Nearly 70% of UK businesses support mandatory sustainability reporting
50% cite regulatory uncertainty as the top compliance challenge
Almost half are testing automation, though most still rely on manual reporting
A new study from sustainability software firm osapiens shows that over two-thirds of UK companies view sustainability reporting not just as a compliance requirement, but as a driver of innovation and competitive advantage.
The survey, which polled 150 senior sustainability leaders, revealed strong momentum behind mandatory disclosure, with 69% in support. Of those, 41.5% backed a tiered system that would account for the capacity of smaller firms.
Despite this support, uncertainty remains a critical barrier. Half of respondents identified adapting to shifting regulations as their biggest challenge, followed by the complexity of gathering and verifying data (27%) and the rising cost of compliance (26%).
UK firms are also preparing for the rollout of the UK Sustainability Reporting Standards (SRS), set to be finalised in September 2025, which will align with internationally recognised frameworks such as CSRD, SASB, and CDP.
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Automation is emerging as a solution to ease the burden, with 48% of businesses experimenting with digital tools. Still, half of respondents said their reporting is entirely manual, handled internally with spreadsheets.
Confidence in tracking sustainability performance remains mixed. While just one in ten leaders expressed strong confidence in their firms’ ability to comprehensively assess supply chain impact, 45% felt somewhat confident.
Tim Lambert, Regional Lead UK, Ireland and Nordics at osapiens, noted the shift: “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.”
Read The State of Sustainability Reporting in the UK
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