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, providing the most in-depth insight to date on 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 British Business Bank, the British Chambers of Commerce, East Lancashire Chamber of Commerce and RedCAT Group.
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 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 most 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.”
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 (66%) and a lack of finance or grants (57%) were also identified as being moderate to significant 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.
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, and invest in targeted training to 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.”
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