Capgemini: The Future of Sustainability Investments

Share
Business investments in climate tech are set to increase according to Capgemini - Credit: Capgemini
Capgemini says sustainability and supply chain investments will continue to grow as businesses prepare for regulatory changes and geopolitical uncertainty

To reach net zero by 2050, US$13.5tn in investments will be needed according to the World Economic Forum.

More than 60% of business leaders expect to increase sustainability investments in 2025 according to Capgemini.

However, sustainability investment growth has slowed with an anticipated increase decline from 12.2% in 2024 to 10.5% in 2025.

Dr James Robey, Global Head of Environmental Sustainability at Capgemini, says: “I’m encouraged by these findings, which show that sustainability continues to remain a priority for organisations, even in challenging times.

Dr James Robey, Global Head of Environmental Sustainability at Capgemini

“Key priorities include climate tech, water conservation, and biodiversity restoration, alongside innovations like AI-enabled supply chains to enhance resilience and efficiency.

“This isn’t just about meeting regulations; it’s about unlocking long-term value and fostering industries that can thrive in an uncertain, climate-impacted world. While these trends show continued growth, they also highlight the importance of turning ambition into action.”

Youtube Placeholder

Increasing investments in supply chain and sustainability

Capgemini’s report says that the supply chain is the fastest growing investment priority, primarily to improve cost efficiencies. 

It also says that regulations are putting pressure on organisations to improve supply chain sustainability, such as the EU’s Battery Materials Traceability regulation.

David Carlin, Ex-Head of Risk at the United Nations Environment Programme Finance Initiative, wrote on social media: “The core of this challenge lies in the supply of key minerals like lithium, nickel, cobalt and graphite—all critical for battery production. 

David Carlin, Ex-Head of Risk at the United Nations Environment Programme Finance Initiative

“Without substantial investment in mining, refining and recycling of these minerals, we risk a bottleneck that could derail our progress.”

However, in a separate Capgemini survey, only 23% of executives globally agreed that the cost of sustainability initiatives outweigh the benefits.

In 2025, it predicts that climate technologies, sustainable product design, biodiversity and water will be top investment priorities. 

Most large organisations will increase investments in climate tech, sustainable product design, biodiversity and water in 2035 - Credit: Capgemini

Of those who do not plan to increase sustainability investment in 2025, 15% say they will be decreasing investment and 20–30% will maintain current investment levels. 

Battery technology tops the list of climate tech priorities for investment, followed by solar energy, hydrogen and hydropower. 

Wind and nuclear energy are lower priorities, and at the bottom of the list are biofuels, geothermal energy and CCUS.

Batteries are the top climate technology investment area - Credit: Capgemini

Capgemini’s investment recommendations 

Based on the results of this survey, Capgemini has five recommendations for CEOs and leadership teams on investments:

  • Harness sustainability as a value driver: Embed it across operations and capitalise on climate technology to align with regulatory and consumer expectations
  • Prepare for regulatory changes and geopolitical uncertainty
  • Build resilient and agile next-gen supply chains: Focus on diversification, sustainability and technology integration 
  • Develop a strong partner ecosystem: Industry collaboration and partnerships can secure raw materials and value chain positions
  • Accelerate digital transformation and tech investment: Prioritise AI, cloud and advanced manufacturing technologies, while using strategic talent initiatives to bridge the skills gap.

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE

Discover all our upcoming events and secure your tickets today.


Sustainability Magazine is a BizClik brand

Share

Featured Articles

Boeing & HPCL Join Forces to Decarbonise India's Aviation

Boeing and HPCL collaborate to boost India's sustainable aviation fuel production, supporting policy development and certification for greener air travel

How Workiva is Transforming ESG Reporting Strategies

Corporate reporting platform Workiva's latest study reveals 97% of executives see sustainability data integration as key to business growth by 2026

Sedex’s European Expansion: Sustainable Supply Chains

Sedex expands its operations with a new office and appoints two C-suite leaders to support European companies facing sustainable supply chain regulations

This Week's Top Five Stories in Sustainability

Sustainability

McKinsey Will ‘Boldy Pursue’ DEI in Face of Storm

Diversity & Inclusion (D&I)

Apple, IBM & GM Amongst Those Set For DEI Showdowns in 2025

Diversity & Inclusion (D&I)