Sustainability investments hit record high, progress uneven
Sustainability investments have reached a record high of $2.4 trillion in 2025, according to a report by Bain & Company. However, the progress has been uneven, with only a few green technologies meeting expectations.
The report, titled The Visionary CEO’s Guide to Sustainability 2026: Handling Divergence, highlights that over the past decade, $17 trillion has been invested in sustainable technologies. Despite this, most technologies have fallen short of their projections.
Uneven progress in sustainability investments
Bain notes that nearly 90% of sustainable capital has flowed into three sectors: green energy, buildings, and mobility. Green energy alone has absorbed 57% of total investment. In contrast, sectors like agriculture, land use, and manufacturing and materials, which account for 37% of global greenhouse gas emissions, have attracted less than 10% of investment.
The report emphasizes that CEOs must understand the pace of change and allocate capital wisely. Solar, batteries, and EVs have exceeded expectations, while other technologies have underperformed. For instance, the lack of affordable green hydrogen has hindered the production of green steel and other zero-emission fuels.
Read Also: One in five UK firms hide cyberattacks
The challenge for CEOs: reading the transition map
To handle this divergence, CEOs need a clear understanding of the technologies driving sustainability transitions relevant to their business. This involves assessing the relevance of technologies to their business and value chain, the speed of development, and the gates that must be open for scaling.
As the report notes, the challenge is not to predict the future with certainty but to read the map, build conviction, prepare for different scenarios, and take investment positions accordingly. Companies that outperform will continuously update their view of important transitions, strengthen conviction faster than competitors, allocate capital with greater discipline, and adapt to changing conditions.
Strategic investments for a sustainable future
Bain concludes that successful companies will not invest broadly but will concentrate capital where opportunities emerge faster than expected. This approach requires a deep understanding of the sustainability environment and the ability to adapt to changing conditions.
The report warns against blind optimism, emphasizing that visionary pragmatists recognize the current divergence as an opportunity to place the right bets for the future.
