Sustainability is now a key business priority, with 62% of executives planning to increase budgets in 2025,
That’s up 10 percentage points from last year, according to Capgemini’s latest report. On average, businesses expect to boost sustainability spending by 10.5%, with climate tech leading the way.
Batteries, renewables, hydrogen, nuclear and carbon capture are the top investment areas, with 72% of executives increasing funding in climate technology.
Batteries rank highest, particularly for manufacturers and automotive firms, followed by solar energy.
Beyond climate tech, businesses are prioritising sustainable R&D, biodiversity protection and water conservation.
As sustainability shifts from compliance to a value driver, companies see these investments as critical for efficiency and competitiveness.
Aiman Ezzat, Chief Executive Officer at Capgemini, said: “With a focus on innovation, supply chains and sustainability – which is increasingly being harnessed for its value-driving potential – leaders will set themselves up to succeed in an uncertain environment and build resilient, adaptable organisations.”
As geopolitical factors shape sustainability decisions, businesses are looking beyond regulation and compliance to future-proof operations says the report.