A recent survey by Grant Thornton has revealed significant challenges faced by mid-sized Irish businesses in meeting Environmental, Social, and Governance (ESG) requirements, particularly as they aim to expand internationally. Over half of these firms view ESG compliance as a major barrier to global growth, citing varying regulations across jurisdictions as a critical obstacle. 

The report highlights that 41% of mid-sized Irish companies lack an established sustainability strategy, with 40% having no plans to implement one in the coming year. Key concerns include the time and resources needed for compliance (38%), rapid regulatory changes (33%), and the significant capital investment required (29%). These hurdles are further compounded by supply chain pressures under the EU’s Corporate Sustainability Reporting Directive (CSRD), which mandates sustainability data collection for larger companies. 

Despite these challenges, the findings emphasize the importance of aligning ESG efforts with strategic business goals. Companies that proactively adapt to ESG frameworks can unlock opportunities such as access to new markets, enhanced brand reputation, and better talent retention. Experts recommend that businesses begin by conducting materiality assessments to identify areas of greatest impact and gradually build capacity to meet the CSRD’s phased requirements. 

With the expansion of CSRD regulations to include smaller enterprises by 2027, mid-sized Irish firms are urged to act now to ensure future compliance. Failing to address these challenges could hinder their ability to compete globally and meet increasing stakeholder demands for sustainability transparency. 

For Irish businesses, integrating ESG into their strategies isn’t just about regulatory compliance—it’s a critical step towards long-term competitiveness and resilience in a rapidly evolving market. 

Sources:  

https://www.businesspost.ie/news/irish-mid-sized-firms-see-esg-compliance-as-barrier-to-overseas-expansion-grant-thornton-survey/ 

https://www.independent.ie/business/sustainability-rules-a-major-challenge-for-medium-sized-irish-firms-report-finds/a450560697.html 

https://www.rte.ie/news/business/2024/1113/1480714-esg-requirements-a-barrier-for-firms-expanding-overseas/ 

https://www.msn.com/en-ie/money/careersandeducation/sustainability-rules-a-major-challenge-for-medium-sized-irish-firms-report-finds/ar-AA1u2Z6t