Singapore-based businesses are among the most advanced in the Asia-Pacific region in turning sustainability ambition into implementation, but funding needs are still an important constraint on further progress, according to a recent survey.

Nearly all Singapore-based businesses see sustainability as a commercial opportunity ( 99% ), while 83% say it is already a key strategic focus area; and eight in 10 ( 84% ) have already established or fully implemented transition plans, finds HSBC’s Sustainability Pulse Survey, which captured perspectives from 1,651 senior business decision-makers responsible for sustainability across 12 global markets.

Singapore also stands out in terms of investment, with 41% of businesses allocating more than 10% of capital expenditure to climate-related investment, compared with 14% across the Asia-Pacific – the highest proportion among the six surveyed Asian markets ( Australia, Hong Kong, mainland China, India, Indonesia and Singapore ).

With many Singapore-headquartered businesses using the city-state as a springboard into the Association of Southeast Asian Nations region, the survey findings also highlight the opportunity to scale credible transition plans and sustainability solutions across the region.

While sustainability is increasingly embedded into corporate strategy, momentum continues to build. Notably, 80% of businesses in Singapore plan to accelerate their efforts over the next three years, indicating that implementation is deepening rather than plateauing.

However, funding remains a key barrier. Budget availability, the survey reveals, is the most cited constraint ( 42% ), followed by high costs ( 38% ) and financing availability ( 26% ), highlighting the need for accessible and practical financing solutions.

Among 500 institutional investors polled globally as part of the survey, 85% say businesses with strong sustainability strategies are better positioned to attract long-term capital. That rises to 92% among those located in Southeast and South Asia. And 84% of investors globally say a credible sustainability plan is now as important as financial performance, rising to 97% in Southeast and South Asia.

Many Singapore-based businesses also point to the need for affordable financing, government incentives and stronger internal technical capacity as important enablers of further progress. This suggests, according to the bank, progress will depend less on whether businesses have plans in place and more by how efficiently they can continue to fund and execute them.

“On the ground, we are seeing many businesses in Singapore embed sustainability into their core strategy and day-to-day operations,” says Ellis Savva, HSBC Singapore’s head of sustainable finance and transition. “The 2026 Singapore Budget has reinforced that momentum, particularly through carbon pricing signals and continued support for decarbonization. For many businesses, the focus has shifted from whether to act to how to scale delivery and achieve impact at pace.

“The investor findings show how sustainability is increasingly influencing how long-term capital is allocated. With funding and execution still key hurdles, against a backdrop of volatility in global energy markets, having a plan that’s clear, credible and deliverable matters more than ever.”