81% of Irish Businesses Increased Their Sustainability Focus in 2024: EY Report

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  • Rising Sustainability Focus: 81% of Irish businesses increased their sustainability focus this year, up 19% from 2022.
  • Financial & Strategic Impact: 58% see sustainability as essential for capital access, and 30% assess ESG status in M&A deals.
  • Greenwashing Concerns Triple: 35% now cite greenwashing concerns affecting their communication, up from 13% last year.

Irish businesses are intensifying their commitment to sustainability, with 81% of organizations reporting increased focus over the past year, according to EY Ireland’s State of Sustainability report. The survey, involving 200 senior sustainability decision-makers across Ireland’s public and private sectors, highlights that Irish companies increasingly view ESG efforts as essential to financial growth and resilience. This shift reflects a deepened understanding of sustainability’s impact on the bottom line, making it a crucial factor in corporate strategies.

“It’s very encouraging to see a shift amongst Irish businesses towards a better understanding of sustainability, its impact on the bottom line, and a real desire to create a more sustainable business approach across all sectors,” said Derarca Dennis, EY Ireland Partner and Sustainability Services Lead.

Derarca Dennis, EY Ireland Partner and Sustainability Services Lead.

Increased Focus on Sustainability

  • 81% of businesses heightened sustainability efforts this year, a 19% increase over 2022.
  • 74% now rate their sustainability efforts as ‘established or better’ (up from 61% in 2022), while 15% rate their efforts as ‘industry leading,’ doubling from last year.
  • Notably, 35% feel they are still not doing enough, up from 17%.

Motivators Driving Sustainability

Rising stakeholder expectations, the pursuit of capital, and M&A evaluations are motivating businesses:

  1. Stakeholder Interest: 65% report increased inquiries about sustainability, up from 49%.
  2. Capital Access: 58% believe ESG commitments are now essential for accessing capital.
  3. Mergers & Acquisitions: 30% assess the sustainability status of target companies when considering M&A.

RELATED ARTICLE: 55% of CFOs Fear Their Sustainability Reporting Could Face Greenwashing Backlash: EY Study

Regulatory Challenges & Greenwashing

Navigating EU regulations like the Emissions Trading System (concern for 65%) and Corporate Sustainability Due Diligence Directive (62%) presents challenges. Meanwhile, greenwashing concerns have nearly tripled, with 35% now cautious about misleading ESG claims in their communications.

Dennis noted, “We need to continue to see more organisations having advanced discussions with suppliers and putting sustainability reporting systems in place. Technology will have a critical role to play in supply chain engagement.”

Supply Chain Responsibility

New directives are expanding accountability to include suppliers. Despite the challenges, 50% of businesses have technology to collect and verify supply chain data, crucial for compliance.

For a comprehensive analysis, read or download EY Ireland’s State of Sustainability report here.

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