Climate technology is no longer a future bet – it is a present-day imperative. Organisations across every sector are recognising its role in achieving net-zero and sustainability goals. But readiness to act varies widely. New research from ACCA shows both the momentum and the challenges in embedding climate technologies, with accountants playing a pivotal role in bridging the gap between aspiration and action.
Two-thirds of organisations (66%) surveyed believe climate technology is or will become essential. Nearly a quarter are investing within existing budgets, with the same percentage planning to do so in the next two to three years. Yet a large number say they need external financial support.
The research conducted to support ACCA’s Climate Tech Readiness Toolkit highlights why the accountant’s role matters. One research participant describes how climate tools are used to evaluate physical risks in specific regions and assess revenue implications – insights that feed directly into the environmental, social and governance (ESG) committee and strategic reporting. In the banking sector, another research participant stresses that climate technology is ‘no longer a peripheral add-on but an essential part of aligning financial and non-financial impacts with regulatory expectations’.
Data remains the single biggest barrier to effective sustainability reporting
These experiences show that climate technology is not only about cutting emissions. It is now central to risk management, resilience and long-term value creation.
Readiness gap
The research underscores a significant readiness gap. Data remains the single biggest barrier to effective sustainability reporting: 72% of organisations struggle with fragmented or inconsistent information, weak governance or insufficient knowledge. Even when data is collected, 20% say they cannot interpret outputs, while 15% cannot measure return on investment (ROI).
One research participant explained: ‘We can have all the technology in the world, but if we don’t even have the basic data, it won’t deliver’. Another said bluntly: ‘A fool with a tool is still a fool.’
This demonstrates that readiness is not simply about acquiring advanced platforms but about building reliable systems of measurement, governance and assurance. Without this foundation, even the most sophisticated climate tools fail to create value.
Look to long term
Traditional business cases often miss the long-term, system-wide benefits of climate technology. Only 15% of organisations are investing with a clear financial or strategic rationale. Another 42% are cautiously exploring, while 21% prioritise non-financial returns such as environmental impact, brand value and stakeholder trust.
Research participants stressed the importance of reframing ROI. ‘In normal CapEx we want a return in three to five years,’ said one respondent. ‘With sustainability investments, it’s closer to eight to 10 years.’
Climate technology is a driver of long-term competitive advantage
The research found that 55% of organisations are prioritising energy-efficiency tools, 36% are investing in sustainable supply chains and carbon-compliance systems, and 31% are active in green finance instruments such as ESG funds and green bonds. Meanwhile, 28% are exploring artificial intelligence applications in climate modelling and emissions tracking, reflecting a growing appetite for digital transformation.
Accountants can bridge the investment gap by expanding the conversation from business case to value case. By quantifying indirect and intangible benefits – resilience, brand strength and stakeholder trust – finance professionals can demonstrate why climate technology is not just a cost but a driver of long-term competitive advantage.
Energy emphasis
Organisations are already directing investments toward technologies that deliver both environmental and financial value. Energy-efficiency projects lead the way.
Green finance is gaining ground, reflecting the profession’s increasing role in linking sustainability goals with capital allocation decisions. ‘If you want to be a premium player and invest in these technologies, you are one or two steps ahead of your competitors,’ said one research participant. ‘That is not just financial ROI; it is about brand, competitive advantage and long-term positioning.’
Government role
While internal readiness is the primary barrier, organisations see government as a powerful catalyst for accelerating adoption: 77% of respondents believe that public policy or financial backing would significantly boost climate technology implementation. Survey data identifies tax incentives as the most powerful lever, followed by infrastructure investment and workforce skills development.
However, several voiced frustration over the fragmented system of incentives, one respondent referring to it as ‘a wedding cake of grants, incentives and schemes at state, federal and local levels’.
Respondents in Asia suggested interventions should be targeted and thematic rather than generic. For example, carbon capture requires regulatory clarity, while SMEs need skills funding and access to finance before tax breaks can have impact.
Across regions, the conclusion is consistent: government action is not optional; it is a critical enabler.
More information
The Climate Tech Readiness Toolkit is a practical guide for finance teams and business leaders. It provides checklists, diagnostic questions and investment mapping tools to test data quality, system integration and value creation. See also the research that underpins the resources.
