Keenan Stack
Transport & Infrastructure Policy Executive, Lobbying & Influence Division, Ibec
Sustainability has notably shifted from a secondary to a primary concern for Irish business. It is now front and centre for any business prioritising competitiveness and compliance.
An evolving regulatory framework has stemmed from the ‘European Green Deal.’ Changes in investor sentiment are seen in requirements for ESG strategies to access green finance. Consumer expectations are gravitating towards products with minimal environmental and social harm throughout their supply chain.
Sustainability reporting business standards
Sustainability reporting can be viewed as a business opportunity. Committed action on sustainability reporting in the short term can improve brand positioning in the ESG space, mitigate regulatory risks and build a truly resilient supply chain.
The arrival of a broader scope for reporting standards does not exist in a vacuum. Supply chains are falling victim to geopolitical tensions with trade flows shaped by concerns around economic security. Increasing labour costs and lingering inflationary pressures may lead businesses to leave sustainability reporting aside.
Supply chain sustainability impacts businesses
of different sizes in different ways.
Sustainability support for businesses
At Ibec, we provide our membership with a suite of supports to meet these regulatory challenges. Our ‘Climate Action Toolkit’aids businesses in cutting through key indicators, emissions factors and target-setting frameworks — setting out clear steps on carbon measurement and a subsequent reduction roadmap. Accompanying this will be a dedicated Ibec Corporate Sustainability Reporting Directive (CSRD) Toolkit.
Businesses recognise the commercial and societal imperative to limit their environmental impact. Knowing where to start remains a challenge. Businesses are working to tackle supply chain emissions and negative externalities within their domain (Scope 1 and 2 emissions). This includes decarbonising transport fleets through alternative fuels, retrofitting facilities and implementing sustainable product design.
Impacting businesses of all sizes
Supply chain sustainability impacts businesses of different sizes in different ways. Large-scale businesses must engage suppliers guided by a robust sustainability and due diligence strategy. Reporting above voluntary standards is a competitive advantage for SMEs in keeping their client base. This is key for indigenous Irish suppliers to robust export sectors (medical devices, pharmaceutical products, etc.)
Smaller businesses are in the dark regarding exemptions and may find themselves indirectly liable. Data collation from overseas suppliers remains challenging. Regulatory divergence has grown for those exporting to multiple overseas markets. Impact assessments, awareness campaigns and consultation with businesses must be central to strengthening sustainable supply chains and ensuring compliance.
By embracing supply chain sustainability, we are not only securing a better future for our planet and society but creating more resilient and innovative businesses — while decarbonising the transport sector, safeguarding international trade links and improving the social impact of businesses globally.
