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ESG: Industry outlook from the Made in UK Awards roundtable

· Posted on: July 4th 2025 · read

MHA are pleased to have welcomed, as part of a series of thought-provoking Round Tables, industry leaders to discuss how environmental, social and governance (ESG) factors are shaping business today. The consensus was clear: ESG is a continuous journey filled with challenges and opportunities, not a fixed endpoint.

Balancing ambition with reality

A key theme was balancing ambitious sustainability goals with practical constraints. While aiming for 100% recycled materials is ideal, factors such as cost, availability and performance often require compromise.

Being transparent about these trade-offs is vital to avoid greenwashing and maintain trust. Innovation remains critical, with companies exploring sustainable materials and circular economy models, though this requires investment and risk often supported by government or partnerships.

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Sustainability & ESG

Financial considerations

For small and medium-sized businesses, return on investment remains a priority. ESG initiatives must deliver tangible value and return on investment. Financial institutions increasingly require clear ESG credentials for lending and investment, driving improved governance and sustainability reporting. Rising regulation is encouraging genuine integration of ESG rather than superficial compliance (not withstanding those business within EU jurisdictions or trading into the Bloc with companies we are mandated to report at a more detailed level).

Independent verification of ESG data is becoming essential to build trust and competitiveness.

Customer focus and social impact

Customer approaches are changing, with businesses managing both large corporates and smaller clients to build resilience. Strong relationships and supply chain collaboration help spread sustainable practices. Transparency and authenticity in sustainability claims are powerful market differentiators.

Social factors such as fair pay, inclusive culture and employee ownership support morale, retention and productivity. Employees want to be proud of their company’s sustainability mission, which boosts engagement.

Supply chain challenges

Transforming complex supply chains is key to many sustainability goals, including responsible sourcing and managing emissions beyond direct operations. Smaller firms often rely on larger partners for guidance and contracts that reward improvements. Battery manufacturing illustrates this complexity, from sourcing materials like lithium and cobalt to circular reuse. Capital-intensive sectors with long cycles require patience, phased investment and collaboration. A supplier of one business will be a customer of another.

Technology’s growing role

Technology is playing an increasing part in sustainability efforts. Artificial intelligence and machine learning help optimise resource use and reduce waste. Emerging tech such as quantum computing and advanced analytics offer promise, though concerns remain over energy use and scalability. Cybersecurity was highlighted as another area requiring steady early action to build trust.

Clear regulations help businesses manage these risks. Digital transformation is not only about efficiency but enables new sustainable business models.

Social and governance factors

Social and governance elements are as important as environmental ones. Good employee relations, fair pay and a strong culture support a company’s licence to operate and attract talent. Governance is evolving to embed sustainability in decision-making, risk management and long-term planning.

Family-owned and owner-managed businesses often approach ESG with a legacy mindset, balancing financial goals with social and community commitments.

Good employee relations, fair pay and a strong culture support a company’s licence to operate and attract talent.

Key takeaways

Ambition must be balanced with practical constraints
Transparent reporting and data verification build credibility
Supply chain collaboration is essential
Technology can optimise sustainability and manage risks
Social and governance factors support success and retention
Legacy-focused leadership embeds ESG deeply

Conclusion

Sustainability is about more than compliance or cost. It is about preserving a business and its values for future generations. Leaders focused on legacy see ESG as key to survival, community wellbeing and stewardship rather than short-term profit. Responsibility extends beyond shareholders to employees, customers, suppliers and society, encouraging balanced strategies covering financial, social and environmental goals.

This transformation depends on people, leadership commitment, cultural change and cooperation across business ecosystems. Early practical wins and clear reporting build trust and momentum. Support between large corporates, SMEs and peers is crucial for scaling impact. Success today combines financial, environmental, social and legacy outcomes and requires ongoing learning, adaptation and balancing ambition with realism.