“Sustainability” has become a defining focus over the past decade, with an increasing number of companies striving for carbon neutrality and more responsible ways of running a business.
Across most industries, businesses are embracing greener practices — transitioning to renewable energy, reducing waste, and fostering ethical supply chains. As sustainability becomes more important for consumers, investors, and policymakers, companies are rethinking their strategies to build a future that prioritises resilience, innovation, and long-term impact over short-term gains.
We’ve explored the state of sustainability in the UK and the pioneering companies leading the charge towards a greener, more sustainable future.
The UK’s push towards more sustainable companies
In June 2019, the UK became the first major economy to set a net zero target in law, by amending the Climate Change Act 2008. This means that the total greenhouse gas emissions would be equal to the emissions removed from the atmosphere in the UK by 2050. Scotland also entered the initiative separately, committing to net zero by 2045.
This is an ambitious goal, and the UK government has introduced a number of key steps to make this more achievable. These steps include significant investments in renewable energy, phasing out fossil fuels, and promoting energy efficiency across industries.
The Labour government has since promised to expand the UK’s offshore wind capacity, and has recommitted to ban the sale of new petrol and diesel cars by 2035. Additionally, government policies such as the Green Finance Strategy, introduced in 2019, and stricter emissions regulations are encouraging businesses to prioritise sustainability.
The UK is also investing in carbon capture and storage (CCS) technologies. We recently introduced the carbon capture buzzword onto the Beauhurst platform, so Beauhurst subscribers can quickly and easily find carbon capture and storage companies.
If you’re a subscriber, you can try it for yourself here. Or book a demo with one of our experts to see how it works.
Industries at the heart of sustainability
Whilst it’s evident that all companies are going to have to “do their bit” to make net zero emissions by 2050 possible, there are a number of key industries that are often seen at the forefront of sustainability. But first of all, let’s examine what a “sustainable company” is.
What is a sustainable company?
A sustainable company is a business that operates in a way that minimises its environmental impact, promotes social responsibility, and ensures long-term economic viability. These companies integrate Environmental, Social, and Governance (ESG) principles into their strategies and decision-making.
In 2023, we introduced ESG signals onto the Beauhurst platform. This means you can quickly and easily find companies that uphold ESG values simply by using our search filters.
If you’re a Beauhurst subscriber, you can try it for yourself.
Sustainable fintech
Fintech companies in the UK are playing a growing role in driving sustainability by offering green financial products, supporting ethical investing, and reducing the carbon footprint of financial transactions.
According to our data, there are currently 275 active fintech companies in the UK that uphold one or more of the ESG values. In 2022, there was a record amount of investment into sustainable fintech companies, with £1.35b poured into these companies over the year. Looking at announced deals, £21.9b was raised by all companies across the entirety of 2022, meaning that these sustainable fintech companies equated to 6.2% of all equity investment raised that year. However, investment in this sector has since dropped,in line with overall investment levels. Find out more in our flagship report: The Deal 2024.
A number of the big fintech companies uphold sustainability initiatives. One example is London-based challenger bank, Starling, which is fully paperless and fully branchless — meaning all their communications happen online. This significantly reduces the company’s carbon footprint. Since its incorporation in 2014, Starling Bank has gone on to raise a huge £715m, as well as receiving a £100m grant in 2019 from the Capability and Innovation Fund. The company used the grant to create nearly 400 new job opportunities in the UK.
There are also fintech companies that focus primarily on “green finance”. Green finance refers to financial products, investments, and policies that support sustainable development, climate action, and environmental protection. It involves funding projects that reduce carbon emissions, promote clean energy, and encourage sustainable business practices.
Tandem is one such fintech company that focuses on green finance in particular. Founded in 2014, it has evolved into one of the UK’s prominent challenger banks, offering a range of products and services aimed at benefiting both customers and the environment.
In November 2024, Tandem Bank announced a partnership with Climate Impact Partners to offset 100% of its operational Scope 3 carbon emissions for 2023. This initiative involves purchasing three thousand tonnes of high-quality carbon credits to compensate for emissions not directly produced by the bank but related to its operations. This is just one of many initiatives Tandem has taken to offset its carbon footprint.
