Almost half of Irish businesses are placing a greater priority on sustainability for their firms now than before Covid-19, according to new research from Grant Thornton.
The Grant Thornton International Business Report found that 49% of Irish firms report sustainability as a greater priority for their business than it was 18 months ago.
A renewed focus on sustainability was reported following a survey of 63 Irish businesses across sectors in the first half of 2021.
Prioritising sustainability
The research notes that some 45% of businesses prioritising sustainability in their planning, indicated improved operational costs and efficiency as a reason to invest in this area.
At the same time, 38% said investment was a result of the ongoing climate crisis; 35% said it was due to fears around recruiting and retaining staff; while 32% said it was a result of client pressures.
According to Grant Thornton, the results of the International Business Report are “in line with” the growing awareness of the impact of climate change in Ireland and internationally.
Recent global and national reports on this impact are adding to the pressure on businesses to adapt their operations accordingly, the professional services firm notes.
What are they doing?
As a result of this growing awareness, Irish businesses prioritising sustainability reported taking a number of measures.
41% said they have developed a sustainability strategy, 34% have agreed performance indicators and set sustainability targets; 33% have carried out impact assessments; 31% have carried out working plans for key areas; and 20% have engaged with key stakeholders in this area.
However, despite the growing number of businesses taking action to promote sustainability within their business, there are still hurdles, the report highlighted.
Some 33% of businesses surveyed in the Grant Thornton International Business Report said a lack of clarity around new regulations or requirements was slowing progress on sustainability within their business.
Meanwhile, 30% of businesses said they had concerns about the cost involved of taking action, while 25% cited a lack of management time and attention as an issue.
Other concerns also included confusion around measurement frameworks, a reluctance at leadership level to prioritise sustainability, and a lack of internal knowledge and capability, the report found.
Commenting on the results of the International Business Report Catherine Duggan, director and sustainability specialist at Grant Thornton Ireland, said:
“Recent reports both in Ireland and internationally, suggesting the climate crisis is at tipping point, serves to highlight why businesses are now beginning to take ownership over their own sustainable practices.
“It is highly encouraging to see such a large number of Irish businesses rising to the challenge and actively engaging in more sustainable ways of doing business,” Duggan added.
In order to reach their key performance indicators and stay on the right track, 90.9% of Irish businesses are measuring their greenhouse gas emissions, carbon footprint, and/or their energy consumption, while 81.8% are measuring the economic and financial impacts of climate change.
Despite the challenges posed by climate change, overall, half of Irish businesses are feeling optimistic about sustainability reporting, tying in with the 72% of Irish businesses that reported feeling optimistic about the next 12 months in Grant Thornton’s International Business Report.