Sustainability is of growing importance in the UK business landscape, despite current economic challenges, with companies facing a range of pressures from government regulation, consumers, employees, and investors.

It’s one reason why UK businesses are actively looking for ways to demonstrate clearly  their commitment to reducing impacts on the environment and people through sustainability certification.

Despite the tough conditions, 65% of UK companies have a plan to reduce their emissions to net zero by the 2050 deadline. (1)

Companies are facing growing regulatory pressures, including the EU’s Carbon Border Adjustment Mechanism (2) and the UK’s version (3) (due in 2027), to fully adopt sustainable business practices.

EU regulations also exclude products produced with forced labour, while pressing businesses to carry out due diligence on sustainability through the Corporate Sustainability Due Diligence Directive. (4)

At the same time, investors are looking for clear evidence of business commitment to best environmental, social and governance (ESG) practices, with 90% of global institutional investors revising investments if companies do not at least consider ESG criteria within their business model. (5)

Why sustainability certifications matter

Sustainability certifications can enhance business credibility, helping to demonstrate environmental commitment and social responsibility. One strength of the validation process is that certificates are issued by an independent party, which can improve confidence and trust.

Overview of Key Sustainability Certifications

Green Key

Green Key is an international certification, focused on environmental management, water, and energy efficiency and is eligible for hotels, hostels, small accommodations, campsites, holiday parks, conference centres, restaurants, museums and other attractions.

The certificate is promoted as a standard for excellence in the field of environmental responsibility and sustainable operation within the tourism industry,  and represents a commitment by businesses that their premises adhere to strict criteria set by the Foundation for Environmental Education. High environmental standards are maintained through rigorous documentation and frequent audits. Green Key has over 6000 certified establishments in more than 70 countries.

It is recognised by the World Tourism Organization (UNWTO) and UN Environment (UNEP), and the Green Key criteria are internationally recognised. In addition, Green Key is working in close cooperation with the University of Surrey to receive scientific-based support. (6)

Green Key has developed criteria and explanatory notes for six categories (hotels and hostels, campsites and holiday parks, small accommodations, conference centres, restaurants, and attractions) covering the 13 criteria areas.

B Corporation

Commonly known as B Corp, the certification targets businesses which demonstrate a continuous positive impact on the environment, community, customers, suppliers, employees, and shareholders.

More than 6000 companies across 80-plus countries and 150+ industries have B Corp certification. The B Corp community can offer a global network of businesses to  share best practices, collaborate and support.

The first step for certification is the free  B Impact Assessment, a confidential tool for mapping positive impacts across priority themes. Companies that score 80 or above can then move to application for full B Corp certification. (7)

ISO 14001

ISO 14001 is a standard for environmental management systems across a wide range of sectors, including  care homes and warehousing, and one of the oldest and most respected sustainability certifications. The certification process for ISO 14001 includes documentation review, internal audit, management review, and corrective actions. 

The ISO 14001 certificate is valid for three years, and companies must undergo annual surveillance audits and a recertification audit every three years to maintain certification. Organisations can design and implement an EMS, Improve environmental performance, ensure compliance and reduce environmental footprint. (8)

BREEAM

BREEAM (Building Research Establishment Environmental Assessment Method) is an Internationally recognised certification for sustainable building management, design, and construction, including warehouses and industrial facilities. The scope is very broad, and is suitable for retail, schools, care homes, warehousing and hospitals.

Developed in the UK, it is a widely used certification system for assessing a building’s sustainability levels, while ensuring compliance with sustainable construction and operation standards.  It can be applied to both new builds and refurbishments and is globally recognised. Many local authorities require BREEAM certifications.

To achieve accreditation, BREEAM assessor is required as part of the design process. (9)

BREEAM In-Use

BREEAM In-Use certifies the sustainability of existing office buildings through efficient resource use, management, and sustainable practices. It is a framework for assessing and certifying the sustainability of a building's operational performance. It can be used to help property owners, managers, investors, and occupiers make sustainable improvements to their assets.

It differs from other BREEAM schemes as most of the work is carried out by the client in the form of an online self-assessment tool. (10)

LEED

LEED (Leadership in Energy and Environmental Design) is similar to BREEAM but developed by the US. It is an internationally recognised system to measure a building’s sustainability achievement.

It might be a useful adjunct to BREEAM for businesses in real estate and construction, focusing on sustainable building practices, particularly in hospitality, healthcare, warehousing, offices, leisure, care homes, schools and retail.

It is not widely used in the UK due to the development of BREEAM and, at present and local authorities do not often ask for buildings to be LEED compliant. (11)

Green Globe

Green Globe is one of the world’s leading certifications in the travel and tourism sector. It validates hotels, resorts, conference centres and other attractions, assessing energy use, waste management, and overall environmental impact.

Green Globe certification is a structured assessment of the sustainability performance of travel and tourism businesses and their supply chain partners.

The Green Globe Standard includes 44 core criteria based on business type, supported by over 380 compliance indicators. The indicators vary by type of certification, geographical area as well as local factors. The Green Globe Standard is reviewed and updated twice per calendar year. (12)

Carbon Trust Standard

The Carbon Trust Standard recognises organisations that actively measure, manage, and reduce their carbon footprints and is particularly relevant to retailers looking to improve sustainability.

Carbon Trust offers levels of accreditation for the widest range of sectors and  products, as well as having its own international standard, PAS 2060. Carbon Trust is also one of the only companies in the world giving accreditation to events. (13)

Cradle to Cradle 

Cradle to Cradle certification is a global standard for creating products that are safe, circular, and responsibly made.

