Three in four German companies doing business in the Philippines have set sustainability goals as the majority monitor discussions and developments relating to environment and climate change.
In the German Chamber of Commerce Abroad World Business Outlook Survey Fall 2021-Sustainability Evaluation, it was noted that the German companies have cited sustainability as an “increasingly important” aspect of their operations.
“We acknowledge the need to conduct sustainable and honorable business practices which many of our members already do,” said Stefan Schmitz, president of the German-Philippine Chamber of Commerce and Industry (GPCCI).
Schmitz said they support member companies by “helping capacitate” them in waste water management, renewable energy and green financing.
GPCCI Executive Director Christopher Zimmer said they are also “currently investigating opportunities on green hydrogen as well as environmental technologies.”
Some 58 percent of the respondents in the country also agreed that sustainable corporate financing is an important matter. From a global perspective, 63 percent of the German companies shared the same sentiment.
“In the future, besides the market opportunities of a product, other criteria will play an increasingly decisive role in financing decisions, namely those related to environmental and climate protection as well as to other sustainability issues,” the study said.
However, only 18 percent of the German firms in the country said they are preparing for the implementation of the German Law on Due Diligence in Supply Chains.
The report noted that the said law was passed to “ensure that larger German companies take care of their suppliers’ compliance with certain social and environmental standards from 2023 onwards by anchoring corresponding in their supplier contracts.”
The said measure’s objective is to protect human rights and the environment within the supply chains of companies with 3,000 or more employees in Germany.
The GPCCI survey has 74 respondents coming from different sectors, including manufacturing, construction, trade and services. It was conducted from September 24, 2021 to October 15, 2021.
In a survey last December 2021, 57 percent of the German firms that have local operations have an optimistic outlook for their businesses in the next 12 months on the back of positive medium-term economic projection and growing confidence in local investments.
Some 32 percent considered the current situation of their companies as “good,” which is higher than 21 percent in the previous study. Nearly half said they were satisfied while the remaining 20 percent said it was “bad.”
The top risks identified by the respondents in the next twelve months include demand, economic policy framework and price of raw materials.