Environmental Improvement Plan 2025: What Businesses Need To Know

The UK Government has published its updated Environmental Improvement Plan (EIP), outlining the steps it intends to take in order to improve the natural environment and setting interim targets to keep the UK on track to meet its long-term statutory targets. The EIP sets out 10 headline goals and makes 91 commitments, giving businesses, communities and policymakers a clear roadmap for environmental action and investment over the next five years.

In this article, we provide an overview of what the updated EIP covers, some of the implications for key stakeholders across different sectors and consider how this might steer future environmental legislation and business compliance.

Why is the EIP significant?

Publication of the updated 2025 EIP is particularly timely, as it arrived in the same week that the Joint Nature Conservation Committee (JNCC), the only statutory nature advisor for the entire UK, published its annual UK Biodiversity Indicators report. The JNCC concluded that overall, more indicators of biodiversity are deteriorating or showing no change than are improving, both in the long and short term. The JNCC did note that while there are many signs of positive change in some aspects of biodiversity, ongoing pressures on ecosystems remain significant.

For organisations across a wide range of sectors, the updated EIP represents a challenge to meet higher expectations and an opportunity to innovate, build resilience and contribute to long-term environmental recovery.

What does the EIP cover?

The EIP is the Government's statutory strategy for improving the natural environment under the Environment Act 2021. First published in 2023 as the initial revision to the 25‑Year Environment Plan (originally launched in 2018), the EIP provided a long‑term framework for nature recovery, resource efficiency and resilience. The 2025 update builds on that foundation, developing the commitments introduced in 2023 and setting new priorities across climate, circular economy and environmental security.

In this summary, we have grouped together some of the key themes from the 2025 plan and highlighted several key headlines under each, giving insight into what they could mean for businesses. For background on the 2023 plan and its role as the first revision to the 25‑Year Environment Plan, you can read our earlier insight..

Restored nature

Restoration of nature is a central ambition of the EIP 2025, with the overarching aim of creating a network of bigger, better and more resilient habitats, through conservation and land management, reversing biodiversity loss, increasing woodland cover and hedgerow planting and halting the decline in species abundance.

Goal 1: Restored nature – We will create a network of bigger, better and more resilient habitats to help nature thrive.

The EIP 2025 outlines an ambition to reverse biodiversity loss and expand opportunities for people to connect with nature. It combines conservation and land management with measures to increase woodland cover, restore hedgerows and halt the decline in species abundance. Alongside restoration, the plan emphasises access, recognising the public health benefits of greener, more biodiverse environments. The Nature Restoration Fund and commitments on hedgerow habitats illustrate the scale of that ambition.

While the EIP addresses a number of areas under this theme, here we highlight four commitments, in particular, under the goal of restored nature:

• 7 – Effectively conserve and manage 30% of the UK's land by 2030 (30by30)
• 9 – Increase the contribution that Protected Landscapes are making to Environment Act and EIP targets, measured through the Protected Landscapes Targets and Outcomes Framework
• 10 – Restore or create a total of 250,000 hectares of a range of wildlife-rich habitats outside of protected sites by December 2030 (Environment Act interim target)
• 12 – Support farmers and land managers to create or restore 48,000km of hedgerows by 2037 and 72,500km of hedgerows by 2050

What it means for businesses

The commitments on nature recovery and access will shape how organisations manage land, plan developments and assess supply chains. Large landowners will need to understand how their holdings contribute to wider conservation goals, including whether they provide nature corridors or sit close to protected landscapes. Developers and infrastructure providers will be expected to deliver biodiversity net gain (BNG) and factor habitat creation into planning decisions – particularly as designations under planning law may evolve as actions from the EIP are implemented.

The plan also places responsibilities on landowners and managers, who will be supported to restore tens of thousands of kilometres of hedgerows and contribute to the target of conserving 30% of UK land by 2030. The impact will see supply chains across sectors come under greater scrutiny, with large infrastructure developers and other organisations needing to understand how their activities affect habitats and biodiversity - not only directly but also through their suppliers.

The EIP indicates that businesses should look down their supply chains to identify risks and opportunities, ensuring that procurement and project delivery align with conservation and access goals. The Nature Restoration Fund, which will be established under the Planning & Infrastructure Act to ensure developments support recovery of protected sites and species, and commitments made on woodland and habitat expansion highlight opportunities for investment in forestry and land management. They also signal, however, that compliance and reporting will be looked at even more closely.

