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ESG compliance vigilance advised for firms

Almost four in ten (39%) Irish organisations still lack a dedicated sustainability function, while only one in five (21%) have adopted a climate transition plan, according to a report from A&L Goodbody.

The findings suggest that many Irish companies remain unprepared for the legal requirements and obligations of ESG compliance.

The research finds that there is no consistent home for sustainability, and that it may fall under compliance, HR, legal, procurement, operations, or technical units.

Almost eight in ten (77%) of Irish organisations expressed significant concern about the risks of greenwashing, highlighting the need for clear and credible sustainability strategies.

Omnibus

Due shortly, the European Commission's first ‘simplification omnibus package’ aims to simplify sustainability-related reporting and due diligence obligations.

Jill Shaw (ALG ESG and sustainability lead) said: “Our research highlights the urgency for Irish companies to bridge their knowledge gaps regarding ESG-related legal requirements.

“While the upcoming omnibus package on sustainability promises to simplify obligations, its impact remains to be seen. There is also a risk that streamlining these regulations could ultimately raise the compliance bar for affected companies.

“Keeping a close watch on policy developments will be crucial,” she said.