Strategic Focus: Understanding ESG And Sustainability Regulations In The UK
07 Apr, 2025
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Executive Summary
Sustainability is an important political and cultural topic in the UK. The country is increasingly exposed to sustainability pressures, such as biodiversity loss, natural resource scarcity and climate change. However, the green transition also has the potential to drive employment and economic growth across the country. Accordingly, the UK has a mature regulatory environment for sustainability, notably becoming the first major economy to enshrine a 2050 net zero emissions target in law. Since leaving the EU in 2020, the UK has introduced new policies and regulations in areas such as corporate sustainability reporting, sustainable finance, deforestation, carbon tariffs and sustainable agriculture. This report provides executives with an overview of recent shifts in the UK’s sustainability landscape and the actions they can take to best prepare for these changes.
The UK has strengthened its commitment to sustainability over the past decade
The UK has set ambitious sustainability targets, which require a cohesive strategy
Regulations will be crucial to the UK’s ability to achieve its sustainability commitments
To ensure future readiness, British businesses should start preparing now
The UK has set ambitious sustainability targets, which require a cohesive strategy
Regulations will be crucial to the UK’s ability to achieve its sustainability commitments
To ensure future readiness, British businesses should start preparing now
Figure 1. UK key sustainability commitments, policies and regulations
Figure 2. Net UK territorial GHG emissions by sector (2023)
Figure 3. Role of UK industry in advancing a sustainable transition
Figure 4. UK ESG and sustainability policies and regulations
Figure 2. Net UK territorial GHG emissions by sector (2023)
Figure 3. Role of UK industry in advancing a sustainable transition
Figure 4. UK ESG and sustainability policies and regulations
Equans, Task Force on Climate-related Financial Disclosures (TCFD), Stonewater, Royal Mail, European Financial Reporting Advisory Group (EFRAG), Confederation of British Industry (CBI), Green Alliance, International Sustainability Standards Board (ISSB), National Health Service (NHS), Soil Association, Office for National Statistics (ONS), European Commission, Bank of Scotland, Ocado, Climate Change Committee (CCC), Financial Conduct Authority (FCA), IFRS, International Monetary Fund (IMF), Department for Energy Security and Net Zero, Cubico Sustainable Investments, Carbon Disclosure Project (CDP), Imerys British Lithium
About the Authors
Lily Turnbull
Senior Analyst
Lily is a Senior Analyst at Verdantix, where she delivers in-depth research to help executives navigate ESG, sustainability and product innovation, and make confident decision…
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a…
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