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7 climate impact risks UK businesses need to address in 2025

<a href="https://www.google.com/url?q=https://www.aviva.com/newsroom/news-releases/2023/10/uk-businesses-at-climate-change-crossroads/&amp;sa=D&amp;source=docs&amp;ust=1736862246235139&amp;usg=AOvVaw3tTw-OQMUvnQr46sZuMp2n" target="_blank" rel="noopener">Businesses are under increasing pressure to set and meet ambitious climate goals</a>, but it&#8217;s critical to avoid taking any missteps. From losing eco-conscious customers to greener competitors to the reputational damage of greenwashing accusations, companies must act decisively to navigate the risks, stay ahead, and secure lasting success in their sustainability journey.
<ol>
<li><a href="#greener-competitors">Losing customers to greener competitors</a> 
How to engage customers with Midcounties Co-operative and SmartestEnergy Business</li>
<li><a href="#reputational-risks">Reputational risks of failing public climate commitments</a> 
How to prioritise brand reputation with MSQ</li>
<li><a href="#greenwashing">Fear of greenwashing</a> 
How to communicate your business impact effectively with EET</li>
<li><a href="#articulate">Struggling to articulate ESG value to senior leadership and access capital</a> 
How to find the ROI in sustainability with MSQ</li>
<li><a href="#engagement">Declining colleague engagement</a> 
How to engage colleagues with Mulberry</li>
<li><a href="#supply-chain">Unable to engage supply chain and change behaviours</a> 
How to engage suppliers with Remarkably</li>
<li><a href="#uncertainty">Uncertainty about which climate projects can deliver the most impact</a> 
How to select high-quality climate action projects with Ellers Farm and Solo Service Group</li>
</ol>
In this article, we explore seven key climate impact risks that businesses need to address in 2025, along with case studies showing how Ecologi partners are tackling these challenges head-on.

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<h2>1. Losing customers to greener competitors</h2>
The competitive landscape is shifting and environmental responsibility has become a key driver of competitive advantage. Ecologi’s 2024 Climate Commitments Survey found that
<a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">76% of businesses</a> are making sustainability a core strategy. Companies that embrace sustainability will attract more eco-conscious customers and those that don’t could lose market share, as consumers increasingly favour greener brands.
<h3>How to engage customers with Midcounties Co-operative.</h3>
The <a href="https://ecologi.com/yourcoop" target="_blank" rel="noopener">Midcounties Co-operative</a> truly values sharing its impact with customers. The team uses Ecologi’s detailed climate impact project pages to create their own online case studies, highlighting the results of the initiatives they support. Customers are regularly invited to see their collective impact displayed on the Ecologi profile pages, which include sub-forests tailored to different trading divisions.
Partnering with Ecologi has significantly enhanced The Midcounties Co-operative’s brand reputation and customer appeal. By integrating climate impact into broadband and mobile products, they’ve successfully attracted younger customers and retained existing ones with a compelling offer that combines cost savings and environmental contributions.

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<h3>How to engage customers with SmartestEnergy Business</h3>
<a href="https://ecologi.com/smartestenergygroup/smartestenergybusiness" target="_blank" rel="noopener">SmartestEnergy Business</a> has long demonstrated a strong commitment to environmental responsibility by actively supporting the transition to renewable energy. The team decided to partner with Ecologi so they could take an even more proactive approach to tackling climate change.
They love to reward their customers for making greener choices too. So, for every renewable energy customer who joins or renews, ten trees are planted in their global impact forest. Customers also receive a Tree Planting Commitment Certificate and a Renewable Commitment Certificate as soon as their contract begins, giving them a tangible way to celebrate their positive contribution.

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Each new project supported is also highlighted in the monthly Sustainable Spotlight. This initiative shares inspiring stories through the customer <a href="https://smartestenergybusiness.com/latest-news-company-updates-smartestenergy-business-info-hub/" target="_blank" rel="noopener">Info Hub</a> and <a href="https://smartestenergybusiness.com/sustainable-spotlight/)" target="_blank" rel="noopener">website</a>, social media posts, and their customer newsletter. The team also updates an ongoing <a href="https://smartestenergybusiness.com/climate-action-project-conserving-the-amazon-in-brazil/" target="_blank" rel="noopener">infographic</a> each month to showcase the achievements of their Climate Action Calendar, creating a vibrant visual celebration of their collective impact.

