The high costs of ethical spending are putting ESG initiatives out of reach for most UK businesses.
Despite company bosses and boardrooms wanting to do better, with 62% of businesses seeing ESG reporting as vital for improving sustainability, around 57% admit current financial conditions make it unfeasible.
That’s according to a new report from Pleo – a leading expense management platform, which showed economic pressures are forcing many firms to prioritise survival over sustainability.
With mandatory ESG reporting expanding in 2025, businesses face mounting pressure to find cost-effective ways to embrace sustainable practices without jeopardising their financial health.
A fear of losing momentum further stalls ESG progress. Nearly 70% of companies worry that slowing or pausing spending could harm future growth opportunities and 87% have cut budgets in the past 18 months.
Finding resources toward ESG efforts in this climate is a significant challenge says the study.
Collaboration between finance and other departments offers a potential solution. Two-thirds of businesses believe greater cross-departmental insights could lead to better spending decisions.
CFOs are now seen as pivotal in driving ESG initiatives.
Pleo says finance leaders must integrate sustainability into broader strategies and build a culture of accountability. However, challenges persist, with 59% of respondents finding finance teams difficult to work with.
