In this week’s Sustainability/ESG Bulletin read about the Hamburg Declaration to bolster energy security across Europe, Northern Ireland’s first annual progress report on its Environmental Improvement Plan and a report arguing that natural capital should be formally recognized as Critical National Infrastructure (CNI) in the UK. Also covered is how renewables generated more power than fossil fuels in Europe in 2025, how corporate climate action momentum remains high globally, the ECB’s research into climate and nature risks, an OECD analysis of climate change mitigation policies, the new IPSAS standard for governments to account for tangible natural resources, and the latest articles, resources and upcoming events.

IRELAND

The Hamburg Declaration

Ireland has signed a historic clean energy security pact – the ‘Hamburg Declaration of Energy Ministers’ – that aims to bolster energy security across Europe and the UK in an era of global instability. The deal – agreed at the Future of the North Seas Summit – sets out a commitment to a more regional approach to cross-border infrastructure planning, closer cooperation on the protection of offshore energy infrastructure, and the development of an Offshore Financing Framework to strengthen the business case for offshore wind in the North Seas. In the second half of this year, Ireland's EU Presidency will emphasise the need for accelerated deployment of renewable energy, particularly wind, solar and emerging offshore technologies, to deliver clean and affordable power for citizens and businesses. Increased renewable availability reduces exposure to volatile fossil fuel markets and strengthens Europe’s strategic autonomy.

Parliamentary Budget Office publishes paper on Global Carbon Taxes 2025

The Parliamentary Budget Office (PBO) has published a new paper Global Carbon Taxes in 2025. Carbon pricing - through carbon taxes or emissions trading schemes (ETS) - is widely recognised as an effective tool for reducing emissions. The paper explains these two pricing mechanisms, outlines key design differences, and examines how they interact. The supporting note, Identifying Greenhouse Gas Emissions, aims to help readers understand emissions measurement methodologies and the challenges they present for carbon pricing policy.

Calls for clear, consistent, and practical sustainable finance rules

The Banking and Payments Federation Ireland (BPFI) is calling for clear, consistent, and practical sustainable finance rules to enable banks to channel capital effectively and efficiently into green investments without excessive burdens or ambiguities; this, it says, requires greater harmonisation of sustainability rules across the various pieces of EU legislation. Other recommendations it makes for Ireland’s EU Presidency 2026 are in the areas of retail participation in capital markets while safeguarding investor protection, creating a more proportionate & simplified regulatory framework, creating a fair, open and innovative digital infrastructure and ensuring the effective delivery of housing.

€500m climate transition equity fund launched

Aon plc, a global professional services firm, has announced the launch of a new climate transition fund in Ireland, with Irish-based, global asset management company Irish Life Investment Managers Limited (‘ILIM’). The €500m Climate Transition Equity Fund aims to enable investors in Ireland to support the transition to a low-carbon economy. The fund will tilt towards companies that are working to achieve the UN Sustainable Development Goals relating to climate action, resource scarcity, healthy ecosystems and basic social needs.

NORTHERN IRELAND/UK

Northern Ireland’s first annual progress report on Environmental Improvement Plan

The Department of Agriculture, Environment and Rural Affairs (DAERA) has published Northern Ireland’s first Annual Progress Report on the Environmental Improvement Plan. The report provides the first assessment of what has been achieved by the Department and across government since Northern Ireland’s first Environmental Improvement Plan (EIP) was launched in September 2024. The report demonstrates progress across all six SEOs, while acknowledging the scale of the challenge and the need for accelerated action to meet a number of commitments, including a continued reduction in greenhouse gas emissions, with 2023 emissions falling by 7.1% compared with 2022, bringing overall emissions to 31.5% below 1990 levels.

Global ecosystem degradation and collapse threaten UK national security and prosperity

A policy paper from the Institute for Sustainability and Environmental Professionals (ISEP) has called for the protection, enhancement, and restoration of natural capital to be placed at the heart of the UK’s economic growth and national resilience strategy. The report, Natural Capital is Critical Infrastructure highlights that the UK’s economic success is fundamentally dependent on natural capital - the stocks of nature such as forests, rivers, biodiversity, land, and minerals - which provide essential ecosystem services vital for human well-being and economic stability, and argues that natural capital should be formally recognized as Critical National Infrastructure (CNI).

