Although multiple players are driving the sustainability agenda, the adage “what gets measured gets done” definitely applies: increased reporting requirements, driven by the European Union, are among the main catalysts .

“The key influence comes from the EU through the (European) Green Deal and legislation such as the Corporate Sustainability Reporting Directive (CSRD), as well as its influence and impact on individual states,” says Dr Thomas Macagno of the UCD Innovation Academy.

There are sanctions if EU member states fail to meet these requirements, which is partly the aim of the government’s Climate Action Plan, says Macagno. “Over time we see Ireland developing specific legislation and specific objectives,” he adds.

TUD’s Dr Ciarán O’Carroll agrees that reporting is important, although he would like to see stricter regulation and sanctions.

“What influences businesses are rules, regulations and compliance,” he says. “If organizations have to choose between profit and sustainability, they will choose profit every time, unless there is a compliance issue. However, while there are important reporting requirements, we do not have the same requirements for action. Reporting is great because it produces transparency, but what we need to see is that it pairs with action. We still do not have the policies that impose the actions that will lead us to a sustainable society.

Consumers are another key influence on sustainability. A Forrester study of European consumers in 2022 showed that half of adults agree that it is worth paying more for sustainable, eco-friendly products and that packaging recyclability and eco-friendly shipping the environment are among the options sought by consumers when making their purchasing choices.

However, barriers to sustainable purchasing, such as price or convenience, often prevent customers from acting on their good intentions.

Macagno notes that among consumers, there is a strong desire to be more environmentally friendly, although consumers still want products that meet their needs. He cites the example of eco-friendly laundry detergent that doesn’t make your clothes clean.

Consumers believe brands should promote sustainability, but don’t trust them to do so: 69% of Forrester respondents want companies to be more transparent in their business practices and only 34% trust companies when they declare that they will engage in actions that have a positive impact on climate change.

Companies have a bad reputation in this area; the belief that they will only act when forced to do so by the government is widespread. Paul Polman, former chief executive of Unilever, says it doesn’t have to be this way. His ten years of leadership at the global consumer goods company demonstrated that sustainability can go hand in hand with increased profitability and that it is not a zero-sum game.

Polman’s book, Net Positive, offers a manifesto to convince companies that taking a more radical approach to social and environmental issues will not cost them in the long run, but will instead improve their financial performance. Its conviction is that reducing climate impact to zero is not a sufficient end goal but simply a crossing point on the path to a better world. In this vision, a business not only does harm, it also acts as a driving force for good, making communities and customers healthier.

Polman is now a leading figure in a network called Imagine, which brings together key stakeholders, including high-profile business leaders, politicians and other power players, to take collective action on some of the the world’s most challenging societal and environmental problems.

Recruitment is one of the most concrete areas in which good environmental credentials can help companies. A survey of 1,000 graduates by UK graduate employment specialist Prospects showed more than nine in ten felt it was important that their job allowed them to make a difference to people’s lives , with 86% saying it was vital to the business. they worked had a positive environmental impact. About three-quarters said they would be more likely to apply to a company with a strong commitment to this field.

“We see it in students who seek to respect the environment as well as individuals,” says Macagno. “Some are even questioning whether they want to pursue a corporate career and are considering other options. There is a challenge for companies to show that they have a real commitment to sustainable development, to communicate it and to demonstrate that they are not just greenwashing. CSRD will make companies more transparent and show how accurate their stories are.

For businesses, it’s part of a broader agenda to be more responsible and have a more positive impact on society, he says.

“It’s no longer just about shareholders; it’s about a broader society and broader values. We’re seeing a shift in what’s expected of leaders, we’re seeing a shift in what investors expect, and we’re seeing a shift in what government expects – and all of these are converging to contribute to change.