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How to build your SME’s 2022 business plan

Being a small business owner in the current economic climate can be difficult, but every new year presents new opportunities. Sven Spollen-Behrens explains what SMEs should consider when planning for 2022. After an unpredictable two years, 2022 is right around the corner. Next year is about the return to proactive planning and expansion as we continue to adjust operations and budgets to a post-pandemic business environment. Here are seven things SMEs should consider when business planning for next year. Setting goals Even though we don’t know what the future will bring, you must stay in future-thinking mode – focused on growth, deals and opportunities. Identify what generates business, set targets, and always push to improve yourself, the business and the performance of the people around you. Operations review Do you have the proper procedures in order? How efficiently do you keep spending under control? Is it possible for supply chain issues to let you down? These are all questions SMEs should ask themselves in this calendar year. Prepare your operations for changes coming down the track. Customer experience You win customers over with excellent service, and there is always something extra you can do or say that doesn’t necessarily add cost but adds immense value to the relationship. This could come in the form of follow-up communications, sharing expertise informally, or reassessing clients’ needs regularly. Marketing When it comes to your brand, a social media presence is ideal. Images or videos for LinkedIn and Twitter (among others) are inexpensively produced and customers relate well to visuals. Depending on your service or market, a local radio ad, door drops, or ads may be just as effective. Marketing planning begins by asking yourself who the customer is and how you can reach them. If your business is large enough, contract a marketing manager or PR professional to help. Create an online presence If you haven’t already, explore getting a mobile-friendly webpage and, if appropriate, e-commerce platforms. People increasingly source their products and services online. It’s handy to peruse the goods in comfort and hit the ‘buy’ or ‘contact’ button. Track finances Always have an up-to-date balance sheet tracking your company’s assets, inventory and liabilities. You must be clear on the figures, whether you carry more debt than assets or, hopefully, own more than you owe. Stay on top of accounts receivable and payable, available cash, and payroll commitments. Don’t be a busy fool; ensure your efforts are generating the right return and, if not, question why. Delegation It’s important to delegate the tasks outlined when setting out your goals. It’s common for small business owners to take on the brunt of the work themselves, but one person can’t be all things. Build a plan with your team and transfer ownership of tasks and goals to appropriate employees. Be sure to track the plan’s progress throughout the year and adjust as needed. Sven Spollen-Behrens is the Small Firms Assosciation (SFA) Director at MentorsWork, a free, Government-funded scheme created to help support business analysis and planning. This is delivered by the Small Firms Association and Skillnet Ireland.

Nov 12, 2021
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Investing in your child’s future now

To help the next generation reach their goals, parents and grandparents often want to ensure some financial security for their children. Leanne McCrystal outlines three investment options for parents in the UK. With the ever-increasing financial challenges faced by the younger generation, parents and grandparents often find themselves wondering how they can invest for their children’s futures. Whatever hopes and dreams you have for your children or grandchildren, it’s reassuring to know you can take steps now to help put them on the path to achieving their goals. Perhaps your goal may be to help them purchase their first home or contribute to the rising costs of further education; taking small steps while children are young can help achieve these goals. The power of compounding Today’s low-interest-rate environment has created challenges for investors seeking adequate returns on savings, particularly for the younger generation. While cash may seem like the safe option, the negligible interest rates currently available for savings, coupled with inflation, has exposed the actual cost of holding cash. One cash-alternative option is investing designated savings to give your children or grandchildren a head-start in their investing career. The old adage of “time in the market rather than timing the market” still holds, particularly for the younger generation for whom compounding can be their greatest asset. The power of compounding can be easy to overlook. However, regularly investing small sums while letting the funds compound over the long-term can make a monumental difference to a savings pot for your children or grandchildren. Possible investment vehicles There are various ways to invest for the next generation, depending on the quantum of funds you wish to invest and the level of control you would like to retain over how and when the funds are accessed. Junior ISA For children under 18, a Junior Stocks and Shares ISA is a popular choice. Under the 2021/22 UK tax rules, up to £9,000 can be invested in a Junior ISA each year with no tax payable on the interest, dividends or gains accrued. While the account needs to be opened by a parent or legal guardian, anyone can add funds to it. One potential area for consideration for those thinking about a Junior ISA is that the minor will become fully entitled to the funds upon reaching 18. It will automatically convert to an ISA in their sole name. If giving a young adult unfettered access to a substantial amount of money is a concern, alternative investment vehicles can be considered. Pension If you wish to consider a longer-term investment vehicle, pensions are among the most tax-efficient investment vehicles available for savers in the UK. A stakeholder pension can be a highly tax-efficient way of investing for children or grandchildren. While contributions are limited to £2,880 per year for children and non-taxpayers, pensions have the added advantage of receiving an additional 20% top-up from the UK government in the form of basic rate tax relief (i.e. £720 based on a contribution of £2,880). The overarching benefit of a pension is the long-term investment horizon, with access limited until the beneficiary reaches age 57. The long-term investment horizon provides an opportunity to invest funds in higher-risk investments, thereby targeting a possible higher return over the long-term. This, coupled with the benefit of compounding, can build a significant nest egg for young savers to help them in later life. Trust planning Consider trust planning if your principal objective is to gift larger sums of money to your children or grandchildren. Trusts can be useful vehicles for transferring wealth to the younger generation while allowing you to retain control of the assets should you wish to do so, even after your death. Effective trust planning also has the added benefit of potentially reducing your estate for inheritance tax purposes. Trusts can be administratively simple to set up. Still, careful consideration should be given when considering your overall financial objectives, including who you would like to benefit, when, and how much control you wish to retain over the assets. Leanne McCrystal is a Chartered Wealth Manager at Davy UK.