More recently, the UK government’s Department for Environment, Food & Rural Affairs published an assessment of how global biodiversity loss and ecosystem collapse could affect UK national security. With high analytical certainty, it states that global ecosystem degradation and collapse threaten UK national security and prosperity, with cascading risks likely to include geopolitical instability, economic insecurity, conflict, migration and increased inter-state competition for resources.  The assessment, which aims to support long-term resilience planning, highlights opportunities for innovation, green finance and global partnerships that can drive growth while safeguarding the ecosystems that underpin our collective security and prosperity.

EUROPE

Report identifies ‘new milestone’ for EU’s electricity transition

European Electricity Review 2026, the report from the independent, UK-based non-profit energy think tank Ember, has found that the EU’s electricity transition reached a new milestone in 2025 with wind and solar generating more power than fossil fuels. Renewables provided nearly half of EU power, gas generation rose by 8 percent compared to 2024, which pushed the EU power sector’s gas import bill up to €32 billion, and coal power fell to a new historic low of 9.2 percent. Battery deployment accelerated significantly in 2025, with grid-scale projects announced across the EU. The report called for member states and governing institutions to prioritise implementing rules for clean flexibility, boosting electrification through clear policy signals and support, and improving energy security.

Overheated and underprepared: Europeans' experience of living with climate change

A new joint report by the European Environment Agency (EEA) and Eurofound on implemented climate resilience measures – both at the household and local authority level has found that while most Europeans have already been directly affected by extreme weather and are highly concerned about future climate impacts, yet their preparedness remains limited. The report, which draws on data collected from over 27,000 respondents across EU-27 countries, will be launched on 4 February at a webinar: 'Overheated and underprepared: Europeans' experience of living with climate change'.

Accountancy Europe Sustainability Update

Accountancy Europe has published its January Sustainability Update with the following highlights:

• Commission announces members for the Platform on Sustainable Finance
• EU Deforestation Regulation postponed by one year
• ESMA outlines principles to follow to address greenwashing risks
• EFRAG shares first insights into VSME market acceptance

(Also, see this Op-ed by Iryna de Smedt, Policy Manager Accountancy Europe: Omnibus won’t stop the climate clock: only sustainable businesses will compete tomorrow)

WORLD

CDP and SBTi 2025 figures show corporate climate action momentum building

CDP – the environmental disclosure platform – has revealed its 2025 ‘A List’, the top performers among the companies disclosing sustainability information on the platform in 2025. Over 800 companies achieved the recognition this year, following a 70 percent year-on-year rise in companies achieving it across climate, forests and water security. According to the CDP’s press release, “the sustained global demand for high-quality environmental data from companies, cities, states and regions”, with markets continuing to signal the critical importance of reliable environmental information. 640 investors with US$127 trillion in assets called on companies to disclose through CDP while over 270 major buyers requested environmental data from approximately 45,000 suppliers via CDP’s Supply Chain program.

Separately, the number of companies with science-based targets validated by the Science-Based Targets initiative (SBTi) globally has reached 10,000 worldwide, reflecting the growing scale of corporate climate action across sectors and regions. Headquartered across all continents and in more than 90 countries, the 10,000 companies represent more than 40 percent of global market capitalization and include many of the world’s leading businesses, spanning nearly every major sector, region, and company size. To be validated by SBTi Services—the SBTi’s validation arm—a company must set targets using the criteria laid out in the SBTi’s standards, tools, and guidance. Validation by SBTi Services confirms that a company’s targets are ambitious and aligned with SBTi-approved pathways to achieve net zero by 2050.

ECB findings on higher borrowing costs for banks with higher exposure to transition risks and climate and nature plan 2024-2025

The European Central Bank (ECB) has published a paper which finds that banks with higher exposure to transition risk face significantly higher borrowing costs. The paper, Climate change, bank liquidity and systemic risk, examined the relevance of banks’ exposure to climate transition risk in the interbank lending market and identified this “transition premium” as “a combination of a risk premium, compensating lenders for increased credit risk, and an inconvenience premium”, reflecting the sustainability preferences of key dealer banks. It also found that the transition risk premium intensifies during periods of financial stress, indicating that climate-induced risks amplify existing vulnerabilities in financial markets.

