“Far-Right Surge in German Elections: What it Means for Business and Sustainability”

The recent German elections on February 23 have brought significant changes to the political landscape of the country. Chancellor Olaf Scholz’s center-left Social Democratic Party (SDP) was defeated by Friedrich Merz’s right-wing Christian Democratic Union (CDU) party, securing 28.52 percent of the vote and 208 seats in the Bundestag.

However, the most notable outcome of the election was the rise of the Alternative for Deutschland (AfD), an extreme far-right party that gained 20.8 percent of the vote and now holds 152 seats in the Bundestag, up from 83 in 2021. The AfD openly espouses neo-Nazi sentiments and denies human-caused climate change, making them a controversial force in German politics.

On the other hand, a socialist left party, Die Linke, also saw an increase in seats with eight percent of the vote, while the German Greens, Die Grünen, lost support with only 11.61 percent of the vote.

The implications of these election results are significant for businesses in Germany, especially as the country faces economic challenges and increasing polarization on environmental issues. Right-wing German politicians often pit environmental action against economic growth, leading to potential changes in strategy and tactics for businesses and civil society organizations (CSOs) working on sustainability.

As far-right parties gain influence, some businesses are abandoning their traditional positions of neutrality to voice political opinions. This shift in the political landscape has already led to fewer sustainability roles being advertised and environmental work being integrated into other departments within companies.

The trend of “greenlash” is not limited to Germany but is also seen across the continent, with more right-wing politicians joining the European Parliament and campaigning against environmental regulations. The European Commission’s proposed changes to the Corporate Sustainability Reporting Directive (CSRD) are expected to reduce the number of companies required to report on sustainability and weaken sector-specific reporting.

While not all European far-right parties deny climate change outright, their opposition to carbon taxes, green energy subsidies, and emissions regulations poses challenges to environmental policies. The rise of climate denial among far-right politicians in Germany, such as the AfD, threatens to undermine the country’s climate goals and commitments.

Despite the challenges posed by the changing political landscape, many companies continue to prioritize climate action and sustainability. Some sustainability professionals have noticed a decrease in job openings but observe that environmental work is being integrated into various departments within companies.

Looking ahead, individual CSOs will need to navigate the evolving political landscape in Germany and Europe, deciding when and how to speak up as right-wing parties gain influence and environmental policies face scrutiny. The need for businesses to engage in political discourse and advocate for sustainability has become more pressing, as the intersection of politics and business becomes increasingly intertwined in the face of climate change and environmental challenges.