Futureproofing IE - Q1 2024

Futureproofing

“Companies that champion sustainability and ESG create a workplace where purpose meets profit.”

Alexa Toomey, Enterprise Ireland

“We must strive to create a profession that reflects diversity.”

Damien Owens, Engineers Ireland

Irish enterprises must better understand their impact on society and the environment.

Sustainability isn’t just a trend; it’s essential for success, both environmental and commercial.

Sustainability makes business sense

In an interconnected world, showcasing measurable, transparent sustainability credentials is vital to business success. Blue-chip companies and MNCs, in particular, insist that their suppliers demonstrate robust sustainability plans. These plans outline concrete steps to reduce environmental impact and contribute positively to society.

The workforce of today — and tomorrow — craves purpose-driven employment. Employees under 30 prioritise companies that align with their values. A credible sustainability strategy isn’t just a recruitment tool; it’s a retention strategy. Companies that champion sustainability and ESG create a workplace where purpose meets profit.

Consumers wield immense power.

A strong sustainability strategy isn’t merely a badge; it’s a competitive advantage. Irish businesses that integrate sustainability into their DNA resonate with an increasingly expanding pool of conscious consumers.

Sustainability starts with a plan

At Enterprise Ireland, sustainability isn’t an afterthought; it’s woven into our core strategy. We firmly believe that every client — regardless of size or sector — must embrace sustainability.

While carbon reduction is vital, sustainability and ESG are broader than that. It also includes supporting biodiversity, promoting water quality and making the most of the

extraordinary opportunities offered by the circular economy. Beyond that, a company must consider its diversity, equity and inclusion policies, its Board and management structure and ethical business practices.

Sustainable strategy kickstart

Enterprise Ireland is here to help at every stage of your sustainability journey, and we have a simple core message ‘Sustainability Starts With A Plan.’ We are working with companies throughout Ireland to provide practical advice and financial support to help them begin to plan now for a more sustainable future.

Our online Sustainability Kickstarter Workshops for Enterprise Ireland and Local Enterprise Office clients are a great place to start. The next one takes place on 21 March. We will also be launching our Green Transition webinar series for 2024, with webinars covering several aspects of sustainability, including how to develop a sustainability strategy and plan, sustainability standards, Scope 3 emissions measurement, the ‘S’ in ESG, water stewardship biodiversity and carbon reduction technologies. These webinars feature guidance from experts in sustainability and climate action and are open to all.

Don’t delay starting your sustainability plan. It may seem daunting, but hundreds of businesses are already on the journey and are gaining tangible environmental and commercial benefits.

The concept of sustainability is a systems-level approach, relying on the integration of economic, social and environmental aspects for a longterm system balance. Individuals and companies cannot achieve sustainability in isolation. It is, fundamentally, a collective endeavour with the holistic ecosystem that surrounds their operations.

SDG partnerships for sustainability

At the heart of sustainable development is the principle of partnership. The United Nations 2030 Agenda for Sustainable Development outlines 17 Sustainable Development Goals (SDGs) and 169 targets aimed at fostering peace, prosperity and sustainability. SDG 17 captures the significance of ‘Partnerships for the Goals,’ where collaboration truly shines, demonstrating its potency in driving meaningful change.

As a research organisation dedicating one of its pillars to advancing sustainability in manufacturing, our journey at Irish Manufacturing Research has been fruitful. Working hand in hand with Irish industries, ranging from multinational corporations to small and medium enterprises, as well as academia and government bodies, we have brought these stakeholders together and witnessed the transformative power of public-private partnerships firsthand. Collaborative sustainability projects By embracing collaboration, we pave the way for a more sustainable future. Working together, we assist partners in understanding concepts like energy efficiency methods and the True Cost of Water while initiatives like the Green Book provide guidance

on Renewable Energy Systems in Ireland. Projects like CIRCULÉIRE, with over 50 participating companies, demonstrate how collective efforts steer manufacturing toward a circular economy and, therefore, sustainability.

Pioneering industry synergies Partners, on the other hand, benefit from innovative thinking and knowledge sharing. We extend assistance in navigating challenges, including those related to funding, by providing guidance on the right path.

Through collaborative projects, partners embark on pioneering journeys, sharing their unique experiences, learning from peers, understanding the challenges faced by pioneers and fostering synergies across industries.

Industrial symbiosis application

Projects like SymbioBeer showcase the tangible outcomes of collaboration, particularly in Industrial Symbiosis (IS). By exchanging waste streams, it demonstrates how one industry’s by-products can become another’s valuable resource.

