A new HSBC study reveals a decisive shift in how senior executives and institutional investors understand the climate transition. What was once largely framed as a compliance obligation or a risk-avoidance exercise is increasingly being viewed as a driver of commercial expansion, strategic positioning and long-term competitiveness. The survey, conducted by FTI Consulting on behalf of HSBC, signals that the financial logic for climate action is strengthening rapidly. As expectations accelerate, the key question emerging is whether companies can convert their enthusiasm into real investment and execution at the pace required.

Business Leaders Recast Sustainability as a Catalyst for Value Creation

The survey collected insights from more than 1,650 business decision makers across twelve major markets. The results indicate a profound change in mindset. Ninety-five percent of corporate leaders say the climate transition represents a commercial opportunity for their organisations. More than one third describe it as a central strategic priority rather than a peripheral environmental concern. HSBC interprets these findings as evidence that sustainability is moving firmly into the core of business planning, with management teams viewing climate initiatives not merely as cost centres but as contributors to revenue, resilience and competitive differentiation. An overwhelming ninety-nine percent of leaders believe climate transition efforts will play a significant role in shaping competitive advantage over the next three years.

Rising Recognition of the Costs of Inaction

Alongside this optimism is a clear acknowledgement of the risks associated with failing to act. The survey reports that companies increasingly perceive climate inaction as a direct threat to operational continuity and financial performance. The most frequently cited consequences include operational disruption or higher operating costs, followed by reputational damage and diminished access to finance or investor confidence. These findings suggest that climate strategy is no longer viewed as optional. It is now a core business consideration, influencing risk registers, procurement planning and stakeholder expectations. As these views take hold, investors and regulators are likely to push for more concrete transition plans and measurable progress indicators.

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Investor Sentiment Aligns with Corporate Priorities

The views of institutional investors closely mirror those of corporate executives. Among the five hundred global investors surveyed, ninety-six percent expect climate and environmental issues to be important pillars of their investment strategies within the next three years. Investors cite long-term financial performance and risk management as primary motivations for integrating climate considerations into their decision making. Nearly four out of five investors believe sustainability integration has a positive correlation with long-term financial returns. This alignment between companies and investors marks an important milestone, indicating that capital markets increasingly favour organisations that can demonstrate credible transition plans and measurable climate performance.

Capital Allocation and Technology Adoption Gather Momentum

The report highlights clear signals of rising investment flows into sustainability. A growing share of companies plan to allocate at least ten percent of capital expenditure to climate-related initiatives within the next three years, more than doubling the current proportion. Investors also report increased exposure to assets aligned with sustainable investment criteria. Sustainable finance is emerging as a central tool in transition strategies. Ninety-six percent of companies either use or plan to use sustainable finance products, naming instruments such as green and sustainable trade finance, sustainability linked loans, green bonds, transition finance and green loans as key enablers. Climate technology adoption is also accelerating, with a large majority of firms implementing renewable energy procurement, energy efficiency programmes and climate analytics systems as part of their transition pathways.

Persistent Gaps in Climate Technology Availability

Despite growing enthusiasm, companies still report significant limitations in the availability of market ready climate solutions. Ninety-five percent of business leaders say they struggle to find sufficient technologies that meet their needs. They highlight a strong demand for affordable low carbon energy technologies, operational efficiency technologies, scalable carbon capture and utilisation solutions, climate data and monitoring systems and technologies capable of decarbonising heavy industries. These gaps reflect the broader challenge facing the global climate transition. Demand is increasing faster than supply, and innovation ecosystems must accelerate to support the speed and scale of corporate commitments.

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A Strategic Pivot That Redefines Corporate Planning

Natalie Blyth, HSBC’s Global Head of Sustainable Finance and Transition, noted that sustainability has entered a new phase. She explained that in 2025, sustainability strategy effectively became business strategy, influencing how companies create value, build competitive advantage and mitigate risk. Blyth emphasised that the overwhelming majority of corporates now view the climate transition as a source of commercial opportunity and expect it to meaningfully shape their market position within the next three years. She added that these shifts are driving HSBC’s expanded commitment to supporting clients with the financial tools and advisory support needed to navigate the transition ahead.

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