CEST2025

As climate change accelerates, forest-based industries in Europe face increasing pressure to adopt technological innovations and circular business models to ensure sustainability. However, the conditions that drive successful adaptation remain underexplored. This study applies Qualitative Comparative Analysis (QCA) to identify the key combinations of factors that enable European forestry firms to respond effectively to environmental change. Using firm-level data from ORBIS and patent data from Orbit, we analyze the role of green technology patents, circular economy integration, financial resilience, and public funding in shaping adaptive strategies. Specifically, we assess how firms leveraging climate adaptation technologies, participation in carbon and biodiversity credit markets, and access to EU subsidies outperform competitors in sustainability and market success. A fuzzy-set QCA (fsQCA) approach is applied to determine the necessary and sufficient conditions for business success in the forestry sector. Our findings provide empirical evidence on how European forestry firms navigate environmental challenges, offering practical insights for policymakers, industry stakeholders, and investors aiming to scale sustainable forestry solutions. By integrating innovation, circular business models, and financial sustainability, this research contributes to the broader discourse on climate resilience and the green transition in the forestry sector.