In this case, waste bread was repurposed as a substitute for malted grain, creating a new beer variant. The remnants from beer production were then used to create a new type of bread, closing the production loop.

Unity for sustainable progress

The success of these and other projects highlights the importance of innovative thinking and fostering synergies across industries. It serves as a testament to what can be achieved when stakeholders come together, united by a shared goal of sustainability, benefiting current and future generations.

Innovating for a better future: Cork business breaking new ground in sustainable packaging

Learn about recycled PLA, a sustainable packaging option for businesses. Minimise fossil fuel consumption and carbon emissions with a cost-effective, eco-friendly solution.

Whether it’s in the corner coffee shop or your local Centra, Down2Earth

Materials’ products have likely been in your hands. The Cork family business was founded in 2009 and has since become Ireland’s leading sustainable foodservice packaging specialist.

Supplying sustainable food packaging

From coffee cups to deli containers, the company supplies products to some of the country’s most popular brands.

Guaranteed Irish member Down2Earth

Materials also has the highest level of certification in the market and prides itself on offering Irish customers a myriad of sustainable choices.

Recycled PLA: compostable bioplastic The company’s success comes down to three important factors: (1) the quality of its products; (2) its commitment to sustainability; (3) and its determination to constantly innovate. One of these latest modernisations the business is undertaking is the introduction of rPLA. Recycled PLA is derived from post-consumer waste and is a compostable bioplastic made from renewable sources like cornstarch or sugarcane.

Recycling PLA products cuts down virgin PLA production, which lowers fossil fuel use. The recycling process (involving sorting, cleaning and reprocessing) is less energy-intensive than initial production, leading to lower energy consumption and carbon

emissions.

Cost-effective, sustainable rPLA option This efficient use of resources — including land, water and energy — makes recycling PLA environmentally beneficial. Additionally, recycled PLA presents a cost-effective alternative to virgin PLA because the recycling process is more economical than extracting new raw materials.

With 20% recycled content, this means the compostable product line of cold cups, portion pots and deli containers represents a positive and unique offering in the Irish market.

Being the first in Europe to carry rPLA, businesses using these products will make a more sustainable choice and achieve improved emissions targets.

Sustainability commitment despite challenges

Nevertheless, the industry faces challenges. Current EU packaging directives are leaving many manufacturers and businesses uncertain about their next steps.

In Ireland, the company hopes for increased government support in correctly classifying compostable and recyclable products and implementing more three-bin systems on our streets.

However, despite the evolving landscape, Down2Earth Materials remains committed to its mission of creating sustainable options that benefit both enterprises and the environment. With plans to expand the team while consistently pioneering its products, maintaining high standards and educating customers, the company is poised for continued success.

WRITTEN

Using circular design, the food industry has the potential to create products that help nature thrive.

Sowing

the seeds of change: bringing a circular economy to the food industry

Discover circular solutions tackling food waste, biodiversity loss and the climate crisis in the food industry.

Manufacturers and retailers have the power to change the way our food system works — for the good of nature, people and the economy. From the blatant, like leftovers on a buffet table, to the lesser-known, such as misshapen potatoes not ‘good enough’ for supermarket shelves, the food industry has a waste problem.

Mitigating food waste

Six rubbish trucks of food are lost or wasted every second; that’s almost one-third of all the food we produce. Aside from the obvious economic losses, our wasteful global food system is the biggest driver of biodiversity loss and is responsible for a third of greenhouse gas emissions.

It doesn’t have to be this way. Using circular design, the food industry has the potential to create products that help nature thrive — addressing the interconnected challenges of biodiversity loss, climate change, pollution and waste.

Circular food redesign

Upcycled food solutions

Tullamore-based BiaSol is a prime example. To make its Challenge-approved product, Spent Grain Granola, it’s collaborating with Irish craft breweries to replace up to 50% of the flour with upcycled spent grains. This reduces land use pressures and carbon emissions; diverts waste; and creates a new revenue stream for participating breweries.

Another example is Dublin-based Bí URBAN. It’s upcycling ‘wonky’ potatoes that have been rejected by supermarkets to make its SPUDS ‘Crisps with a Conscience.’ It’s using a blight-resistant, drought-resistant and virus-resistant potato variety, which doesn’t require groundwater-polluting fungicides. All spuds will be regeneratively grown and fertilised with green manure and farm waste.

Six rubbish trucks of food are lost or wasted every second; that’s almost one-third of all the food we produce.

