HSBC Survey: Sustainability Key to Unlocking Business Growth

A new era of business growth is emerging, with sustainability shifting from a peripheral concern to a core strategic consideration.

According to the HSBC Sustainability Pulse Survey 2025, there is a growing consensus among businesses and institutional investors that the climate transition is a key factor of commercial opportunity.

The findings suggest a business environment where sustainability is becoming a more integral component of strategic planning and execution.

The survey, which gathers insights from 1,651 senior business decision-makers and 500 institutional investors across 12 markets, finds that 95% of corporates view sustainability as a commercial opportunity.

Furthermore, 99% expect it to provide a differentiated competitive advantage within the next three years.

This indicates a strong alignment between corporate objectives and investor priorities, with both groups recognising the long-term value of integrating sustainability into their operations.

Aligning corporate strategy with sustainable investment

The report highlights a clear convergence of interests between companies and the institutional capital that funds them.

The survey finds that 96% of institutional investors believe climate and environmental issues will be an important element of their investment strategy within three years.

This is mirrored on the corporate side, where 72% of businesses state that the transition will be very important to long-term business resilience.

This alignment is translating into financial commitments. Corporate investment in transition is projected to grow, with the share of companies allocating more than 10% of their capital expenditure expected to double from 14% today to 29% within the next three years.

For investors, the connection between sustainability and financial return is becoming clearer.

The survey shows 79% of institutional investors identify a positive correlation between sustainability and long-term financial performance, while 73% report growth in assets aligned with sustainable criteria.

The role of climate tech in business transformation

A key element of this transition is the active integration of climate technology. According to the survey, 90% of businesses are incorporating climate tech into their strategies. This field extends beyond clean energy to include areas such as agricultural technology (agtech) and nature tech.

Companies are increasingly aware of their potential to reshape business models and create more resilient ecosystems. For clients, scaling the technology that underpins the climate transition has become a strategic priority.

Natalie Blyth, Global Head of Sustainable Finance and Transition at HSBC, explains: “Today, sustainability strategy has become business strategy: defining value creation, competitive advantage and risk management, as demonstrated by our survey. This critical change is why we’ve launched our new ambitious strategy to support our clients with their transition.”

Data and transparency as factors in commercial success

The growing emphasis on sustainability is increasing the demand for robust data and transparent reporting. The use of data is making it easier to measure return on investment for sustainability initiatives, from renewable energy projects to full lifecycle assessments.

This improved measurement supports better commercial outcomes and operational efficiency.

At the same time, demonstrating ESG performance is becoming a requirement for participation in many commercial supply chains.

Transparency on environmental impact is now a key factor in securing capital, managing risk and supporting long-term business success.

This has led to a rising demand for simplified carbon reporting, allowing operators to maintain a competitive edge in a market that increasingly values sustainability.

The momentum stems from a greater understanding of technological opportunities and strong capital allocation. While some financial barriers exist, the demand for scalable climate technologies is creating opportunities for innovation and funding.

“Sustainability is becoming an increasingly integral part of long-term business strategy, serving as a source of resilience, innovation and growth,” says Julian Wentzel, Group Chief Sustainability Officer at HSBC.

Julian continues: “HSBC is well placed to support businesses with their climate ambitions, whether it’s connecting climate technology solutions between startups and large corporate players, or financing the critical infrastructure needed to realise our customers’ ambitions. We offer global support, from seed to scale, at any stage of their transition.”