Carbon reporting in the mid-sized business market

While the regulatory landscape is certainly a catalyst, what’s most striking is how mid-sized businesses are engaging with these requirements, not just to meet obligations, but to unlock value. There’s been a shift from compliance to commercial opportunity.

How mid-sized businesses are engaging

1. Proactive engagement driven by customer and supply chain pressure

Many mid-sized businesses aren’t waiting for the reporting deadlines. Instead, they’re responding to requests from larger customers, banks, insurers and other stakeholders who now expect emissions data as part of doing business.

This is especially true for those supplying into larger corporates or government contracts, where sustainability credentials are increasingly a prerequisite.

For example, we’ve seen suppliers to major retailers or infrastructure projects asked to provide carbon data as a condition of contract renewal, prompting them to start their reporting journey earlier than required.

2. Building internal capability and knowledge

We’re seeing a strong appetite for upskilling; businesses are investing in training key staff, not just in sustainability teams but across finance, operations, and procurement. There’s also a recognition that carbon reporting is becoming a core business skill, not a specialist add-on.

3. Leveraging technology for simplicity and scale

Software tools integrated with their accounting software are being adopted to streamline data collection and reporting. The appeal is clear: automation reduces manual effort, improves data quality, and makes assurance easier.

4. Using sustainability and ESG as a differentiator

Mid-sized businesses are increasingly using their sustainability credentials in pitches, tenders, and stakeholder communications. There’s a growing understanding that strong ESG performance can help win new business, retain key clients, and even secure better financing terms.

5. Practical, outcome-focused approach

Rather than aiming for perfection, businesses are starting with what’s practical, which means measuring what they can, setting achievable targets, and building from there. Advisory support is often sought for initial setup and strategy, but there’s a clear desire for self-sufficiency over time. It’s common to see businesses begin with energy and waste data, then expand their reporting scope as internal capability grows.

Common triggers for engagement

• Preparing for sale or succession (to boost business value)
• Bidding for large contracts (where ESG is now a standard requirement)
• Responding to customer or supply chain data requests
• Seeking finance or grants (where sustainability credentials are scrutinised)
• Managing reputational risk and stakeholder expectations

What’s working well

• Early adopters are seeing tangible benefits: improved client retention, smoother contract negotiations, and enhanced brand reputation.
• Businesses that embed ESG into their broader strategy; not just as a compliance exercise are better positioned to adapt as regulations evolve.

Key takeaway

For mid-sized businesses, carbon reporting and ESG are no longer just about compliance; they’re about future-proofing the business, strengthening relationships, and unlocking new opportunities. The most successful businesses are those that engage early, build internal capability, and use technology to make the process as efficient and valuable as possible.

We’re here to help

Grant Thornton’s experienced team can help you turn carbon reporting and ESG requirements into real business opportunities. Whether you’re just starting out or looking to enhance your existing approach, we offer practical support: from carbon calculations and ESG reporting to strategy development. 

We understand the unique needs of mid-sized businesses and are here to help you focus on what matters, creating real commercial value from both financial and non-financial reporting.

Contact us to discuss how we can help your business stay ahead and thrive in the evolving sustainability landscape.

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Turning carbon reporting into business opportunity

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