Experts Share: How Important Is Sustainability For Startups In 2025?

Startup companies now are faced with customers and investors who care deeply about carbon footprints. The Department for Business and Trade plans to consult on draft UK Sustainability Reporting Standards in the first quarter of 2025, reminding founders that transparent data will soon shape every funding round.

Regulators will ask for climate metrics from the first day a company lists, so founders prefer to build those records while teams and products are still small.

FuturePlus, a sustainability platform, adds that clear targets burnish a brand and open doors to capital that prizes social impact.

 

What Rules Will Influence The Market?

 

The International Sustainability Standards Board released IFRS S1 and IFRS S2 in 2023, setting a global baseline for climate and social disclosures.

London backs that baseline, and if the endorsement process ends in a green light, the Financial Conduct Authority can require listed companies to follow UK-adapted versions.

Government explains that an independent Technical Advisory Committee is already reviewing the text, while a Policy and Implementation Committee maps out how regulators will supervise reports.

 

How Can A Small Team Track Its Numbers?

 

FutureImpact, part of the FuturePlus family, lets founders answer an online questionnaire that covers five themes linked to United Nations goals.

The system checks replies against best practice frameworks and returns a 3 year roadmap with live scores.

Automatic reminders keep targets on course, and dedicated advisors guide users through policy drafts, templates and joint solution partners.

Startups receive instant access to HelpHub material, saving scarce hours that would otherwise be spent writing bespoke policies.

An IMPACT CERTIFIED badge then shows customers and investors that the company records progress rather than talk.

 

How Important Is Sustainability For Startups In 2025?

 

Experts have reflected on what they believe the importance of sustainability in startups is, especially in 2025. Here’s what they’ve shared…

 

Our Experts:

 

• James Demastus, PhD, Universidad de Deusto
• Jason Tassie, Founder, Know Your Business
• Anjan Pathak, CTO and Co-Founder, Vantage Fit
• Jonas Eifrém Strinnholm, Marketing Manager, PriceAgent
• Justin Goldsberry, CEO and Founder, Goldsberry Management Group, LLC
• Robert Grey, Director, Sustainable Future, Plug and Play
• Jeremy Griffin, Founder, Startup Street
• Gareth Lloyd-Jones, Managing Director, HIPPO
• Katie Sarna, Co-Founder, CEO, Benni Pops
• Hasan Hanif, Founder, Colour Vistas
• Andres Bernot, Founder, WOW! Shirts
• Fahad Lateef, CEO, Legend Group

 

James Demastus, PhD, Universidad de Deusto

 

 

“This question can be viewed from a few perspectives.

“Does a start-up need to comply with policy and regulation regarding sustainability? Essentially no. The only company’s in the world that are required to file a sustainability report are those in the EU that are publicly listed or considered large. Start-ups probably won’t be large or listed.

“Does a company need sustainability to attract customers? It can definitely be a plus. Research shows that consumers will sometimes pay more or gravitate towards a company this is perceived as green or environmentally friendly. This doesn’t necessarily mean a company is sustainable but it’s generally a positive association. Customers can also contribute to company’s sustainability policy, by providing ideas and guiding market demand.

“Does a start-up need sustainability to profitable? It would be rare if a company did. Sustainability, when perused faithfully, requires innovation, transparency, and often an experimental strategy. These are all aspects that are risky for start-ups.”

 

Jason, Founder, Know Your Business

 

 

“In 2025, sustainability is a necessity for UK startups. If you’re pitching to investors, bidding for contracts, or trying to win over customers, having a credible environmental strategy is essential.

“We’re seeing growing pressure across the board, especially from local councils who always prioritise green credentials in procurement.

“Startups actually have a unique advantage here. Unlike large legacy businesses trying to retrofit sustainability into old models, startups can build it in from day one.

“Investors, especially in the UK’s early-stage, will always want to know about sustainability metrics as part of due diligence. So the most resilient and investable startups in 2025 are those that can align commercial goals with positive environmental impact.

“World Environment Day should be a reminder to founders that building a sustainable business model is really smart business. The next generation of high-growth UK companies will be those that prove you can scale and still look after our planet.”

