HLB Ireland has highlighted the transformative role of environmental, social and governance (ESG) practices in driving business success in its 2024 sustainability report.

The accountancy firm said that ESG can be a growth-enabling strategy rather than a compliance requirement, and the report offers offers Irish businesses a roadmap to integrate ESG.

The report demonstrates how adopting ESG frameworks empowers companies to attract sustainability-focused investors, appeal to values-driven consumers, and future-proof their operations.

John Duffy, audit partner at HLB Ireland, said Irish businesses have a unique opportunity to lead the way by embedding ESG into their core strategies.

"Businesses should view ESG not as a challenge but as a strategic opportunity," he added.

"This report underscores the advantages of a robust ESG strategy-from enhancing resilience against market risks to exceeding the expectations of increasingly socially conscious consumers."

The report also highlights the growing demand from younger generations for authenticity and environmental responsibility from the brands with which they engage.

Businesses prioritising ESG reporting stand to gain from increased trust, stronger customer loyalty, and a competitive edge in the marketplace.

The importance of ESG reporting extends to supply chains, where transparency and accountability are increasingly demanded by partners and regulators alike.

For businesses dependent on suppliers or providing services and products to others, ESG compliance can be a deciding factor in securing contracts and maintaining trusted partnerships.

Demonstrating alignment with sustainability goals ensures businesses remain competitive and meet the expectations of stakeholders across the value chain.

In addition, the report explores the tangible advantages of integrating sustainable practices, such as better resource management, greater efficiency, and lower operational costs.

By involving stakeholders, including employees, customers, and supply chain partners, businesses can create new opportunities to add value while demonstrating leadership in sustainability.

HLB Ireland has encouraged Irish businesses to embrace ESG reporting as a compliance measure and a pathway to sustainable growth and innovation.

By aligning with international sustainability standards, companies can meet regulatory expectations while strengthening their position on the global stage, contributing to a more resilient and forward-looking economy.

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