UN High Seas Treaty and AI for seafood supply chain companies

Companies in seafood supply chains must now integrate treaty compliance and AI-enhanced traceability into sourcing strategies, after the United Nations High Seas Treaty became legally binding January 17. This landmark treaty aims to – among other things – strengthen the transparency and enforcement of marine biodiversity governance. The effectiveness of the measures will depend on the implementation of the Treaty, as enforcement gaps and inequalities in technology access could limit environmental outcomes.

Analysing the international spillovers of climate change mitigation policies

A new paper from the Organisation for Economic Co-operation and Development (OECD) has analysed ‘international spillovers’ from domestic climate mitigation policies - specifically economic, technology, and policy spillovers - and their impacts on global emissions and economic outcomes. These effects can be positive - such as accelerating low-carbon technology diffusion or the implementation of mitigation policy adoption abroad - or negative - such as shifting emissions across countries, i.e., carbon leakage, and fragmenting international markets. Advancing a shared understanding of international spillovers is essential to the Inclusive Forum on Carbon Mitigation Approaches (IFCMA)’s objective of enhancing the global effectiveness of mitigation efforts. To this end, the report provides a typology of spillover effects and transmission channels, reviews tools available to analyse them, synthesises the existing evidence, and explores policy design and responses to manage spillovers. This framework forms the analytical foundation for the upcoming IFCMA work to deepen the evidence base and support more co-ordinated international climate action.

New IPSAS Standard Helps Governments Account for Tangible Natural Resources Held for Conservation

The International Public Sector Accounting Standards Board (IPSASB) has issued a new standard to address the need for guidance on tangible natural resources held for conservation. IPSAS 51, Tangible Natural Resources Held for Conservation introduces new, public sector-specific accounting guidance on accounting for natural resources with physical substance, such as land, trees, and water, often held by governments to preserve or protect them. IPSAS 51 also highlights guidance in other standards that applies to natural resources that are held for other purposes.

IN CASE YOU MISSED IT…

Davos 2026: Special address by Mark Carney, Prime Minister of Canada (World Economic Forum) (Video: 33mins)

TECHNICAL ROUNDUP

(From our colleagues in Professional Accounting on 23 January)

• The European Securities and Markets Authority (ESMA) has published a second thematic note on sustainability-related claims focusing on ESG strategies. This publication offers practical guidance for making sustainability claims ensuring clear, fair and not misleading sustainability-related claims are made by market participants and also addressing greenwashing risks in support of sustainable investments.  
• The European Central Bank (ECB) announced that it has advanced its climate and nature work based on the 2024-2025 plan embedding climate and nature-related risks into its core work. 

RESOURCES

Recording & slides - webinar on latest Environmental, Social & Governance (ESG) landscape

On 14 January 2026, the Ulster Society hosted a webinar on the latest Environmental, Social & Governance (ESG) landscape, and the challenges and opportunities this brings for chartered accountants in business. Speakers from NIE Networks Ltd, Encirc, Graham Group and Firmus Energy discussed the growing responsibilities of finance professionals, the skills required to navigate ESG effectively, and how chartered accountants can add value in an increasingly sustainability-focused business environment. A recording of this webinar is available to view, for free and on demand, HERE

Global natural capital accounting standard: Why it matters for finance professionals

In this article from ICEAW find out about ISO 14054, the first global standard for natural capital accounting, which recognises the role that nature plays in sustaining business value.

Digital and emerging technologies and human rights

This new content from the United Nations Global Compact explains how digital and emerging technologies create both opportunities and significant human rights risks. It provides definitions, examples, and human‑rights considerations relevant for companies.

Science-based targets e-learning collection

The United Nations Global Compact is offering five new and enhanced e-learning modules developed by the Science Based Targets initiative (SBTi)—guiding companies through every step of target setting and preparing for validation. Each course features interactive content, real-world examples and knowledge checks to help companies build credible decarbonization strategies in their journey to science-based targets.

