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ICT, Innovation and Environmental Impact

ICT, Innovation and Environmental Impact

CSO statistical release, , 11am

Technological innovation can play a significant role in improving resource efficiency within enterprises, allowing them to produce the same or greater level of output while using fewer inputs. By improving their resource efficiency, through better use of energy, raw materials and other resources, enterprises can reduce waste and minimise the environmental impact associated with their activities.

While larger (250+ persons engaged) enterprises are more likely to adopt technology or innovation to reduce their environmental impact, small (10-49 persons engaged) and medium (50 to 249 persons engaged) sized enterprises here performed well compared to similar sized enterprises abroad.

This chapter shows:

  • Almost a third (33%) of Irish enterprises used Information & Communication Technology (ICT) in 2025 to reduce their environmental impact (reduce energy consumption, or reduce materials used or enhance use of recycled materials), the ninth highest proportion across the EU 27 and ahead of the EU average of 30%. Belgium and Denmark had the highest proportion of enterprises using ICT to reduce their environmental impact at 42% and 39% respectively.
  • More than one-quarter (27%) of enterprises used ICT systems or solutions in 2025 to reduce energy consumption, with 66% of large enterprises doing so compared with 22% of small enterprises.
  • Almost one-fifth (18%) of enterprises used ICT systems or solutions to reduce materials used or enhance use of recycled materials in 2025.
  • Half (50%) of large enterprises used ICT systems or solutions in 2025 to reduce materials used or enhance use of recycled materials, compared with 30% of medium sized enterprises and 15% of small enterprises.
  • In 2022, a quarter (25%) of enterprises attached high importance to increasing costs or input prices resulting from climate change, while almost a fifth (18%) of enterprises introduced an innovation in 2022 that significantly reduced their energy use or CO2 footprint.

More than a quarter of enterprises used ICT systems or solutions to reduce energy consumption

Data on digitalisation among Irish businesses is reported in the CSO, Information Society Statistics - Enterprises releases.

In 2025, 26.5% of enterprises surveyed used ICT systems or solutions to reduce energy consumption. Almost two-thirds (65.9%) of large enterprises used ICT systems or solutions to reduce energy consumption, compared with 41.0% of medium enterprises and 22.4% of small enterprises.

Almost one-fifth (18.0%) of enterprises surveyed used ICT systems or solutions to reduce materials used or enhance use of recycled materials. Almost half (49.8%) of large enterprises used ICT systems or solutions to reduce materials used or enhance use of recycled materials, compared with 29.6% of medium enterprises and 14.7% of small enterprises.

More than one in ten enterprises (10.2%) surveyed monitored the impact of ICT systems on energy or material consumption. Almost four in ten (37.4%) of large enterprises monitored the impact of ICT systems on energy or material consumption, compared with 19.2% of medium enterprises and 7.6% of small enterprises. See Figure 3.1 and Table 3.1.

Almost a third (32.5%) of Irish enterprises used ICT in 2025 to reduce their environmental impact (reduce energy consumption, or reduce materials used or enhance use of recycled materials), the ninth highest proportion across the EU 27 and ahead of the EU average of 30.3%. Belgium and Denmark had the highest proportion of enterprises using ICT to reduce their environmental impact at 41.9% and 39.5%, respectively. Bulgaria (13.1%) and Hungary (15.6%) were the EU countries with the lowest proportion of enterprises using ICT in 2025 to reduce their environmental impact. See Figure 3.2 and Table 3.2.

Irish enterprises across all three enterprise size classes were more likely to use ICT to reduce their environmental impact than similar sized enterprises across the EU. See Figure 3.3 and Table 3.3.

Figure 3.1 - Percentage of enterprises usage of ICT to reduce environmental impact by size class, 2025
Table 3.1 - Percentage of enterprises usage of ICT to reduce environmental impact by size class, 2025
Figure 3.2 - Enterprises using ICT systems or solutions to reduce energy consumption, or to reduce the materials used or to enhance the use of recycled materials, 2025
Table 3.2 - Enterprises using ICT systems or solutions to reduce energy consumption, or to reduce the materials used or to enhance the use of recycled materials, 2025
Figure 3.3 - Enterprises using ICT systems or solutions to reduce energy consumption, or to reduce the materials used or to enhance the use of recycled materials, by EU comparison and firm size, 2025
Table 3.3 - Enterprises using ICT systems or solutions to reduce energy consumption, or to reduce the materials used or to enhance the use of recycled materials, by EU comparison and firm size, 2025

A quarter of enterprises attach high importance to increasing costs or input prices resulting from climate change

Data on climate change importance for enterprises is reported in the CSO, Innovation in Irish Enterprises releases.

Based on enterprises surveyed as part of CSO, Community Innovation Survey in 2022 (with further updates to come for reference year 2024 in the coming months), a quarter (24.7%) of enterprises said increasing costs or input prices resulting from climate change was of high importance to their enterprise, including almost a third (32.4%) of large enterprises, 26.8% of medium sized enterprises and 21.8% of small enterprises. One-third of enterprises in Industry (32.6%) stated that increasing costs or input prices resulting from climate change was of high importance to them.

Almost one in six enterprises (16.4%) said government policies or measures related to climate change were of high importance for their business. A similar number said increasing customer demand for products that help mitigate or adapt to climate change was highly important. See Figure 3.4 and Table 3.4. 

Enterprises that adopted at least one significant form of environmental innovation (for example reduced energy use or CO2 footprint, or recycled waste, water, or materials for own use or sale) were more likely to have reported climate change factors being of medium or high importance to their enterprise than enterprises that did not adopt any significant environmental innovation.

Increasing costs or input prices resulting from climate change was of medium or high importance to three-quarters (74.5%) of enterprises that adopted at least one significant environmental innovation, compared to 45.4% of enterprises that did not adopt any significant environmental innovation.

There was a higher level of concern expressed by ‘innovators’ compared to ‘non-innovators’ across all four factors of climate change as measured by the survey (Government policies or measures related to climate change, increasing customer demand for products that help mitigate or adapt to climate change, increasing costs or input prices resulting from climate change, and impacts of extreme weather conditions). See Table 3.5.

Figure 3.4 - Percentage of enterprises giving a rating of high importance to climate change by sector and size class, 2022
Table 3.4 - Percentage of enterprises giving a rating of high importance to climate change by sector and size class, 2022

Table 3.5 - Percentage of enterprises giving a rating of medium or high importance to climate change factors by adoption of environmental innovation, 2022

Almost a fifth of enterprises introduced an innovation in 2022 that significantly reduced their energy use or CO2 footprint

Data on innovation is reported in the CSO, Innovation in Irish Enterprises releases. 

In 2022, the most common type of environmental innovation introduced by enterprises was reduced energy use or CO2 footprint of the enterprise (18.2%). This type of innovation was more likely to have been introduced in large enterprises (38.9%), than in medium-sized (20.8%) or small-sized (12.7%) enterprises. 

The second most common type of innovation reported was recycled waste, water, or materials for own use or sale (14.4%). See Figure 3.5 and Table 3.6.

Figure 3.5 - Percentage of enterprises introducing an environmental innovation by type of innovation, 2022
Table 3.6 - Percentage of enterprises introducing an environmental innovation by type of innovation and sector and size class, 2022