Singapore leads Asia in allocating CapEx to climate-related investments

Two in five Singapore-based businesses allocate more than 10% of CapEx to climate investments, ahead of those in Australia, Hong Kong, Mainland China, India, and Indonesia.

Businesses in Singapore are allocating more capital expenditure (CapEx) towards climate-related investments than their regional peers in six Asian markets surveyed, according to HSBC’s latest Sustainability Pulse Survey.

The survey found that 41% of Singapore-based businesses allocate more than 10% of CapEx to climate-related initiatives, significantly higher than the Asia Pacific average of 14%, that was based on data from Australia, Hong Kong, Mainland China, India, Indonesia, and Singapore.

Ellis Savva, Head of Sustainable Finance and Transition, HSBC Singapore, commented: "The investor findings show how sustainability is increasingly influencing how long-term capital is allocated."

Sustainability is also being embedded in corporate strategy. Nearly all businesses surveyed in Singapore (99%) viewed it as a commercial opportunity, while 83% identify it as a key strategic focus. Implementation is well underway, with 84% having established or fully implemented transition plans, and 80% planning to accelerate efforts over the next three years.

Investor sentiment seems to also add to the business case for ESG. Globally, 85% of the 500 institutional investors surveyed believe companies with strong sustainability strategies are better positioned to attract long-term capital, rising to 92% in Southeast and South Asia.

Despite this progress, funding remains a key constraint. Budget availability was cited by 42% of businesses as the top challenge, followed by high costs (38%) and limited access to financing (26%).

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