UK businesses are “stepping forward with clarity, conviction and leadership” to drive sustainable growth, according to a new report from climate action platform Ecologi.

Published in partnership with environmental events brand Blue Earth, The Leadership Advantage: How UK businesses are turning climate action into growth is the latest edition of Ecologi’s annual Climate Commitments Report.

In a blog published alongside the study, the platform – which works with 24,000 businesses including O2, Ubisoft and more than 300 B Corporations – says that while the prevailing narrative “often paints a picture of climate retrenchment and gloom”, the report’s findings tell “a different, more optimistic story”.

“Far from throwing in the towel, businesses are doubling down,” the blog notes. “The evidence suggests that we are entering a new chapter of business-led climate action, one defined by increasing investment, growing sophistication and a pragmatic focus on the road to 2030.”

Decisive action

The study involved 1,400 business leaders, including 1,000 from SMEs with up to 250 full-time employees and 400 from larger businesses with 250 to 1,000 staff.

Four-fifths of businesses that took part agree sustainability is a core part of their strategy, while 85% believe investing in sustainability delivers positive business outcomes.

Encouragingly, 82% of business leaders believe that peers who take decisive climate action today will become the more successful leaders of tomorrow.

Motivations for the emphasis on sustainability are “clear and increasingly business-focused”, the report said, citing leaders’ desire to drive growth and new market opportunities (28%), protect brand reputation (26%) and attract and retain customers (23%). Others are eager to build climate resilience and risk mitigation (22%) and comply with relevant industry laws and regulations (19%).

Underlining the strategic importance of sustainability, 72% of businesses have set relevant targets – up 9% year on year – and are reporting positive benefits such as improved brand image (43%), higher productivity and rates of innovation (40%) and, crucially, increased revenue or market share (33%).

Consequently, 57% of businesses are set to boost their investment in sustainability initiatives over the next five years – an annual rise of 16%, with an anticipated average funding increase of 40% by 2030.

In terms of resources, 77% of business leaders believe their sustainability heads receive adequate to more than enough support from senior management, suggesting that tighter internal alignment is bolstering overall efforts.

Renewed confidence

Turning to measurement and reduction of emissions, 82% of businesses are more focused on achievable, near-term goals based on 2030 deadlines, as they consider 2050 targets too distant for immediate operational planning. Even so, 42% are currently on track to be net zero by 2050 or earlier – up 15% from 2024.

Just under half of respondents (48%) have been measuring emissions for several years and almost a third (30%) began in the past year. That process is translating into action, with 39% of businesses consistently reducing emissions in the past 12 months.

Parallel with those trends is a renewed confidence in carbon markets and offsetting. Only 16% of businesses now regard carbon credits as risky or ineffective: the majority view them as useful tools for global climate action (38%) and mitigating emissions (35%), with the caveats that credits must be high quality (35%), part of a broader strategy (30%) and implemented only after direct emissions reductions have occurred (28%).

Preferred methods or solutions for climate action are diverse, with businesses expressing strong support for global and UK-based nature restoration projects such as tree planting (32%), urban greening (28%), rainforest conservation (27%) and habitat renewal (25%).

Vibrant exchange

However, businesses still face significant barriers, citing the cost of tools or technology (30%), time constraints (28%) and financial limitations (28%) as primary concerns, along with a lack of government support (27%).

Some 24% of respondents are unable to accurately gauge their own carbon footprints, while another 24% point to a lack of control or visibility over their supply chain emissions, up 6% year on year. The figures indicate that those areas are growing in complexity for larger organisations, hinting at where their next critical challenges lie.

Findings also suggest a strong trend towards specialised and tailored climate solutions, with 73% of respondents viewing guidance on emissions reduction and carbon footprint measurement as more valuable if it is sector specific. If the guidance is endorsed by businesses’ industry bodies, that figure rises to 80%.

In the report’s foreword, Ecologi CEO Dimitri Theocharis said: “The challenges of 2023 and 2024, from global economic headwinds to the acute realities of climate change, such as the wildfires that have personally affected my home region in Greece, have forged a new kind of resilience and a sharper sense of climate leadership within the business community. This year’s findings are a testament.”

“This is not just about mitigating risk,” he urged. “It is about businesses actively leading by building enduring, responsible enterprises. At Ecologi, we see daily how businesses are embedding sustainability at their core.”

For Blue Earth CEO and Co-founder Will Hayler, the momentum is undeniable. “What we witness at Blue Earth – the vibrant exchange of ideas and the drive for actionable solutions – is mirrored in these findings,” he said. “There’s a significant maturation in approach, businesses are not only setting more targets, but are also making tangible headway.”

ICAEW Climate Change Manager Sarah Reay says: “The first half of 2025 has been tough for businesses and often sustainability is the first thing to drop off the agenda when difficult trade-offs need to be made. Addressing climate risk and opportunity is no longer a ‘nice to have’ but a business imperative – it ensures business resilience in the long term.”

She adds: “It’s incredibly positive to see an increasing number of SMEs beginning to integrate sustainability into their core business strategy and reap the benefits. While more needs to be done to support businesses in their transition to net zero, this report shows we are heading in the right direction.”