Sustainability is moving up the Irish corporate agenda

But more work needs to be done to turn aspirations into reality – according to PwC Survey

Sustainability is moving up the boardroom agenda in Ireland but more work needs to be done on embedding sustainability into the business strategy and reporting – according to PwC’s 2009 CEO Pulse survey canvassing sustainability in Irish Business:

Key findings in the survey are:

61% of participating Irish CEOs said sustainability is important or highly important for their business; However, many are struggling to embed sustainability into their business strategies and turn aspirations into reality. For example:

  • Less than a quarter (21%) have developed strategic objectives
  • Only 10% have set specific sustainability targets;
  • Only 10% of participating CEOs state that performance against these targets is reported to management;
  • The majority (72%) do not report on sustainability to external stakeholders;
  • 15% say that they measure their carbon footprint; and
  • Just over a third (43%) of participants said that they have introduced measures to reduce their carbon footprint.

The survey suggests that the key reason why CEOs will place more emphasis on sustainability in the next two years was brand enhancement and/or protection. For this reason we see many companies, both in Ireland and internationally, having taken the initiative and begun transitioning themselves to become more sustainable organisations – improving their energy efficiency, reducing waste, measuring and reducing their carbon footprint, producing and delivering their products and services in a more sustainable manner. Other reasons why Irish CEOs believe they will be placing more emphasis on sustainability include increased regulation from Government as well as the need to access and retain key human resources.

However, the survey indicates that Irish companies have yet to act convincingly on sustainability. While just over 50% of indigenous Irish CEOs state that their companies have developed or are developing strategic sustainability objectives, only 5% state that they have set specific targets around sustainability. In the case of multinational subsidaries based in Ireland, 20% of their CEOs state that they have set specific sustainability targets while 14% state that performance against these targets is reported to management.

Robin Menzies, Leader, PwC Sustainability Practice said:

“While there are clear challenges and costs involved in embedding sustainability into the business model, it is vital for Irish companies to understand the long-term risks in terms of being uncompetitive if they ignore the sustainability agenda. Many of the world’s leading companies are looking to capture not only the cost savings that can be made from becoming green and efficient, but also the opportunities for growth and brand positioning.”

Bartley O’Connor, Senior Manager, PwC’s Sustainability Practice added:

“The survey suggests that much work still needs to be done to fully embed sustainability into the business strategy and a key focus in Ireland will be turning the aspirations into reality. With Triple Bottom Line reporting (ie People, Profit and Planet) becoming more popular, we expect to see more companies opting to provide assurance on their sustainability reporting”.

ENDS

About the Survey
The survey was carried out in February 2009. A total of 220 CEOs from Ireland’s top companies participated representing all industry sectors.

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