Just 20% of companies understand what scope 1, 2 and 3 carbon emissions are, according to new research by Amárach.
Scope 1 emissions are directly created from sources owned or controlled by the company, such as boilers, furnaces, vehicles, or from equipment used in processes like chemical production.
Scope 2 emissions are indirectly created from purchased electricity, heat, cooling, or steam that is consumed by the company, while scope 3 emissions are indirectly created as a consequence of the activities of the company but occur from sources associated with suppliers and/ or customers, hence not owned or controlled by the company.
The information is contained in a new guide published today by Ibec and Accenture which aims to help companies reduce their carbon emissions.
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The Climate Action Toolkit comes on the back of this new research which shows a general lack of understanding among businesses around key sustainability terms.
Among the findings, only one in four companies understand the implications the new Corporate Sustainability Reporting Directive (CSRD).
The directive strengthens the rules around the social and environmental information which companies have to report.
Under the law, EU companies will have to report in more detail, and therefore be more transparent about the impact of their actions and policies on the environment, human rights and social standards.
The new guide published today aims to give businesses the information they need to start, or continue on their sustainability journey.
Firstly, it sets out the commercial responsibilities behind climate action, and why businesses need to make sustainability and climate action a priority.
It then goes on to outline the basic elements of climate change and some key concepts related to greenhouse gas emissions reduction, environmental policy and regulation, carbon footprinting and sustainability reporting.
Next, the guide sets out a 'best practice' approach for businesses to develop a climate action strategy. It begins with the establishment of an emissions baseline, takes you through target setting and strategic implementation, and concludes with the measurement, monitoring and communication of your progress.
The final chapter looks at some of the challenges, drivers and developments in four large sectors of the Irish economy - food and drink, commercial and financial services, the public sector and technology.
"In today's rapidly evolving business landscape, integrating ESG initiatives is no longer optional; it is the foundation of responsible and resilient businesses," said Fergal O'Brien, Executive Director of Lobbying and Influence at Ibec.
"By setting Science Based Targets (SBTs), businesses align sustainability goals with scientific research and benchmarks, driving tangible results while fostering a culture of accountability and long-term thinking.
"At Ibec, we are supporting our members to embrace ESG and SBTs to allow them to lead the way in creating a future where economic prosperity and environmental stewardship go hand in hand. We hope that the Ibec-Accenture carbon reduction toolkit will be a valuable resource for businesses as they embrace this challenge," he added.
Niamh O'Gorman, Sustainability Lead at Accenture in Ireland said Irish businesses are taking steps in the right direction to reach net zero carbon emissions by committing to science based targets - but she said it is not an easy process.
"We hope this toolkit will provide useful guidance, and together with Ibec, we are committed to supporting Irish businesses in navigating the required changes efficiently and effectively," she said.
