UK firms expect to increase sustainability budgets by 40% by 2030

More than half of UK companies are increasing their sustainability budget to capture business growth and market share – with average investment expected to grow by 40% by 2030.

A third (33%) of businesses in the UK report seeing a direct boost in revenue or market share from their sustainability initiatives (up 11% from last year) – making the case for sustainability investment clearer than ever.

According to a survey conducted by Ecologi and Blue Earth, 57% of firms plan to significantly increase investment in sustainability over the next five years, and this number is up 16% from 2024. On average, these expect budgets to rise by 40% by the end of the decade.

Value creation vs compliance

The 2025 Climate Commitments Report, which surveyed 1,400 UK sustainability leaders, also shows that private sector action is led by value creation as a top driver, while fewer companies approach sustainability from a compliance perspective. This is associated with a perceived lack of government support for 27% of respondents.

Dimitri Theocharis, CEO of Ecologi, said: "The 2025 Climate Commitments Report paints a vibrant picture of a UK business community that is not just responding to the climate challenge, but is actively seizing it as an opportunity for growth, innovation, and enhanced resilience. The significant rise in investment and strategic integration, particularly among larger enterprises, is incredibly encouraging. It shows a clear understanding that sustainability is no longer a side project. It’s driving boardroom decisions, bottom-line results, and long-term strategy.”

Overall, 82% of companies surveyed believe that those taking decisive climate action today will be the more successful business leaders of tomorrow.

Focus on 2030 climate targets

The survey shows that a wide majority (72%) of UK businesses have now set net zero targets, but 82% of these are focusing their attention near-term 2030 targets. This is setting them up for success, with 42% of respondents saying they are on track to achieve net zero by 2050 or sooner – up 15% compared to last year.

Will Hayler, CEO of Blue Earth, added: "This year's findings underscore a crucial evolution: businesses are moving beyond aspiration to tangible action and strategic investment in sustainability. The growing focus on near-term targets and the demand for sector-specific guidance highlight a pragmatism that is vital for progress.”

When asked about challenges to sustainability action, business leaders cited the cost of tools and technology (30%), time constraints (28%) and financial limitations (28%) as top barriers. Visibility and control over supply chain emissions also continue to be a hurdle for 24% of businesses.