2 weeks Ago
Complying with ESG regulation is now a major challenge for mid-sized Irish firms, with over half seeing the requirements as a barrier to international expansion, according to a new survey. Some 38pc said the time and resources involved are their main concern with regard to sustainability compliance. Meanwhile, over four in 10 Irish medium-sized firms have no sustainability strategy at all in place, according to the latest Grant Thornton International Business Report.
The study was carried out across 31 markets, including Ireland, where about 100 companies were included. Mid-sized was defined as firms employing with between 50 and 500 people. The EU’s Corporate Sustainability Reporting Directive (CSRD), which came into effect last year, requires large companies to report on what impact their activities will have on people and the environment.
SMEs which do not have to report themselves may have to provide sustainability information to large companies in their value chain. Yet the survey found 41pc of Irish firms have not developed any sustainability plans or processes, such as policy, reporting and data gathering. Sustainability is moving very quickly from a nice-to-do to a must-do This was in contrast to their European and global peers, with the survey finding that less than one in 10 (8pc) of them had no strategy in place.
“Sustainability is moving very quickly from a nice-to-do to a must-do for many Irish businesses as firms quickly realise how ESG regulations are tied to their future business success,” Janice Daly, partner and sustainability lead at Grant Thornton, said. “We are increasingly hearing from companies struggling with challenges of being compliant with sustainability requirements. “It is important, however, that Irish businesses see sustainability as an opportunity rather than a burden as it can be leveraged as a competitive advantage for those firms who get it right.
” The Grant Thornton study found that those Irish firms with ESG strategies in place saw the main benefit as an improved ability to access finance, such as low-cost loans to fund green initiatives like retrofitting their office or adding electric vehicles to their company fleet. About one in 10 firms also saw it as an advantage in terms of competing with rivals (13pc), and a similar proportion (11pc) see green credentials as a means of boosting their brand reputation..
