Unlocking green growth: Sustainability as a key driver of corporate innovation

Businesses are using sustainability to drive growth, create innovative solutions, and meet consumer and regulatory demands. Image: Getty Images/iStockphoto
Paul Chow
Group General Counsel and Group Chief Sustainability Officer, Hong Kong Exchanges and Clearing (HKEX)- Businesses are using sustainability to drive growth, create innovative solutions, and meet consumer and regulatory demands.
- Future-focused strategies like circular models and nature-positive solutions are helping businesses unlock new opportunities.
- On the innovation front, China is making strides in its green transition, driven by investment in clean energy and sustainable infrastructure.
In an era defined by environmental imperatives and increasing regulatory scrutiny, sustainability has emerged as a key driver of corporate innovation and growth. What was once regarded as a moral obligation has now become a strategic necessity, shaping the way businesses operate and compete.
Many corporates are reimagining their supply chains, procurement policies and innovation strategies to align with a sustainability-conscious world. By integrating sustainability into their core operations, these companies are not only addressing global challenges, but also unlocking avenues for value creation and long-term growth.
Sustainability as a growth enabler
Sustainability is more than a checkbox; it is a growth enabler. A study by NielsenIQ revealed that 73% of global consumers are willing to adjust their consumption habits to minimize their environmental impact. This shift in consumer behaviour represents a significant opportunity for businesses. Research from Boston Consulting Group highlights that businesses incorporating sustainability into their strategic frameworks are 1.4 times more likely to achieve innovation breakthroughs, paving the way for unique product development, operational efficiencies and market differentiation.
The World Economic Forum’s Community of Chief Sustainability Officers has identified corporate procurement as pivotal in sustainability transformation. Procurement processes – spanning sourcing, logistics and supplier relationships – are central to reducing carbon footprints and achieving net-zero goals. Notably, supply chains account for 50–70% of a company’s emissions, underscoring the transformative potential of green procurement practices.
Forum reports such as Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature underscore the importance of integrating procurement strategies with biodiversity goals, including the adoption of transparency in sourcing, utilization of biodiversity credits, and alignment with broader nature-positive objectives.
Applying sustainability frameworks
Leading companies are increasingly embedding sustainability at the core of their operations, exemplifying the shift towards actionable and measurable environmental commitments.
On the innovation front, China is making strides in its green transition, driven by significant investment in clean energy and sustainable infrastructure.
In 2023, China allocated over $546 billion to renewable energy development, more than half of the global total for that year. This demonstrates how capital markets play a critical role in financing sustainability transitions and fostering innovation.
The interplay of policy, innovation and capital is crucial in accelerating this journey. Frameworks like the Global Biodiversity Framework and the Green Finance Guidelines are helping companies and governments worldwide integrate sustainability into business strategies and investments, ensuring a holistic and impactful approach to achieving global sustainability goals.
As core financial market infrastructure, exchanges have a key role to play in helping companies adopt such frameworks and accelerate the green transition.
Paul Chow, HKEX Group Chief Sustainability Officer, says the stock exchange guides over 2,600 listed issuers with clear governance standards and a robust framework for ESG disclosure, application and implementation, helping issuers adopt sustainability practices and integrate ESG principles into their business strategies. More than serving a crucial regulatory role in the capital markets, HKEX serves as a market operator, building a vibrant ecosystem to foster innovation and accelerate the green transition.
“As a market operator, we are developing a diverse sustainable finance ecosystem of products, such as ESG ETFs and green, social and sustainability bonds, and platforms such as Core Climate, Hong Kong’s first carbon marketplace,” Chow says.
HKEX is also embedding sustainability throughout its operations. “Our goal is to lead by example: HKEX reached carbon neutrality in 2024, and we are committed to achieving net zero by 2040, as well as regular, transparent reporting of our progress to ensure accountability and build trust,” he says.
Future-proofing supply chains
As global businesses look to the future, supply chains are increasingly being rewired to balance growth with environmental stewardship. The Forum forecasts that circular supply chain models could unlock as much as $4.5 trillion in economic value by 2030 while cutting environmental damage substantially.
Simultaneously, the need for nature-focused supply chains is gaining prominence. Companies are integrating resource circularity and biodiversity considerations within procurement strategies to mitigate risks and drive long-term business advantages. The report, Spotlight on Nature: Case Studies for Business Transformation towards a Nature-Positive Future, highlights concrete efforts toward circular resource use, zero-waste production, and the inclusion of nature-positive objectives in corporate frameworks.
What is the World Economic Forum doing about the circular economy?
Unlocking growth in a sustainable economy
Innovation remains at the centre of this transformation. By embedding sustainability into their strategic DNA, businesses are creating resilient, future-ready operational models. This is not just about responding to regulatory demands or shifting consumer expectations – it’s about capitalizing on the growth opportunities found in a rapidly changing environment. For procurement functions, this involves setting clear targets throughout the supply chain, leveraging data-driven insights, and fostering partnerships that prioritize environmental benefits alongside financial gains.
With the integration of digital technologies, nature-positive sourcing strategies and circular resource use, businesses are positioning themselves to navigate a complex and increasingly sustainability-conscious world.
Sustainability presents more than a challenge; it offers transformative opportunities for businesses willing to innovate, collaborate and lead. By doing so, they are not just ensuring regulatory compliance or consumer goodwill, they are shaping the future of business in a sustainable, intelligent economy.
Don't miss any update on this topic
Create a free account and access your personalized content collection with our latest publications and analyses.
License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
The views expressed in this article are those of the author alone and not the World Economic Forum.
Stay up to date:
Sustainable Development
Forum Stories newsletter
Bringing you weekly curated insights and analysis on the global issues that matter.
More on Economic GrowthSee all
Rebecca Geldard
February 7, 2025