Environmental quality (air, water, chemicals)

Improving environmental quality is another core theme, with actions aimed at achieving clean air, ensuring English waters are clean, resilient and plentiful, tackling sewage discharges and reducing risks from harmful chemicals such as PFAS (per- and polyfluoroalkyl substances). For the first time, the Government has pledged to introduce a PFAS action plan in 2026 and has committed to a review of sewage spreading rules on land. Of particular note is the commitment to reform chemicals regulation in the UK and the proposal to review the UK's contaminated land regime, which has not been substantively reviewed since its introduction well over twenty years ago.

Goal 2: Air – We will achieve clean air.

Improving air quality is central to the plan, with statutory targets set to reduce harmful emissions. The EIP builds on existing obligations by setting clear interim targets for pollutants and particulate matter, recognising the need for stronger action to address the impacts of poor air quality.

Among the details set out in the plan, we cover here the following two commitments:

• 19 – Deliver 2030 emissions targets to reduce anthropogenic emissions for the following pollutants against a 2005 baseline level:
  • ammonia (NH3): 16% reduction
  • nitrogen dioxide (NO2): 73% reduction
  • sulphur dioxide (SO2): 88% reduction
  • Particulate Matter (PM2.5): 46% reduction
  • non‑methane volatile organic compounds (NMVOCs): 39% reduction

• 21 – Deliver air quality targets for PM2.5 concentration and exposure:
  • an annual mean concentration target of 10 micrograms per cubic metre to be achieved by December 2030
  • a population exposure reduction target of 30% compared to 2018 to be achieved by December 2030 (Environment Act interim targets)

What it means for businesses

Alongside the headline commitments, the EIP introduces several practical measures to help deliver cleaner air. Work will begin with local authorities and developers to pilot a streamlined approach for assessing particulate matter (PM2.5) in planning decisions. Transport is another focus, with government backing the transition to a zero‑emission bus fleet through clearer procurement pipelines, new regulations and targeted funding. Industry will also see changes, as reforms to the environmental permitting regime are expected to bring more operations under stricter controls, including sectors such as combustion, batteries and anaerobic digestion.

The EIP indicates that permitting processes will become more efficient, but at the same time controls are likely to be strengthened, with additional activities brought within scope. Businesses may therefore face more rigorous compliance requirements, even as approvals progress more smoothly. This approach reflects wider transport policy and underlines the expectation that organisations play an active role in reducing emissions and improving air quality - see our sustainable transport article for further context.

Goal 3: Water – We will ensure English waters are clean, resilient and plentiful.

Water resilience is highlighted as a priority in the EIP 2025, with measures designed to reduce consumption, strengthen drainage requirements and modernise protections for soil and water. The plan recognises the pressures of climate change, population growth and industrial demand and sets targets to help drive efficiency.

Among the details set out in the plan, we touch on these four commitments:

• 24 – Require standardised sustainable drainage systems (SuDS) in all new developments with drainage impacts and ensure sustainable maintenance arrangements are in place by 2029
• 30 – Reduce the use of public water supply in England per head of population from a 2019 to 2020 baseline:
  • a by 9% by March 2027 and
  • a by 14% by March 2032 (Environment Act interim targets)
• 32 – Reduce non‑household water use by 9% by 2038
• 35 – Reduce household water use to 122 litres per person per day by 2038 from a 2019 to 2020 baseline

What it means for businesses

New developments will be expected to integrate sustainable drainage systems, with planning requirements tightening over time. Homes and businesses will need to address water use more directly, with the statutory target to reduce household consumption to 122 litres per person per day by 2038. This represents a substantial reduction compared to current levels, signalling a major shift in consumption patterns. Businesses, particularly those in water‑intensive sectors, may find these changes challenging, but there is time to prepare. Considering efficiency measures when upgrading equipment or refurbishing facilities can help organisations adapt smoothly, rather than waiting until requirements are mandatory. Acting early not only eases the transition but also demonstrates a proactive approach to resource management.

There is also a pledge to review rules on sewage spreading on land and modernise the contaminated land regime. While the detail is still to come, these reviews are intended to ensure protections for water and soil remain fit for current challenges.

Goal 4: Chemicals and pesticides – We will minimise environmental risks from chemicals and pesticides.

The EIP sets out reforms to reduce risks from harmful substances, including persistent chemicals such as PFAS. For the first time, the Government has committed to a dedicated PFAS plan, alongside proposals to modernise the contaminated land regime and accelerate protections under UK REACH. These measures reflect growing concern about chemical pollution and its impact on both the environment and public health.