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<h2>2. Reputational risks of failing public climate commitments</h2>
Brand reputation has become a key motivator for sustainability efforts in recent years, as businesses increasingly recognise the importance of aligning with global and national climate goals. However, failing to meet these commitments can lead to serious reputational harm, undermining customer trust and weakening brand loyalty.
<h3>How to prioritise brand reputation with MSQ</h3>
<a href="https://ecologi.com/msq" target="_blank" rel="noopener">MSQ</a> stands out as one of the first global marketing groups to achieve carbon-negative status. This means that across their 13 international offices, they compensate for more carbon than they produce. Their long-term goals are backed by approved Science-Based Targets, with near-term objectives validated by the SBTi for 2030.
They boost their brand reputation by being a proud member of the Million Tree Pledge, and have already planted over 200,000 trees. Their commitment extends to planting 500 trees for every client pitch, as well as marking key internal milestones such as work anniversaries, Christmas celebrations, and company meetings with tree-planting initiatives.

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<h2>3. Fear of greenwashing</h2>
Accusations of greenwashing are a growing concern, with <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">nearly a third</a> of businesses worried about being seen as insincere in their climate commitments. Taking transparent and meaningful climate action is crucial to building trust with stakeholders, who closely scrutinise any sustainability claims.
The challenge of avoiding greenwashing remains a priority for businesses, with <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">almost a third</a> expressing concerns over the credibility of their own claims. Our <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">Climate Commitments Survey</a> found that only 40% of businesses are confident in sharing their sustainability actions transparently. 
<h3>How to communicate your business impact effectively with EET</h3>
IT distributor <a href="https://ecologi.com/eetgroup" target="_blank" rel="noopener">EET Group</a> is committed to inspiring others along the way in its climate journey. The team is often invited to showcase their reforestation efforts at customer and supplier events. They also reach out to suppliers each year and encourage them to contribute trees to help grow the EET Group.
At Ecologi, we believe sharing impact is key to driving collective climate action. Our handy badges, business toolkit, and communication guidelines have all helped EET Group share and celebrate their achievements.

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<h2>4. Struggling to articulate ESG value to SLT and access capital</h2>
Financial constraints and the cost of climate tools continue to be barriers, with <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">32% of businesses</a> citing financial concerns. Effectively communicating the value of environmental, social, and governance (ESG) efforts to senior leadership and investors is critical for securing the resources needed to advance sustainability goals.
<h3>How to find the ROI in sustainability with MSQ</h3>
As we mentioned earlier in this article, the <a href="https://ecologi.com/msq" target="_blank" rel="noopener">MSQ</a> global marketing group was one of the first to achieve carbon-negative status. This pioneering team uses its commitment to the Million Tree Pledge to demonstrate the tangible value of Environmental, Social, and Governance (ESG) initiatives. 
By planting over 200,000 trees to date and pledging more trees for every client pitch, alongside other business milestones, MSQ effectively showcases its dedication to sustainability. These efforts not only reinforce their Science-Based Targets for 2030 but also help articulate the business value of ESG to senior leadership teams, strengthening their ability to attract capital and drive long-term sustainable growth.

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<h2>5. Declining Colleague Engagement</h2>
Sustainability efforts boost employee loyalty and motivation, as many employees value workplaces that prioritise environmental responsibility. Without actively involving employees in these initiatives, companies risk lower morale and retention—particularly as demand for climate-conscious workplaces continues to grow.
<h3>How to engage colleagues with Mulberry</h3>
<a href="https://ecologi.com/mulberry" target="_blank" rel="noopener">Mulberry</a> was already well on track for meeting its climate obligations, but partnering with Ecologi allowed the luxury leather goods company to go further. The collaboration ensures sustainability is integrated into every employee&#8217;s journey, fostering greater understanding, ownership, and commitment to Mulberry&#8217;s 2035 net-zero target across the entire workforce.
For example, each new employee is welcomed with the planting of a tree in Mulberry’s virtual “Welcome” forest, introducing them to the company’s net-zero 2035 goal and its dedication to combating climate change. Also, each quarter, the team offsets the carbon impact of all business flights by investing in Ecologi&#8217;s carbon avoidance projects.

