The pace of change in tech never slows, but the first half of 2025 showed a clear shift in what really matters to the industry. ESG and ED&I are no longer side projects. They are shaping investment, influencing hiring, and redefining what good looks like inside every sector from AI to CleanTech.
Across January to June, we saw investor commitments pouring into sustainable innovation, new government programmes building diverse pipelines and smarter tools emerging to make ESG reporting faster and more reliable. A recent industry survey by Veridion found that 63% of companies are already using or planning to use AI for ESG data collection, analysis, and reporting. At the same time, the picture was uneven.
Some startups stepped back from early-stage carbon measurement, and diversity gaps remain stubborn even as new initiatives scale up. Companies based in Europe were found to be outperforming their UK peers on net zero, with 35% of European start-ups measuring their carbon footprint versus 24% in the UK.
This insight takes that complexity and makes it useful. If you are hiring, job seeking or planning long term, here is what the last six months really mean for the market and where you should focus next.
What We Saw in the First Half of 2025
Smarter ESG tools becoming the norm
AI-powered reporting tools have moved from experimental to essential. Platforms are now using automated ESG disclosure systems that make sustainability data faster to produce and easier for investors to compare. Businesses are increasingly turning to Artificial Intelligence (AI) to streamline Environmental, Social, and Governance (ESG) reporting. This shift is changing expectations for fintech, SaaS and IT service providers. If organisations want capital, they need clean, auditable ESG data. No excuses.
Money flowing into sustainable innovation
Investment confidence is tilted clearly towards sustainable tech. Growth funds committed significant capital to businesses working on energy, AI and broader CleanTech solutions. The UK climate tech sector has shown resilience and growth over the past 12 months, with a 24% increase in climate tech investment, totalling £4.5 billion in 2024, reinforcing the direction of travel. For candidates, this means new opportunities across product, engineering and ESG analytics. For employers, it signals a competitive market where ESG capability gives you the edge.
Building diverse talent starts earlier
Government support went beyond statements this year. Major funding landed to bring more young women into AI careers, and big names in tech backed programmes to widen access to cyber roles. These pipeline investments are designed to solve long-standing diversity gaps and, over time, will reshape candidate supply across high-demand sectors. The impact is reinforced by investment data that suggests woman-led businesses deliver 35% higher returns than male businesses, strengthening the business case for ED&I.
But progress is uneven
Not every metric moved in the right direction. The number of startups measuring their carbon footprint dropped compared with last year. SMEs are struggling to report and act on sustainability, despite rising pressure, signalling slow adoption at the bottom end of the market. Early-stage ESG adoption is still inconsistent, often falling behind investor expectations. And while anti-bias selection in investment is proving its value, many tech companies are still catching up in their hiring practices.
What It Means for Hiring
ESG is becoming a skills requirement
Roles blending technical skill with ESG know-how are rising fast. Data engineers who understand sustainability reporting, product teams that can build with ethical impact in mind and analysts who can translate ESG metrics into action are in demand. HR, tech and ESG roles dominate the fastest-growing UK roles. Companies that invest early in these hybrid skill sets will move quicker when regulation tightens.
ED&I is shifting from principle to performance
Evidence now shows that removing bias from decision-making directly improves outcomes. Research consistently shows that women-founded companies generate a higher return on investment, calculated at 35 per cent on average, alongside 12 per cent higher revenues, giving employers fresh data on why structured, bias-free hiring matters. Investors have seen stronger returns from women-led startups when using anti-bias evaluation tools. Employers are taking note. We are seeing more inclusive shortlisting processes, structured assessments and partnerships with training providers that specialise in under-represented groups.
High-demand areas are clustering around AI, Cyber and CleanTech
The sectors with the strongest ESG and ED&I momentum are also the ones with the steepest skills shortages. AI teams need responsible AI expertise. Cyber teams need broader talent pools and apprenticeship routes. CleanTech needs engineers and decarbonisation specialists who can build at scale. PwC’s recent “AI Jobs Barometer” report finds that UK postings for specialist AI jobs have grown 3.6 times faster than for all jobs over the last decade. The UK’s cyber security sector has shown significant resilience and growth, with a 13% increase in sector revenue, creating 2,700 new jobs. Green employment multiplier hits record high - now creating 27 additional jobs for every 10 new green jobs. Competition is heating up, and salary expectations are following.
Sector Snapshots: Where the Market Is Moving
AI and Machine Learning
A standout performer. New government funding and increased use of AI for ESG reporting are pushing demand for responsible AI, governance specialists and data scientists with ethical AI experience. AI hiring remains one of the fastest-growing UK tech segments.
Cybersecurity
Private and public partnerships are rapidly expanding skills pipelines. Organisations are prioritising diverse talent and mid to senior security engineers remain in critically short supply. UK cybersecurity job vacancies are growing at a rate of 10-12% per year, with hiring teams struggling to find the right candidates to fill open positions, intensifying competition.
