Eight sustainability themes impacting the corporate sustainability landscape

As the corporate landscape evolves, family firms and other private companies in Ireland are at the forefront of sustainability challenges. The year promises to be transformative, marked by significant shifts in corporate sustainability practices. The KPMG Sustainable Futures team has identified eight themes that are set to impact Irish businesses including SMEs, providing a roadmap for companies looking to navigate this new era of sustainability.

Navigating a New Era of ESG Reporting: 2024 is a landmark year for the corporate reporting landscape, with the Corporate Sustainability Reporting Directive (CSRD) set to impact more companies than any previous sustainability regulation to date. Private companies will have to prepare for the evolving reporting landscape, ensuring transparency in their sustainability endeavours.

Game Over for Greenwashing: Forthcoming regulatory changes mean the year ahead will significantly increase pressure on greenwashing as many domestic businesses will now have to validate sustainability claims. It is imperative for such companies to align their practices with their proclaimed environmental efforts, fostering credibility and trust among consumers, employees and other stakeholders.

Clearing the Air on Scope 3 Transparency: As businesses continue to navigate a changing landscape, transparency in Scope 3 emissions stands as a pivotal element for sustainability goals and a key trend for this year. SMEs need to be proactive in disclosing and managing their indirect emissions, as this transparency becomes an integral part of sustainability strategies in 2024.

Time to Adapt: The requirements of the CSRD for companies to conduct climate scenario analysis will see a heightened focus from companies on climate adaptation over the coming year.

Business for Biodiversity: Businesses are beginning to recognise that our relationship with nature is not one-directional and this year’s commencement of the Taskforce on Nature-related Financial Disclosures (TNFD)’s reporting will redefine how the private sector engages with the natural world.

Closing the Loop: Circular economy policy is gaining momentum across the world, and this year, we will likely see the UN complete negotiations on a treaty targeting the end of plastic pollution. Domestic businesses should embrace circular economy policies and can contribute by adopting circular practices. Closing the loop on waste and promoting sustainable resource use becomes a strategic imperative.

Building a Green Future: The demand for green professionals has never been greater, and with ESG reporting requirements increasing, this growth is expected to continue. Private companies should recognise this trend and invest in workforce development to meet the increasing requirements of ESG reporting. Skilled professionals will be instrumental in driving sustainable practices within their businesses.

European Green Deal takes significant strides in ‘Fit for 55’: In 2023, we saw the EU formally adopt its ‘Fit for 55’ legislative that will continue to play a pivotal role in 2024 and beyond towards the EU reducing its greenhouse gas emissions across its main sectors of the economy. Private businesses should closely monitor this legislative framework, and can align their sustainability strategies with this directive, contributing to broader environmental goals.

This year presents challenges and opportunities for indigenous businesses as they navigate the evolving sustainability landscape. By proactively addressing these eight themes, businesses can meet regulatory requirements and position themselves as champions of sustainability, fostering resilience, credibility, and long-term success.

It is time to take ESG reporting seriously. Private companies need to understand how ESG affects every part of their business by conducting a structured Materiality Assessment. This acts as an essential foundation for building and implementing a detailed ESG strategy.

Search KPMG Sustainable Futures to visit our website and find out today how our ESG specialists team can help you excel when it comes to sustainability.