Italy Majorly Behind EU with 8% AI Adoption

Today’s ESG Updates

• Italy Trails in AI Adoption: Only 8% of Italian firms use AI, with poor digital skills and youth emigration hindering growth.
• France & Germany Reject EU Supply Chain Law: Macron and Merz call to scrap the CSDDD, saying it hurts business competitiveness.
• Trump-Walmart Tariff Feud Backfires: Trump’s criticism reveals tariffs raise consumer prices, denting his economic credibility.
• Amazon Fires Fuel Record Forest Loss: 2024 saw 6.7M hectares lost, driven by Amazon wildfires and climate extremes.

Italy lacks AI adoption and digital skill sets; only 8% of enterprises found to use AI 

A report issued on Wednesday by the national statistics bureau ISTAT found that only 8% of Italian enterprises utilised AI in 2024. The figures are lower than those of France and Spain and well below Germany’s 20% adoption rate. Approximately 45.8% of Italians aged 16-74 have the least basic digital skills, below the EU average of 55.5% and a target of 80% by 2030. The issue has widened in the southern regions of Italy as Italy experienced a 97,000 loss in young professionals over the past decade. The low digital literacy rate is reflected in Italy’s revised growth forecast of 0.6% as the country struggles to utilise digital assets. To close the economic gap, Italy can take the example of other EU members that have adopted AI alongside ESG tools to boost economies. 

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Further reading: Just 8% of Italian enterprises using AI, many people lack digital know-how

France’s Macron backs Germany’s call to scrap EU’s Supply Chain Sustainability Due Diligence Law

During the “Choose France” International Business Summit, French President Emmanuel Macron called for the EU to scrap its Corporate Sustainability Due Diligence Directive (CSDDD). In a move that joins Germany in the calls for the EU to adjust its sustainability requirements, both Macron and German Chancellor Merz argue that CSDDD imposes more harm than good. Excessive regulatory and compliance requirements potentially hinder businesses’ global competitiveness, with both leaders pushing to abolish CSDDD. The EU Commission has proposed delaying the directive to 2028 as more companies struggle to declare and track environmental data. The speed at which the reporting landscape is changing means that companies struggle to gather and report all the ESG data needed, causing the call for EU directive change. 

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Further reading: France’s Macron Joins Germany’s Call to Scrap EU’s Supply Chain Sustainability Due Diligence Law

Trump’s Walmart fallout exposes Trump’s fraudulent tariffs policies 

Walmart has voiced its concerns about the impact Trump’s tariffs will have on price increases across the industry. Trump, in turn, criticised Walmart for not absorbing the costs instead of passing them to the customers. Economist Lindsay Owens highlighted that Trump’s demand exposed the consumer burden of tariffs, a notion thought to have been avoided by other countries paying them. The heated confrontation risks scarring Trump’s economic credibility, with Republican officials like Joe Walsh labeling the President’s response as weak to his economic policies. The incident has raised concerns over inflation and economic instability among the American public as people lose faith in Trump’s trade policies.

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Further Reading: Trump’s Angry Walmart Tirade Backfires, Wrecking His Own Tariff Scam

Amazon fires contribute to record global forest loss in 2024, report finds

Reports found a total of 6.7 million hectares of tropical pristine forest was lost in 2024, marking a record loss and an 80% increase from 2023. Brazil was most heavily affected, with a loss of 2.8 million hectares, primarily due to wildfires and record-breaking droughts. Likewise, Bolivia’s loss surged by 200%, accounting for agricultural expansion and extreme climate events. However, the issue is not isolated to the tropics, with record tree loss in Canada and Russia. The report highlights a need for more effective conservation policies, like those succeeding in Southeast Asia, and for governments to prioritise sustainable funding through ESG solutions. 

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Further reading: Amazon fires drive unprecedented global forest loss in 2024, report says

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit:  David Levêque