Investing.com -- European companies are increasingly taking a front-line role in the global effort to combat climate change, with several firms emerging as leaders in aligning their operations with climate action goals.
According to analysts at Bernstein, a number of companies from different sectors are leading the way in climate change mitigation and adaptation, as reported under the EU Taxonomy for Sustainable Activities.
The EU Taxonomy, a regulatory framework introduced under the European Green Deal, requires large companies to disclose the share of their revenue, capital expenditure (capex), and operational expenditure (opex) that align with climate change mitigation and adaptation objectives.
As of 2025, more than half of the companies in the STOXX Europe 600 index have reported their sustainability-related financials, providing a clearer picture of where European businesses stand in the fight against global warming.
Leading the charge are companies in the utilities, industrials, automotive, and real estate sectors, which account for the highest share of taxonomy-aligned revenues and investments.
The total revenues reported by European firms as being aligned with climate change mitigation objectives stand at €513 billion, while capex on mitigation efforts reaches €174 billion.
In contrast, climate change adaptation remains a nascent field, with just €18 billion in aligned revenues and €5 billion in capex.
Among the companies with the highest percentage of revenue derived from climate change mitigation activities, Vestas Wind (CSE: VWS ) Systems, the Danish wind turbine manufacturer, tops the list with nearly 99% of its revenue classified as aligned.
Other significant contributors include EDP Renovaveis (ELI: EDPR ) (99.8%) and Getlink (93%), reflecting their strong commitment to low-carbon energy and transport solutions.
Industrial manufacturers like Rockwool (86%) and Wienerberger (VIE: WBSV ) (49.6%) also play a crucial role in sustainable building materials, while Dassault Systèmes (33.4%) provides digital solutions that enhance energy efficiency.
The automotive sector, traditionally seen as a major contributor to emissions, is undergoing a transformation.
Volkswagen (ETR: VOWG_p ), BMW (ETR: BMWG ), and Mercedes-Benz (OTC: MBGAF ) report some of the highest taxonomy-aligned revenues in the industry, reflecting their shift towards electric mobility.
Volkswagen alone reports €36.6 billion in climate change mitigation-aligned revenues, while BMW and Mercedes-Benz report €23.7 billion and €21 billion, respectively.
In the real estate sector, Klepierre (EPA: LOIM ), Unibail-Rodamco-Westfield, and Castellum stand out for their commitment to energy-efficient buildings. Klepierre, for instance, has 59% of its revenue aligned with the EU Taxonomy, driven by investments in sustainable construction.
While mitigation efforts remain the dominant focus, Bernstein analysts argue that climate change adaptation is set to gain traction.
The market for adaptation, currently valued at around $60 billion, is expected to surge to $2 trillion annually between 2026 and 2030.
Sectors such as water management, infrastructure resilience, and sustainable agriculture are anticipated to see increased investments as companies and governments work to safeguard assets from the worsening impacts of climate change.
Despite the progress made, the road ahead remains challenging. The UN has warned that the world is on track for a 3.1-degree Celsius temperature rise unless more aggressive action is taken.
This underscores the need for greater corporate commitment, regulatory incentives, and investor engagement in the transition to a low-carbon economy.