This is the 14th Queen's Award that JLR has received since 1967, the second year of the scheme. It follows a 2014 award for international trade, in recognition of the company's overseas sales growth.
Dr Ralf Speth, CEO of JLR, said: "Jaguar Land Rover is honoured to receive this 2015 Queen's Award for Enterprise in Sustainable Development.
"We are focused on growing a long-term, sustainable business, as leaders in environmental innovation and making a positive impact on society."
The company's 8,000 designers and engineers take a 'whole lifecycle' approach to vehicle development, aiming to reduce impact on the environment right through from raw materials to eventual vehicle disposal. These measures have already helped significantly reduce CO2 emissions, with the company's EU fleet average on track to be 25% lower in 2015 than in 2007.
A new family of ultra-low emission, aluminium four-cylinder diesel and petrol engines – Ingenium – has been developed to power new and future Jaguar and Land Rover vehicles. The engines have recently entered production at the company's new £500m Engine Manufacturing Centre near Wolverhampton, which was opened by the Queen in October 2014.