A new survey by HSBC UK indicates strong momentum behind climate action among British businesses, with 90% of organisations planning to accelerate their transition to a low-carbon economy over the next three years.
The survey, which gathered views from business decision-makers and institutional investors primarily in the UK, France and Germany, found that 98% of UK business leaders view the climate transition as a commercial opportunity rather than a compliance burden. Nearly half of respondents cited potential revenue and profit growth, as well as reputational gains, as key benefits. Others highlighted long-term resilience, competitive advantage and the creation of new business opportunities.
Across Europe, 65% of businesses surveyed said they had already fully established or implemented climate transition plans, while 84% intend to speed up implementation within three years. Transition plans typically extend beyond target-setting to include investment strategies, workforce skills, governance changes and operational adjustments.
HSBC expects that by 2028, the proportion of UK businesses allocating more than 10% of capital expenditure to climate-focused investments will triple. The findings compare favourably with international polling, which suggests that only 58% of businesses globally have established or fully implemented a climate transition strategy.
In terms of financing, 44% of EU businesses surveyed said they plan to prioritise sustainable finance and green investment strategies. Green and sustainable trade finance was the most preferred instrument, followed by sustainability-linked loans and transition finance.
Despite the optimism, businesses identified high costs as the principal barrier to implementing sustainability plans, cited by one-third of respondents. Budget constraints, regulatory uncertainty, competitive pressures and supply chain complexities were also identified as obstacles.
Almost all surveyed businesses reported adopting some form of climate-related technology, although the level of advancement varied. Companies pointed to gaps in technology availability, scalability and affordability as ongoing challenges. Half of respondents said clearer regulatory frameworks would support implementation, while many also called for greater access to affordable finance and stronger government incentives.
The findings suggest that while corporate appetite for climate transition is strengthening, businesses and investors alike are looking for clearer policy signals and supportive financial frameworks to maintain momentum.
