EU Firms Betting Big on Green and Digital Supply Chains
A new report from the European Investment Bank (EIB) indicates that companies across the European Union are navigating global volatility by directing investment towards green and digital transitions.
The findings from the 2025 European Investment Bank Investment Survey (EIBIS), which gathered data from over 12,000 EU firms between April and July 2025, suggest a strategic change that holds major implications for the continent's supply chains, prioritising resilience and modernisation.
According to the research, 92% of EU companies are making investments in resources designed to reduce greenhouse gas emissions. This points towards a continent-wide effort to decarbonise operations, a move that places supply chain and procurement functions at the centre of corporate strategy.
For supply chain leaders, this involves a greater focus on sustainable sourcing, green logistics and reducing Scope 3 emissions.
Greener and smarter supply chains
The push for digitalisation runs parallel to the green transition. The EIBIS survey found that European businesses are adopting advanced artificial intelligence at a pace similar to their US counterparts, with 37% of EU firms deploying generative AI compared to 36% in the US.
This adoption presents an opportunity for procurement and supply chain functions to create value through improved sourcing, internal process automation, supplier risk monitoring and market intelligence.
The data does suggest, however, that European firms could be lagging in the breadth of AI application. While 81% of US businesses use AI in more than two activities, only 55% of European companies do the same, indicating a potential gap in integrating digital tools across the entire supply chain.
Investment resilience amid volatility
Despite a climate of political and economic uncertainty, a notable 86% of EU firms are continuing to invest, signalling a commitment to building resilience.
This cautious investment strategy comes as trade tensions and tariffs create a more complex global landscape. The survey highlights a marked difference in how these pressures are felt, with 77% of US firms viewing customs and tariff changes as a major obstacle, compared to 48% of EU companies.
This could influence transatlantic supply chain strategies, potentially encouraging more regionalised or diversified sourcing models for EU businesses to mitigate risk.
Debora Revoltella, Chief Economist at the EIB, explains: "While uncertainty weighs heavily on firms, they are so far weathering the shock.
"There is a clear commitment to invest in digitalisation and green initiatives, which are crucial for maintaining competitiveness in the evolving global market. The focus on the green transition is evident, with a considerable portion of investment directed towards sustainable practices."
Overcoming obstacles to modernisation
The report also sheds light on the major barriers preventing full-scale modernisation of European supply chains.
A shortage of skilled labour was cited by 79% of businesses as a major impediment to investment, directly affecting the capacity to manage increasingly complex, data-driven supply chains.
Furthermore, high energy costs, a concern for 75% of firms, continue to squeeze margins in logistics, warehousing and manufacturing, reinforcing the business case for investing in energy-efficient technologies and renewable energy sources.
Many businesses also perceive the EU's internal market as a challenge. According to the survey, 62% of European companies find the market fragmented, with small and medium-sized enterprises facing bureaucratic costs that average around 2% of their annual turnover.
This fragmentation can create logistical hurdles and add complexity to pan-European supply chain networks. To help overcome these challenges, government support is playing a role, with 16% of investing companies receiving assistance.
A large portion of this EU policy support (41%) is specifically aimed at green transition initiatives, providing a vital funding route for companies looking to develop more sustainable and resilient supply chains.
