The European Union's COVID-19 recovery plan could be the impetus businesses need to invest in climate measures and prepare for the transition to a net-zero carbon economy. Our newest climate report looks at how firms' view these twin challenges and their preparedness to meet them. - Firms are more aware of the physical risks posed by climate change, but less aware of the risks caused by the transition to clean energy. - Almost half of EU firms surveyed are investing in climate change measures, compared with roughly one-third of US firms. - Uncertainty over regulation and taxation continues to hamper climate investments.To green its economy, Europe needs a comprehensive strategy that will provide businesses with the guidance they need to invest in climate preparedness and the energy transition.