Reporting Intelligence – September 2025

The sustainability landscape in the UK is shifting. This month, we explore corporate climate commitments, investment returns, reporting innovation and the latest regulatory developments.

SBTi reports a 227% rise in firms setting climate targets

The Science-Based Targets initiative reports dramatic growth in corporate climate commitments, with companies setting both near-term and net-zero targets increasing 227% since the end of 2023. Asia leads this expansion, particularly China, with 228% growth. Near-term targets alone grew 97%. Industrials, Consumer Discretionary and Materials sectors dominated adoption.

Companies with science-based targets now represent 41% of global market capitalisation, up from 39%. The trend demonstrates accelerating corporate climate ambition rather than retreat, with businesses increasingly embedding comprehensive climate goals into core strategies for competitive advantage and transition risk management.

Read the full report here

PwC research reveals that UK CEOs are reporting strong returns from climate investments

PwC research reveals 87% of UK CEOs have made climate-friendly investments in the past five years, with 38% reporting that these climate-friendly investments have resulted in an increase in revenue. Only 1.8% saw revenue decreases. UK climate technology investment rose 24% in 2024, driven by AI-powered solutions. However, barriers remain: 36% cite lack of external stakeholder demand, whilst only 51% have sustainability-linked compensation. Investors support action, with 74% willing to invest more in climate-focused businesses and 77% believing ESG should be embedded in corporate strategy. Climate change could reduce the global economy by 7% by 2035, making sustainability essential for value creation.

Read more here

Osapiens study finds that over two-thirds of UK firms see sustainability reporting as a key driver of innovation

Osapiens research reveals that 69% of UK businesses support mandatory sustainability reporting, viewing it as an innovation driver and competitive advantage. The study of 150 senior sustainability leaders found regulatory uncertainty as the top challenge (50%), followed by data complexity (27%) and compliance costs (26%). Nearly half of those surveyed are experimenting with automation. Only 10% feel very confident tracking supply chain impact, whilst 45% are somewhat confident.

This research is especially timely given that UK businesses are preparing for the introduction of the UK Sustainability Reporting Standards (SRS), set to be finalised in September 2025 alongside existing frameworks like CSRD and SASB.

Read the full report here

Financial Conduct Authority publishes review of climate reporting

In 2021, the UK Financial Conduct Authority (FCA) finalised its climate disclosure rules, requiring asset managers, life insurers and regulated pension providers to make climate-related disclosures in line with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.

Following a recent review into firms’ climate reporting in line with these rules, the review finds that firms have increased consideration of climate risks and supported their integration into firms’ decision-making. However, Firms struggled with forward-looking quantitative data, with only half providing the required scenario analysis. Product-level reports were often inaccessible, limiting retail engagement.

The FCA plans to streamline requirements by aligning with ISSB standards, simplifying disclosures, and improving international consistency whilst maintaining client protection and reducing greenwashing risks.

Read the full findings here

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If you’d like to discuss this, or any other subject, please get in touch with Richard Costa at richardc@gather.london

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