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<h2>6. Unable to engage supply chain and change behaviours</h2>
Businesses are becoming increasingly aware of the impact their supply chains have on emissions. However, engaging suppliers in sustainable practices remains a significant challenge. Many companies struggle to gain visibility and control over supply chain emissions, which can hinder progress toward broader climate goals.
<h3>How to engage suppliers with Remarkably</h3>
<a href="https://ecologi.com/remarkably" target="_blank" rel="noopener">Remarkably</a> is a creative consultancy specializing in brand, marketing, and learning, with a clear purpose of building brands for a better world. Remarkably has been climate positive since its inception three years ago, achieved B Corp certification in 2021, and has invested in impact innovation projects worldwide. As a Beta partner of <a href="https://ecologi.com/business/zero" target="_blank" rel="noopener">Ecologi Zero</a>, the consultancy quantified its full carbon footprint for the first time in 2023.
Remarkably’s dedication to the triple-bottom line shapes its client and supplier partnerships, with careful consideration given to who they work with. This approach was detailed in their inaugural 2022 impact report.

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<h2>7. Uncertainty about which climate projects can deliver the most impact</h2>
Businesses often struggle to choose effective climate projects because of inconsistent verification standards, and transparency issues around carbon credits. Without clarity, it’s difficult to confidently invest in projects that deliver real impact. 
Not all carbon credits or projects adhere to the same rigorous standards, so businesses risk funding initiatives that fall short of meaningful climate contributions. It’s vital that businesses carefully choose reliable and certified projects.
<h3>How to select high-quality climate action projects with Ellers Farm</h3>
<a href="https://ecologi.com/ellersfarmdistillery" target="_blank" rel="noopener">Ellers Farm Distillery</a>, based in Yorkshire, operates with a strong commitment to responsibility, guided by the simple principle of balancing people, planet, and profit. Every employee at Ellers Farm receives an Ecologi Climate Action Workforce subscription, which supports high-quality climate projects on their behalf. 
Since October 2020, the distillery has funded the planting of over 8,800 trees and helped prevent the emission of 420 tonnes of CO2e through verified carbon avoidance projects. For example, Ellers Farm supports a high-quality forest protection project in Mataven, Columbia, safeguarding 1.15 million hectares of tropical forest while empowering over 16,000 indigenous people with education, infrastructure, and sustainable economic growth.

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<h3>How to select high-quality climate action projects with Solo Service Group</h3>
<a href="https://ecologi.com/soloservicegroup" target="_blank" rel="noopener">Solo Service Group</a>, a national provider of commercial cleaning services, is committed to mitigating the environmental impact of its operations and reducing its carbon footprint. Recognising the importance of climate action, the team were looking for a way to fund high-quality, transparent climate projects that were verified to international standards.
Reassured by Ecologi’s commitment to transparency, Solo Service Group is able to mitigate the unavoidable emissions from its fleet by confidently funding accredited carbon avoidance credits. This partnership aligns with the company’s bold goal of achieving net-zero emissions by 2030, a full two decades ahead of the government’s target.

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In today’s business landscape, addressing climate risks and taking transparent, certified climate action is essential for long-term success. By learning from businesses like Midcounties Co-operative, MSQ, and Solo Service Group, companies can avoid the common pitfalls and build a reputation as leaders in sustainability. 
If you&#8217;re ready to take meaningful climate action, we can help you start your journey today. Join Ecologi to begin supporting high-quality, verified climate projects and ensure your business meets its climate goals.

