Nine out of ten companies in the DACH region are investing in sustainability projects. Compliance, occupational safety and health, and decarbonization top the list of strategic sustainability goals. Nevertheless, many companies are inadequately prepared.
Sustainability is becoming a key factor in corporate resilience. While traditional compliance considerations remain important, social issues and environmental factors are playing a significant and growing role in corporate competitiveness. Against the backdrop of a skilled labor shortage, occupational safety and health are gaining importance, and reducing CO2 emissions also offers financial benefits. In fact, the costs of proactive management and preventive measures are lower than those of doing nothing and waiting to see what happens. Nevertheless, many companies are inadequately prepared. This is shown by a recent study conducted by the Institute for Financial Services Zug (IFZ) at the Lucerne University of Applied Sciences and Arts, in collaboration with BDO Switzerland, Talentia Software, and CRIF Switzerland.
The Climate Crisis Is Already Affecting Companies
About one in four companies reports that it is already affected by the climate crisis. Nevertheless, scenario analyses and resilience tests for their own business models are still not widespread enough in companies, says study author Dr. Ute Laun. “Risk management without climate scenario analyses is like an alarm system that isn’t armed. If relevant climate risks aren’t integrated into companies’ risk management, early warning signs cannot be detected and appropriate course corrections cannot be made.”
Circular processes: Investments lag behind potential
A key lever for strengthening the resilience of the supply chain and the business model is the implementation of circular processes. Introducing circular processes typically improves material efficiency, lowers costs, reduces the carbon footprint, and mitigates procurement risks caused by volatile supply chains. Examples from corporate practice show that circular economy approaches—such as the recycling of high-value material components—become profitable within as little as two years. Companies in industries with complex products consisting of numerous material components are particularly well-suited for circular economy approaches. Future regulatory requirements regarding the disclosure of material composition and origin, as well as repairability and recyclability, provide further incentives for implementing circular processes.
There is a funding gap
However, there is a funding gap. The study shows that investments are lagging behind the potential. There is a lack of coordinated and supportive funding policies and harmonized regulations to provide companies with certainty in their actions. “ -minded companies want the government to create appropriate framework conditions and remove obstacles. This includes, for example, revising legal provisions to promote circular processes and decarbonization,” says Ute Laun.
ESG Reporting 2026
The study was conducted for the third consecutive year by the Institute for Financial Services Zug (IFZ) at the Lucerne University of Applied Sciences and Arts. The study focuses on the sustainability practices of companies in Switzerland and the DACH region. Recurring key topics include dealing with dynamic regulatory developments, ESG governance, data management, and internal controls. In addition, each year’s study highlights current topics of focus—for 2026: decarbonization, supply chain due diligence, and digitalization. The study can be downloaded here.