Nov 12, 2021
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Ireland’s CO2 performance and what COP26 cannot fail to deliver

While people from around the world gather in Glasgow to attend COP26, what is the state of Ireland’s CO2 emissions and how can we strengthen our commitment? Kim McClenaghan explains. The Environmental Protection Agency (EPA) provides the estimates of greenhouse gas emissions in Ireland. Its latest data shows that overall greenhouse gas emissions in Ireland decreased by 3.6% in 2020, and energy industry emissions decreased by 7.9%. The decrease was primarily driven by economic restrictions imposed in response to the pandemic, reduced peat use in power generation and an increase in renewable generation. Despite the decrease in emissions, the EPA warns that Ireland is still not on the pathway required to meet future targets and a climate neutral economy. To achieve permanent emission cuts in line with the Paris Agreement, it will be vital that this decrease is not an isolated occurrence, but rather part of a long-term trend as economic activity fully resumes. In the past year, Ireland’s long-term climate ambition has been restated, and the Climate Action and Low Carbon Development (Amendment) Bill 2021 has been passed into law by the Oireachtas. The Bill sets out the ‘national climate objective’ to achieve a climate-neutral economy no later than 2050. This target is consistent with the Paris Agreement and other international obligations. Carbon budgets To realise this ambition, the Climate Change Advisory Council has been tasked with proposing economy-wide carbon budgets, which will then be applied across relevant sectors by the Minister for the Environment and approved by the Government. The first carbon budget will see emissions reduced by 4.8% on average between 2021 and 2025. The second budget, running from 2026 to 2030, will see emissions reduced by 8.3% on average. The first two carbon budgets will provide for a 51% reduction in greenhouse gas (GHG) emissions by 2030 relative to 2018 levels, resulting in a cut of almost 35 million tonnes of CO2. The scale and pace of the economic and societal change and investment needed to achieve these targets are significant, but they will be necessary to reduce our emissions consistently and achieve the 1.5°C goal set by the Paris Agreement. Raising ambition The overarching aim of the climate summit in Glasgow – COP26 – is to mobilise stronger and more ambitious climate action from governments to keep the 1.5°C Paris Agreement goal within reach. This will require a significant strengthening of climate commitments from all countries, and especially from the G20 as without concerted action from this group, the chances of limiting warming to 2°C, let alone 1.5°C, will all but disappear. Converting climate pledges into action Governments have a pivotal role to play in creating the enabling environment for the transition to net-zero through policy and regulatory reform and investment. National targets need to be underpinned by policies that will deliver change at the pace and scale required. These policies will vary by nation, depending on the socio-political and economic context, but need to set the regulatory environment that businesses and individuals operate within, and encourage capital to be deployed to the right places. This requires clear overarching strategy and ambition, long-dated policy mechanisms, and the removal of fiscal or other disincentives. Private sector execution We have seen an unprecedented number of net-zero commitments by the private sector in the last 18 months. Over 3,000 businesses are now part of the Race To Zero Campaign, joining 733 cities, 31 regions, 173 of the biggest investors, and 622 higher education institutions. Alongside 120 countries, they form the largest ever alliance committed to achieving net-zero emissions by 2050 at the latest, collectively making up nearly 25% of global CO2 emissions and over 50% of GDP. Over half of the sectors that make up the global economy are now committing to halve their emissions within the next decade and achieve near-term emissions reduction targets. In each of these sectors, at least 20% of the major companies by revenue are aligning around sector-specific 2030 goals in line with delivering net-zero emissions by 2050. Time for all businesses to commit, plan and act Making the transition to a more environmentally and socially responsible world is now an urgent business imperative. We have less than two business cycles left to deliver the necessary changes. Working alongside governments, and providing the mandate and impetus for them to go further and faster, is vital if we are to keep warming to 1.5°C and avoid catastrophic climate change. By taking firm and decisive action now to halve global emissions by 2030 and reach net-zero emissions by no later than 2050, we have a chance to succeed. Kim McClenaghan is a Partner in Consulting and Head of the Energy, Utilities & Sustainability Advisory team at PwC.

