HSBC Survey Shows Sustainability Moving Into the Heart of Business Strategy

Key Takeaways

• Sustainability as Strategy: 99 percent of business leaders say climate transition will be important for competitive advantage over the next three years, with 95 percent viewing it as a commercial opportunity.
• Investor Alignment: 96 percent of institutional investors expect climate and environmental issues to be a core part of investment strategy within three years.
• Climate Tech Adoption: 90 percent of businesses are integrating climate technology into transition strategies, with 63 percent already advanced adopters.
• Capital Shift: Companies allocating more than 10 percent of CAPEX to transition are expected to double from 14 percent to 29 percent within three years.
• Financial Performance Link: 79 percent of investors see a positive correlation between sustainability and long-term financial performance.

Deep Dive

Sustainability is no longer being treated as a reputational add-on or a long-term aspiration. According to HSBC’s Sustainability Pulse Survey 2025, it is increasingly being positioned at the centre of business growth, competitive strategy, and investor decision-making.

The global survey, which gathered responses from 1,651 senior business decision-makers and 500 institutional investors across 12 markets, points to a sharp convergence between corporate strategy and sustainability objectives. Nearly all corporate respondents 99 percent say climate transition will be important for competitive advantage over the next three years, while 95 percent already view sustainability as a commercial opportunity rather than a compliance exercise.

That alignment is mirrored on the investment side. Almost all institutional investors surveyed 96 percent expect climate and environmental considerations to become an important part of their investment strategy within the same timeframe. For many, sustainability is now tied directly to long-term financial performance and risk management, not just ethical positioning.

HSBC says this shift reflects a broader rethink of how value is created. Natalie Blyth, global head of sustainable finance and transition at HSBC, said the findings show sustainability strategy has effectively become business strategy, shaping competitive advantage, value creation, and resilience. She added that this “critical pivot” underpins HSBC’s own transition strategy as it looks to support clients navigating climate and sustainability challenges.

Climate Transition and Technology Take Center Stage

One of the clearest signals from the survey is how central climate transition has become to corporate planning. Seventy-two percent of companies say transition will be very important to their long-term resilience, while 95 percent of corporate leaders identify sustainability as a growth driver.

Technology is playing a decisive role in that transition. Ninety percent of businesses report actively integrating climate technology into their strategies, treating it as essential operational infrastructure rather than experimental tooling. Nearly two-thirds of companies say they are already advanced adopters of multiple climate technologies and expect to continue expanding their use to support transition goals.

The report highlights notable sector and regional differences. Commercial real estate and technology, media, and telecommunications are leading adoption of climate technologies, while markets across Asia, including Indonesia, Singapore, and India, are planning to accelerate sustainability ambition and execution over the next three years.

Capital, Confidence, and the Cost of Transition

The survey also points to strong alignment between institutional capital and corporate sustainability efforts. Seventy-nine percent of institutional investors identify a positive correlation between sustainability and long-term financial performance, while 73 percent report growth in assets aligned with sustainable criteria.

That confidence appears to be translating into capital allocation decisions. Corporate investment in transition is projected to rise sharply, with the share of companies allocating more than 10 percent of capital expenditure to transition efforts expected to double from 14 percent today to 29 percent within three years.

At the same time, the report does not ignore constraints. Financial barriers remain, particularly around scaling climate technologies. However, HSBC’s analysis suggests that demand for scalable solutions continues to present significant opportunities for innovation and investment, reinforcing the view that transition strategies are becoming embedded in broader business transformation efforts.

Taken together, the findings paint a picture of sustainability moving decisively into the strategic mainstream. As companies and investors increasingly align on climate transition as a driver of resilience and competitive advantage, sustainability is no longer just about meeting expectations. It is becoming a defining feature of how growth strategies are built and financed.

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