CleanTech
A major growth area. Strong investor backing is driving hiring across engineering, energy systems and sustainability product management. The sector saw a 24% investment increase in 2024, deepening demand for talent.
FinTech and SaaS
Both are ramping up ESG reporting capabilities. Expect increased demand for ESG product leads, compliance specialists and data engineers.
IT Services
Clients want consultants who can make ESG measurement meaningful. Hiring will focus on reporting analysts, data specialists and product managers with sustainability experience.
What Candidates Should Know
The market is rewarding those who can blend technical skill with an understanding of sustainability, governance and ethics. If you work in data, engineering, product or cyber, adding ESG literacy to your toolkit will future-proof your career.
Diverse backgrounds are being recognised as high-value. Companies are increasingly investing in people who bring new perspectives and problem-solving approaches.
What Employers Should Prioritise
Build hybrid roles early
The best talent will be the people who can work across ESG, data and product. Shape these roles now while the field is still defining itself.
Strengthen your diverse talent pipelines
Partner with training providers, schools, community groups and industry initiatives. The companies who win long term will be the ones who invest in early-stage talent now.
Make reporting effortless
Automated ESG reporting saves time and strengthens credibility. It also makes hiring easier, because candidates want to join organisations that take sustainability seriously.
Treat ED&I as a performance driver
Structured, bias-free hiring processes improve quality of hire. The sooner ED&I becomes embedded in selection, the faster teams gain capability.
Frequently Asked Questions
Q. Why are ESG and ED&I becoming so important in tech?
A. Because they now influence investment, regulation and long-term growth. Investors are backing companies that can prove their impact. Candidates want to work for organisations that value people and the planet. Businesses that take ESG and ED&I seriously are becoming the ones that attract capital and top talent.
Q. What is driving the increase in ESG-related hiring?
A. The rise of automated ESG reporting has made sustainability data a business priority. Companies now need people who can understand, analyse and embed ESG metrics into products, operations and strategy. This demand spans data engineering, product management, compliance and sustainability roles.
Q. Which tech sectors are seeing the most ESG and ED&I activity?
A. AI, Cybersecurity and CleanTech are leading the charge. These areas have seen the biggest funding commitments, the strongest government support and the most pressure to prove ethical practice. They also have the steepest skills shortages.
Q. Are companies actually changing how they hire?
A. Yes. More organisations are introducing structured assessments, broadening their talent pipelines and partnering with programmes that support under-represented talent. Bias-free hiring is becoming a strategic priority because it is proven to improve performance and outcomes.
Q.What skills are most in demand right now?
A. Roles combining technical knowledge with ESG understanding.
That includes responsible AI specialists, ESG data analysts, cyber experts, sustainability product managers and engineers working on clean energy or climate tech solutions.
Q. Is ESG adoption consistent across the UK tech sector?
A. Not yet. While many companies are using AI to improve reporting, early-stage startups have been slower to maintain measurement activity. This inconsistency means organisations with strong ESG discipline stand out, especially to investors and clients.
Q. How can candidates stand out in this changing landscape?
A. By combining core technical skills with ESG awareness. Candidates who understand the social and environmental impact of technology are already ahead. Adding governance, ethics or sustainability knowledge to your CV can unlock high-growth career paths.
Q. What should employers focus on next?
A. Three things:
- Building hybrid ESG-tech roles
- Strengthening diverse early-career pipelines
- Making reporting simple and credible
Businesses that act now will avoid future skills gaps and stay ahead of investor expectations.
Q. What does all of this mean for the future of UK tech?
A. ESG and ED&I are becoming part of how tech works, not an optional extra. The next year will see organisations embed sustainability and inclusion deeper into product, engineering and decision-making. The companies that thrive will be the ones that combine strong data, diverse teams and purposeful innovation.
Where Tech Goes Next
The next 12 months will see ESG move deeper into engineering and product roadmaps. Reporting tools will become standard. Investor expectations will rise. And ED&I strategies will become more sophisticated as pipelines strengthen and anti-bias models mature.
For both businesses and candidates, the message is clear. The future belongs to people who understand sustainability, value diversity and know how to turn intelligent insight into real-world action.
This is not a trend. It is the new foundation of UK tech.
Sources
Veridion. (2025, April 7). 10 ESG statistics you need to know. Veridion. https://veridion.com/blog-posts/esg-statistics/
Adams, L. (2024, June 5). UK startups trailing on net zero and responsible AI. Tech.eu. https://tech.eu/2024/06/05/uk-startups-trailing-on-net-zero-and-responsible-ai/
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PwC UK. (2024). UK climate-tech investment surges almost 25% — with AI-powered solutions attracting strong funding. PwC. https://www.pwc.co.uk/press-room/press-releases/research-commentary/2024/uk-climate-tech-investment-surges-almost-25---with-ai-powered-so.html
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