Corporate treasurers are taking a more pragmatic approach to sustainable finance, even as internal support remains strong and resistance appears notably muted, according to new joint research from TreasurySpring, the Association of Corporate Treasurers (ACT) and the London Stock Exchange Group.
“The report’s insights are welcome,” said James Winterton, associate director – policy and technical at the ACT, highlighting that sustainable finance is increasingly viewed as “business as usual” but must be understood through a financial risk management lens rather than compliance alone. “The ACT is active in promoting greater understanding of the treasurer's role in managing these risks.”
The survey, now in its fourth year and conducted collaboratively by TreasurySpring, the ACT and London Stock Exchange Group, points to a market that is no longer uniformly advancing sustainability initiatives. Instead, treasury teams are reassessing where sustainability fits within core financial decision-making, particularly against a backdrop of geopolitical uncertainty and evolving regulation.
Just over half (51.3%) of respondents say they are already invested in or planning to invest in sustainable finance products. However, a significant 42.1% report no plans to engage at all, underlining a clear divide in adoption.
This selectivity is particularly evident in financing activity. More than half (52.6%) of treasurers say they are unlikely to enter sustainable financing in the next year, while planned use of green revolving credit facilities has dropped sharply from 28% in 2023 to just 2.6% in 2025.
At the same time, sustainability considerations remain embedded in day-to-day treasury operations. More than a third (35.5%) of teams say sustainability influences cash investment decisions – down from a 2022 peak but still a core touchpoint for sustainability integration.
... planned use of green revolving credit facilities has dropped sharply from 28% in 2023 to just 2.6% in 2025
Perhaps most striking for treasury professionals is the apparent lack of internal resistance. Some 65.8% of respondents report either increased support or no pushback against sustainability initiatives within their organisations, suggesting sustainability is no longer a contentious internal issue for most treasury teams.
Instead, capability gaps are emerging as the primary constraint. A quarter (25%) of treasurers cite lack of knowledge as the biggest barrier to adoption, while concerns around greenwashing continue to ease.
Nigel Owen, head of corporate origination at TreasurySpring, said the findings reinforce diverging behaviours across treasury teams. “Treasury teams that were already committed to embedding sustainability in their day-to-day work have doubled down on it,” he said, adding that further education is still needed to help treasurers fully utilise sustainable finance tools.
Sam Dodd, senior manager, fixed income, primary markets at London Stock Exchange Group, added that the data points to a more pragmatic phase of sustainability integration. “Sustainability is increasingly being expressed through disciplined decision-making, particularly in areas such as cash investment and counterparty selection,” he said. “We anticipate the next phase of sustainable finance in treasury will be driven less by new products and more by capability underpinned by data and technology.”
The findings suggest a shift in the sustainability narrative within treasury: from rapid expansion to more disciplined integration. Sustainability-linked bonds are one of the few instruments still seeing modest growth, while broader product innovation appears less of a priority than improving execution within existing frameworks.
Looking ahead, technology is expected to play a defining role. Half of respondents (50%) believe artificial intelligence and advanced analytics will have the greatest impact on their sustainability strategies, signalling a move toward data-driven decision-making.
Read the full report.
Philip Smith is editor of The Treasurer
