Capgemini: The Future of Sustainability Investments

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.
“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.”
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.
“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.
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.
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.
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