The development of Corporate Sustainability in the EU and its impact on multinational and large companies in Ireland

Abstract

The new EU sustainability legislation and standards contain mandatory disclosure requirements in addition to civil liability for breaches of due diligence which significantly alter the business stakeholder relationship. The legislation and standards provide a framework by which the concept of corporate sustainability and sustainability stakeholders can be better understood. In particular, definitions from a legal perspective for commonly used sustainability terms and expressions facilitates greater dialogue on sustainability matters by all stakeholders. Corporate sustainability is a rapidly evolving area of business and law which has significant implications for company directors, lawyers, accountants, auditors, sustainability officers, consultants, company secretaries, educators, and policy makers.

Given that the concepts of corporate sustainability, sustainability stakeholders and sustainability value creation are nascent and continue to evolve the research took the form of semi-structured interviews with professional experts working in and with multinational companies in Ireland. The research examines the impacts of emerging EU corporate sustainability law on the governance and operations, accountability, and preparations of multinational companies operating in Ireland.

Key research outcomes include: the increasing preference of multinational companies for stakeholders with knowledge and understanding of sustainability matters; the increasing use of sustainability contract clauses; the creation of sustainability value through corporate strategy and business model; and the increasing need for greater sustainability training and skills development.

The new EU sustainability legislation and standards have significant implications for all professional sustainability practitioners particularly with regard to sustainability due diligence, materiality, impacts, risks and opportunities. This has given rise to increased use of sustainability contract clauses and sustainability policies, actions and targets which can be used to create sustainability value. Based on the research relevant and practical considerations have been articulated and formulated for the use of professional sustainability practitioners and boards of directors.

Date of Award	26 Sept 2024
Original language	English
Awarding Institution	Northumbria University
Supervisor	Alexander Hope (Supervisor) & Elaine Hall (Supervisor)