Procurement's Opportunity as EU Firms Go Green and Digital
The general direction across European companies is to invest in a green and digital transition.
In addition, there exists a clear desire to demonstrate resilience against global volatility, according to the latest European Investment Bank Investment Survey (EIBIS).
The European Investment Bank spoke to more than 12,000 EU firms and more than 800 US companies between April and July 2025. It discovered that 92% of EU companies are investing directly in resources which cut greenhouse gas emissions.
EIB released the results during the annual meetings of the International Monetary Fund and the World Bank Group in Washington, D.C.
Investment resilience amid global uncertainty
Amid growing trade tensions, an investment slowdown is being seen on both sides of the Atlantic, with tariffs especially impacting those based in the US, according to the 2025 EIBIS.
EU companies are showcasing their resilience, with 86% continuing to invest. They are, however, exercising caution due to ongoing political, regulatory and economic uncertainties.
"While uncertainty weighs heavily on firms, they are so far weathering the shock," says Debora Revoltella, Chief Economist at the EIB.
"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."
Generative AI deployment in the EU
Businesses across Europe are continuing to adopt advanced forms of AI at broadly the same pace as their US counterparts, according to the survey, with 37% in the EU deploying Gen AI in the EU compared to 36% in the US.
This highlights an opportunity for procurement to drive value through AI deployment – for sourcing, internal process automation, supplier risk monitoring and market intelligence.
Companies in Europe can continue to harness the benefits of AI through a broader range of activities.
However, the research finds European firms are lagging behind in deploying AI in the areas of customer service, internal processes, marketing and human resources.
In addition, 81% of US businesses using AI do so in more than two activities, compared with 55% of European companies.
Investment challenges and opportunities ahead
The 2025 EIBIS demonstrates that investment challenges in Europe are ongoing, with 83% of EU businesses citing uncertainty and 79% identifying a shortage of skilled labour as major investment barriers.
In addition, energy costs are an impediment for 75% of European businesses, signalling the importance of accelerating renewable energy deployment to drive competitiveness.
There is a sense that EU firms will prioritise replacement investments over capacity expansion. Around a quarter (26%) are planning to expand operations over the next three years, versus 37% of US firms with similar intentions.
Interestingly, fewer European firms are facing financial constraints compared to previous years. Around 16% of companies making investments receive government assistance through grants or favourable financing terms.
The significant bulk of this EU policy support (61%) is directed towards specific goals, with 41% dedicated to green transition initiatives and 29% focused on innovation.
Growing concerns over customs and tariff changes are impacting businesses on both sides of the Atlantic, though the impact differs markedly: 77% of US firms view these changes as a major obstacle, compared to 48% of EU companies.
There exists considerable room for improvement through deeper European integration and reduced complexity. Currently, 62% of European businesses see the EU internal market as fragmented, and small and medium-sized enterprises face bureaucratic costs averaging approximately 2% of their annual turnover.
