Firms must demonstrate action on climate challenge and Net Zero targets.
A significant majority (83%) of Irish business leaders believe there is an onus on business organisations to ‘lead from the front’ with regard to implementing more ambitious environmentally friendly practices and Net Zero targets.
The finding is contained in the latest quarterly Director Sentiment Monitor survey for Q4 2021, published today by the Institute of Directors (IoD) in Ireland.
“Challenges remain for businesses over setting KPIs for measuring ESG performance, and ESG knowledge at board level”
The IoD survey also reveals the scale of the challenge for business, with almost half (48%) of the business leaders admitting that their business has found it difficult to set realistic key performance indicators (KPIs) in order to effectively measure targets in relation to environmental, social, and governance (ESG) issues.
Maura Quinn, CEO, Institute of Directors in Ireland
Adding to the challenge is the finding that over a third (36%) of respondents admit that the board of their primary organisation does not feel sufficiently knowledgeable and informed to deal with ESG matters.
The survey also finds that 46% of the business leaders either agree or strongly agree that the Government’s Climate Action Plan is good for the business of their primary organisation, while just 12% either disagree or strongly disagree that it is good for the business.
“It is clear from our latest quarterly research that responsibility for and influence on environmental issues is being acknowledged and, indeed, embraced by business leaders,” said Institute of Directors CEO Maura Quinn.
“Since the onset of the pandemic, in particular, environmental, social, and governance (ESG) issues have truly come to the fore. In an emphatic finding, 83% of our respondents believe there is an onus on business organisations to ‘lead from the front’ with regard to implementing more ambitious environmentally friendly practices and Net Zero targets.
“While these findings are clear positives, it would appear, however, that challenges remain for businesses over setting KPIs for measuring ESG performance, and ESG knowledge at board level. This will be a crucial element in ensuring sustainable progress in this area. These findings add a sense of perspective to our largely encouraging findings,” Quinn said.