The Ellen MacArthur Foundation launched the Big Food Redesign Challenge a year ago, with the Sustainable Food Trust, to incorporate circular principles within food products. Out of over 400 applications from across the world, 166 food and drink products have been granted access to the production phase of the Challenge.

The Challenge is built upon the Foundation’s circular design for food framework (which also forms the judging criteria). It’s rooted in regenerative production but extends to three key ingredient sourcing strategies — lower-impact, diverse and upcycled — as well as a circular approach to packaging.

If you work in or with the food industry and are excited to sow these seeds of change, reach out. We’re particularly interested in hearing from retailers keen to stock the successful products, joining us in creating a food system that works for, rather than against, nature.

Sarah Benton Senior Writer, The Ellen MacArthur Foundation

Don’t delay starting your sustainability plan. It may seem daunting, but hundreds of businesses are already on the journey and are gaining tangible environmental and commercial benefits.

~Alexa Toomey, Department Manager, Sustainability, Renewable Energy and Agtech, Enterprise Ireland

We are demonstrating our commitment to the communities in which we operate, to our employees and to climate action.

Committed to powering a sustainable energy future

At Energia Group, we have been at the forefront of the energy transition on the island of Ireland, investing in renewables and new innovative technologies, as well as delivering energy to over 830,000 customer sites. Our €3 billion Positive Energy investment programme will help deliver a strong pipeline of new renewable projects that will help decarbonise the power system and facilitate the achievement of 2030 targets.

ESG plans and accomplishments Decarbonisation, security of supply and affordability will be key pillars in achieving a sustainable energy future. Our 15 operating wind farms, welladvanced onshore and offshore wind and solar sites, as well as numerous battery storage, grid services and green hydrogen production facilities, can collectively contribute to the 2030 targets.

The Huntstown campus in Dublin is critical to the security of supply and will help manage the transition to an increasingly decarbonised power system. We are also evolving the offering to our customers, ensuring that no one is left behind.

Paid for by Energia Group

We hold the ‘Business Working Responsibly Mark’ having recently been recertified by Business in the Community, and our ESG team was recently recognised as ‘ESG Best Performer of the Year (Large Companies +1000 employees)’ at the 2024 Green Awards.

Derek Scully, Head of Corporate Affairs at Energia Group says: “Our ESG efforts are a vital component of who we are as an organisation. We are committed to integrating ESG across our business and have aligned our responsible business activities to the UN Sustainable Development Goals (SDGs). We believe that by aligning our activities to the broader global efforts to deliver the SDGs, we are demonstrating our commitment to the communities in which we operate, to our employees and to climate action.”

Commitment to climate action and the environment

We have set ambitious targets for 2030 to generate three times as much renewable energy from onshore wind and solar projects and to reduce the carbon intensity of our electricity generation by 50%, compared to 2019. Further demonstrating our commitment to climate action, we achieved a B score in the CDP Climate Change Programme in 2023, and we are a Business Supporter of the AllIreland Pollinator Plan and member of Business for Biodiversity.

Commitment to our people

As examples of our focus on allyship at work and as part of our broader strategy to support all employees through every stage of life, new women’s health policies have recently been introduced, with the support of our active Women in Energy network. We are also providing free, eco-friendly period care products to employees in all our offices through a partnership with

Riley, a female-founded Irish business. We are signatories to the Business in the Community Elevate pledge and hold the Bronze Diversity Mark in Northern Ireland.

Commitment to customers

We are steadfast in our commitment to providing our residential and business customers with the best value and service — and to helping them with their energy transition journey. Customers are supported in this through educational awareness campaigns on the energy transition and the provision of a range of innovative energy services, products and advice.

Commitment to communities

Energia Group has a long-standing record of working with community groups to enhance local areas and benefit local people. We have invested almost €4 million in communities across the island through our wind farm community benefit funds. Through our Greener Possibilities Fund, we are also supporting four incredible organisations with whom our staff can volunteer. Each has a positive focus and impact on sustainability and communities, through initiatives that are aligned with our focus on the SDGs.

With sustainability at the core of our business strategy and operations, we are committed to playing our part in powering a sustainable energy future on the island of Ireland.

Derek Scully Head of Corporate Affairs, Energia Group

Powering the decarbonisation of the energy system across the island of Ireland through ambitious ESG goals is the focus of this leading integrated energy company.

Energia Group’s Long Mountain Wind Farm

From obligation to opportunity: sustainable reporting takes centre stage

Sustainability reporting and compliance have become pivotal for businesses in Ireland amid global calls for environmental stewardship. Explore Ireland’s journey in this realm, touching upon motivations, regulations and benefits.

