The majority of Irish companies are ‘far from ready’ for new EU requirements to report sustainability-related information a new survey has found.
The Corporate Sustainability Reporting Directive (CSRD) will apply to all large EU companies and all listed companies, including SMEs, from 2023.
Companies must set out in greater detail the nature and extent of their environment, sustainability and corporate governance practices.
However, analysis from KPMG of 50 leading listed and private companies found more than half (54%) did not publish any sustainability-related information in their annual report.
The analysis categorised the sustainability-related information reported by the entities into three levels: “far from ready”, “good basis for getting ready” and “close to ready”, with the results showing that a vast majority (72%) of the sample of 50 companies were deemed as “far from ready”, with 26% having a “good basis for getting ready” and only 2% being “close to ready”.
The report also highlighted a significant disparity between listed and non-listed companies.
Of the listed companies reviewed, 60% disclosed that they had undertaken a materiality assessment, compared with just 8% of the non-listed companies reviewed.
Similarly, the analysis found that 88% of listed companies disclose the role of the board with regard to sustainability matters, compared with just 12% of non-listed companies.
“It’s clear there is substantial work to be done by many Irish companies to prepare for CSRD and broader sustainability reporting related requirements," Colm O’Sé, partner, ESG Assurance said.
"Compliance will require a substantial change management exercise and our strong advice for businesses is to start preparing now."