Unlocking Growth with Your Sustainability Plans
Sustainability is now critical for the ‘critical middle’
Mid-sized companies form the backbone of the UK economy, contributing £1.3 trillion annually and employing 26% of the workforce. With turnovers between £25 million and £250 million, these firms earn their title as the “critical middle” thanks to their outsized economic impact.
For ambitious businesses looking to scale, a credible and effective approach to sustainability is now essential, not just for compliance but as a key to future growth opportunities.
Why Sustainability Drives Value
Customer Acquisition
Mid-sized B2B businesses supplying large corporations are under increasing pressure to provide evidence of robust, transparent, and actionable sustainability plans. These customers face tighter regulations and investor scrutiny, and they need to be confident that their suppliers are helping them meet their sustainability goals—your impact is their impact.
Today’s big players are no longer satisfied with superficial claims. They’re looking for suppliers with clear, credible plans that show genuine environmental and social responsibility. According to recent insights, large corporations now prioritise suppliers that demonstrate commitments to decarbonisation, ethical sourcing, and climate resilience. This shift is driven by increasing regulatory pressures, stakeholder expectations, and the desire to mitigate supply chain risks associated with climate change and social issues.
Mid-market companies that want to win and retain contracts must prove they have a credible plan and are progressing against it.
2. Access to Capital
Lenders are also paying closer attention to sustainability. As they work to meet their own sustainability commitments, they’re starting to assess how borrowers perform on sustainability. In fact, 81% of lenders say that a company’s sustainability status and ability to transition to net zero will influence lending decisions over the next 5 years. Source
Mid-market companies, therefore, need to ensure they develop a sustainability strategy backed by good quality data and clearly communicate it to their lenders. Those that don't have a roadmap in place to improve their sustainability credentials may find that it negatively impacts their ability to access capital.
3. Successful Exits
ESG credentials are now an important factor in M&A dealmaking, regardless of company size. Mid-sized companies with strong sustainability credentials are often seen as more resilient, lower-risk, and aligned with long-term trends. Source
For any mid-sized company considering a future sale or investment, it’s worth asking: What will your sustainability credentials look like when it’s time for due diligence?
4. Talent Retention and Attraction
67% of Gen Z workers say they prioritise employers with a clear sustainability agenda. Having a strong approach to sustainability can therefore help attract and retain top talent 79.
5. Operational Efficiencies
Sustainability initiatives can also help drive efficiencies. For example, energy-saving measures in manufacturing have reduced operational costs by up to 18% for firms adopting them 17.
At a time when costs are rising, sustainability can support smarter, more efficient ways of working.
Sustainability: The New Currency of Trust & Growth
To sum up, UK mid-sized companies must view sustainability not just as a compliance obligation, but as a strategic differentiator. Those that lag behind will find themselves struggling to retain and win business with large corporates, facing fewer options for accessing capital, compromising their competitiveness at the point of exit and missing out on top talent.
Sustainability is not just a compliance exercise, it’s a growth strategy.
