KfW Research: More than one in five businesses are feeling negative impact of climate change

• KfW Climate Barometer: As many as 74 per cent of large enterprises in Germany are affected by the consequences of global warming
• Energy-intensive businesses are suffering the most

More than one in five businesses (21 per cent) in Germany, or around 800,000 enterprises, are already affected by negative consequences of climate change. Large enterprises with annual turnover of more than EUR 500 million in particular are suffering from the many different effects of global warming, with 74 per cent reporting that they are feeling some negative effects. Among larger SMEs with more than 50 employees but less than EUR 500 million in annual turnover, that figure is 42 per cent.

These are some of the findings of a special analysis of the KfW Climate Barometer 2025, an annual business survey around the topics of climate action and energy transition. This special analysis was primarily based on data from the fourth survey wave (February to June 2025), in which some 13,300 businesses participated.

Among micro-businesses with fewer than five employees, only 19 per cent reported feeling negative effects of climate change. “Large enterprises are often integrated at international level. They have international supply chains and sales markets. Large enterprises are therefore directly affected by extreme weather events even in areas far away from Germany,” said Dr Dirk Schumacher, Chief Economist of KfW.

Large enterprises have recently started to feel more adverse effects. In the KfW Climate Barometer 2024, 61 per cent of these enterprises reported being affected by climate change in some form. A year later that figure increased by 13 percentage points.

Energy-intensive businesses, too, are especially vulnerable to the negative consequences of climate change. Enterprises in which energy costs make up ten per cent or more of total costs are particularly affected. Thirty-one per cent of them reported being affected in some form – another five percentage points more than in the previous year’s survey.

The dry summers of 2022 and 2025, when some energy-intensive sectors came under pressure, were an example of such negative climate impacts. Low river levels meant that fewer goods and fuels reached their destinations, while thermal power plants and hydropower plants had their output curtailed. Industrial refrigeration processes also suffer from restrictions on cooling water use.

“Extreme weather events such as droughts, storms or floods are increasing around the world and causing substantial damage, including in Germany,” said Dr Dirk Schumacher, Chief Economist of KfW. “A consistent and ambitious international policy framework on climate action not only serves to protect human health and stabilise ecosystems. It is an important lever for securing future economic prosperity.”

The study can be found at Focus on Economics | KfW.