Why Sustainability is Now a Driver of Business Value Across All Sectors

At Goodbody Clearstream the work undertaken with clients shows corporate sustainability initiatives are moving beyond environmental goals and are becoming a driver of commercial value for businesses.

Emissions Reductions & Financial Outcomes

There is a focus on carbon emissions and commitments made to reduce those emissions. Forward-thinking organisations are asking, “What will it cost? How much value can we create? And crucially, what will we save or earn in the process?” And, of course, how much carbon will we reduce? Obviously closing that gap between actual emissions and targets, takes strategic investment, time and effort. It also takes innovation and cross-functional collaboration, modelling of decarbonisation pathways, developing appropriate financial models, and identifying a portfolio of options that companies can act on.

At Goodbody Clearstream we have built a dedicated decarbonisation team that does exactly that. We are enabling our clients to make more informed financial decisions, as it pertains to their environmental targets, and deliver a meaningful return on (sustainability) investment. Knowing how much carbon they will reduce and how much it will cost is crucial, and will inform budgets and resource allocation.

Informed Decision-Making: The Role of Data and Expertise

We are currently working with several clients on identifying and prioritising decarbonisation actions across their scope 1, and 2 and scope 3. One client, for example, is in real estate and property management and the other in healthcare services. Both have different challenges but the same goal, to reduce emissions cost effectively, and realise a return on investment. The CFO and Boards are demanding it. By focusing on investments in energy efficiency, renewable energy, and low carbon transport solutions, these clients will reduce operational costs, lower carbon emissions and ensure long-term financial resilience. We have found a good starting point is energy efficiency. From LED lighting upgrades, to building retrofits and energy management systems, a wide range of actions can be implemented to cut energy consumption which has an immediate impact on the bottom line.

Renewable Energy: A Strategic Investment

From our experience, and research also highlights[1] the scale of this opportunity, noting that companies are realising up to a 40% reduction in emissions and up to a 15% improvement in financial performance. We see Irish businesses are also increasingly deploying on-site renewable energy to reduce emissions and lower electricity costs. Rooftop solar projects reduce reliance on grid electricity, which lowers electricity bills and protects against price volatility. SSE[2] Airtricity note that commercial solar projects can deliver paybacks within a few years^, a number we also see across our client base, providing an attract emission reduction and cost saving solution for businesses. Irish companies are already proactively installing rooftop solar at distribution centres to deliver on sustainability commitments while realising economic benefits.

Fleet Electrification: Driving Savings and Emission Reductions

A third area where companies are finding cost savings and emission reductions is through fleet electrification. A recent EV fleet trial run by SEAI[3] with 187 Irish businesses, covering 3,000km over a 3-month period found EVs reduce both emissions and running costs, with estimated fuel savings of €359 per 10,000km.

While these solutions offer returns, challenges remain, particularly in the “hard-to-abate” sectors where lower carbon alternatives still carry a premium. Our clients now have a clearer roadmap to a lower carbon business and the financial implications.

Building a Business Case for Sustainability

However, as carbon taxes increase and regulations become more stringent, the cost of high -emissions operations will rise, making cleaner solutions more competitive. Investing in emission reductions today lowers an organisations future carbon liability and exposure. By progressing with initiatives now, organisations can improve their immediate profitability while building a more resilient and financially sound model for the future.

For more information or to discuss how your organisation can make more informed financial decisions on carbon emissions reduction and meeting your climate targets  contact Goodbody Clearstream at brian@goodbodyclearstream.ie