Three headline commitments we focus on under this goal include:

Headline commitments include:

• 40 – Reform UK Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) to enable protections that address chemical pollution to be applied more quickly, efficiently and in a way that is more aligned with our closest trading partners, especially the EU, by December 2028
• 41 – Take action on PFAS through a new PFAS plan
• 45 – Review the delivery of the contaminated land regulatory regime by assessing the use of existing powers and local authority performance through a new State of Contaminated Land Report by 2026

What it means for businesses

Reforms to UK REACH will accelerate how protections against chemical pollution are applied, with closer alignment to EU standards expected to ease compliance for businesses operating across borders. The PFAS plan marks a significant step, as the UK begins to address risks from these persistent substances, though at present detail is limited. The UK is behind other jurisdictions, such as Canada, which have already introduced PFAS reporting requirements. This raises the possibility that the UK could follow with restrictions or bans in future. For now, this is an early signal rather than a fully defined regime, but it is important for sectors such as energy, automotive and manufacturing to keep it on their radar.

The review of the contaminated land regime will assess how existing powers are used and how local authorities perform, culminating in a new State of Contaminated Land Report by 2026. While immediate changes for businesses are not yet clear, this could reshape responsibilities for remediation and compliance. Organisations may wish to consider potential impacts early, particularly if they operate on or redevelop land with legacy contamination, so they can get ahead of the curve before reforms are finalised.

Circular economy (waste and resources)

Cutting waste and tackling waste crime, driving resource efficiency and encouraging sustainable production and consumption are central to the EIP 2025's circular economy goals. Public and private investment in green industries is being leveraged to raise living standards, create secure jobs, and boost productivity. The water sector is investing £104 billion into critical infrastructure, and industry expects another £10 billion from new recycling systems introduced through circular economy reforms (Environmental Services Association 2023).

Goal 5: Waste – We will minimise waste by designing it out of the system, reusing and recycling materials wherever possible.

Waste reduction is a cornerstone of the circular economy, with reforms designed to reshape how materials are managed and financed. The EIP sets out measures to reduce reliance on landfill, expand recycling systems and ensure producers take greater responsibility for the lifecycle of their products.

A key headline commitment that stands out:

• 51 – Publish the circular economy growth plan in early 2026, followed by its implementation

What it means for businesses

The circular economy reforms represent a significant shift in how waste is managed and financed. The Extended Producer Responsibility scheme will introduce new compliance costs for businesses, particularly in the consumer goods sector where packaging is unavoidable - for some businesses, this may be a difficult adjustment.

The Deposit Return Scheme, due to launch in 2027, will be a major operational change for retailers (and consumers), requiring new systems to collect and process drinks containers. Businesses should anticipate significant regulatory detail and implementation work to follow. Meanwhile, the near elimination of biodegradable municipal waste to landfill from 2028 will demand changes in collection and disposal practices, reinforcing the need for early planning and investment.

Goal 6: Resources – We will ensure that natural resources are produced, managed and consumed sustainably.

Resource efficiency is another priority, with commitments aimed at encouraging sustainable production and consumption. The plan highlights the role of construction and food systems in reducing environmental impacts, signalling future regulation and guidance to support more sustainable practices.

Two headline commitments under this goal include:

• 55 – Increase use of safe, high‑performing timber in construction
• 60 – Create and implement a new food strategy

What it means for businesses

For construction and development, the timber commitment is likely to be the most immediate. Businesses may see supply chain impacts as demand for high‑performing timber increases, alongside new standards for safe and best practice use. This could encourage closer collaboration with suppliers, investment in sustainable sourcing and greater consideration of embodied carbon in project design and in residential development.

For the food sector, the new strategy is at an early stage, but it is expected to shape future regulation and guidance around sustainable production and consumption. While detail is limited, businesses in agriculture, food manufacturing and retail may find it helpful to keep this on their radar, as the strategy could influence procurement, labelling and reporting requirements in the years ahead.

Environmental security (climate change, hazards, biosecurity)

Environmental security is a central theme of the EIP 2025, focusing on reducing greenhouse gas emissions, restoring peatland, strengthening resilience to flooding and drought, and ensuring the development of sustainable food and clean energy systems. The plan highlights the need to prepare the natural environment for climate impacts while accelerating progress towards net zero.

Goal 7: Climate change – We will reduce greenhouse gas emissions to accelerate to net zero and work to prepare the natural environment for the effects of climate change.

Climate resilience and emissions reduction are closely linked in the plan, with commitments designed to restore habitats, expand clean energy, and ensure reporting aligns with statutory carbon budgets. The emphasis is on balancing environmental protection with the UK's ambition to become a clean energy superpower.