Nov 05, 2021
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Domestic abuse: how employers can support their staff

Recent studies have shown that domestic abuse reports have increased during the pandemic. Joe O’Donnell outlines the role employers play in creating a haven for those affected. The pandemic has seen a blurring of the traditional boundaries between home and work, which has brought increased risks for victims of domestic abuse. Many victims of domestic abuse see the physical workplace as a haven and place of respite from the ill-treatment they might experience at home. For those living with an abuser, working at home brings a more significant threat of abuse. The increase in hybrid working has meant that the employer’s role in tackling abuse has never been so vital. This raises the question of what responsible employers should do to ensure that the workplace is a safe place. Research commissioned by the Vodafone Foundation in 2019 revealed that more than one in three (37%) working people surveyed across multiple industries and at varying levels of seniority had experienced domestic abuse at some point in their lives. In Ireland, Women’s Aid reported a 43% increase in the number of people contacting their domestic violence support services throughout the COVID-19 pandemic, as the lockdown restrictions have had an “unprecedented and exhausting impact” on victims of domestic abuse. And, in September 2021, An Garda Síochána reported that it was dealing with almost 100 domestic abuse incidents across Ireland every day. The impact of domestic abuse in the workplace The cost of domestic abuse to companies can be considerable. Safe Ireland has noted how “the effects of living with abuse permeate every facet of a person’s life, including work” in its guide for employers. The suffering of an abuse victim can directly affect an employer in terms of absenteeism and reduced productivity. In the Vodafone Foundation’s research, 67% of victims said that domestic abuse affected their careers, 56% of victims stated that the abuse they suffered also affected their co-workers. And there is a potential reputational effect for the employer; having effective workplace policies on abuse can help retain your staff – particularly women workers – and enhance your reputation as a responsible employer. Domestic abuse can no longer be dismissed as a ‘private matter behind closed doors’. An employer’s duty of care to staff means that companies have a pivotal position in demonstrating that such abuse will not be tolerated in society. Yet, despite their essential role, research from Business in the Community UK has shown that as few as 5% of companies surveyed have developed specific guidelines or policies on domestic abuse. The duty of employers What is the role of the employer on this critical issue? Irish health and safety legislation places an onus on businesses to provide workers with a safe working environment where employee wellbeing is recognised as an important consideration. This is not about asking employers to take on a specialist role as counsellors or healthcare workers in dealing with domestic abuse. However, employers can fulfil a definite role by supporting their staff and breaking the stigma around domestic abuse. Companies can do this by developing robust workplace policies and aligning with charities and organisations that offer specialised support to domestic abuse victims. Pandemic lockdowns have brought a renewed focus on how we all need to be attentive to the mental health of our colleagues. This has broken down much of the stigma that previously existed around discussing mental health and wellbeing, and we now see more open conversations about those issues. A similar focus is now needed on removing the stigma around discussing – and seeking support around – domestic abuse. Irish employers have a crucial role in tackling this culture of silence. Joe O’Donnell is the Corporate Responsibility Executive at Business in the Community Ireland.

