UK Firms recast sustainability reporting as innovation strategy
A new study from sustainability software firm osapiens shows that more than two-thirds of UK companies now view sustainability reporting as more than a compliance exercise. Many see it as a way to drive new ideas and strengthen their position in the market.
The survey, which gathered responses from 150 senior sustainability leaders, found strong support for mandatory disclosure. Sixty-nine percent backed the idea, with 41.5 percent favoring a tiered system that considers the capacity of smaller firms.
Yet support doesn’t erase the challenges. Half of the respondents said adapting to shifting regulations is their biggest concern. Another 27 percent pointed to the difficulty of gathering and verifying data, while 26 percent highlighted the rising cost of compliance.
Companies are also preparing for the UK Sustainability Reporting Standards, set to be finalized in September 2025. These standards will align with frameworks already in use internationally, such as CSRD, SASB, and CDP.
Digital tools are beginning to play a role. Nearly half of the surveyed firms are experimenting with automation to handle reporting requirements. But many businesses still rely entirely on manual processes, often using spreadsheets managed in-house.
Confidence in tracking sustainability performance remains uneven. Only one in ten leaders felt strongly confident in assessing the full impact of their supply chains. Forty-five percent described themselves as somewhat confident.
Tim Lambert, Regional Lead UK, Ireland and Nordics at osapiens, noted the growing engagement.
It’s encouraging to see more UK firms engage with sustainability requirements. In the past year, we’ve seen contrasting developments from ‘stop the clock’ decisions as part of the EU Omnibus initiative, while other requirements have intensified, such as the upcoming UK Sustainability Reporting Standards. While the pace of change can be challenging, it’s also driving greater intent. Many businesses now recognise the value of improving visibility into their sustainability data because you can’t change what you can’t track.
Tim Lambert, Regional Lead UK, Ireland and Nordics at osapiens
UK firms are moving toward a future where sustainability reporting is not just about meeting obligations but about shaping stronger business strategies.
