KfW Research: Majority of business founders have a focus on climate action

• Climate-smart products, services or in-house measures play a role in 54% of newly founded businesses
• 11% of newly founded businesses mainly offer climate-smart products and services
• 12% of newly founded businesses aim to become climate-neutral, and the trend is rising

As natural disasters and average temperatures continue increasing around the globe, climate change is already being felt by everyone. Climate action is therefore becoming more important for many people. This is also reflected in entrepreneurial activity. The majority of business founders of the year 2022 have a focus on climate action. Thus, 54% of newly founded businesses either offer products and services that contribute to climate action or have adopted climate-positive measures within the business. This is the finding of a special analysis of the KfW Entrepreneurship Monitor, the largest scientific entrepreneurial survey in Germany.

For some business founders, climate action is a key concern. Products and services related to climate action are the main focus of 11% of newly founded businesses. 12% aim to achieve climate neutrality through climate-positive in-house measures. The study brought this to light for the first time. A look at start-up plans revealed that climate neutrality is set to become a goal for more and more business founders. Thus, 18% of planners currently incorporate climate action measures aimed at achieving net zero.

"Numerous natural disasters have shown that climate change is among the greatest challenges of our time and causing much disruption. In the necessary green transformation of the economy, many business founders are rising up to their responsibility and incorporating climate action into their business activity”,

said Dr Fritzi Köhler-Geib, Chief Economist of KfW.

"I'm pleased to see that already one in ten newly founded businesses aim to achieve climate neutrality and an even greater proportion of future business founders have this goal in their sights."

The current KfW Research One Pager is available at Economics in Brief.