UK businesses struggle to balance growth with sustainability and inclusion

A new survey from The Open University reveals a growing dilemma for UK businesses: almost all leaders (96%) see growth as central to their strategy, particularly in the context of the UK Government’s priority mission in achieving strong, secure, and sustainable economic growth by 2035. Yet nearly three in four admit it often comes at the expense of workforce diversity and inclusion goals (72%) and sustainability and net zero efforts (71%).

The poll, based on responses from 500 UK business leaders shows that 78% expect growth to become an even greater priority in their strategy over the next three years, but many are grappling with the unintended consequences.

  • Half of businesses (53%) expect diversity, equity, and inclusion (DEI) to become more important in their strategies, yet two-thirds (64%) admit candidates from disadvantaged backgrounds may be overlooked, and the same proportion say workers needing adjustments are deprioritised during high-growth phases
  • Environmental commitments face similar pressure. While 87% of leaders rate sustainability and net zero as important to their business, 71% admit these goals are sometimes compromised to accelerate expansion

A new online roundtable event by The Open University, available to watch live on 9th September and on demand, examines how organisations can navigate these pressures, and how upskilling and reskilling can play a vital role in delivering growth that is both inclusive and sustainable across the public and private sector. The series features two roundtables covering people and the planet, bringing together thought leaders from organisations such as the NHS, Capgemini, Red Bull Racing and Red Bull Technology, Grant Thorton, and the John Lewis Partnership.

The survey further reveals that while many employers are beginning to take action in the face of these challenges such as flexible working (52%), investment in environmental sustainability skills (44%), and inclusive recruitment practices (39%), skills shortages continue to undermine progress. Nearly two-thirds (63%) of employers say workforce challenges have already limited their ability to grow inclusively and sustainably.

Only economic uncertainty (45%) and rising business costs (38%) rank higher than skills shortages (35%) as barriers to growth. Yet, workforce development stands out as the most tangible lever businesses can pull: half (50%) say easier access to a skilled UK workforce would support more inclusive and sustainable growth.

Dr Victoria Hands, Director of Sustainability at The Open University, said: “Skills development helps businesses grow in a sustainable and inclusive way. With economic pressures only expected to intensify, sustainability and inclusion skills in the workplace have never been more important. DEI initiatives unlock a diversity of new perspectives supporting innovation. Upskilling for sustainability prepares organisations for future challenges. Investment in upskilling helps attract and retain talent, building organisational capacity to respond to societal challenges, drive forward the green economy, and attract responsible investors and ethical consumers. If we want a fairer, greener economy, we must invest in our people now.”

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