 

Anjan Pathak, CTO and Co-Founder, Vantage Fit

 

 

“In 2025, sustainability is no longer just a buzzword. It’s a business imperative, especially for startups. As the world faces increasing environmental and social challenges, the need for responsible and sustainable practices has never been more urgent. For startups, sustainability offers a unique opportunity to align business growth with positive social and environmental impact, building a foundation for long-term success.

“Incorporating sustainability into a startup’s core values is crucial not only for attracting customers but also for embracing employee engagement, building brand credibility, and gaining investor confidence. Consumers, especially millennials and Gen Z, are increasingly making choices based on the environmental and social values of the companies they support. This trend has led to a significant shift, where startups with strong sustainability initiatives are seen as more innovative and future-focused.

“Moreover, as the world moves toward stricter environmental regulations and policies, adopting sustainable practices early on can help startups stay ahead of compliance requirements, reduce operational costs (such as energy savings), and mitigate risks. It’s also essential for startups to consider the impact of their operations on the planet and communities, not just for ethical reasons, but also for financial resilience. Sustainable practices can unlock new revenue streams, build customer loyalty, and create competitive advantages in the marketplace.

“In short, sustainability in 2025 is a necessity for startups. It’s integral to attracting talent, customers, and investors while positioning a company for lasting impact and growth in a rapidly evolving world.”

 

Jonas Eifrém Strinnholm, Marketing Manager, PriceAgent

 

 

“When it comes to sustainability, people say one thing, but then often act very differently. Start ups need to be wary about this, and very clear when it comes to the priorities of their potential customers or clients.

“Having conducted over 200 pricing projects for a variety of brands – from start ups through to global enterprise, we’ve only rarely seen willingness to pay more in segments claiming to value sustainability.

“Yet, surprisingly, brand interest in this insight is low. This is something that surprises us. We would expect more brands to want to find out about this.

“What could drive greater ‘willingness to pay’ – the term used in pricing intelligence – appear to be concrete questions such as, “Is it repairable?” or “Can I replace the battery?”

“Certainly it seems that some start ups would do well to think in terms of functional durability rather than focusing on overtly stated sustainability. This would, in turn, demonstrate an awareness of the need for a more circular economy, with sustainability coming hand-in-hand with affordability and value.”

 

 

Justin Goldsberry, CEO and Founder of Goldsberry Management Group, LLC.

 

 

“For startups in 2025, sustainability isn’t just a box to check—it’s a business essential. With net-zero commitments gaining traction around the world, founders must view every vendor partnership, business trip, and system they build as part of their carbon footprint.

“The good news? Startups aren’t burdened by legacy infrastructure or outdated systems. They have the freedom to build smarter from the ground up—leveraging solutions that track emissions, adopting policies that promote better choices, and designing strategies that help decarbonise their operations from day one.”

 

Robert Grey, Director, Sustainable Future, Plug and Play

 

 

“Sustainability is no longer optional for startups in 2025 – it’s essential. We’re witnessing an era where investors, consumers, and regulators are unified in prioritising sustainable practices. Startups embedding sustainability into their core strategies enjoy stronger market traction due to heightened consumer demand for eco-friendly products. Recent reports from Forbes and Business Insider state that they also attract more funding as venture capital increasingly favors sustainability-focused ventures and resonates deeply with increasingly conscious consumers.

“That said, the road to sustainability isn’t without obstacles. Startups may face increased costs, operational complexities, and the need for substantial upfront investment, and many solutions to the climate challenge require capital expenditures. There’s also the risk of market saturation and growing consumer skepticism around greenwashing, and of course, a more volatile regulatory and political landscape. Balancing short-term profitability with long-term sustainability goals can be difficult, especially in the resource-constrained early stages. Startups must be intentional, transparent, and committed to measurable outcomes if they want to maintain credibility and lasting impact and do it from the start.

“Companies like Atomo Coffee, Mona Lee, Checkerspot, and Rubi Labs have sustainability at their core, but are delivering high-quality products that allow them to shine and grow. On World Environment Day, we’re reminded that sustainability is not just a moral imperative—it’s an incredible opportunity to build resilient, future-ready businesses that solve real-world problems. What we are betting on is that the entrepreneurs who embrace this challenge today will be the market leaders of tomorrow.”

 

Jeremy Griffin, Founder, Startup Street

 

 

“Unfortunately, sustainability – while still popular – has decreased in appeal due to various market factors. Anytime something becomes a “buzzword” – which this did in many scenarios – it will inevitably have to come back down to reality a bit.

