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 revealed on Thursday found that nearly all Singapore-based businesses see sustainability as a commercial opportunity (99 percent), while 83 percent say it is already a key strategic focus area.
Meanwhile, eight in ten (84 percent) have already established or fully implemented transition plans.
Singapore also stands out in terms of investment with 41 percent of businesses allocate more than 10 percent of capital expenditure (CapEx) to climate-related investment, compared with 14 percent 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 percent 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 percent), followed by high costs (38 percent) and financing availability (26 percent), highlighting the need for accessible and practical financing solutions.
“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 decarbonization. For many businesses, the focus has shifted from whether to act to how to scale delivery and achieve impact at pace,” said Ellis Savva, Head of Sustainable Finance and Transition, HSBC Singapore.
Meanwhile, among 500 institutional investors polled globally as part of the survey, 85 percent say businesses with strong sustainability strategies are better positioned to attract
long-term capital.
That rises to 92 percent among those located in Southeast and South Asia.
84 percent of investors globally say a credible sustainability plan is now as important as financial performance, rising to 97 percent 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, said HSBC.
“The investor findings show how sustainability is increasingly influencing how long-term capital is allocated,
“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,” Savva added.
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