Close to two thirds (63%) of global investors are calling on Irish businesses to step up their investment to reduce carbon emissions, a new study by PwC has found.
The PwC Global Investor Survey, which includes Ireland-centric data, also found that 84% of investors in Irish firms expect the companies they invest in to be exposed to threats from climate change over the next year.
Key considerations
When it comes to net-zero strategies, investors in Irish firms say governance (63%) and associated capital or operating expenditures (59%) are either ‘extremely’ or ‘very’ important, while 82% believe that businesses need to incorporate ESG and sustainability measures directly into their corporate strategies.
The importance of substantiated claims was also highlighted, with 75% of investors in Irish companies believing that corporate reporting about a particular firm’s sustainability performance contains unsupported claims to ‘at least a moderate extent’, with 69% demanding a level of detail on sustainability reporting akin to that of financial audits.
In addition, three in five (60%) state that the inclusion of sustainability targets in executive pay packages would ‘give them confidence in assessing a company’s sustainability reporting’, PwC noted.
‘Prioritise action’
“Investors continue to prioritise action on the impact of climate,” commented Fidelma Boyce, assurance partner, PwC Ireland.
“They are increasingly interested in the governance and financial impact and commitment of companies’ net-zero transition plans. Companies should embed sustainability in their strategies, particularly as investors continue to look at sustainability-related disclosures and communication to assess action.”
Other findings from the survey include that 59% of global investors are encouraging Irish firms to deploy AI at scale, while 78% urge Irish businesses to invest in upskilling their workforce, given the increased use of AI in the workplace.
The survey gathered insights from 345 investors across 24 countries, including 32 who invest in or cover Irish companies. Read more here.
