8/30/2021 – The European Union introduces the largest stimulus package in its history. In the 2021-2027 budget, 750 billion euros were allocated to “NextGenerationEU”. In the coming years, companies will be able to attract particularly high money on investments in sustainability, environment and digitalization. ESG . strategy So it is more suitable for business today than ever before.
ESG, i.e. sustainable development, social responsibility and the environment, has been a hot topic in Slovakia and in the world for several years. “It naturally affects both companies and investors who are looking for more responsible approaches to business and investment. Investors are increasingly focusing on the impact of their investments on the environment and society,” explains Quentin Crossley, partner at KPMG in Slovakia, who oversees ESG activities.
The new EU financing programs are very interesting for Slovak companies. In particular, companies should pay attention to two programs focused on a climate-neutral Europe (ETS Innovation Fund) and digital transformation (Digital Europe programme).
Europe wants to become climate neutral
Innovation Fund educational testing services It is one of the first EU financing instruments to support the vision of a climate-neutral Europe by 2050. Low carbon investment is gaining prominence in all member states to create a climate-neutral, competitive and innovative European economy.
Innovation Fund It will provide around 20 billion euros for innovative low-carbon technologies between 2020 and 2030. Industrial solutions to support a climate-neutral transition in Europe are to enter the market.
With KPMG Survey Among the world’s 250 largest companies, as many as 56% reported climate change as a potential risk to business in their annual financial report, the most (81%) in the fuel and trade sector (70%). And only 17% of these companies have a strategy to achieve carbon neutrality.
Europe goes digital
The European Commission is beginning to look at a greener Europe through the eyes of the European Green Agreement. At the same time, the debate about the transition to a more digital world opens up. Digital Europe Program (DEP) supports investment in supercomputers, artificial intelligence, cybersecurity, and advanced digital skills. The aim is to ensure a more accessible use of digital technologies for businesses and the general public, including through digital innovation centers.
Digital technologies and infrastructure play a major role in both private and commercial environments. Up to 46% of 820 respondents in the April KPMG study – Study commissioned by Forrester Consulting on behalf of KPMG They stated that they plan to invest more in technological transformation. In the next year, companies want to spend the most resources on data security measures (66%), automation (65%), customer-centric technology (59%), and cloud computing (57%).
With a total planned budget of €7.6 billion, the EU will help shape the digital transformation of European society and the economy. The program is part of a long-term budget, a multi-year financial framework covering the years 2021-2027.
“Digital technologies provide the ability to categorize, track, locate and share data about products or services within value chains right down to the level of individual components and materials. Sustainability is a key element here. This also includes ESG corporate strategy, which outlines how vision and living core values are achieved.Quentin Crosley adds.
At the same time, the pandemic has drawn attention not only to how dependent we are on the availability of technology, but also to the importance of Europe not being dependent on solutions from other regions of the world.
At KPMG, we encourage companies to move from an innovative idea to EU funding. KPMG experts can identify appropriate funding programmes, both at the European level and at the national level. KPMG is also a partner in setting development priorities and in developing an effective financing strategy and operations planning. Last but not least, it focuses on consulting In the implementation of the ESG strategy To become a normal part of society.
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