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The State of Sustainability 2024 shows a business community at a tipping point with sustainability, with significant changes in behaviour and sentiment.
In brief
- 81% of Irish businesses report increased focus on sustainability, a 19% rise from 2022.
- 35% of businesses fear greenwashing, influencing their communication strategies.
- Navigating EU regulations is a top concern, with 65% citing the EU Emissions Trading System.
The EY State of Sustainability 2024 report reveals a significant shift among Irish businesses towards sustainability. 81% of respondents reported a heightened focus on sustainability within their organisations over the past year, marking a 19% increase from the previous survey in 2022. This is the largest percentage increase noted in the study, indicating a growing commitment to sustainable practices among businesses in Ireland.
Sustainability Efforts and Industry Leadership
The findings suggest that progress is being made, with 74% of respondents rating their sustainability efforts as 'established or better,' up from 61% in 2022. Additionally, 15% consider their efforts 'industry leading,' doubling from 7% in 2022. However, there is still room for improvement, as 35% of respondents feel their organisation is not doing enough, a notable rise from 17% in 2022.
Fear of Greenwashing Influences Communication Strategies
Awareness of the negative impact and reputational risks of misleading sustainability claims is growing. 35% of respondents indicated that fear of greenwashing influences their communication strategies, a significant increase from 13% in 2022.
Key Motivations for Sustainability
Increased stakeholder interest, regulations, and perceived bottom-line benefits are key motivating factors driving sustainability in organisations. Almost two-thirds (65%) of businesses reported wider stakeholder enquiries about sustainability impact, up from 49% in 2022. More than half (58%) believe demonstrating a greater commitment to sustainability is necessary for access to capital. Interestingly, 30% indicated they are increasingly assessing the sustainability status of target companies when considering a merger or acquisition.
Regulatory Concerns
Navigating complex EU regulations is the leading sustainability-related concern for organisations, with the EU Emissions Trading System cited by almost two-thirds (65%). Supply chain due diligence, driven by the Corporate Sustainability Due Diligence Directive (CSDDD), is a concern for 62% of respondents. The EU Deforestation Regulation and plastic packaging-related measures were cited by 54% and 46% of respondents, respectively.
Supply Chain Responsibility
Sustainability regulations such as CSRD and CSDDD are designed to make organisations more sustainable by holding them accountable for their supply chains. 62% of respondents cited supply chain due diligence as their biggest sustainability-related concern. Engagement levels with supply chain suppliers on ESG reporting vary, with 26% having not engaged at all, while 50% have technology solutions in place to gather data for compliance purposes.
Read the full report now.
Summary
The findings show the link between sustainability and profitability is increasingly influencing corporate strategies. As companies embrace this agenda, it’s vital they engage with all stakeholders to create a more resilient and sustainable business.
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