82% of Organisations Increasing Environmental Sustainability Investments Despite Economic Uncertainty

Source: Capgemini Research Institute, 19 September 2025

Story Synopsis

Capgemini Research Institute’s “A World in Balance 2025” report reveals a significant increase in corporate commitment to sustainability initiatives, with 82% of organisations planning to increase environmental investments over the next 12-18 months. This represents an 8 percentage point increase from 2024 figures, signalling that sustainability has moved from a peripheral concern to a core business strategy despite ongoing economic volatility. The global study, which surveyed 2,146 executives across 716 organisations in 13 countries along with 6,566 consumers, indicates that three-quarters of businesses now view sustainability as a fundamental future-proofing strategy essential for long-term competitiveness and resilience.

However, the research exposes a worrying implementation gap. While most organisations claim to prioritise climate adaptation, more than half consider themselves underprepared for climate change impacts. Only 38% are upgrading infrastructure to withstand climate events, 31% are shifting production to less vulnerable regions, and just 26% are redesigning products to improve climate resilience. Additionally, only 21% have developed detailed transition plans with interim targets and capital allocation strategies, suggesting significant gaps between ambition and execution.

Industry Impact Analysis

This dramatic increase in sustainability investment intentions shows how environmental considerations have become integral to corporate strategy across sectors. Regulatory compliance remains the primary driver, but business value creation through enhanced profitability, cost savings, and operational efficiency is increasingly recognised as a central motivation for sustainability initiatives.

Market dynamics show intensifying pressure for transparency, with two-thirds of executives reporting increasing stakeholder demands to demonstrate credible, science-based progress on sustainability goals. This heightened scrutiny comes as consumer scepticism reaches new heights, with 62% believing companies engage in greenwashing—a significant increase from just one-third in 2023.

Today’s business landscape increasingly rewards companies that successfully integrate sustainability into core operations. Organisations with effective climate adaptation strategies gain advantages through enhanced operational resilience, reduced insurance costs, and improved stakeholder trust. The ability to demonstrate meaningful progress on sustainability metrics is emerging as a key differentiator in capital markets, with investors increasingly incorporating ESG performance into valuation models.

Business Implications

The strategic implications of this sustainability acceleration are substantial. Organisations face complex decisions about where to focus limited resources for maximum impact, balancing short-term pressures against long-term resilience. Those pursuing leadership positions must move beyond incremental improvements to transformational changes in business models, product design, and operational practices.

Operationally, organisations need to address significant internal barriers to effective implementation. Budget constraints, inadequate data measurement systems, and organisational silos continue to impede progress. The report indicates that companies achieving success typically integrate sustainability metrics into core performance management systems rather than treating them as separate initiatives.

Financial considerations remain complicated by the continuing challenge of quantifying returns on sustainability investments. While 70% of executives report supply chain disruptions, production challenges, and raw material shortages due to climate impacts, translating these risks into financial terms that influence capital allocation decisions remains difficult for many organisations.

The talent implications are particularly noteworthy as sustainability functions evolve from compliance-focused roles to strategic value creators. Organisations face growing competition for professionals who combine domain expertise in sustainability with business acumen and change management capabilities. This talent shortage is driving new approaches to professional development, with leading organisations investing in upskilling programmes that develop sustainability competencies across multiple functions.

Stratagem Partners Perspective

The significant acceleration in sustainability investments despite economic headwinds signals a fundamental shift in how organisations conceptualise long-term value creation. Forward-thinking executives now recognise that sustainability is not merely about risk management but about positioning for competitive advantage in a rapidly decarbonising global economy.

The implementation gap between sustainability commitments and concrete action plans represents both a strategic vulnerability and an opportunity. Organisations that move beyond planning to execution, integrating sustainability across operational dimensions from supply chain management to product design, will gain first-mover advantages as regulations tighten and stakeholder expectations increase.

Most concerning is the widespread climate adaptation deficit. As extreme weather events become more frequent and severe, organisations that fail to enhance resilience face potentially existential threats to business continuity. The most sophisticated approaches integrate both mitigation strategies (reducing emissions) and adaptation measures (preparing for inevitable climate impacts), recognising that both are essential for long-term viability.

The evolving consumer landscape demands a fundamental rethinking of sustainability communication strategies. With scepticism at record levels, organisations must shift from aspirational messaging to transparent, verifiable metrics that demonstrate concrete progress. Those that successfully navigate this credibility gap will build stronger brand equity and customer loyalty, creating sustainable competitive advantages in increasingly conscious consumer markets.