Is the environmental, social and governance movement in decline? We ask three of our Chartered Stars, each recognised for their outstanding work in support of the United Nations’ Sustainable Development Goals, for their take on the future of ESG
Evan O’Donnell
Chartered Star 2024
Accountant with Avery Dennison
As a Chartered Accountant, I view the future of sustainability through both a financial and ethical lens.
Sustainability is increasingly becoming a key pillar of business strategies, and I believe that over the next decade, it will shift even more from a niche concern to a mainstream priority.
Companies and governments will need to integrate sustainability into their financial reporting, with transparent disclosures on environmental, social and governance (ESG) metrics becoming standard practice.
The rise of green bonds, sustainable investing and carbon accounting will drive capital towards businesses that align with sustainability goals, creating a clear incentive for corporations to adopt responsible practices.
Looking ahead, I hope to see a world in which sustainability is embedded in every financial decision.
Businesses should not only focus on reducing their environmental footprint but also consider the social equity and long-term resilience of their operations.
This shift will require a redefinition of value, where profit is measured alongside positive social and environmental impact, creating a more balanced approach to growth.
The current transitional period in geopolitics presents challenges, however. With some countries backtracking on sustainability efforts, there is a risk of fragmentation in global initiatives.
While international collaboration is essential, the rise of protectionist policies and divergent priorities may hinder the overall progress of global sustainability targets.
As a result, I expect businesses to face increasing pressure to navigate this geopolitical uncertainty, balancing national interests with global sustainability standards.
In the future, we will likely see greater local innovation in sustainability, with businesses and governments in different regions leading by example.
While there are challenges ahead, however, the growing recognition of the financial value of sustainable practices gives me hope that we will continue to move towards a more sustainable and inclusive future.
Peter Gillen
Chartered Star 2023
Sustainability Reporting Manager with AIB
In the future, I hope to see further consolidation of global sustainability reporting standards to simplify implementation for companies. While progress is being made, however, challenges remain.
Existing EU legislation, such as the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD) and EU taxonomy for sustainable activities, continue to evolve.
At the same time, new measures are emerging, such as China’s recently introduced corporate sustainability reporting standards.
Continued global engagement on consolidating these is critical to encourage more companies to report against these standards.
Given recent geopolitical shifts and the decision by some nations to scale back their sustainability efforts, I was initially concerned all the progress made would be undone.
However, European companies increasingly recognise the “business” rationale for sustainability, no longer viewing it simply as altruism.
Even companies outside the CSRD’s scope should still see the benefits of managing climate risks, such as rising temperatures and sea levels.
This isn’t about pandering to a “woke” environmental, social and governance (ESG) agenda, it is about ensuring the long-term viability of one’s business.
Despite the recent wave of anti-ESG sentiment, there are some who are refusing to accept calls for ESG to be omitted from investment decision-making.
In the UK, for example, the People’s Pension (one of the UK’s largest pension funds) recently moved £28 billion in assets from the US asset manager, State Street, noting that it wished to prioritise sustainability, active stewardship and long-term value creation for its near seven million members.
It remains to be seen whether other funds will follow suit.
I hope funding for pro-ESG funds continues to grow; not for political reasons, but to protect the financial futures of those whose pensions and savings are managed through funds.
It will also be interesting to observe whether asset managers continue to support ESG publicly or remain silent to avoid criticism (i.e. greenhushing).
Fiona Hanafin
Chartered Star 2022
Associate Director, Sustainability Advisory, Grant Thornton
Sustainability is evolving from being viewed merely as a compliance requirement or ‘tick box’ exercise to a strategic driver of long-term business success.
I believe businesses that are proactive in addressing sustainability-related risks will gain a competitive advantage and thrive in an uncertain world.
Climate change continues to intensify at home and abroad, and businesses need to identify and address their individual physical and transition risks.
We’ve seen how extreme weather and floods can damage infrastructure and disrupt supply chains while shifting regulations create uncertainty.
To address these risks and build resilience, companies should adopt sustainable practices within their operations and integrate sustainability into their core values and decision-making processes.
Future-focused businesses that adopt sustainability, including social considerations within their strategy, will benefit from greater appeal among talented employees and environmentally conscious consumers.
I hope business leaders across Ireland and Europe continue to embrace sustainability as a driver of growth and innovation. There are opportunities to be seized by reducing carbon footprints, adopting green technologies, diversifying supply chains and prioritising responsible stewardship.
Despite all the noise (regulatory and political), the fundamentals of sustainability have not changed. We are living beyond our means; our society needs to change.
Although the sustainability agenda has faced setbacks in some regions due to regulatory and political backlash, the global trend towards adopting sustainability initiatives and reporting continues to progress.
Investment in the energy transition remains strong, cand despite the proposed delay to the introduction of the Corporate Sustainability Reporting Directive in the European Union, many companies are collecting data to ensure the availability of decision-making information.
Those aiming for long-term success will recognise that the broader global momentum driving sustainability is fuelled by market demand and risk mitigation.
With a well-informed sustainability strategy, businesses can protect their bottom line while making a positive global impact.
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