The UK’s biggest businesses are pushing ahead with net-zero plans, even as political uncertainty and complex regulations threaten to slow them down, new figures from the British Business Bank reveal.

After polling more than 2,000 firms, the largest-ever survey of UK businesses on their approach to net zero, the development bank found that more than three-quarters (79%) of large firms see carbon reduction as a strategic priority for the year ahead.

Added to that, the study found more than a third (35%) of SMEs also regard net zero as a priority, despite facing far fewer regulatory and reputational pressures compared to larger firms.

The Bank’s 2025 UK Net Zero Business Census reveals that UK companies believe progress on net zero goes hand in hand with value creation, with only 3% of large organisations saying net zero has no business benefits, rising to 25% among SMEs.

The findings show that ‘no-brainer’ net-zero actions, those closely tied to cost savings, are leading the charge, with energy efficiency measures (59%), waste reduction practices (55%), and switching to renewable energy suppliers (33%) among the most widely adopted steps.

But momentum drops sharply for more complex upgrades. Just 15% of firms have invested in on-site renewable energy plans, and only 6% have installed heat pumps, while nearly a third (30%) say they have no intention of adopting the technology at all.

Still, even if they are relying on simple measures, UK firms are ramping up their net zero commitments. The study found that 54% of large organisations have already set a net zero target, with 22% planning to do so,  while around a third (31%) have developed a carbon emissions plan, or will within the next twelve months.

The survey found UK businesses are also placing greater focus on tracking emissions across their supply chains, driven by a desire among their customers for concrete action. 

More than half of large organisations (51%) have received carbon data requests directly from clients or through tender processes, rising to 62% among exporters. Even smaller firms aren’t exempt, with 37% of medium-sized businesses, 20% of small businesses, and 8% of microbusinesses facing similar demands in the past year.

With customers on board and businesses backing sustainability, net zero should be within reach, but stubborn roadblocks are slowing progress.

According to the Bank’s report, 70% of UK firms cite regulatory uncertainty as a key barrier, while high costs (80%) and limited access to finance or grants (69%) are also dragging momentum.

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While government-backed initiatives have helped advance some net-zero actions, the Bank said that policymakers should aim for regulatory clarity and standardisation, including the swift publication of UK Sustainability Reporting Standards and Streamlined Energy and Carbon Reporting updates, and alignment with emerging global frameworks like the ISO net-zero standard (ISO 14060).

“Although the political consensus on climate action is destabilising, British businesses are still clearly committed to net zero,” said Andrew Griffiths, policy director at Planet Mark, a publishing partner with the report.

“When leaders look at the evidence and think about long-term strategy, it is becoming increasingly apparent that the businesses that act today to enhance efficiency, reduce emissions and build resilience to environmental impacts are setting themselves up for success in a more sustainable future.”