Scaling sustainability: How the UK mid-market is future-proofing growth
As global regulation wavers, UK firms are doubling down on sustainability — and leading the way
Sustainability regulation is in flux. From delays in the EU’s Corporate Sustainability Reporting Directive (CSRD) to climate disclosure rollbacks in the US, the global landscape is uncertain. But UK mid-market businesses aren’t waiting for clarity.
Grant Thornton’s 2025 International Business Report (IBR) reveals that despite regulatory delays, 92.4% of UK mid-market firms intend to maintain or increase their investment in sustainability. That’s ahead of the global average (86%) and the EU (80.4%), demonstrating the UK mid-market’s leading role in driving the sustainability agenda forward.
UK leads on sustainability investment
UK mid-market firms are outpacing their global peers in both ambition and action:
Many also see a direct link between sustainability and commercial performance:
- 57.4% connect it to revenue growth
- 62.4% to long-term profitability
- 41.5% to short-term profitability
- 48.2% to cost reduction
*of those that are planning to increase or maintain their investment in sustainable initiatives
Global context: a shared shift in mindset
Across the 35 economies surveyed, the IBR shows a clear trend: sustainability is increasingly seen as a driver of growth, not just a regulatory requirement.
Key global findings:
- 85.9% intend to maintain or increase sustainability investment
- 72.9% will continue sustainability reporting despite regulatory rollbacks
- Firms see sustainability as a driver of growth, not just compliance
- Commercial drivers—like brand reputation, market competition, and access to finance—are outweighing regulatory pressures
Where’s the investment going?
For those maintaining or increasing investment, the area of focus remains diverse, but renewable energy continues to be the top priority, both globally (43.5%) and for the UK (65.2%). In the UK, carbon reduction and waste management and reduction complete the top three, while globally it’s the development of new, sustainable products and diversity and inclusion that take the second and third place spots, although both these areas still rank highly for UK firms.
UK firms are prioritising operational impact — focusing on emissions, waste, and energy while still aligning with global trends in innovation and inclusion.
Sustainability reporting: embedded and resilient
Despite changes to the Corporate Sustainability Reporting Directive (CSRD) and the rollback of climate disclosure rules in the US, UK firms remain committed to sustainability reporting.
- 78.7% of UK firms will continue reporting—driven by business value, purpose alignment, and process maturity
- 31.8% say reporting makes good business sense
- 35.1% say it aligns with their purpose
- 11.8% say they will continue because they had nearly completed the underlying process before some of the delays were announced
UK outlook: committed, but cautious
When asked about their outlook in response to political headwinds in some regions and regulatory changes:
There are of course firms which have felt the disruption: 20.3% of UK firms (with similar levels globally and for the EU) say they’re undecided on their sustainability outlook and are continuing to monitor the situation, with 13.8% feeling confused and unsure of their next steps. 11.1% are disappointed with the increased political opposition and proposed changes in regulations. However, around a fifth say the political and regulatory changes aren’t expected to have a significant impact on their business.
Barriers to progress: cost and complexity of regulations
The biggest challenges to scaling sustainability are consistent across the UK, EU, and global markets:
- Cost — the top barrier for most firms
- Complexity of regulations and standards
- Volume of requirements
- Political uncertainty
These challenges are real — but not insurmountable. Many firms are already finding ways to adapt, collaborate, and innovate.
What next for UK sustainability leaders?
Based on the findings, here are five areas to focus on to support growth:
Scaling sustainability
How the mid-market is future-proofing growth
About the Global Report
The IBR Sustainability Report 2025 explores how mid-market firms across 35 economies are responding to shifting sustainability expectations. Conducted between April and June 2025, the research captures the views of over 15,000 business leaders.