When it comes to pressing priorities, the vast majority of business leaders are well aware that sustainability should be right at the top of the list. Yet despite this awareness, Ireland’s emissions reduction report card remains firmly in “must do better” territory.
The State’s legally binding greenhouse gas (GHG) reduction target is 51 per cent by 2030 against 2018 levels and “net zero” by 2050. “Even with full implementation of current Climate Action Plan priority sector policies, projections indicate only a 23 per cent reduction in emissions by 2030, meaning we are off track to meet our climate objectives,” says Dr Dorothy Maxwell, partner and head of sustainability at BDO Ireland.
The Republic has started to “bend the curve downwards”, however, with GHG emissions declining for the last three consecutive years, though Maxwell notes that improved data quality has contributed significantly to these results. “Despite this downward trend, the projected gap to both European and national reduction targets is expected to be larger than last year,” she says. “Overall, Ireland’s continued emissions declines are positive signals, but accelerated implementation of climate actions across sectors is critical to reach our national targets.”
BDO’s 2025 Global Sustainability Services Survey found that 87 per cent of companies surveyed include sustainability in their business strategies. But according to a recent report that explored the climate ambitions of notable Irish businesses, leadership on climate action is not the issue – rather it’s evidence of tangible progress that is lacking.
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The Climate Transition Plan Scorecard report was commissioned by Business in the Community Ireland (BITCI) and Dublin City University’s Institute for Climate and Society. It found that while all the key enablers of strong climate outcomes were in place, this had not yet translated to meaningful emissions reductions. In fact, the report notes that emissions had even increased at some firms signed up to the pact.
Despite these findings, business leaders are exploring sustainability from all angles, attempting to achieve ambitious, often voluntary targets, says Meaghan Carmody, senior sustainability adviser at BITCI. Many companies now view sustainability as a strategic advantage, she points out, offering reduced risk, innovation opportunities, lower costs, and better access to green finance and talent.
“We see from our Climate Transition Plan Scorecard that many are reducing direct emissions through renewable energy, zero-emission fleets and resource efficiency,” she notes. “They’re also exploring nature-based carbon solutions, which are critical – Ireland’s forests alone store over 312 million tonnes of carbon, more than five times annual emissions – although the impact measurement for nature isn’t yet sufficiently mature.”
Energy companies, given their sector focus, have perhaps had a head start, Carmody adds, “but we’re now seeing progress across all industries. No single sector tends to excel everywhere, making collaboration and peer-to-peer learning essential.”
In terms of progress and challenges for priority sectors in Ireland’s Climate Action Plan 2025, all sectors are currently exceeding their allocated emissions budgets and are therefore off track. The reality is that businesses are facing myriad challenges as they attempt to grapple with the green transition. Carmody says policy uncertainty – both national and international – remains a persistent challenge, as does the shifting geopolitical climate evidenced by EU legislative rollbacks and political challenges to climate science. “This creates difficult working conditions for sustainability professionals,” she notes.
In addition, companies are struggling with inadequate EV infrastructure and planning delays. “Most critically, over 90 per cent of corporate emissions fall under ‘Scope 3’, or indirect value chain emissions from purchased goods, services and product use,” explains Carmody. “Data collection is notoriously difficult, as is developing aligned procurement strategies.” Long-term emissions reduction may ultimately require phasing out high-emitting products, she suggests.
Maxwell says Irish business leaders increasingly recognise that maintaining credible sustainability information through recognised reporting frameworks enables access to markets, finance, and insurance.
“The main actions have been focused on decarbonisation to mitigate climate change risks and maximise the business opportunities of the transition to net zero,” she explains. “This has started to cascade down supply chains, with growing demands from large businesses for Scope 3 emissions data and reductions downstream.”
Significant advances have been observed in areas such as measuring GHG emissions, adoption of science-based reduction targets and development of climate transition plans. “In fact, 141 companies in Ireland – including BDO Ireland – now have targets validated to the global gold standard, Science Based Targets initiative (SBTi),” Maxwell says. “Sectors doing better tend to be those with the greatest regulatory requirements and strong customer demand for action, such as construction and real estate, energy, manufacturing, FMCG and transport.”
Dr Ruth Freeman, director of research for society with Research Ireland, describes thechallenge to reduce our emissions as “daunting”. The good news is that knowledge of how best to navigate the green transition is increasing all the time.
“We know so much more now, for example, than we did even 10 years ago, especially in areas such the ability of nature and established ecosystems to hold carbon, how we might mitigate pollution and improve soils using local solutions such as biochar, and how AI might help us manage our electricity grid,” Freeman says. “We need to be led by the best evidence of today, not of yesterday and we need to lead into all solutions, maintain an open mindset, and be prepared for conventional thinking to be turned on its head.”
Research Ireland funds a broad range of projects that directly support the national effort on climate action and energy transition, and Freeman explains that it serves not only as a funder, but also as a bridge between researchers, industry and policy. For example, Drive, a Research Ireland National Challenge Fund prize-winning project, is trying to overcome the problem of slow adoption of battery electric vehicles (BEVs) and the need for scalable, efficient energy storage solutions.
“Ideas can come from anywhere and solutions are not always obvious,” Freeman says. “Leading in an era of climate breakdown requires brave leadership, and ‘citizen CEOs’ who consider their broader legacy and organisations who can change course to thrive in turbulent times.”
But Carmody says larger companies need policy certainty and government leadership to prevent uneven competition and infrastructure gaps from undermining their efforts on carbon emissions reductions. Government should strongly encourage climate transition plans (CTPs), she believes. These plans help companies anticipate risks, identify opportunities, and test assumptions about their business model’s long-term viability.
“Widespread adoption would give Government clearer insight into collective challenges – yet only 29 per cent of Irish companies disclosing to Carbon Disclosure Projection 2024 had a CTP,” Carmody adds.
Carbon Disclosure Projection 2024 involves updates to Carbon Disclosure Project (CDP) reporting for 2024, which include a new, integrated questionnaire for climate, water and forests, expanded reporting on biodiversity and plastics, and a new double materiality approach.
Carmody believes the Government should also streamline approvals for sustainable innovations, reward actual emissions reductions, and support businesses in reducing Scope 3 emissions.
In Maxwell’s view, the implementation of our energy transition infrastructure across renewable energy – especially offshore wind, grid upgrades, green hydrogen and biomethane – is progressing far too slowly.
“Accelerating the development of infrastructure and getting pricing mechanisms right is key to enabling businesses to respond quicker and seize green economy market opportunities.”
Carmody agrees: “Our country runs on business, and if we are to meet our climate targets, we must ensure businesses can reduce their emissions at pace.”
