A recent study by sustainability software firm osapiens reveals that over two-thirds of UK businesses regard sustainability reporting not merely as a compliance obligation but as a catalyst for innovation and competitive advantage. The survey, which engaged 150 senior sustainability leaders, indicates robust support for mandatory disclosure, with 69% in favour. Among these, 41.5% advocate for a tiered system to accommodate smaller firms’ capacities.
Despite this backing, uncertainty presents a significant hurdle. Half of the respondents identified adapting to evolving regulations as their primary challenge, followed by the complexity of data collection and verification (27%) and the increasing cost of compliance (26%).
UK companies are also gearing up for the implementation of the UK Sustainability Reporting Standards (SRS), expected to be finalised in September 2025. These standards will align with internationally recognised frameworks such as CSRD, SASB, and CDP.
Automation is emerging as a potential remedy for easing reporting burdens, with 48% of businesses experimenting with digital tools. Nevertheless, half of the respondents reported that their reporting remains entirely manual, conducted internally using spreadsheets.
Confidence in tracking sustainability performance varies. Only one in ten leaders expressed strong confidence in their firm’s capacity to thoroughly assess supply chain impact, while 45% felt somewhat confident.
Tim Lambert, Regional Lead UK, Ireland and Nordics at osapiens, commented on 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.”
For further insights, read [The State of Sustainability Reporting in the UK](https://osapiens.com/sustainability-report-uk/#download). Follow [ESG News on LinkedIn](https://www.linkedin.com/company/esg-news/). The post [Study Finds Over Two-Thirds of UK Firms See Sustainability Reporting as Key Driver of Innovation](https://esgnews.com/study-finds-over-two-thirds-of-uk-firms-see-sustainability-reporting-as-key-driver-of-innovation/) appeared first on [ESG News](https://esgnews.com).