Among the details set out in the plan, we highlight these commitments:

• 63 – Restore approximately 280,000 hectares of peatland in England by 2050
• 68 – Support the Clean Power 2030 pillar of the government's clean energy superpower mission whilst protecting and enhancing the environment
• 69 – Support the Accelerate to Net Zero pillar of the clean energy superpower mission by reducing carbon emissions from other environment-related sectors beyond land-use and marine habitats to ensure reporting in line with the government's Carbon Budgets 4, 5 and 6 (2023 to 2037)

What it means for businesses

For landowners and developers, peatland restoration, and the expansion of carbon assessments into habitats highlight the potential for new commercial opportunities through nature markets. Credits linked to hedgerows, grasslands and other habitats could become part of the future alongside biodiversity net gain.

The forthcoming energy spatial strategy will also be relevant for agriculture and development. It is intended to provide clearer guidance on when land may be repurposed for energy generation, biodiversity net gain, or other environmental uses. This could influence long‑term planning and investment decisions, helping businesses to anticipate how land assets might be managed in future.

Finally, the evolution of voluntary carbon and nature markets will be shaped by the Government's consultation response. Businesses involved in land management, farming, energy, or development will be following developments closely, as the outcome of the consultation will set the framework for how credits are valued, traded and regulated. Early awareness can help organisations prepare for changes and demonstrate leadership in sustainable land use.

Goal 8: Reducing environmental hazards – We will reduce the risk of harm to people, the environment and the economy from natural hazards.

Flooding, drought and other natural hazards are becoming more pressing risks, and the EIP responds by placing greater focus on resilience. Investment is being directed towards flood defences and sustainable drainage, with the aim of strengthening protections for communities and infrastructure. These measures are intended to reduce vulnerability and encourage planning decisions that take account of long‑term environmental challenges.

Key commitment under this goal:

• 73 – Better protect 52,000 properties from flooding by March 2026

What it means for businesses

The commitment to protect 52,000 properties from flooding by March 2026 highlights the growing importance of flood risk management in the planning system. For developer clients and planners, this means flood resilience will be a key consideration in site approvals and design, with requirements for sustainable drainage and risk assessments becoming more prominent. Factoring these measures in early will help avoid delays, ensure compliance and demonstrate responsible development in areas increasingly exposed to natural hazards.

Goal 9: Biosecurity - We will enhance biosecurity to protect our natural environment and boost the health and resilience of plants, animals, ecosystems and people.

Biosecurity in the plan focuses on reducing the risks from invasive non‑native species, pests and diseases that can damage ecosystems and productivity. An interim target has been set to cut the rate at which invasive species become established, which is important for meeting the legally binding restored nature goals. This sits closely alongside the wider commitments already covered under the Restored Nature section, reinforcing the link between protecting biodiversity and strengthening resilience across habitats.

Which stakeholders will be impacted the most?

As discussed in the sections above under each of the five major themes of the EIP, a range of industries will be impacted and also benefit from some of the changes being put in place. Most notably:

• Agriculture and food production – farmers must balance food security with biodiversity goals, restore peatlands, and comply with stricter pollution controls. Participation in agri‑environment schemes and investment in new technologies will be essential, with funding opportunities set out in the plan to support delivery.
• Landowners and protected landscapes – large estates and landowners, particularly those in National Parks will be expected to lead on habitat creation and public access, backed by funding but subject to greater scrutiny and reporting requirements.
• Water sector and industry – water companies face stricter penalties for pollution, obligations to invest in infrastructure and nature‑based solutions, and closer collaboration with farmers as well as local authorities. Similarly, industry reliant on water abstraction may face licence modifications and housebuilders will need to find ways to reduce water consumption.
• Retail and consumer goods – supply chains must adapt to meet circular economy goals, reducing packaging waste and improving resource efficiency.
• Energy and infrastructure providers – will be influenced by clean power and net zero commitments, requiring alignment with spatial strategies and resilience planning.

It's important for organisations to start considering what the actions in the EIP will mean for them at this early stage and to seek advice where needed. In some cases, putting steps into place that are currently voluntary, but will become mandatory in the short-to-medium term, will help those adapting to the new landscape.

Future environmental legislation and business compliance

The UK's EIP 2025 marks an important shift in environmental regulation, with binding targets that will reshape business practice. Stricter limits on air and water use, tougher pollution controls and mandatory biodiversity recovery milestones will drive operational change across sectors. Circular economy measures and phased restrictions on persistent chemicals such as PFAS will require early planning, while climate resilience is set to become a statutory requirement in both planning approvals and corporate reporting. These obligations present challenges, but businesses that move first will be better placed to manage risk, secure investment and demonstrate leadership in sustainability.

Read the original article on GowlingWLG.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.