Two-thirds of Irish companies not confident they can reach carbon neutrality by 2030

The survey found that 58% of companies claim they don’t currently have science-based targets, while a further 20% don’t know if their existing emissions targets are science-based or not

Two-thirds of companies in Ireland are not confident they will be able to achieve net carbon neutrality by the end of the decade.

EY Ireland's State of Sustainability report found that while 41% of businesses believe the Covid-19 pandemic has driven them to improve their sustainability efforts, 66% are doubtful they could reach carbon reduction goals by 2030 as set out in the Paris Agreement.

The polling asked a range of questions about Irish companies' internal attitudes towards climate change issues.

The survey found that 58% of companies claim they don’t currently have science-based targets, while a further 20% don’t know if their existing emissions targets are science-based or not.

The majority of companies (54%) say they don't engage in environmental, social and governance (ESG) reporting, and when it comes to monitoring performance, 38% say they either have a basic level of reporting or none whatsoever.

Around 40% say they will be seeking independent advisors to help them improve their sustainability efforts in the next 6-12 months.

However, 71% of businesses believe their leadership has a "high level of understanding" of sustainability in the organisation.

When it comes to the motivating factors the number one reason outlined by companies was a desire to do good for the environment (22%), followed by legislative compliance and the need to future proof the company, which were both ranked at 16%, and consumer appeal (10%).

Just 2% said they were motivated by their desire to not be penalised financially, and no respondents said they were driven by the potential of being able to charge more for their products or services.

Commenting on the report, head of sustainability at EY Ireland Stephen Prendiville said: “Developments in recent months have shone the spotlight on climate change. It’s undeniable that the time to act is now and businesses have a very real responsibility to take charge of the role they can play in addressing the global climate change crisis.

“It is crucial that Ireland as a nation commits fully to achieving its 2050 ambition of carbon neutrality as well as the more imminent 51% reduction in greenhouse gas emissions by 2030. The business community has a key part to play in realising this ambition.” 

He continued: “The longer sustainability is perceived (and pursued) as a regulatory minimum, the more challenging it will be for businesses to truly capitalise on the opportunities that value-led sustainability can provide.”