“Startups in general still value the concept. Investors have grown a little tiresome of it being crammed into anything – many times with little actual sustainable practices – by startups, in order to simply “check it off”.

“There are three main levels to sustainability with startups:

1. “Sustainable Mission: Sustainability is at the key of their core beliefs, and products and processes are built around it.

2. “Sustainable Oriented: Sustainability is welcomed, but not at the top of the priority list. These startups are the ones we see mentioning it despite having no real commitment, in order to “check the box” because they feel they have to by the general market (not themselves).

3. “Sustainable Vacant: These startups are not interested in adapting it into the mission.”

 

Gareth Lloyd-Jones, Managing Director, HIPPO

 

 

“For startups in 2025, sustainability isn’t simply about how you operate — it’s central to how you’re perceived. It’s a brand positioning tool. Customers today buy into values as much as products. If your brand doesn’t show a clear stance on sustainability, you risk looking out of touch from the start.

“At HIPPO, sustainability has shaped how people see us. Not just as a waste company, but as a responsible service that helps others reduce their environmental impact too. That kind of positioning builds loyalty, earns trust, and gives your brand purpose beyond the sale.

“Startups that weave sustainability into their brand from the beginning stand out for the right reasons. It’s not about ticking boxes but showing customers who you are and what you stand for. That matters more now than ever due to the urgency of environmental issues and higher customer demand on ethical and environmentally conscious products and services.”

 

Katie Sarna, Co-Founder, CEO, Benni Pops

 

 

“In 2025, sustainability isn’t just a trend for startups, it’s a responsibility. It’s easy to forget that every piece of plastic packaging someone tosses in the trash doesn’t disappear; it leaves your home but not the earth. At Benni Pops, we use 100% home compostable packaging, a rarity in the freezer aisle.

“Our frosty pops are lovingly wrapped in bags made from plant-based bioplastic derived from renewable resources like corn starch and sugarcane. Under proper aerobic composting conditions, they decompose in about 12 weeks. We’re committed to creating healthy products, inside and out.”

 

Hasan Hanif, Founder, Colour Vistas

 

 

“In the next four years, startups should give more importance to sustainability, since it’s clear that the actions of both companies and people can cause environmental damage. Since the world is facing more serious threats to the environment, new businesses should be extra careful about their actions. It helps nature and draws people who wish to join businesses that focus on the environment. They should avoid damaging the environment.

“Companies that focus on sustainability are thought of as dependable which gains them the respect of their customers. Sustainable techniques allow us to use less energy and waste, making things more affordable. Because every person has duties to the environment, new businesses need to highlight their concern and commitment to fix the environmental challenge. Taking into account your necessities and the way you dye can greatly improve your results compared to someone else’s.”

 

Andres Bernot, Founder, WOW! Shirts

 

 

“Being sustainable goes beyond simply following trends for startups in the upcoming years. Due to worldwide focus on protecting nature and the reminder given by World Environment Day, consumers and investors today are strongly supporting startups that follow eco-friendly policies. Companies must pay attention to both the products they provide and how they offer them. More and more people realise the impact of the decisions they take on the environment.

“For example, using environmentally friendly and ethical ways to produce shirts is necessary for all companies. It involves meeting customers’ expectations early and keeping up with their important values. They affect not only the environment; they also strengthen a brand’s reputation and encourage people to buy from the company regularly when they feel it is truly doing good.

“Businesses that begin in 2025 have a chance to change the world in both what they do financially and in their relationships with others. Sustainability isn’t only about meeting requirements, it’s now a problem that businesses are highlighting as their own. If you are starting your business now, it’s good to consider how you can help in a way that is responsible and fair.”

 

Fahad Lateef, CEO, Legend Group

 

 

“In my 17 years experience of building (and collapsing) startups, I have learned that we all struggle at first and push hard against the waves like Tom Hanks in Cast Away trying to cross the incoming tide. It is not our strength but our perseverance that gets us there.

“In 2025, people are looking at AI startups which are on the verge of becoming unicorns within a year of their inception. The question is how many of them will continue to exist next year. Instead of focusing on double- or triple-digit growth, we should focus on business models that can survive the crests and troughs of economic policies, tariff wars, AI startup launches, and political affiliations of tech giants. A sustainable business today is the one that solves problems of humans not machines.”