That’s a wrap - ESG research report series

Earlier this year, we published the 2025 ALG ESG research report setting out the findings from a survey of over 100 representatives from corporate Ireland. This report  examines participants’ awareness and understanding of key sustainability related legislative proposals and explores the E, S and G matters that businesses are most focused on.

The report identified four key topics that we have explored in a series of thought leadership articles and podcasts published through the year:

• climate transition planning
• greenwashing risk
• the financial services sector
• sustainability due diligence

In this wrap up article, we highlight the key findings related to each of these topics and provide an overview of the themes covered in this series.

Climate transition planning

Our research found that for many organisations there did not seem to be sufficient focus on the urgency and risks relating to the climate transition or on the opportunities that this transition can bring to businesses. Only 21% of companies surveyed have adopted a climate transition plan. However, it is encouraging that a further 31% of companies indicated that they are in the process of adopting one.

Part 1 of our ESG research report series, Climate transition plans 101, focuses on those businesses that have not adopted a climate transition plan. We consider two key questions:

• what is a climate transition plan?
• why should businesses produce one?

We also examine what makes a good climate transition plan.

Greenwashing risk

According to our research, 77% of Irish companies are ‘concerned’ or ‘very concerned’ about greenwashing risk. However, interestingly, the percentage of companies that are aware of the requirement of relevant upcoming legislation, the Directive for Empowering Consumers for the Green Transition and the proposed Green Claims Directive remains low, at less than 30%. 

With consumer and regulatory focus on environmental claims continuing to increase, businesses need to be clear on what the term “greenwashing” covers as well as the steps they can be taking to help mitigate the associated risk.

The financial services sector

In the financial services sector, regulatory engagement on ESG related matters continues to grow. While board involvement and risks associated with climate change are key areas of focus, sustainability disclosures and risks associated with greenwashing are also attracting increased levels of scrutiny.

60% of respondent financial services firms have had engagement with regulators on ESG related matters including:

• around the role of the board and senior management in identifying and addressing ESG-related risks and
• the extent to which climate change risk considerations are embedded across all business functions.

In Part 3 of our ESG research report series, we consider the emphasis on sustainability disclosures and greenwashing risk in the asset management and investment funds sector. In this article, we focus on the findings from ESMA’s common supervisory action on the integration of sustainability risks and disclosures in the investment funds sector.

Sustainability due diligence

We have seen an increased focus by companies on sustainability due diligence. This correlates to the findings from our research report where 69% of respondents indicated their businesses have a due diligence policy in place in respect of the companies that they do business with.

For the fourth and final part of our ESG research report series, we focused on sustainability due diligence in the context of corporate transactions. We considered the key questions that Irish corporates should be asking to understand the sustainability risks their businesses and business partners face.

For further information on the findings of the 2025 ALG ESG research report or any of the topics covered in this series, please contact Jill Shaw, ESG & Sustainability Lead or any other member of the ESG & Sustainability team.

Date published: 26 November 2025