints remain the top challenge, with 62 percent of companies citing them as an obstacle.
Firms backed by investment funds are leading the way, with 13 percent more likely to commit to decarbonisation. “This confirms that our ecosystem provides crucial support”, says Simon Guichard, Partner at Argos. Fabien Hassan of BCG added that mid-sized companies are essential to reducing emissions across supply chains, as they account for 60 percent of large firms' indirect (Scope 3) emissions.
