In 2025, Irish businesses were navigating intense sustainability pressure, failing to meet initial Carbon Budget targets while facing increased regulatory scrutiny under CSRD/CSDDD. Key trends include electric vehicle adoption, a focus on supply chain resilience, and adopting renewable energy, such as solar PV.
2025 Irish Business Sustainability Review
- Failed Emissions Targets: Ireland has failed to achieve the targeted emission reductions during the first Carbon Budget period (2021-2025). Instead of the maximum emissions of 295 million tonnes of carbon dioxide equivalent (Mt CO2eq) set out in the Carbon Budget to 2025, we will overshoot by about 10 Mt CO2eq. This overshoot will need to be paid back in the next Carbon Budget period (2026-2030) making it increasingly difficult to achieve.
- Regulatory Pressure: The Corporate Sustainability Reporting Directive (CSRD) and CSDDD are driving major changes, with 2025 being a critical year for compliance.
- Green Transition Trends: Adoption of EVs (16% share of new cars by April 2025) and a push for solar PV on commercial buildings to manage energy costs.
- Supply Chain Risks: Over 40% of semiconductor facilities face water stress.
- Biodiversity & Biodiversity: Increased focus on nature-positive practices, particularly through the Business for Biodiversity Ireland platform.
Top 2026 Sustainability Resolutions for Irish Businesses
- Implement Robust Reporting: Adopt an ESG strategy in your business. There are a number of free training tools available such as ESG Up and Green Chambers
- Invest in Energy Efficiency: Accelerate solar PV rollout for commercial premises.
- Decarbonise Operations: Join initiatives like the Low Carbon Pledge to measure and reduce emissions. Use the ENACT Tool
- Enhance Supply Chain Resilience: Pivot to sustainable and local suppliers to manage climate-related disruptions.
- Achieve Circularity: Address high waste levels, as Ireland's 2.3% circularity rate lags behind the 11.8% EU average.
Key Actionable Steps
- Leverage Incentives: Utilise government incentives for green initiatives Use Data-Driven Goals: Set SMART, measurable goals for carbon reduction.
- Expert Advice: Consult professionals for navigating complex sustainability tax and compliance requirements.
- Training: Through the Sustainability Academy at Dublin Chamber