KPMG has released a report, following the completion of research into the readiness of Ireland’s 50 leading listed and private companies for compliance with the EU’s incoming ESG reporting requirements.
The Corporate Sustainability Reporting Directive (CSRD) will replace the EU’s existing Non-Financial Reporting Directive (NFRD) requirements, significantly expanding the scope of companies which must comply, and setting out in far greater detail the nature and extent of non-financial information that entities will be required to report.
Key findings
Only 4%
obtain any external assurance over their sustainability-related indicators
54%
of companies did not report targets set on any material topics
54%
either did not publish any sustainability-related information within the annual report or reported this information in a separate sustainability report
60%
of companies have not disclosed their progress towards achieving targets
66%
of companies did not include a description of the process applied to determine material topics in their reporting
50%
of companies do not clearly describe the role of the board and management in relation to sustainability
70%
of companies did not make any reference to double materiality in their reporting
The business model
and strategy of 58% of companies as described in external reporting do not take account of the interests of stakeholders
Work to be done
Commenting on the findings, Colm O’Sé, Partner, ESG Assurance said:
“It’s clear there is substantial work to be done by many Irish companies to prepare for CSRD and broader sustainability reporting related requirements, including the EU Taxonomy. Compliance will require a substantial change management exercise and our strong advice for businesses is to start preparing now. Better reporting makes good business sense and will support meeting the expectations of stakeholders regardless of whether an organisation is obligated to report or not.”
Get in touch
KPMG Sustainable Futures can support you in understanding what the sustainability revolution means for you and tackle head-on the opportunities and challenges ahead. For more, contact Colm O'Sé or Conor Holland; we'd be delighted to hear from you.
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