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7 climate impact risks UK businesses need to address in 2025

Climate Leadership

Blog

7 climate impact risks UK businesses need to address in 2025

Climate Leadership

7 climate impact risks for uk businesses
7 climate impact risks for uk businesses

Head of Marketing

Published: 22 Jan 2025

10 min read

7 climate impact risks for uk businesses
7 climate impact risks for uk businesses

Businesses are under increasing pressure to set and meet ambitious climate goals, but it’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.

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. 

1. Losing customers to greener competitors

The competitive landscape is shifting and environmental responsibility has become a key driver of competitive advantage. Ecologi’s 2024 Climate Commitments Survey found that

76% of businesses 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.

How to engage customers with Midcounties Co-operative.

The Midcounties Co-operative 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. 

How to engage customers with SmartestEnergy Business

SmartestEnergy Business 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.

"Engaging with Ecologi provides a unique opportunity to attract and retain environmentally conscious customers, strengthening our customer base"

— John-Paul Jenner, Senior Marketing Manager - SmartestEnergy Business

Each new project supported is also highlighted in the monthly Sustainable Spotlight. This initiative shares inspiring stories through the customer Info Hub and website, social media posts, and their customer newsletter. The team also updates an ongoing infographic each month to showcase the achievements of their Climate Action Calendar, creating a vibrant visual celebration of their collective impact.

The competitive landscape is shifting and environmental responsibility has become a key driver of competitive advantage. Ecologi’s 2024 Climate Commitments Survey found that

76% of businesses 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.

How to engage customers with Midcounties Co-operative.

The Midcounties Co-operative 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. 

How to engage customers with SmartestEnergy Business

SmartestEnergy Business 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.

"Engaging with Ecologi provides a unique opportunity to attract and retain environmentally conscious customers, strengthening our customer base"

— John-Paul Jenner, Senior Marketing Manager - SmartestEnergy Business

Each new project supported is also highlighted in the monthly Sustainable Spotlight. This initiative shares inspiring stories through the customer Info Hub and website, social media posts, and their customer newsletter. The team also updates an ongoing infographic each month to showcase the achievements of their Climate Action Calendar, creating a vibrant visual celebration of their collective impact.

2. Reputational risks of failing public climate commitments

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.

How to prioritise brand reputation with MSQ

MSQ 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.

"Planting 500 trees per pitch is a great slide for our commercial team. Our sustainability work plays well to our clients, too: Net-zero strategy and Science-Based Targets, low-carbon digital solutions & our work with Ecologi and the Million Tree Pledge"

— James Cannings, Chief Sustainability Officer - MSG

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.

How to prioritise brand reputation with MSQ

MSQ 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.

"Planting 500 trees per pitch is a great slide for our commercial team. Our sustainability work plays well to our clients, too: Net-zero strategy and Science-Based Targets, low-carbon digital solutions & our work with Ecologi and the Million Tree Pledge"

— James Cannings, Chief Sustainability Officer - MSG

3. Fear of greenwashing

Accusations of greenwashing are a growing concern, with nearly a third 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 almost a third expressing concerns over the credibility of their own claims. Our Climate Commitments Survey found that only 40% of businesses are confident in sharing their sustainability actions transparently. 

How to communicate your business impact effectively with EET

IT distributor EET Group 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.

"Ecologi's transparency, and ability to connect us with other users, helped build trust"

— Kristian Lading, CPSO - EET Group

Accusations of greenwashing are a growing concern, with nearly a third 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 almost a third expressing concerns over the credibility of their own claims. Our Climate Commitments Survey found that only 40% of businesses are confident in sharing their sustainability actions transparently. 

How to communicate your business impact effectively with EET

IT distributor EET Group 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.

"Ecologi's transparency, and ability to connect us with other users, helped build trust"

— Kristian Lading, CPSO - EET Group

4. Struggling to articulate ESG value to SLT and access capital

Financial constraints and the cost of climate tools continue to be barriers, with 32% of businesses 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.

How to find the ROI in sustainability with MSQ

As we mentioned earlier in this article, the MSQ 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.

Financial constraints and the cost of climate tools continue to be barriers, with 32% of businesses 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.

How to find the ROI in sustainability with MSQ

As we mentioned earlier in this article, the MSQ 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.

5. Declining Colleague Engagement

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.

How to engage colleagues with Mulberry

Mulberry 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’s journey, fostering greater understanding, ownership, and commitment to Mulberry’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’s carbon avoidance projects.

"Our partnership with Ecologi has supported employee understanding our our net-zero journey"

— Rosie Wollacott Phillips, Head of Sustainability - Mulberry

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.

How to engage colleagues with Mulberry

Mulberry 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’s journey, fostering greater understanding, ownership, and commitment to Mulberry’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’s carbon avoidance projects.

"Our partnership with Ecologi has supported employee understanding our our net-zero journey"

— Rosie Wollacott Phillips, Head of Sustainability - Mulberry

6. Unable to engage supply chain and change behaviours

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.

How to engage suppliers with Remarkably

Remarkably 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 Ecologi Zero, 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.

"We actively choose to work with clients, suppliers and partners who are purposeful and care about the planet, people and possibilities. In fact, 83% of our revenue came from projects with a positive impact"

— Rich Pemberton, CEO - Remarkably

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.

How to engage suppliers with Remarkably

Remarkably 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 Ecologi Zero, 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.

"We actively choose to work with clients, suppliers and partners who are purposeful and care about the planet, people and possibilities. In fact, 83% of our revenue came from projects with a positive impact"

— Rich Pemberton, CEO - Remarkably

7. Uncertainty about which climate projects can deliver the most impact

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.

How to select high-quality climate action projects with Ellers Farm

Ellers Farm Distillery, 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.

“Each initiative we funded led to positive impact backed by robust data that is easily traceable and has been independently verified according to the highest available standards.”

Antonia Doncila, Sustainability Manager, Ellers Farm Distillery

How to select high-quality climate action projects with Solo Service Group

Solo Service Group, 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.

“Ecologi not only provides the opportunity to support lasting environmental initiatives and funding for verified carbon reduction projects, but offers a platform to visibly share and promote this impact in an engaging format.”

Joseph Blackmore, Environment Manager, Solo Service Group

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.

How to select high-quality climate action projects with Ellers Farm

Ellers Farm Distillery, 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.

“Each initiative we funded led to positive impact backed by robust data that is easily traceable and has been independently verified according to the highest available standards.”

Antonia Doncila, Sustainability Manager, Ellers Farm Distillery

How to select high-quality climate action projects with Solo Service Group

Solo Service Group, 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.

“Ecologi not only provides the opportunity to support lasting environmental initiatives and funding for verified carbon reduction projects, but offers a platform to visibly share and promote this impact in an engaging format.”

Joseph Blackmore, Environment Manager, Solo Service Group

Is your business ready
to take climate action?

If this article has inspired your business to start its climate journey, talk to our team today.

Is your business ready
to take climate action?

If this article has inspired your business to start its climate journey, talk to our team today.

Is your business ready
to take climate action?

If this article has inspired your business to start its climate journey, talk to our team today.