Irish businesses keep sustainability central despite regulatory shifts, with 62% assigning C-suite responsibility and 73% embedding ESG in priorities.
Irish businesses are maintaining a strong focus on sustainability despite geopolitical uncertainty and evolving regulation, according to EY Ireland’s latest State of Sustainability report.
The survey of 200 senior sustainability leaders found that 62 per cent of organisations have assigned responsibility for sustainability at C-suite level, up from 53 per cent last year.
“The increase in C-suite ownership is particularly noticeable, as it shows that leadership teams are taking this work seriously and building it into how they operate and assess performance”
Almost one in five said the CEO holds that responsibility. Seventy-three per cent reported that environmental and social considerations are embedded in business priority setting, while 69 per cent use ESG factors to assess performance.
Community impact emerged as the top strategic focus for respondents at 81 per cent, followed by climate risk at 74 per cent and water stewardship at 73 per cent. Eight in ten organisations said political, geopolitical or regulatory developments are influencing sustainability strategy, citing EU regulatory changes and US policy shifts as key drivers.
Staying the course
“Despite the rapidly shifting geopolitical and regulatory landscape over the past year, it’s encouraging to see Irish organisations continue to move forward on responsible growth and to prioritise sustainability,” said Derarca Dennis, EY Ireland Partner and Sustainability Services Lead.
“The increase in C-suite ownership is particularly noticeable, as it shows that leadership teams are taking this work seriously and building it into how they operate and assess performance.”
However, confidence in delivery remains uneven. While 37 per cent of organisations have set a net zero goal, only 26 per cent express strong confidence in meeting those targets. “There is a clear gap emerging between ambition and delivery, pointing to the very real challenges in meeting climate commitments,” Dennis added.
Sectoral differences are becoming more pronounced. Energy and utilities are prioritising emissions tracking and infrastructure planning, while retail focuses on supply chain due diligence and packaging regulation. Technology adoption is advancing, with 54 per cent of organisations using tools to gather supply chain data for compliance, though integration levels vary.
“In the energy and utilities sectors, sustainability remains at the top of the agenda, driven through the lens of climate risk, emissions reduction and strengthening overall energy resilience,” said Sean Casey, EY Ireland Partner and Head of Energy. “The record level of investment in energy infrastructure underway across the island of Ireland will unlock significant new sustainable energy resources for households and businesses.”
Compliance readiness for the Corporate Sustainability Reporting Directive and International Sustainability Standards Board requirements is mixed. Thirty per cent of respondents feel very prepared, while nearly 40 per cent remain unsure when systems will be in place and only 11 per cent are fully ready. Skills gaps are narrowing, with major regulatory knowledge gaps falling from 46 per cent in 2024 to 23 per cent this year.
“There’s a growing fluency around the language of regulation, but the infrastructure behind it is still catching up,” said Colm Devine, EY Global Vice Chair for Sustainability. “Organisations are interpreting CSRD and ISSB in ways that reflect their own maturity and priorities. Progress is being made.”
Main image: Derarca Dennis, EY Ireland Partner and Sustainability Services Lead
-
Bank of Ireland is welcoming new customers every day – funding investments, working capital and expansions across multiple sectors. To learn more, click here
-
For support in challenging times, click here
-
Listen to the ThinkBusiness Podcast for business insights and inspiration. All episodes are here. You can also listen to the Podcast on:
-
Spotify
-
SoundCloud
-
Apple