More than 34,000 products have been Cradle to Cradle Certified® across a variety of categories including building materials, interior finishes, furniture and household products, automotive, consumer electronics, textiles and apparel, cosmetics and personal care, cleaning products, paper, packaging and polymers.

Any eligible product or material that meets the requirements of the Cradle to Cradle Certified Product Standard can receive certification. The certification is awarded based upon four ascending levels of achievement: Bronze, Silver, Gold and Platinum, according to the product’s performance in each category. The product’s lowest category achievement level determines its overall certification level to encourage evolution and continued innovation.

Companies work with an independent assessment body to assess and verify a product’s performance across each of the Cradle to Cradle Certified performance categories. (14)

Choosing the right certification for your business

Which sustainability certification process is best suited to a business would depend on size and available resources along with the ESG goals set.

For example, the ISO 14001 is awarded by the International Standards Association, and while very prestigious, it can take a lot of resources to implement the EMS needed to achieve the certification. For that reason, it is more often undertaken by medium to large businesses rather than SMEs and startups. 

SMEs might benefit from B Corp certification, which has a step-by-step approach to validation, including free  B Impact Assessment,

For real estate and construction sectors, the BREEAM standard could be the best choice to support projects that develop better performing assets, increase asset value and help mitigate asset and reputation risk, particularly in the UK. Given that the costs can run into thousands of pounds for full assessment, the scheme is more suited to larger organisations

 The LEED scheme has similarities with BREEAM but with differing methodologies and would be a useful choice potentially for more globally-focussed companies, particularly those with interests in the US.

The Carbon Trust accreditation frameworks are broad and varied, so could be suitable for a wide range of companies across many sectors, while in the hospitality and tourism sector, both Green Globe and Green Key offer potentially effective certification with varying levels of cost, depending on business size and other factors.

Benefits of Sustainability Certifications

Sustainability certificates are not currently a legal requirement but can certainly help companies to broadcast their commitment to effective strategies that reduce environmental and social impacts.

As well as improving credibility and trust, certification such as ISO14001 can provide a strategic advantage, helping a company to differentiate itself in markets that are moving inexorably towards the green economy and eco-consciousness.

Certification can also help companies be more efficient by optimising consumption of resources and reducing operational waste while strengthening brand loyalty and improving market position. (15)

Another potential advantage of sustainability certification is that it can help to attract clients and partner companies, who would want to find businesses that align with their own ESG vision, as well as support with reporting on indirect emissions (Scope 3).

Certification can also help to strengthen compliance procedures and risk mitigation by ensuring alignment with evolving regulations and standards, reducing legal and reputational risks.

Practical Considerations

While sustainability certification is increasingly seen as a business benefit, there are often considerable costs that might be ongoing, as well as significant time Investments. As mentioned, some of the schemes would be more appropriate for large organisations with access to robust budgets.

Some certifications should be viewed as long-term commitments, with calls on time and other resources that are cyclical, and businesses would need to be ready for continuous efforts.

Conclusion: Start Small and Scale Up

Sustainability certification can be a very effective way for a business to boost its ESG credentials, while strengthening its environmental claims, and clearly demonstrate that it is not engaging in “greenwash”.

Certification can also enhance a company’s reputation, attract investors who care about the environment, and help to strengthen market position.

As the validation costs can be high, businesses might want to start with certifications that match current capacity and sustainability goals, with the option to expand into more comprehensive certifications as they grow.

Bibliography

1 Guardian: Only 65% of UK firms have plan to cut emissions to net zero, study shows (accessed September 2024) https://www.theguardian.com/business/article/2024/sep/11/only-65-of-uk-firms-have-plan-to-cut-emissions-to-net-zero-study-shows

2 EU Commission: Carbon Border Adjustment Mechanism (accessed September 2024) https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en 

3 Gov.uk: Factsheet: UK Carbon Border Adjustment Mechanism (accessed September 2024) https://www.gov.uk/government/consultations/addressing-carbon-leakage-risk-to-support-decarbonisation/outcome/factsheet-uk-carbon-border-adjustment-mechanism 

4 New Scientist: Inside the sustainable supply chain revolution (accessed September 2024) https://www.newscientist.com/article/2434514-inside-the-sustainable-supply-chain-revolution/

5 EY.com: Why sustainability has become a corporate imperative (September 2024) https://www.ey.com/en_gl/insights/strategy/why-sustainability-has-become-a-corporate-imperative

 6 Green Key website (accessed September 2024 )https://www.greenkey.global/

7 BCorporation: About B Corp Certification (accessed September 2024) https://www.bcorporation.net/en-us/certification/

8 ISO: ISO 14001:2015 (accessed September 2024) https://www.iso.org/standard/60857.html

9 https://breeam.com/

10 BREEAM (accessed September 2024) https://breeam.com/standards/in-use

11 USGBC:  LEED rating system (accessed September 2024) https://www.usgbc.org/leed

12 Green Globe (accessed September 2024) https://www.greenglobe.com/

13  Carbon Trust: Certified organisations (accessed September 2024) https://www.carbontrust.com/the-carbon-trust-standard/standard-bearers

14 Products Innovation Institute: Made for Tomorrow (accessed September 2024) https://c2ccertified.org/

15 Deloitte: The Sustainable Consumer 2023 (accessed 2024) https://www.deloitte.com/uk/en/Industries/consumer/research/sustainable-consumer.html