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90% of UK businesses ‘already dealing with tangible climate fallout’

UK Plc’s balance sheet is increasingly tipping towards corporate loss as a result of nature and environmental crises. 

Produced by Ecologi and BusinessGreen, From Risk To Reward looks at how British businesses are working to become more resilient in a bid to secure their long-term value. 

According to a survey conducted by the organisations, nine-in-10 UK companies are now reporting ‘tangible climate fallout’ impacting their own profit and loss. For 70% of these firms, the ecological crisis is now costing 1% or annual turnover or more, with 40% reporting losing 6% or more of their annual turnover. 

Energy and resource scarcity was a big contributor to this, with almost one-third of companies reporting paying more because electricity and gas are prices higher, and other essential resources have become scarcer. 28% said they had observed costs increased due to the availability of raw materials, while 22% suffered from issues in the direct supply chain. 

As a result, 83% of leaders agree taking measurable steps towards net zero is essential for future operational resilience. However, in contrast only 58% of spokespeople accepted that their operations relied on nature and biodiversity — crucially, this is 9% less than the same report found in 2025. 

Firms that have doubled down on net zero are also enjoying visible benefits, with 31% reporting improved brand image and recognition, 30.6% say they have attracted a more eco-conscious customer base, 26% believe they now have an operational advantage, and 22.8% have seen profits rise. Almost 28% have seen costs fall and efficiencies improve. 

‘A new narrative is emerging as businesses recognise the strategic and commercial value unlocked through bolder sustainability efforts,’ said James Murray, Editor-In-Chief at Business Green. ‘This report reveals that any supposed softening of corporate climate engagement was based more on political headlines than the economic fundamentals driving the green economy for over a decade. Indeed, the business case for clean technologies and circular models is stronger now than ever.’

You can read the full report here

Image: Khamkéo / Unsplash 

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