Anjana Ajith Sustainability Senior Researcher, Irish Manufacturing Research Centre

The Corporate Sustainability Reporting Directive (CSRD) is propelling Irish businesses towards greater transparency and environmental stewardship. However, amid this progress, we must question whether these efforts truly drive meaningful change or merely satisfy regulatory requirements.

Motivations for sustainable reporting

While 95% of companies surveyed by KPMG engage in sustainable reporting, we must ask if their motivations are genuine in the need to be more sustainable or driven by regulatory pressure and investor demands.

The survey foresees that once CSRD gains momentum in 2024, the reporting will become mandatory for all companies.

Standardising reporting formats and metrics is vital, but we must recognise the complexities of measuring sustainability.

Irish businesses lead in sustainability

Key environmental initiatives, such as the EU Green Deal (European Commission) give Irish businesses the opportunity to lead in addressing global challenges like the climate crisis and biodiversity loss, redefining corporate responsibility for a sustainable future.

As CSRD comes into force this year, it is expected to increase the need for companies to report on their sustainability performance, as it expands the scope of reporting obligations and introduces more stringent requirements, thereby encompassing a larger number of companies across the EU.

Standardising reporting formats and metrics is vital, but we must recognise the complexities of measuring sustainability.

Current frameworks may oversimplify issues, failing to capture the true environmental footprint.

Sustainable reporting should be a strategic imperative because it yields benefits like innovation fostering, enhanced reputation, investor appeal and risk mitigation. Moreover, it is a transformational tool rather than mere compliance.

Overcoming variability and unlocking the potential of renewable energy

Challenges in integrating renewable energy, including variability and PPA optimisation, can be addressed with solutions for sustainable power management.

Renewable energy has emerged as a critical component in the global effort to transition towards a more sustainable and environmentally friendly energy landscape. However, as renewable energy sources like solar and wind power become increasingly prevalent, new challenges arise in managing their intermittent nature and integrating them effectively into existing energy systems, according to Michael Phelan, CEO of GridBeyond.

“In today’s world, the efficient and sustainable use of electricity is paramount, which includes finding solutions to manage the strains on power grids,” he says.

Valuing renewable power assets

One of the primary challenges in valuing investments in intermittent renewable power assets lies in assessing their reliability and

predictability.

Sustainability support for businesses

Irish Manufacturing Research (IMR) offers support in navigating sustainable reporting complexities. Through guidance, solutions and capacity-building programmes, we assist businesses in driving genuine change and embracing sustainability as a competitive advantage. Let’s collaborate to build a resilient future.

“It’s crucial to evaluate factors like variability of renewable energy sources, the availability of backup systems, and long-term demand projection,” Phelan says. “Providing insights into the market dynamics using software can help companies make informed decisions.”

Managing energy production fluctuations

Managing the variability in production schedules from intermittent generation sources presents another significant challenge. Unlike traditional fossil fuel-based power generation, renewable energy production is subject to fluctuations based on factors like weather conditions and time of day.

“This variability can lead to imbalances in supply and demand, leading to increased costs and

decreased efficiency,” Phelan says. “Strategies to manage these fluctuations include advanced forecasting algorithms to predict energy generation patterns and storage solutions, such as battery technology to store excess energy during periods of high production for use during times of low production.”

Locking in favourable power purchase agreements

Power purchase agreements (PPAs) play a crucial role in facilitating the integration of renewable energy into the grid by providing long-term revenue certainty for renewable energy generators. However, securing favourable PPAs in today’s market can be challenging due to fluctuating demand, regulatory uncertainties and the need for reliable off-takers.

“Market insights, transparency and efficient management strategies help both generators and buyers navigate the complexities of the market and achieve their goals,” adds Phelan.

Integrating renewable power

Successful integration of renewable energy into the grid requires a multifaceted approach. By leveraging advanced technologies and collaborative partnerships, businesses can overcome these challenges and unlock the full potential of renewable energy.

As more companies aim to achieve net zero goals, organisations such as GridBeyond are essential partners providing tools and expertise to enable businesses to transition towards renewable energy sources and meet sustainability goals.

Michael

IEngineering must combat perceptions to diversify the profession

Recent research shows the varied perceptions of engineering careers among demographics. Find out how we’re working towards inclusivity in STEM.

n at least one respect, engineering suffers from a perception problem: certain sections of our society are less likely to view engineering as a suitable career than others.

