Climate tech is no longer just a regulatory requirement but a fundamental engine for commercial growth and long-term value creation across all sectors.
The debate over the necessity of climate action has ended, marking a “pivotal moment” where sustainability is fast becoming “business as usual,” according to the new HSBC Sustainability Pulse Survey 2025.
Early maturity:
The report, featuring insights from Natalie Blyth, Global Head of Sustainable Finance & Transition at HSBC, reveals that 95% of corporate respondents now view the climate transition as a direct commercial opportunity.
Blyth notes that the industry has entered a stage of “early maturity,” driven by regulatory pushes, scaling of electrification, and a focus on operational efficiencies. This momentum signifies a genuine industrial revolution centered on clean energy and digitization.
Investment surge and the climate tech focus:
A key finding of the survey is the massive acceleration in corporate spending, with the number of companies planning to invest more than 10% of their total CAPEX in climate transition set to double within the next three years (from 14% to 29%).
This investment surge is primarily focused on scaling up climate tech, which clients recognize as essential for transforming business models and strengthening resilience. Climate tech is a broad field covering clean energy, agtech (agricultural technology), and nature tech, all of which are vital for improving resource efficiency and managing physical climate risks. This focus aligns with the institutional investor view that strong sustainability strategies lead to better access to long-term capital.
The new economics of electrotech:
A core driver of this shift is the changing economics of energy. Renewables and clean energy have emerged as clear economic winners, offering both cost viability and improved supply chain stability compared to volatile fossil fuels.
The confluence of clean energy, electrification, and digitalization—termed ‘electrotech’—is further helping reduce costs and accelerate deployment, reinforcing the commercial case for climate tech solutions.
