More than two-thirds of UK firms view sustainability reporting as a driver of innovation

• Nearly 70% of UK businesses showed support for some form of mandatory sustainability reporting 
• Around half of UK businesses are now experimenting with automation to meet growing reporting demands 
• Adapting to changing regulatory requirements has become as a key area of focus for UK businesses, with half citing it as their top challenge

A new study from Europe’s leading sustainability software firm osapiens, “The State of Sustainability Reporting in the UK” revealed that over two-thirds of UK firms view sustainability reporting as a driver of innovation and competitive advantage. However, half of those surveyed identified regulatory uncertainty as the biggest blocker when trying to meet sustainability requirements. This has made it challenging to determine which reporting framework to follow, move forward with decisively, and avoid costly missteps.

The survey, which gathered responses from 150 senior sustainability leaders in the UK, also found that despite the challenges, a majority showed support for some form of mandatory reporting. Internationally recognised frameworks and disclosure systems like the Corporate Sustainability Reporting Directive (CSRD), CDP Europe, and the SASB are the most widely adopted frameworks today. In the UK, businesses must now also prepare for the introduction of the UK Sustainability Reporting Standards (SRS), set to finalise in September 2025.  

Businesses welcome mandatory reporting
The findings show strong support among UK businesses for some form of mandatory sustainability reporting, with 69% of respondents in favour. Among them, 41.5% were in favour of a tiered approach, accounting for the needs of smaller organisations. 

Why firms are struggling to comply with reporting obligations

Adapting to changing regulatory requirements has become a key area of focus for UK businesses, with 50% citing it as their top challenge. This is followed by the complexity of gathering and verifying data (27%) and the rising cost of compliance (26%). For teams, this can risk overshadowing progress and tampering with optimism.

Automation on the horizon, even while reporting remains manual
Nearly half (48%) of UK businesses are now experimenting with automation to meet growing reporting demands. For now, however, the process remains mostly manual as half (50%) of all respondents still rely entirely on internal expertise and spreadsheets. 

Growing sense of awareness on blind spots
While only one in ten respondents feel ‘very confident’ in their firm’s ability to get a comprehensive view of their impact across operations and supply chains, nearly half (45%) feel ‘somewhat’ confident’ they can track performance in areas.

Tim Lambert, Regional Lead UK, Ireland and Nordics at osapiens, commented: “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 (UK SRS). 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.” 

Survey methodology

The survey was conducted in July 2025, gathering responses from 150 senior sustainability leaders at mid-sized organisations in the UK. The research assessed the state of sustainability compliance and innovation, with a focus on how enterprises in the UK are adapting to evolving sustainability regulations, the biggest challenges around reporting, and the role of automation in supporting their sustainability efforts.