ARTICLES

• Small businesses’ big impact on sustainability reporting (Accountancy Ireland)
• Preparing for the new rules in pay transparency (Accountancy Ireland)
• Climate action plan delayed for second year despite emissions cuts falling behind target (Irish Times)
• New Research Warns Physical Climate Risk Can Drive Default (David Carlin’s Digest: Your Guide to a Changing World)
• Financial institutions are underestimating climate risks, actuaries warn (Sustainable Views FT – subscription needed)
• Smart boards incorporate climate and nature into their core strategy(Sustainable Views FT – subscription needed)
• Modern slavery is increasing, so too are its regulatory and reputational risks (Sustainable Views FT – subscription needed)
• How AI is helping to bring nature into the boardroom (Reuters)
• How will the new duty on electric cars work? (ICAEW Insights)

EVENTS

UN Global Compact Network UK Webinar Series, The Business Role in Systems Change, Feb/Mar 2026
Businesses are facing escalating risks as the world approaches critical tipping points. Corporate resilience now depends on the transformation of markets, supply chains, and business models needed to steer the system towards stability. There is also potential for positive tipping points - moments when small, well-directed actions accelerate large-scale transitions towards sustainability. Businesses hold a unique capacity to create and amplify these dynamics of change. In these webinars, leading scholars and experts will discuss tipping points, climate risk, and systems change, how to respond to emerging climate realities and apply breakthrough frameworks such as the Positive Tipping Points Toolkit and Doughnut Economics to unlock change at multiple scales.  

Webinar sessions:
Understanding Tipping Points Risks, Feb 26  | 14:00
Systems Thinking in Business and Climate, Mar 5  | 14:00
Triggering Positive Tipping Points, Mar 12 | 14:00

Dublin Chamber, The Sustainability Academy: Green Public Procurement Training
Join us on Wednesday the 4th of February for Half-day virtual workshop on Green Public Procurement as part of Sustainable Academy, sponsored by AIB. All companies now need to learn the green public procurement rules to bid and win new contracts with the public sector.
Virtual, Wednesday 4 Feb 2026 | 9am - 12.30pm.

Pentland Centre for Sustainability in Business - Lancaster University, Starting Your Journey with Tools and Frameworks
Second in the series, this webinar explores tools and frameworks that support decision-making for nature and biodiversity, including the Natural Capital Protocol and TNFD. Learn how these approaches help businesses identify relevant priorities and communicate outcomes effectively.
Virtual, Thursday 12 February, 8:00am – 9: 00am | 4.00pm – 5.00pm

ICAEW, Putting nature on the balance sheet — Troubleshooting session
Troubleshooting session to tackle common challenges on how to embed nature into the activities and processes of the finance function.
Virtual, Wednesday, 18 February, 4 - 5pm CET

Reuters Events, Practical Implications of the Omnibus
A webinar hosted by Reuters Events in partnership with Professor Andreas Rasche, Associate Dean, Copenhagen Business School. The session will explore the practical implications of the EU Omnibus package and what these changes mean for organisations preparing their 2026 sustainability reporting strategy.
Virtual | Thursday, 19 February 2026 | 10:00 am–11:00 am GMT / 11:00 am–12:00 pm CET

Shift, EU Omnibus Webinar - Briefing for business on the revised CSDDD and performing due diligence
This webinar will feature insights from the Shift team and leading businesses on practical, real‑world approaches to implementing due diligence aligned with good practice. The session will explore how due diligence requirements under the CSDDD and reporting obligations under the CSRD can be addressed in an integrated way, rather than treated as separate exercises. Companies in scope of the CSDDD or operating within their value chains are encouraged to attend.
Virtual, Thursday, 26 February 2026 | 09:00

Shift, EU Omnibus Webinar - Briefing for business on the revised CSRD and reporting on sustainability issues
The session will examine what recent changes to the CSRD and the ESRS mean in practice for how companies report on sustainability issues.  The webinar will feature insights from the Shift team, alongside leading businesses, on implementation approaches that reflect good practice, support companies in identifying and addressing key risks, and remain practical and workable in real-world contexts. The discussion will also explore how reporting obligations under the CSRD and due diligence requirements under the CSDDD should be considered together, rather than in isolation.  If your company is in scope of the CSRD, or part of the value chain of a company that is, we encourage you to join us.
Virtual, 3 March 2026 | 15:00

Sustainability Centre

You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.