UK’s big businesses continue to prioritise net zero despite political pushback
The largest-ever survey of UK businesses on their approach to net zero reveals that 79% of large companies view it as a strategic priority for the year ahead. 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 2025 UK Net Zero Business Census surveyed over 2,000 British businesses and organisations, providing the most in-depth insight to date on UK 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 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 over half of large UK organisations (51%) having received requests for carbon data from customers or as part of tender applications, 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 environmental 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.”
Barriers and recommendations
The report highlights a set of persistent roadblocks holding back business progress on net zero. Regulatory uncertainty remains a significant challenge, with 70% of UK organisations citing it as a barrier. Costs being too high (80%) and a lack of finance or grants (69%) were also identified as barriers.
Based on the survey findings, the report sets out clear recommendations to ensure businesses can play their part in delivering the UK’s 2050 net zero target. It calls on policymakers for greater regulatory clarity and standardisation, including the swift publication of UK Sustainability Reporting Standards and Streamlined Energy and Carbon Reporting updates and reference to upcoming international standards such as the ISO net zero standard (ISO 14060).
It also calls for expanded access to financial mechanisms – such as grants and proposed “Help to Green” vouchers – to support SMEs in starting carbon reduction projects. Capacity building with SMEs could also be achieved through government and industry partnering on a major communications campaign to raise awareness with SMEs of trusted guidance like the UK Business Climate Hub, while investment in targeted training can build carbon emission measurement and reduction capabilities across SME workforces.
Henrik Micsk, senior climate manager at Sage said: “It is positive that the data illustrates progress towards net zero action amongst businesses, but it also highlights the significant challenge that still exists to align with a 1.5-degree world. As a result, this dataset provides vital information to support the drive for faster and more targeted policies and action.”
Ed Lockhart, convener at Broadway Initiative said: “UK Business Climate Hub is delighted to have worked for a second year with Planet Mark to produce the Net Zero Census. UKBCH is the shared online service, backed by the government, the major trade associations, the retail banks and the electricity networks, for advice and support on energy efficiency and net zero for smaller business.
The results from this year’s Census will help guide our work. 37% of medium sized firms have been asked for carbon data from customers in the last year, showing the importance of delivering the universal SME carbon reporting standard we’ve been working on with B4NZ. The finding that 25% of SMEs see no business benefits from cutting emissions is driving us to increase the amount of accessible information on the site on how to seize these commercial benefits.”
Publication of SME report
Alongside the 2025 UK Net Zero Business Census Summary Report published by Planet Mark, the British Business Bank has published the SMEs and Net Zero report, which looks specifically at smaller businesses. This report finds that most SMEs (63%) report organisational benefits from progressing towards net zero and that three-quarters (77%) have taken steps towards it. The report also provides updated estimates on SME greenhouse gas (GHG) emissions and finds SMEs account for around 1/3 of the UK’s total GHG emissions (37%) and half of all business emissions.
Hannah Gilbert, director of sustainability at British Business Bank, 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. It is encouraging to see that over three-quarters of smaller businesses have already taken steps towards net zero as they will be critical to the UK’s transformation into a low-carbon economy.”