Schedule a 30-minute discovery call with our climate experts

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Ecologi acquires Net Zero Now

In a landmark move set to reshape corporate climate action, we’re excited to announce that Ecologi, the UK&#8217;s most trusted climate action platform, has acquired <a href="https://netzeronow.org/" target="_blank" rel="noopener">Net Zero Now</a>, the sector-specific carbon measurement and reduction platform for businesses.
The combined entity operating under the Ecologi brand will create a single solution for industry climate leadership towards net zero. The integration combines sector-specific carbon measurement and reduction with world class verified climate projects that supports businesses wherever they are on their net zero journey.

<h2>The game-changing impact of this acquisition</h2>
The strategic acquisition solves two fundamental challenges in corporate climate action: businesses have been forced to choose between fragmented solutions and generic ‘one size fits all’ approaches that ignore crucial sector-specific needs. By combining Net Zero Now&#8217;s sector-specific protocol expertise with Ecologi&#8217;s platform funding top-tier climate projects, we&#8217;re creating a tailored and complete solution helping businesses lead their industries towards net zero.

Reduce emissions.
<ul>
<li style="font-weight: 400;" aria-level="1">Measure Scope 1, 2 &amp; 3 emissions with sector-specific industry GHG protocols</li>
<li style="font-weight: 400;" aria-level="1">Set short term and long term reduction target emissions aligned to SBTi</li>
<li style="font-weight: 400;" aria-level="1">Tailored reduction plans for sector-specific emissions pathways</li>
</ul>
Restore our planet.
<ul>
<li style="font-weight: 400;" aria-level="1">Compensate for unavoidable emissions as you reduce them through 
funding verified, high-quality carbon avoidance and removal credits</li>
<li style="font-weight: 400;" aria-level="1">Contribute to global climate goals by funding climate Impact Funds for 
beyond value chain mitigation and/or as part of your products &amp; services</li>
</ul>
Report on progress.
<ul>
<li style="font-weight: 400;" aria-level="1">Corporate sustainability standards e.g. CSRD, SECR, SBTi, CDP, B Corp</li>
<li style="font-weight: 400;" aria-level="1">Sector specific standards e.g. Accountancy, Hospitality, Public Sector</li>
<li style="font-weight: 400;" aria-level="1">Custom climate impact reports and embeddable dashboards</li>
<li style="font-weight: 400;" aria-level="1">Communications toolkit for board and stakeholder engagement</li>
</ul>

Climate leadership starts here

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Neil Ross Russell, Managing Director of Net Zero Now, said:
<blockquote>Businesses want to take climate action, but they want to know they’re doing it right and what’s right for a restaurant business is not the same as what’s right for an accounting firm.  They need industry-specific guidance and clear pathways to climate leadership. By joining forces with Ecologi, we&#8217;re creating a platform that allows us to provide credible, simple and affordable, sector-specific, end-to-end climate solutions for businesses in our existing sectors and collaborate with industry partners on new sector-led solutions.</blockquote>

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The acquisition aligns with Ecologi&#8217;s mission to accelerate business climate action and grow our 24,000 strong customer base. Established sector protocols including hospitality and professional services will be the initial focus with plans to expand across additional industries throughout 2025.
With organisations under increasingly complex stakeholder and industry compliance demands for environmental accountability, this end-to-end solution also ensures streamlined reporting, monitoring progress, supply chain transparency, and voluntary disclosures. This transforms business leaders into climate leaders with the confidence to tackle their climate commitments head-on, communicating and meeting critical regulatory requirements like SECR, CSRD and SBTi.

<h2>More about Net Zero Now</h2>
Founded in 2021, Net Zero Now has developed a proprietary sector-led approach, which combines climate expertise alongside the sector knowledge and experience of relevant industry bodies, industry influencers and larger businesses to reach a consensus around what Net Zero means in practice for businesses in each sector. To date, the company has measured and validated 1.8 MtCO2e lifetime emissions supporting more than 50+ leading brands including Coca Cola Europacific Partners, L&#8217;Orèal, Heineken, Pernod Ricard, Subway, Hard Rock Cafe, Adnams, Edgbaston and James Cowper Kreston.

