East Asia lags in sustainability investment, report finds

Six in 10 firms still cite sustainability as a moderate competitive advantage.

East Asia and the Pacific recorded the lowest increase in investment levels globally at 45%, despite businesses viewing sustainability as a competitive advantage, according to the Business Breakthrough Barometer 2026.

It found that 30% of businesses in the region identified sustainability as a major source of competitive advantage, whilst 61% viewed it as a moderate advantage.

In South Asia, 36% of respondents identified sustainability as a major competitive advantage and 65% cited a moderate advantage.

The report cited developments in China and India across renewable energy and transport electrification. India recorded 15% growth in renewable investment, whilst growth in China stood at about 4%.

The report also pointed to rising electrification across the region. China's charging network expanded by 45% a year between 2020 and 2024, whilst more than half of heavy-duty trucks sold in the country in December 2025 were electric.

"Electrification, EV penetration in India sort of keep on growing at an exponential rate," one executive said.

The report said businesses in Southeast Asia and India are electrifying operations to reduce exposure to imported fuel costs and supply disruptions.

"We had already converted Indian facilities from LPG to electricity-based processes when the LPG supply crisis hit. Those plants were completely unaffected whilst competitors faced serious operational disruption," another executive said.

The report was published by the World Business Council for Sustainable Development in partnership with the Breakthrough Agenda and the Marrakech Partnership for Global Climate Action.