Sustainability in German Companies: A Data-Driven Analysis (2025)
Our analysis reveals: The level of sustainability in German companies varies significantly by region.
The importance of sustainability for companies has steadily increased in recent years. Driven by regulatory requirements, societal expectations, and economic opportunities, businesses are increasingly investing in sustainable strategies. ESG criteria (Environmental, Social, Governance), and in particular the new EU directive on sustainability reporting (CSRD), set new standards for transparency and accountability. To enhance the competitiveness of European companies and reduce bureaucracy, the European Commission is currently planning a simplification of sustainability reporting as part of the so-called "Omnibus Initiative."
With the help of ISTARI.AI’s Sustainability Indicator, companies that position themselves as ecologically sustainable can be identified. This also enables regional analyses that provide valuable insights into how companies in different regions engage with sustainability topics.
Regional Differences of Sustainability Intensity in Germany
Our map of average sustainability intensity at the NUTS3 level reveals significant regional differences. One of the most striking observations is the classic West-East divide: regions in western Germany, on average, demonstrate a higher intensity of sustainability-related activities than those in eastern Germany. This may be due to historical and structural reasons, including industrial development and the availability of sustainability-oriented financial resources.
Another notable trend is the difference between urban and rural regions. Companies in metropolitan areas such as Berlin, Hamburg, and Munich often exhibit a higher sustainability intensity than those in rural areas. This may be linked to the availability of skilled labor, proximity to research institutions, and overall innovation capacity in urban centers.
The map also indicates that economically strong regions with large corporate clusters exhibit high sustainability intensity. In addition to the aforementioned major cities, regions around Düsseldorf, Frankfurt, and Stuttgart are particularly active in sustainability efforts. At the same time, some rural areas show lower sustainability intensity, possibly due to limited access to financial and structural resources.
Interestingly, some regions in eastern Germany, such as the areas around Leipzig and Dresden, display high sustainability intensity. This could be attributed to targeted funding programs or a strong presence of innovative companies in these areas.
Scientific Perspectives on Corporate Sustainability
Research shows that companies are increasingly facing accusations of greenwashing. A recent study using ISTARI.AI data (see Chapter 4.4) examines this issue for specific industries by utilizing satellite air pollution data, highlighting the importance of robust ESG reporting and reliable sustainability indicators.
Small and medium-sized enterprises (SMEs) in particular face challenges in implementing sustainable measures. According to a recent OECD study, which also utilizes webAI data, large companies are leading in sustainability implementation, while SMEs often struggle with resource constraints. The EU Commission’s Omnibus Initiative could provide relief by simplifying regulatory requirements and adapting them to the realities of smaller businesses.
Conclusion and Outlook
Our analysis shows that sustainability in German companies varies significantly by region. While large and urban-based companies often take the lead, some regions still have catching up to do. Further studies would be necessary to identify the causes and influencing factors behind these developments.
Regulatory developments, particularly the CSRD and EU-wide simplification initiatives, will play a central role in the coming years. Companies that prepare for these requirements early and pursue a sustainable corporate strategy will not only benefit from regulatory advantages in the long run but will also capitalize on the increasing societal and economic demand for sustainable solutions.