FAQs

Case studies

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4 hospitality companies leading the way on climate action

Sustainability is no longer a nice-to-have in the hospitality industry — it&#8217;s a business necessity. With increasing regulatory pressure, shifting customer expectations, and the growing impact of climate change, hospitality businesses are finding that taking action isn&#8217;t just about responsibility—it&#8217;s about resilience. This is particularly evident as 70% of Brits are now actively trying to live a more sustainable lifestyle (Nutritics, 2024), and 44% say sustainability is important in their choice of venue to visit (Morning Advertiser, 2023). From tackling food waste to cutting carbon emissions, the sector is facing both challenges and opportunities to drive meaningful change.
At the heart of this transformation is the food system. The hospitality industry relies on farming—a sector responsible for nearly 20% of global greenhouse gas emissions and one that is increasingly vulnerable to climate disruption. Rising temperatures, unpredictable weather, and supply chain instability are already affecting food availability and costs, making sustainability not just an ethical priority but a commercial imperative. This is reflected in consumer behavior, with 47% of consumers wanting more information about carbon footprints on menus, and 41% saying this information would influence their order (CGA Strategy, 2023).
Fortunately, forward-thinking hospitality businesses are stepping up, driven by clear market demand—34% of UK pub and restaurant goers are prepared to spend more in venues with strong sustainability credentials, increasing to 47% for Gen Z and Millennials (Sustainability Beat, 2023). This generational shift is significant, with consumers aged 18-34 being nearly twice as likely to pay more for sustainability than those aged 55+ (WaterAid, 2023).
As the food and beverage industry awakens to its environmental responsibilities, and with climate change threatening to fundamentally disrupt global food security, restaurants and food service enterprises are stepping up to take meaningful climate action. These pioneering businesses are demonstrating how sustainability can enhance business performance while making a positive environmental impact, even as they navigate the unique challenges of being both a contributor to and victim of climate change.
Read about four hospitality companies that are championing climate action, and explore how they are turning environmental challenges into business opportunities.
Whether it&#8217;s engaging employees, measuring carbon footprints, or developing new sustainable service offerings, these venues are setting the standard for a greener future in hospitality.
<ol>
<li>Hawksmoor: Leading Sustainability in Fine Dining</li>
<li>Freemans Event Partners: Pioneering Sustainable Event Catering</li>
<li>Lisini Pub Co: Family Legacy Meets Sustainable Innovation</li>
<li>The Assemblies: Pioneering Sustainable Hospitality in Bristol</li>
</ol>

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<h2>Hawksmoor: leading sustainability in fine dining</h2>
Key Improvements:
<ul>
<li> Achieved B Corp certification in September 2022</li>
<li>Comprehensive review of operational sustainability across all locations</li>
<li>Implementation of energy reduction initiatives</li>
<li>Enhanced waste management systems</li>
<li>Water conservation measures</li>
<li>Integration of sustainability into staff training programs</li>
</ul>
Hawksmoor&#8217;s journey exemplifies how restaurant groups can lead in sustainability within the hospitality sector. Their comprehensive approach includes setting ambitious net-zero targets for 2030 while focusing on immediate operational improvements. The restaurant group&#8217;s commitment is evidenced by their systematic review of day-to-day operations across their locations in London, Manchester, Edinburgh, and New York. What sets them apart is their holistic approach to sustainability: examining energy usage, waste management, and water consumption while maintaining their reputation for quality dining. Their structured approach to employee engagement includes a two-day intensive induction program that emphasises sustainability, making it a core part of their culture.
Ellie Besley-Gould, Head of Purpose at Hawksmoor, said:
<blockquote>We&#8217;ve been heavily involved with the Sustainable Restaurant Association since about 12 years ago&#8230; It&#8217;s a really important area for us to be stepping up the work in, looking at how we can inspire change.</blockquote>

