17 June 2026
The sustainable transition has entered a new phase. From being a response to the climate crisis and a set of regulatory obligations, it has become one of the main arenas of global economic competition—where countries’ industrial capabilities, supply chain resilience, energy autonomy, and companies’ credibility with citizens, local communities, and markets are measured. This is the perspective at the core of the Strategic Report 2026 "Non-negotiable priorities for the future of business and the sustainable transition”, developed by TEHA Group in collaboration with Erion and presented at the Erion Forum 2026 in Rome.
The study is based on a clear premise: a competitive approach to the transition cannot be limited to identifying what to reduce, simplify, or eliminate. It must first define what businesses and institutions can no longer afford to give up if they want to remain competitive.
A sustainable transition in the “age of predators”
The first section of the study places the sustainable transition within a profoundly changed global context. The current phase is described as the “age of predators”: a time in which geopolitical assertiveness, technological competition, and the pursuit of strategic autonomy are reducing the scope for multilateralism and shifting industrial policy priorities toward security, defense, and resilience. In this scenario, sustainability does not disappear from the global agenda. On the contrary, it moves to the center of competition among major economic areas. China is consolidating its position in clean technologies and electrification; the United States is strengthening its industrial and energy interventionism; Europe faces the need to defend its model, ensuring that the transition does not become a competitive disadvantage for its production system.
The Report highlights a key finding: the costs of inaction are now higher than those of action. Between 1980 and 2024, extreme climate events in Europe caused estimated economic losses of around €822 billion. In Italy, under a scenario of climate inaction, the cost of extreme events could exceed 9.5 percentage points of GDP by 2035. Conversely, accelerating the transition could generate benefits exceeding costs, with GDP growth rising above 1.1% by 2035 and up to 8.4% by 2050.
The business perspective
The second section of the study examines the non-negotiable priorities for businesses, drawing on input from 108 companies within the Erion ecosystem, complemented by a Leaders’ Roundtable with 11 business leaders, contributions from four key opinion leaders, and literature analysis. Despite regulatory uncertainty, 75.5% of companies believe it is appropriate to maintain or increase their sustainability commitments. Moreover, 68.6% report having strengthened their ESG policies over the past three years.
The main areas of competitive pressure are clear: for over 88% of respondents, energy—both in terms of efficiency and cost—is the most critical issue. This is followed by sustainable technological innovation (83%) and environmental product standards (82%). Overall, around one company in four already reports a high level of competitive exposure related to sustainability issues in global markets.
In terms of benefits, Italian companies adopting circular economy models are 28% more financially resilient from a credit perspective, making them more attractive for private investment.
However, the study also highlights a critical issue: businesses and policymakers are not yet fully aligned on transition priorities. To measure this gap, TEHA Group developed the STAGE Index – Sustainable Transition Alignment between Government & Enterprises, which in 2026 shows a convergence level of approximately 51%. This misalignment is not due to disagreement on overall objectives—which are largely shared—but rather to the tools selected and the complexity of the regulatory framework. Over the past 35 years, European and national legislation has focused mainly on industrial decarbonization and energy competitiveness, circular economy and raw material security, climate adaptation, and sustainable technological innovation. However, the density and frequency of regulatory interventions now risk reducing policy effectiveness, particularly in supply chain resilience, decarbonization, and circular economy strategies.
Almost 60% of the companies surveyed call for a more active role from policymakers in supporting the industrial system—through ongoing incentives, measures addressing energy costs, simplified authorization procedures, and support for clean technologies.
Six proposals for a competitive transition
The third section of the study outlines six operational proposals to guide institutions and businesses toward a new approach to the sustainable transition:
- incentivise virtuous behaviours and support the most affected sectors, by developing clear and long-term incentive schemes that are less based on penalties and more oriented towards transformation
- support innovation, by allocating resources to accelerate the development of new and competitive solutions in strategic areas, also through a single capital market and easier access to financing
- focus investments on a limited number of high-potential areas, where existing technologies can simultaneously improve environmental performance and margins
- make industrial and technological expertise available to institutions and citizens, in order to promote solutions that are applicable, effective, and aligned with the needs of supply chains
- aggregate in order to compete. Scale matters, especially in international markets and in high-impact investments. In this perspective, groups of companies and consortia based on the principle of Extended Producer Responsibility can help consolidate a competitive advantage
- strengthen mechanisms for listening and dialogue between businesses, policymakers, and society, as strategic realignment between institutional decision-makers and the production system is a key condition for making the transition both sustainable and competitive
The new paradigm proposed by TEHA focuses on prioritizing solutions that achieve long-term environmental objectives while ensuring short-term profitability through innovation. From a social perspective, it emphasizes reducing dependencies and responding to stakeholders’ legitimate expectations, in order to build the consensus needed for long-term business success.
“The key issue of the transition is not choosing whether to move forward or go back. It is understanding which priorities should underpin the future competitiveness of the EU’s productive system. In the ‘age of predators,’ the transition needs to be rethought—starting from the non-negotiable areas required to remain competitive, innovate, and generate value.” Carlo Cici, Partner at The European House – Ambrosetti and Head of Sustainability at TEHA Group
Documents
Full study - Non-negotiable priorities for the future of businesses and sustainable transitions