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HSBC survey shows climate transition plans are proving a competitive advantage for UK corporates
Businesses in the UK are "ahead of the curve" in their development of climate transition plans, with 90 per cent of corporate business leaders stating they will accelerate their transition planning over the next three years, compared to 78 per cent of leaders globally.
That is according to the results of banking giant HSBC's Sustainability Pulse Survey, published yesterday, which surveyed 250 UK business leaders and decision-makers with responsibility for sustainability strategy on their climate transition plans.
Results showed climate transition is now viewed as a "key strategic consideration" among business leaders, with 98 per cent of UK businesses believing it offers them a commercial opportunity, ahead of 95 per cent globally.
The survey also found businesses are backing their climate ambitions with investment, with the number of businesses allocating more than 10 per cent of their capital expenditure to climate initiatives set to triple in the next three years.
The report found UK businesses transition plans had a strong emphasis on renewable energy and clean energy procurement, with 57 per cent having already implemented such measures, compared with 44 per cent of businesses globally.
"Climate transition now offers dynamic businesses a crucial growth opportunity - and business leaders are clearly focused on seizing it," said Rob King, head of sustainable finance and transition at HSBC UK. "They are emerging as leaders in Europe's transition, combining strong implementation with the highest acceleration in ambition in the region."
Separate research published by analyst firm BloombergNEF showed global energy transition investment reached a record $2.3trn in 2025, up eight per cent from 2024.
King said the widespread adoption of renewable energy and rising investment in low carbon solutions provided clear evidence the climate transition is now "firmly viewed across business leaders as a commercial and reputational imperative".
The report also highlighted how European businesses more broadly are "leading the way" on climate transition planning, with 65 per cent having already established climate transition plans and 84 per cent planning to accelerate their plans over the next three years.
The report revealed "near-universal" recognition of the commercial opportunities that can arise from climate transition efforts. However, HSBC noted that there remains "consistent cost barriers" and market sector variations, which "present ongoing challenges".
The report showed high upfront costs for clean technologies and low carbon infrastructure represent the primary barrier for 35 per cent of European companies.
UK firms showed a greater willingness to tackle such barriers, with 20 per cent of respondents reporting no barriers to investment in their transition plans, compared with 10 per cent in France and nine per cent in Germany.
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