ESG rule divergence is set to complicate Irish compliance

A new survey from the Compliance Institute shows seven in ten financial firms expect shifting ESG rules in the US and EU to reshape Irish compliance frameworks. While most foresee only moderate impact, one in five anticipate major disruption as divergent agendas create greater regulatory complexity.

The EU is easing ESG reporting for smaller firms, while the US has rolled back climate and DEI requirements. This growing regulatory gap risks “ESG arbitrage”, where multinationals exploit weaker jurisdictions, undermining climate goals and distorting competition.

Ireland, as a hub for US multinationals, is particularly exposed. Compliance teams face mounting pressure to navigate conflicting frameworks across multiple markets. Yet despite broad awareness, only 40% of firms are actively preparing—leaving a significant readiness gap at a time when investor scrutiny of ESG performance is intensifying.

The long-term trajectory still points towards tougher sustainability expectations. Firms that move early will not only mitigate risk but also strengthen access to green capital and future-proof their market position.

Read the full article to see how shifting ESG rules could reshape Ireland’s financial landscape.