A majority of international investors believe Irish businesses are making unsupported claims about their sustainability credentials and want more detail in corporate reports, a new report has highlighted.
PwC’s latest global investor survey, based on a poll of more than 345 investment professionals globally including 32 in Ireland, found that almost two-thirds of foreign investors in Irish companies believe sustainability targets should be included in executive pay agreements.
The accountancy firm said some 75 per cent of global investors in companies in the Republic are wary of the details included in corporate reports about sustainability, which they believe, contain unsupported claims.
Some 69 per cent of global investors in Irish companies, meanwhile, want greater detail in corporate reports on sustainability information, comparable to the level of scrutiny entailed in financial audits.
Some 60 per cent said they would like sustainability targets to be taken into account in executive pay agreements.
“Investors continue to prioritise action on the impact of climate,” said Fidelma Boyce, assurance partner at 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.”
Meanwhile, the survey also underlined a mixed attitude among investors towards artificial intelligence (AI) and its impact on jobs and hiring.
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Slightly more than half of survey respondents said they believe generative AI tools could either increase employee numbers or, at least, would have no impact on hiring.
However, a large majority of investors said they want Irish businesses to upskill their workforce in the face of shifting technological dynamics globally.
Some 82 per cent of global investors in Irish companies said they see technological disruption as the biggest driver of business–model change.
