Study Reveals Only 10% of German Firms Integrate Digitalization and Sustainability for Future Success

A recent study by Fraunhofer FIT Institute and EY Consulting highlights the crucial need for German companies to combine digitalization and sustainability, a strategy termed Twin Transformation, for long-term viability and competitiveness. The study finds that only about 10% of German businesses currently link these two transformations strategically, potentially missing out on significant economic and strategic benefits.

Key advantages of the Twin Transformation include cost savings, enhanced resilience amid market volatility, and the creation of innovative business models. The study emphasizes resilience as a core competency enabling companies to actively manage change and regulatory challenges.

To assist businesses, the researchers introduced the Twin Transformation Value Canvas, a framework designed to help firms analyze, plan, and evaluate initiatives that intersect digital and sustainability goals. The report also provides five actionable recommendations, such as building strong data foundations and involving employees early in integration efforts.

Prof. Dr. Anna Maria Oberländer from Fraunhofer FIT stated, "Intelligent linking of digitalization and sustainability is essential for creating measurable value, including new business models and cost savings." The study includes practical examples from the manufacturing sector demonstrating how firms can enhance competitiveness while meeting sustainability requirements.

The full study is publicly available for download, aiming to guide more companies toward effectively combining these critical transformations to secure economic, ecological, and strategic advantages.