Commercially Strategic Sustainability:

Sustainability used to be a “nice to have”. In 2025, for UK and EU businesses, it’s commercial strategy. The UK is legally committed to net zero by 2050, with interim targets of a 68% emissions reduction by 2030 and 81% by 2035. At the same time, EU rules like the Corporate Sustainability Reporting Directive (CSRD) are reshaping how companies prove their impact and resilience.

Done well, sustainability becomes a growth engine. Done badly, it’s an expensive box-ticking exercise. So how do you tell what’s required, what’s nice to have, and what will actually grow your business?

1. Know what’s required for your size and market

Regulation is no longer just for “the big guys.” Even if you’re below reporting thresholds, your customers and supply chains may not be. Many SMEs report being asked for carbon data in tenders or by major clients. Start with a simple materiality assessment: which regulations, client expectations and sector standards actually apply to you in the next 2–5 years? Prioritise compliance-critical topics before anything “nice to have”.

2. Follow the money: what sustainability activities drive growth?

Your sustainability strategy should be built around where value is created, not just where carbon is cut.

a) Revenue & market share 

Consumers are increasingly willing to pay more for sustainable products, and sustainability is now a major driver of customer loyalty and brand preference. Credible sustainability can support premium pricing and increase market share.

b) Cost & resilience 

Energy efficiency, waste reduction and smarter resource use cut operating costs and reduce exposure to volatile energy prices. These activities typically deliver quick wins and strong ROI.

c) Access to finance & tenders 

Banks, investors and public sector buyers increasingly use ESG criteria to decide who they work with. Strong sustainability performance improves eligibility for funding and procurement opportunities.

3. What’s “nice to have” – and when to park it

Not every green idea deserves budget this year. Typically “nice to have” items include one-off charity initiatives with no link to your core business model, unverified green marketing, and high-cost, low-impact pet projects. If an activity doesn’t reduce risk, win customers, or cut costs, it may not be a priority right now.

4. Turn sustainability into a strategic roadmap

Leaders treat sustainability like any other commercial transformation. They set clear, science-aligned targets, map quick wins alongside longer-term investments, integrate sustainability KPIs into management reporting, and use recognised frameworks such as CSRD, TCFD and SBTi to structure action and reporting.

Ready to make sustainability commercially strategic?

If you want to move beyond compliance and turn ESG into a driver of revenue, resilience and reputation, specialist guidance can help de‑risk and accelerate that journey.

Get in touch with our CSR consultants to explore how we can support your business growth through commercially strategic sustainability — and build a roadmap that pays back in both impact and profit.

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References

UK Net Zero & Emissions Targets

House of Commons Library. (2024). The UK’s plans and progress to reach net zero by 2050 [Research Briefing]. Available at: https://researchbriefings.files.parliament.uk/documents/CBP-9888/CBP-9888.pdf

GOV.UK. (2020). UK sets ambitious new climate target ahead of UN Summit. Available at: https://www.gov.uk/government/news/uk-sets-ambitious-new-climate-target-ahead-of-un-summit

Greenly. (2024). Understanding the UK Government’s Mandatory Net Zero Targets. Available at: https://greenly.earth/en-gb/blog/company-guide/understanding-the-uk-governments-mandatory-net-zero-targets

Priestley International Centre for Climate (University of Leeds). (2024). How’s the UK attempt to reach net zero going? There’s good news and bad news. Available at: https://climate.leeds.ac.uk/hows-the-uk-attempt-to-reach-net-zero-going-theres-good-news-and-bad-news/

EU Sustainability Reporting / CSRD

European Commission. (2024). Corporate sustainability reporting. Available at: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en

Grant Thornton UK. (2024). What does the CSRD mean for the UK? Available at: https://www.grantthornton.co.uk/insights/what-does-the-csrd-mean-for-the-uk/

PwC. (2024). The Corporate Sustainability Reporting Directive (CSRD). Available at: https://www.pwc.com/lv/en/about/services/sustainability-services/the-corporate-sustainability-reporting-directive-CSRD.html

Sweep. (2024). Understanding the Scope of the CSRD: Who needs to comply? Available at: https://www.sweep.net/blog/understanding-the-scope-of-the-csrd-who-needs-to-comply

Dechert LLP. (2023). Corporate Sustainability Reporting Directive (CSRD) – Factsheet. Available at: https://www.dechert.com/content/dam/dechert%20files/services1/practice-areas/environmental-social-and-governance-esg/Corporate-Sustainability-Reporting-Directive-FactSheet.pdf

Celsia. (2024). CSRD for non-EU companies: Requirements & Timelines. Available at: https://www.celsia.io/blogs/csrd-for-non-eu-companies-requirements-timelines

Additional Statistics

London Stock Exchange Group (LSEG). (2024). How many non-EU companies are required to report under EU sustainability rules? Available at: https://www.lseg.com/en/insights/risk-intelligence/how-many-non-eu-companies-are-required-to-report-under-eu-sustainability-rules