How sustainability is unlocking a new era of business growth

In this interview, Natalie Blyth, Global Head of Sustainable Finance & Transition at HSBC discusses this new momentum for the climate transition amongst business. She explores the shifting economics of clean energy, and why sustainability has become a key pillar of value creation as business models evolve, across all sectors.

We’ve reached a pivotal moment in which the climate industry has entered an important growth phase. While the adoption of sustainable business practices is not yet fully mainstream, we are beginning to see sustainability becoming part of “business as usual,” or as one client put it to me – “climate as usual”.

I believe the debate over the validity of the sustainability movement is effectively over; the notion of climate transition has now entered a stage of early maturity and it’s a very exciting time. It’s a space that’s experiencing significant growth and diversification; driven by factors such as Europe’s regulatory push and Asia’s focus on scaling up sustainable power electrification and climate tech, which is making it a key global player.¹ In the US momentum remains, with clients continuing to pursue operational efficiences, which can often be more sustainable.their sustainability ambitions.

We’re also hitting a tipping point at which demand for energy has become a central driver of the sustainability push. Renewables and clean energy have emerged as clear winners in terms of economic viability, both from an economic standpoint as well as providing improved supply chain stability.²

The coming together of clean energy, electrification and digitalisation (referred to as ‘electrotech’) is also helping reduce costs; with solar being fast, more efficient and easier to scale than fossil fuels,¹ which rely on expensive extraction processes and are considerably more wasteful.³ I believe the model of total dependence on fossil fuels is over and we’re witnessing a genuine industrial revolution.

Corporates are now treating sustainability as an essential part of the value creation process. This is because the use of data is making it so much easier to measure ROI, from renewable energy to the full lifecycle assessment and use of ‘digital twins’. This leads to greater efficiency and just makes good commercial sense.

Businesses are also increasingly required to demonstrate their environmental, social, and governance (ESG) credentials in order to participate in commercial supply chains. This means that transparency regarding environmental impact is no longer optional – it’s an important requirement for securing capital, risk management, and ensuring long-term business success. As a result, there is growing demand for simplifying the carbon reporting process for operators to ensure they can maintain competitive advantage.

It’s great that businesses are investing over 10% percent and that the number of companies investing is set to double from 14% to 29%. Many clients have identified a pressing need to scale up the technology underpinning climate transition, which is a top priority.

Climate tech is a broad and evolving field, it’s not just about clean energy but also covers areas such as agtech (agricultural technology) and nature tech. Businesses are increasingly aware of climate tech’s potential to transform business models and strengthen business ecosystems. Investment in these areas can help enable the clean energy transition, improve resource efficiency, and strengthen resilience, such as physical risk, in the face of today’s commercial realities. HSBC are here to support further investment in climate tech, to help finance and scale-up these innovations in order to drive greater impact for our clients.

I believe sustainability is going to have a fundamental impact on how capital is allocated.

Institutional investors are already leading the way. Sustainability is no longer a “nice to have” — it’s become fundamental to investment strategy. Strong ESG performance is also linked to better access to long-term capital, governance, lower volatility, and stronger stakeholder engagement.

For businesses, this presents a real opportunity. Those that can demonstrate credible, scalable models will be well placed to attract long-term capital from investors seeking both sustainable and resilient returns.

At HSBC, we’re focused on supporting the industries that will make the biggest difference in the climate transition. That means financing businesses and infrastructure that are central to getting to net zero. Our role is really about partnership — helping clients meet their sustainability goals, rethink supply chains, and identify where sustainable strategies can also drive growth. We’re also proud to work with emerging climate tech firms as they scale up and expand internationally, while continuing to back the infrastructure that makes this transition possible.