NEWS / Infrastructure Intelligence / UK businesses making net zero a priority, says report

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21 OCT 2025

UK BUSINESSES MAKING NET ZERO A PRIORITY, SAYS REPORT

UK businesses are continuing to focus on net zero, with 79% of large firms seeing it as “strategic priority” for the year ahead – according to a new report.

The 2025 UK Net Zero Business Census also found more than a third (35%) of small and medium-sized enterprises (SMEs) also regard net zero as a priority, despite facing fewer regulatory and reputational pressures compared to larger firms.

The census surveyed more than 2,000 British businesses, providing an in-depth insight into the UK private sector’s attitudes and actions towards net zero.

It has been delivered by the UK Business Climate Hub in partnership with Planet Mark, Sage and a coalition of more than 50 leading business organisations, including the Association for Consultancy and Engineering Group (ACE) – which includes the Environmental Industries Commission (EIC). Others involved in the report include the British Business Bank and the British Chambers of Commerce

It shows that companies believe progress on net zero can go hand in hand with value creation. Only 3% of large organisations believe net zero has no business benefits, rising to 25% among SMEs.

As businesses step up their net zero commitments, a greater emphasis is being put on collecting emissions data throughout supply chains, as a critical first step to identifying and implementing meaningful reductions.

This is reflected in the reports, with more than half of large UK organisations (51%) having received requests for carbon data from suppliers, rising to 62% among those exporting to international markets.

Even among SMEs, 37% of medium-sized businesses, 20% of small businesses and 8% of microbusinesses have been asked by customers for carbon data in the last 12 months.

Andrew Griffiths, policy director at Planet Mark, said: “Although the political consensus on climate action is destabilising, British businesses are still clearly committed to net zero. When leaders look at the evidence and think about long-term strategy, it is becoming increasingly apparent that the businesses that act today to enhance efficiency, reduce emissions and build resilience to impacts are setting themselves up for success in a more sustainable future.

“These landmark reports show how the private sector can lead the net zero transition in the UK. It also highlights how small and mid-size companies that can demonstrate their action on climate change can gain a competitive advantage, as committed larger businesses find ways to tackle their supply chain impacts.”

Alongside the 2025 UK Net Zero Business Census Summary Report, an SME-specific report has been produced by British Business Bank. This finds that many SMEs (63%) report organisational benefits from progressing towards net zero and that three-quarters (77%) have taken steps towards it.

Hannah Gilbert, British Business Bank’s senior climate manager, said: “Businesses of all sizes have a role to play as innovators, employers, and community anchors. By exploring their net zero journeys, we can learn how best to back them — ensuring they contribute to and benefit from the UK’s green transition.”

To downloaded the 2025 UK Net Zero Business Census, click here

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