Gender gap in engineering career perception

In new research, conducted for Engineers Ireland by Ipsos B&A, 1,000 people were asked if they viewed engineering as a career suitable for people like them. While close to half (47%) replied in the affirmative and just over a third (34%) in the negative, scrutinising these statistics reveals important insights.

Only 12% of engineers are women while Higher Education Authority statistics show that only 23% of graduates from 2022 engineering courses were women.

One stark discrepancy occurs between men and women, as 39% of women say they do not view engineering as a career suitable for people like them, compared to just 29% of men. Similarly, when asked if they would consider engineering if starting their careers or making a career change, women were significantly less inclined to say yes, with 37% opposed, compared to 26% of men.

Socioeconomic divide in engineering perception

A comparable gulf exists when dividing by social grade, with 40% of those from lower socioeconomic

Top 7 insights from COP28 and what it means for business

Find key insights from COP28; learn why we must accelerate fossil fuel phase-out, navigate increased regulations, embrace green innovation and sustainable practices.

Tomás Sercovich, CEO, Business in the Community Ireland

The annual UN Climate Conference marks progress and renews global decarbonisation ambition.

Dubai’s COP28 in December 2023 leaves a lasting legacy on key issues that will enable decarbonisation.

For businesses in Ireland, the key takeaways from COP28 are outlined below.

Accelerating fossil fuel phase-out COP28 shifted the dial by compelling countries to triple their renewable energy capacity by 2030. For businesses, this translates into accelerated timelines for change in operations and supply chains. Fossil fuel phase-out is non-negotiable. Businesses need to set clear, achievable and science-based carbon reduction targets and transition to renewable energy sources.

Increased regulatory pressure Stricter regulations and compliance measures are in place, such as the EU’s Corporate Sustainability Reporting Directive. Ireland’s Climate Action

groups (C2DE) stating that they do not view engineering as a career suitable for people like them, as opposed to 28% from more advantaged backgrounds (ABC1).

All groups viewed engineering positively; with negligible differences in their perceptions of it as a financially rewarding, interesting career, with plentiful job opportunities. Nevertheless, clear discrepancies in perceived suitability were evident among these population segments.

Fostering engineering inclusivity through education

Only 12% of engineers are women while Higher Education Authority statistics show that only 23% of graduates from 2022 engineering courses were women. Entry to the profession from different social grades is less studied, but limited research and anecdotal evidence tell us that a problem exists.

As a society and an engineering community, we must strive to create a profession that reflects diversity by tackling gender, socioeconomic and other stereotypes across STEM careers.

The STEPS Engineering Your Future programme, hosted by third-level institutes and industry, is designed to promote engineering to Transition Year students and targets a 30% female participation rate. Parents, teachers and career guidance counsellors also play vital roles in addressing this inequality and must be supported in the process. These steps represent meaningful progress in promoting engineering that emphasises equality. However, we still have a long way to go.

Low Carbon Pledge, to address these challenges.

Evolving investor and consumer expectations

COP28 reinforced the shift towards sustainable investment albeit with questions remaining on how the transition will be funded. Companies that align with climate goals are more likely to attract funding and demonstrate long-term viability to investors. Similarly, adaptation to consumer demands for eco-friendly products and responsible practices is essential for long-term success.

Plan outlines how we have expended 47% of our emissions for the first carbon budget period but also the corrective actions required to get back on track.

Green innovation

COP28 showcased a commitment to fostering innovation across industries. Businesses that invest in sustainable technologies, renewable energy solutions and eco-friendly practices, such as regenerative agriculture, will not only contribute to a healthier planet but also position themselves as leaders in their respective sectors.

Supply chain resilience and collaboration COP28 emphasised the importance of sustainable supply chains.

Companies must reassess their supply chains to mitigate climate-related risks. This involves greater supplier engagement, reducing dependency on carbon-intensive sources and embracing circular economy principles. Companies should engage in partnerships, knowledge-sharing and collective initiatives, such as our

Social responsibility integration

COP28 highlighted the interconnectedness of environmental and social issues. Businesses are expected to address their carbon footprint and their social footprint such as inclusivity and fair labour practices. A holistic approach to sustainability is now a business imperative.

Climate risk assessment is paramount

COP28 underscored the importance of understanding and disclosing climate and nature-related risks. Companies need to integrate climate risk assessments into their decisionmaking processes, disclose this information transparently and deploy transition finance.

Following these COP28 insights, businesses must prioritise sustainability, act urgently, collaborate widely and integrate environmental and social responsibility into every facet of operations.

Damien Owens Director General, Engineers Ireland