As deadlines for Environmental, Social, and Governance (ESG) reporting rapidly approach, Irish businesses are intensifying their focus on robust ESG programmes. In the EU, reports are due to start appearing from the largest companies in early 2025, and this reporting wave will require independent assurance on ESG and human rights matters.
Recent findings from our CEO Outlook 2024 illuminate the critical importance of these initiatives, highlighting a strong conviction among Irish CEOs in the financial benefits of ESG practices.
The clock is ticking...businesses are discovering that as they advance, there’s always more to understand and accomplish.
Global context vs. Ireland's position
Globally, the situation is challenging. Our research finds that only 29% of companies worldwide have the ESG policies, skills, and systems in place to be ready for independent ESG data assurance despite looming deadlines. The gap between leading companies and those in the early stages of assurance readiness is also widening, with skills and resources seen as the single biggest challenge for all levels of maturity.
However, here in Ireland, we are in a much stronger position. Recent findings from the KPMG CEO Outlook 2024 highlight that 60% of Irish CEOs report that their organisations possess the necessary capability and capacity to meet these stringent reporting requirements. A preparedness that’s crucial as companies navigate the complex landscape of ESG reporting, which demands transparency, accuracy, and accountability.
Eva Sheehy, Director in the ESG Reporting and Assurance team at KPMG in Ireland, said: “The clock is ticking. In preparing for ESG assurance businesses are discovering that as they advance, there’s always more to understand and accomplish. This commitment is worthwhile—Boards are placing greater emphasis on it, and leaders are noticing a broader array of benefits as the practices associated with ESG assurance become integrated into their businesses. Robust ESG reporting also provides a framework for continuous improvement, as companies set ambitious targets, monitor progress, and make informed decisions that drive long-term value creation. Assurance services play a critical role in this process, providing independent verification of ESG data and enhancing the credibility of the reported information.”
The business case for ESG initiatives
The business case for ESG initiatives is increasingly well-defined. Recent research from KPMG also shows that 63% of organisations in Ireland are fully embedding ESG into their strategies to create increased value.
The return on investment is also predicted in the relatively near future with 66% of CEOs in Ireland believing such robust ESG programmes will enhance their financial performance over the next five years. This integration reflects a broader trend towards sustainability and ethical governance, which not only meets regulatory requirements but also aligns with investor and consumer expectations.
This belief underscores the growing recognition of ESG’s vital role in business strategy and its potential to drive value and sustainability for stakeholders.
The critical role of robust ESG reporting and assurance
As reporting deadlines loom, the importance of robust ESG reporting and assurance cannot be overstated. Accurate and transparent reporting is essential for building trust with investors, customers, and employees. It demonstrates a company’s commitment to sustainability and ethical practices, which are increasingly important criteria for stakeholder engagement.
Irish businesses must remain adaptable as the landscape evolves, requiring a dynamic approach to skill development.
Skills and resources a key challenge
Obtaining appropriately skilled and experienced people is also set to be a challenge according to Eva Sheehy. “So many businesses are out there looking for the same skillsets at the same time, and those skills are very specialised. On top of that, the further businesses advance in the process, the more skills requirements they discover they will need to reach full ESG reporting and assurance maturity.
This often involves not only hiring new talent but also investing in extensive training for existing employees to ensure they are up-to-date with the latest standards and practices in ESG reporting. Ultimately, Irish businesses must remain adaptable and proactive, as the landscape evolves, requiring a dynamic approach to skill development. This is essential to meet the stringent requirements and to achieve the long-term benefits of robust ESG practices.”
Get in touch
Don't navigate the ESG reporting journey alone. Leverage the expertise of professionals well-versed in sustainability reporting and regulatory compliance. Our dedicated team is here to support you, providing valuable guidance, tailored solutions, and practical insights to facilitate your CSRD readiness.
Start your sustainability journey today by contacting Eva Sheehy for an initial consultation. We'd be delighted to hear from you.
Eva Sheehy
Director, ESG Reporting & Assurance
KPMG in Ireland
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Kathryn Moley
Communications Manager
KPMG in Ireland