2025 UK Net Zero Business Census: Insights, Barriers & Opportunities for UK Businesses
The 2025 UK Net Zero Business Census, published today by Planet Mark in collaboration with the UK Business Climate Hub, delivers the most comprehensive snapshot to date of UK businesses’ sustainability actions and challenges. With over 2,000 organisations participating, the census captures a national pulse on carbon reduction efforts and the barriers that still stand in the way.
At Sustainable Business Services, we are passionate about supporting SMEs in their net zero journey. This latest census validates the growing importance of sustainability for business resilience and calls for urgent, focused action to overcome persistent barriers.
Full Report Access: NetZeroCensus.co.uk
2025 UK Net Zero Census: SME Insights
Cost and Financing Remain Major Roadblocks
66% of businesses cite high costs as a key barrier.
Only 7% have accessed any green grants or finance.
41% want better access to funding from the government.
Tip: Programs like the “Help to Green” voucher scheme and the UK Business Climate Hub offer critical support. Many local authorities also offer a range of funded support to drive your ambition. Local Authority SME Green Grant funding can often be used to part fund our SBS Net-Zero Program and drive business sustainability.
Education Gaps and Low Confidence
25% of businesses are not confident about what net zero really means.
Only 11% have set a net zero target.
This shows a pressing need for upskilling, role-relevant training, and simplified reporting tools especially for SMEs. This is where our SBS Academy can support your teams through a range digital, in person and formal pathways.
Barriers Are Higher for SMEs
Only 11% of SMEs have a net zero target vs. 54% of large firms.
SMEs are more likely to report lack of time, expertise, and guidance.
SBS Net-Zero Program: Tailored guidance, simplified standards (like the proposed UK SME Sustainability Reporting Standard), and stronger supply chain collaboration are essential.
Year-on-Year Trends
While measurement and planning are increasing, there’s a disconnect between reported carbon reductions and formal tracking:
25% report reductions, but only 20% have measured emissions.
Many SMEs are assuming progress without data to back it up.
This reflects the growing need for data literacy and carbon accounting tools areas where Sustainable Business Services offers practical, scalable solutions.
What Can SMEs Do Next?
Start with “No-Brainer” Actions:
- Measure your impact, condust a carbon footprint report and carbon reduction plan
Implement energy efficiency measures (already done by 59% of respondents).
Reduce waste and switch to renewable energy.
Explore EV adoption and on-site renewables.
Use Trusted Tools:
Engage Stakeholders:
Only 4% of firms have engaged financiers a missed opportunity for accessing green finance.
| Barrier | Stat/Insight | Commentary |
|---|---|---|
| High cost | 66% cite as key barrier | Financing remains the top challenge for SMEs |
| Access to green grants | Only 7% accessed any green grants/finance | Funding programmes are underutilized |
| Need for better funding | 41% want improved government funding | Strong call for improved government support |
| Net zero understanding | 25% not confident about “net zero” concept | Large education gap and need for training |
| Net zero target set | Only 11% of SMEs have set a net zero target | Compare with 54% of large firms |
| Measured carbon emissions | Only 20% have measured emissions | Gap between intention and formal reporting |
| Reported carbon reduction | 25% report reductions (progress not always measured) | Tracking and evidence often lacking |
| Energy efficiency actions | 59% have implemented some measures | “No-brainer” steps gaining momentum |
| Engagement with financiers | Just 4% have engaged with financiers | Missed opportunity in green finance access |
| Time/expertise/guidance gap | Higher for SMEs than large firms | Tailored guidance and easy-to-use tools are essential |
Final Thoughts
The 2025 Census is clear: SMEs are vital to the UK’s net zero future, but they need better support, clearer regulation, and more accessible funding.
At SBS, we’re committed to helping small and mid-sized businesses navigate this landscape with confidence. From carbon footprint measurement to action planning and communication strategies, we’re here to guide you.
Need support on your net zero journey? Contact our team today
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We are here to support your net-zero journey, whatever your stage
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