COMPANIES in the Mid West need to prepare for compulsory Environmental, Social, and Governance (ESG) reporting, according to a Shannon Chamber seminar.
ESG reporting has been voluntary in the past, but will soon become mandatory for a greater number of companies in the Mid West as consumers become more aware of the impact that companies have on society, even if products cost more.
It has also become more important to potential employees of a company who want to know that their potential future employer has a positive impact on society.
At a recent Shannon Chamber seminar held in the Ei Electronics Centre of Excellence in Shannon, Chamber members were briefed on the changes and the impacts on businesses in the area.
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Speaking at the event, Ciara Sheehan, EY’s senior manager for climate change and sustainability services, said that business shareholders are also placing more importance on ESG reporting.
“Surveys undertaken by EY globally highlight that investors want companies to focus on ESG activities, even it reduces profits in the short term, and that global consumers want to buy from organisations that benefit society, even if products and services cost more.”
“Employees are also increasingly seeking out companies that positively impact society as their potential employers. Hence the requirement for greater insights into what companies are doing in this area,” she said.
According to Ciara, companies “will need a consistent, comparable way of reporting to stakeholders on sustainability matters.”
“Likewise, audit committees will play a key role in how their organisation’s ESG is reported,” she added.
Introducing members to ESG reporting requirements is part of Shannon Chamber’s drive to encourage its members to develop strategies for attaining net zero.
The presentation by EY was part of a series of workshops being delivered through the Chamber’s member-led Sustainability Forum.
Helen Downes, Shannon Chamber CEO, said: “We were delighted to have someone of Ciara Sheehan’s calibre to deliver a seminar of this nature as ESG reporting is quite a complex subject.”
“She is vastly experienced in leading climate change strategy and development, cross department sustainability advisory services and support, and annual non-financial reporting to both global and local sectors.”