Singapore businesses see strong commercial opportunity in sustainability, but funding needs persist: HSBC survey

SINGAPORE, 8 April 2026 – Singapore-based businesses are among the most advanced in the region in turning sustainability ambition into implementation, but the survey suggests funding needs are still an important constraint on further progress, according to HSBC’s Sustainability Pulse Survey.

The survey found that nearly all Singapore-based businesses see sustainability as a commercial opportunity (99%), while 83% say it is already a key strategic focus area. Eight in 10 (84%) have already established or fully implemented transition plans.

Singapore also stands out in terms of investment: 41% of businesses allocate more than 10% of CapEx to climate-related investment, compared with 14% across Asia Pacific – the highest proportion among the six Asian markets surveyed.

With many Singapore-headquartered businesses using the City State as a springboard into ASEAN, the findings also highlight the opportunity to scale credible transition plans and sustainability solutions across the region.

While sustainability is increasingly embedded into corporate strategy, momentum continues to build. 80% of businesses in Singapore plan to accelerate their efforts over the next three years, indicating that implementation is deepening rather than plateauing.

However, funding remains a key barrier. Budget availability is the most cited constraint (42%), followed by high costs (38%) and financing availability (26%), highlighting the need for accessible and practical financing solutions.

Mr Ellis Savva, Head of Sustainable Finance and Transition, HSBC Singapore, said: “On the ground, we are seeing many businesses in Singapore embed sustainability into their core strategy and day-to-day operations. The 2026 Singapore Budget has reinforced that momentum, particularly through carbon pricing signals and continued support for decarbonisation. For many businesses, the focus has shifted from whether to act to how to scale delivery and achieve impact at pace.”

Long-term capital is following credible sustainability plans

Among 500 institutional investors polled globally as part of the Survey, 85% say businesses with strong sustainability strategies are better positioned to attract long-term capital. That rises to 92% among those located in Southeast and South Asia. Eighty-four per cent of investors globally say a credible sustainability plan is now as important as financial performance, rising to 97% in Southeast and South Asia.

Many Singapore-based businesses also point to the need for affordable financing, government incentives and stronger internal technical capacity as important enablers of further progress. This suggests progress will depend less on whether businesses have plans in place and more by how efficiently they can continue to fund and execute them.

“The investor findings show how sustainability is increasingly influencing how long-term capital is allocated,” Savva added. “With funding and execution still key hurdles, against a backdrop of volatility in global energy markets, having a plan that’s clear, credible and deliverable matters more than ever. That is why we built a suite of solutions to help Singapore businesses fund and deliver their transition over time.”

Supporting local businesses’ transition needs

To support businesses facing funding constraints in their transition journey, HSBC provides Singapore-based businesses with a wide range of sustainable finance solutions, including Green and Social Loans, Sustainability-Linked Loans (SLLs) and the Sustainability Improvement Loan (SIL), to support their transition goals.

Beyond financing, HSBC is helping address the growing need for technical expertise and execution support through a range of tools and partnerships. Most recently, HSBC collaborated with Founders Factory to offer the HSBC Industrial Innovation Programme that connects selected corporate clients with climate technology innovators. The programme provides HSBC clients with a structured way to identify and adopt solutions that address operational sustainability challenges.

HSBC Singapore corporate clients can also access HSBC’s proprietary Sustainability Tracker, which provides an initial view of energy consumption, environmental impact and operational footprint, supporting early-stage transition planning.

The future of global energy security in Asia, among other topics, will be the subject of discussion at HSBC’s upcoming Global Investment Summit, which will take place on 14-16 April in Hong Kong. Agendas and speaker details are available on the Main Summit and Wealth Sessions websites.

Media enquiries:

Clarabelle Tan | clarabelle.h.y.tan@hsbc.com.sg | +65 94513329
Betty Fong | betty.c.y.fong@hsbc.com.sg | +65 6658 4103