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<h2>Freemans Event Partners: pioneering sustainable event catering</h2>
Key Improvements:
<ul>
<li>Achieved 38.4% reduction in emissions compared to projections</li>
<li>Implemented innovative &#8220;Zero Zone&#8221; testing area</li>
<li>Introduced shuttle buggies for reduced transport emissions</li>
<li>Deployed hybrid power generators</li>
<li>Established carbon menu labelling</li>
<li>Enhanced waste management through compostable solutions</li>
</ul>
Freemans Event Partners&#8217; journey demonstrates how large-scale event catering can embrace sustainability without compromising service quality. Their innovative approach at the British Grand Prix showcases their commitment to reducing environmental impact in high-pressure environments. The company&#8217;s dedication is evidenced by exceeding their initial 5% emissions reduction target and implementing a groundbreaking &#8220;Zero Zone&#8221; area for testing new sustainability initiatives. What sets them apart is their data-driven approach to sustainability: measuring and analysing emissions across all aspects of their operation, from food stalls to logistics and waste management.
Richard West, Sustainability Manager at Freemans Event Partners, said:
<blockquote>Through partnering we&#8217;ve realised that collaboration is key to making lasting and impactful environmental changes in the events catering industry. The process has been much more straightforward than we thought it would be and we look forward to setting even bigger reductions targets as we go forward.</blockquote>

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<h2>Lisini Pub Co: family legacy meets sustainable innovation</h2>
Key Improvements:
<ul>
<li>Reduced scope 1 and 2 emissions by 48% through renewable electricity</li>
<li>Won the Flor de Cana Rum Sustainability Award</li>
<li>Achieved lowest electricity demand in 10 years</li>
<li>Implemented LED lighting and sensor systems</li>
<li>Launched biodiversity project at Dalziel Park</li>
<li>Developed sustainable kitchen practices and menu innovation</li>
<li>Created venue-specific green teams</li>
</ul>
Lisini Pub Co&#8217;s journey demonstrates how family-owned hospitality businesses can transform their environmental impact while preserving their heritage. Their comprehensive approach combines traditional Scottish hospitality with modern sustainability practices across their venues, including the historic Angels hotel in Uddingston. What sets them apart is their innovative approach to sustainability: implementing competitive green teams across venues, achieving dramatic emissions reductions, and maintaining their commitment to quality service. Their structured approach includes both operational improvements and employee engagement, making sustainability a core part of their 45-year family legacy.
Siobhan Edwards, Director Lisini Pub Group, said:
<blockquote>It&#8217;s not until we&#8217;ve been working in the last year that we&#8217;ve really truly understood our carbon footprint. It&#8217;s the right thing to do, it&#8217;s the right thing for our customers, for our planet, for the environment, and actually it saves us money at the same time.</blockquote>

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<h2>The Assemblies: Pioneering Sustainable Hospitality in Bristol</h2>
Key Improvements:
<ul>
<li>Established 100-mile radius local sourcing policy</li>
<li>Implemented full venue LED lighting systems</li>
<li>Introduced reusable cups for music events</li>
<li>Developed nose-to-tail food waste reduction policy</li>
<li>Created vegetarian menu options to reduce emissions</li>
<li>Enhanced supplier partnerships for sustainability</li>
<li>Achieved an impressive 3-star rating in the Food Made Good Standard, scoring 92% overall and 91% specifically in environmental practices</li>
</ul>
The Assemblies&#8217; journey showcases how urban hospitality venues can lead in sustainability while building strong community connections. Since their inception in 2009, they&#8217;ve demonstrated that local sourcing and environmental responsibility can coexist with business success. What sets them apart is their data-driven approach to sustainability: analysing carbon ratings, implementing local sourcing policies, and creating innovative menu solutions. Their comprehensive strategy includes everything from sound system upgrades to waste reduction initiatives, making sustainability integral to their operation.
Anna Blightman, Brand Marketing Manager, said:
<blockquote>Something that our partnership has allowed us to do, is lay all the data out on the table so that we can actually look at it, and stand to analyse it and understand where we can make changes. If we don&#8217;t start now, when will we start?</blockquote>

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As these leading hospitality companies show, meaningful climate action can drive significant business benefits—from stronger customer and employee engagement to enhanced brand reputation and risk mitigation. By taking a thoughtful, transparent, and impactful approach, businesses can pave the way for a sustainable future.
Ready to take the lead in climate action? Book in a 30 minute discovery call with our Hospitality sector experts and find out more about partnering with Ecologi to measure your emissions, set reduction goals and fund high-quality climate action on the road to net-zero.

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