Dutch Companies Abandon Sustainability Goals as Investment Costs Mount

2025-12-22 green

Netherlands, Monday, 22 December 2025.
Dutch businesses are quietly retreating from environmental commitments, with only 35% now targeting minimal ecological impact by 2030—down from over 50% just two years ago. Innovation professor Henk Volberda warns against sustainability becoming mere “ritual rain dance” as companies discover the hefty price tag of genuine transformation. This shift reflects broader tensions between climate goals and financial realities, particularly as political winds change globally.

The Economics of Environmental Retreat

The data reveals a stark shift in corporate priorities across the Netherlands. According to the Nederlandse Innovatie Monitor 2025 by ACBI and SEO Economisch Onderzoek, only 35% of Dutch companies now aim for a negligible ecological footprint before 2030, compared to over 50% two years prior [1]. Meanwhile, 31% of companies have pushed their environmental targets beyond 2050 or abandoned them entirely [1]. Professor Henk Volberda, who directs the Amsterdam Centre for Business Innovation at the University of Amsterdam, attributes this retreat to a fundamental economic reality: “The majority of companies have discovered that sustainability will cost a lot of money. They cannot or will not always make those investments” [1].

Political Headwinds Shape Corporate Strategy

The sustainability pullback isn’t occurring in isolation—it reflects broader political and regulatory changes across Europe and globally. In 2025, the Netherlands scrapped its CO2 tax for industry [1], while the European Union weakened sustainability reporting rules CSRD and CSDDD [1]. These policy shifts align with global trends, as Volberda notes: “In the US, companies engaged in sustainability are simply vilified. That gives them reason to give sustainability less priority, or at least communicate about it less” [1]. A 2024 report by former European Central Bank president Mario Draghi found that Europe innovates much slower than the US and China due to excessive regulations [1], creating additional pressure for regulatory rollbacks.

The Rise of ‘Greenhushing’

Even companies maintaining their environmental commitments are increasingly keeping quiet about them—a phenomenon researchers term “greenhushing” [3]. According to international research cited in industry publications, over half of large companies maintain their ESG (environmental, social, governance) strategy but publicize it less [3]. Volberda warns against this trend of silence, stating: “I prefer real investments in sustainability over reports of hundreds of pages” [3]. The professor emphasizes that “the transition to the new economy has already been initiated” [3], despite the apparent retreat in public communications. This cautious approach reflects companies’ fear of criticism and potential political or juridical consequences [8].

Innovation Leaders Buck the Trend

While many companies retreat, some Dutch organizations continue advancing sustainability initiatives and receiving recognition for their efforts. PHI Factory, a sustainability consultancy, claimed the number one position in the ‘business services in sustainability’ category within the SD400 ranking for the third consecutive year on December 21, 2025 [5][6]. The company’s director Laura Huijgen noted: “This recognition confirms that our approach works: helping organizations progress with realistic, impactful steps towards sustainability, circularity and regeneration” [5]. PHI Factory has set an ambitious goal to accelerate all large organizations towards a circular, inclusive economy by 2050 [5]. The SD400 ranking, based on research by Volberda’s team, assessed approximately 3,879 business decision-makers evaluating over 1,700 organizations on ecological sustainability, social sustainability, and good governance [5]. Triodos Bank topped the overall SD400 list for 2025, with Greenpeace and biological crop protection producer Koppert completing the top three [8].

Bronnen

climate strategy sustainability innovation