Net-Zero by 2050: US$13.5tn Investment Challenge

Achieving global net-zero emissions by 2050 is no small feat and according to the World Economic Forum, it will require a staggering US$13.5tn in investments. While the road to sustainability is lined with challenges, businesses worldwide remain committed, albeit with a slightly cautious approach to future investments. Capgemini's latest report reveals fascinating insights into how companies navigate the transition, highlighting the need for strategic action and innovation.

Sustainability investments: A priority, despite slowdowns

The numbers paint a mixed picture. Capgemini's research reveals that over 60% of business leaders plan to increase sustainability investments in 2025, demonstrating a continued commitment to a greener future.

However, the growth rate of these investments is expected to dip slightly — from 12.2% in 2024 to 10.5% in 2025.

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

James highlights key areas driving sustainability investments, including climate technologies, water conservation and biodiversity restoration.

He adds: "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."

The supply chain: A green transformation in progress

The supply chain is one of the most significant focus areas for sustainability investments. Capgemini's findings reveal that supply chain improvements are the fastest-growing investment priority, driven largely by the need for cost efficiencies and stricter regulations.

For example, the EU's Battery Materials Traceability regulation is pushing organisations to enhance supply chain sustainability. 

David Carlin, a former Head of Risk at the United Nations Environment Programme Finance Initiative, highlights the importance of securing raw materials for this transformation and explains: 

"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 these minerals, we risk a bottleneck that could derail our progress."

Climate tech takes centre stage

Regarding climate technology, businesses are prioritising investments in battery technology, followed by solar energy, hydrogen and hydropower. Surprisingly, wind and nuclear energy rank lower on the list, with biofuels, geothermal energy and carbon capture and storage (CCUS) trailing even further behind.

Capgemini predicts that in 2025, climate tech, sustainable product design, biodiversity and water conservation will dominate the sustainability agenda. However, not all companies are on board with increased spending.

Among those who don't plan to boost investments, 15% expect to decrease spending, while 20–30% aim to maintain current levels.

Turning sustainability goals into reality

Capgemini's report offers actionable recommendations for businesses striving to balance sustainability with profitability:

1. Harness sustainability as a value driver: Integrate sustainability into operations and leverage climate tech to align with consumer and regulatory expectations.
2. Prepare for regulatory and geopolitical changes: Stay ahead of evolving regulations and global market dynamics.
3. Build resilient supply chains: Focus on diversification, sustainability and technology integration to enhance efficiency and agility.
4. Develop a strong partner ecosystem: Collaborate across industries to secure raw materials and strengthen the value chain.
5. Accelerate digital transformation: Invest in AI, cloud and advanced manufacturing technologies while bridging the skills gap through strategic talent initiatives.

Balancing ambition with action

The journey to net zero is both urgent and complex. While companies face pressures from regulations, geopolitical uncertainty and market competition, leaders like James stress the importance of taking bold steps. "This is about creating industries that can thrive in an uncertain, climate-impacted world," he says.

With investments shifting toward climate tech and supply chain sustainability, the focus is clear: businesses must transform their operations to align with a greener, more resilient future. As the data shows, the key lies in maintaining momentum and accelerating the transition through innovation and collaboration.

The path to sustainability may be challenging, but it also offers immense opportunities for growth, value creation and a legacy of responsible stewardship. The time to act is now.

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