A new study by sustainability software firm osapiens has revealed that over two-thirds of UK businesses now view ESG reporting not just as compliance, but as a catalyst for innovation and competitive advantage. The survey of 150 senior sustainability leaders highlights how ESG reporting UK is becoming central to business sustainability strategies. Yet the findings also expose persistent barriers, from regulatory uncertainty to manual reporting processes, that continue to hold firms back.
ESG reporting UK gains strong backing
The osapiens survey found that 69 percent of UK companies support mandatory ESG reporting. Of these, 41.5 percent favour a tiered system that accounts for the different capacities of smaller firms.
This level of support signals a change in mindset. Businesses increasingly see ESG reporting UK as a tool for driving innovation, attracting investment, and strengthening resilience, rather than a box-ticking exercise.
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Regulation remains a challenge for ESG reporting UK
Despite strong backing, regulatory uncertainty remains the most significant hurdle. Half of respondents said adapting to evolving requirements is their primary challenge, followed by the complexity of data collection and verification (27 percent) and the rising cost of compliance (26 percent).
The upcoming UK Sustainability Reporting Standards (SRS), expected in September 2025, should provide greater clarity. These standards will align with international frameworks such as the Corporate Sustainability Reporting Directive (CSRD), the Sustainability Accounting Standards Board (SASB), and the Carbon Disclosure Project (CPD). Still, for many companies, the path forward for ESG reporting UK remains unclear.
Manual processes undermine progress
Another barrier is how reporting is conducted. The survey found that 50 percent of UK businesses still rely on manual spreadsheets for ESG disclosures, while only 48 percent are experimenting with digital tools.
This reliance on manual methods is resource-intensive and error-prone. In contrast, firms adopting automation are beginning to unlock more efficient, data-driven ESG reporting in the UK, reducing the burden of compliance while gaining insights to support corporate sustainability strategies.
Supply chain visibility remains weak
Confidence in ESG reporting across supply chains is also limited. Only one in ten leaders expressed strong confidence in tracking supply chain impact, while 45 percent reported only partial confidence. This lack of visibility could undermine the credibility and effectiveness of ESG reporting UK, especially as stakeholders demand greater transparency.
Conclusion: ESG reporting UK as a growth driver
The osapiens study reflects a broader truth: ESG reporting UK is moving from a regulatory requirement to a business growth driver. Companies that embrace reporting as a catalyst for innovation and competitiveness, by digitising processes, preparing for new standards, and strengthening supply chain visibility, will be best placed to meet investor expectations and capture long-term value.
Those who delay, relying on manual processes or waiting for regulatory certainty, risk being left behind. For proactive organisations, however, ESG reporting is a pathway to resilience, innovation, and competitive advantage. To help your teams embed reporting into broader sustainability strategies, explore our corporate sustainability training solutions, designed to give organisations the skills and tools to turn ESG disclosure into business growth.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