Nov 05, 2021
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Mindfulness methods to get you through times of change

Half of workplace illnesses are tied to mental health issues, emphasising the need for better wellbeing supports in organisations. Here are two work-friendly mindfulness methods from Louisa Meehan that can be utilised if you are stressed and anxious. An ongoing and persistent high level of stress is detrimental. It can impact on us emotionally, mentally, and physically. Work-related stress, anxiety and depression accounts for 50% of work-related illnesses according to the ESRI, so it makes sense for organisations to put supports in place to reduce stress at work – especially as the island opens up, people return to the office, and COVID-19 cases rise. Meditation and breath work is proven to benefit our brains. It reduces stress and introduces a level of calm. Employees can do a simple piece of breath work in just a couple of minutes, so it can be easily incorporated into anyone’s daily habits. Mindfulness methods There are many ways one can practice mindfulness, but two good methods for the office are the box breath and the body scan. Both can be achieved while sitting in an office chair with two feet on the ground. Box breath Box breathing is a simple technique that can be practiced almost anywhere. It is regularly used by individuals in high-stress jobs when they face a fight or flight response, and is excellent for re-centring yourself and improving focus and concentration. Close your eyes. Breathe in through your nose while counting to four slowly. Feel the air enter your lungs and pay attention to it energising you. Hold your breath inside while counting slowly to four. Try not to clamp your mouth or nose shut. Simply avoid inhaling or exhaling for four seconds. Begin to slowly exhale for four seconds. Hold your breath out for a count of four seconds. Repeat steps one to four at least three times. Ideally, repeat the three steps for four minutes, or until calm returns. Body scan There are different ways to do a body scan, but the aim is to draw your attention away from your thoughts and into your body. We know that the more connected we are with our own bodies, the better able we are to address issues as they arise. Here is my suggested method. Begin by bringing your attention into your body. You can close your eyes if that’s comfortable for you. You can notice your body seated wherever you’re seated, feeling the weight of your body on the chair. Take a few deep breaths. As you take in a deep breath, bring in more oxygen, enlivening the body. And as you exhale, pay attention to the sense of relaxation. Take notice your feet on the floor, and the sensations of your feet touching the floor; the weight, pressure, vibration and heat. Notice your legs against the chair – the pressure, pulsing, heaviness or lightness. Notice your back against the chair. Is there any tension or tightness? Bring your attention into your stomach area. Is your stomach tense or tight? If so, let it soften. Take a breath. Notice your hands. Are your hands tense or tight? If so, allow them to soften. Concentrate on each finger, one at a time. Relax the muscles as you go. Notice your arms. Feel any sensation in your arms. Let your shoulders be soft. Notice your neck and throat. Let them be soft. Relax. Soften your jaw. If your tongue is touching the roof of your mouth, let it fall away. Let your face and facial muscles be soft. Finally, note your whole body present. Recognise how it is all interconnected. Take one more deep breath. When you’re ready, open your eyes. These are just two simple options that are fast and easy for anyone at home or in the office to help with stress and anxiety. If you are in need of assistance in the area of mental health, emotional and wellbeing supports are available at the Thrive wellbeing hub on https://www.charteredaccountants.ie/thrive-wellbeing-hub/thrive-wellbeing-home Louisa Meehan is the Founder of Woodview HRM.

Nov 05, 2021
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Sustainable businesses underpin sustainable returns

Sustainability funds are in high demand, but what is driving investors to them and how can the concerns about returns be addressed? Anastasia Petraki and Grace Canavan explain. We have all heard the story: sustainable funds are in high demand. By the middle of 2021, their assets had reached an unprecedented $2.3 trillion, mainly driven by continued growth in the European fund market. Net sales in the first half of 2021 overtook those in 2020, which were more than double those in 2019, which were more than double those in 2018. Such spectacular growth could be driven by several things, such as solid performance (particularly in 2020), new fund launches, or existing funds being repurposed to add a sustainability tilt. The fund sales numbers would indicate that it is not just a function of increasing supply. Retail investors genuinely want to buy more sustainable funds. Environmental impact matters According to the Schroders Global Investor Study, the most important driver of interest in sustainable funds is the environmental impact. The potential for higher returns matters, but it comes further down the pecking order. This is consistent across regions, but notably, investors in Europe, which has the largest sustainable fund market worldwide, are less likely to be influenced by return expectations than other regions. In all regions and most countries, only a small percentage of people are put off sustainable funds because of performance concerns. Interestingly, performance scepticism is higher in countries traditionally associated with sustainability, such as Sweden, Denmark and Germany. US and Chinese individuals, by contrast, seem to be less put off by worries about performance. Return concerns exist Retail investors are quite open to the possibility of their entire portfolio shifting to sustainable funds (assuming the same level of risk and diversification). Again, their reason for feeling positive about this suggestion is less about performance and more about positive impact. However, return concerns are the biggest hurdle for the small percentage of people who feel negative about the idea. Indeed, when it comes to why people would feel positive or negative about the portfolio shift, the responses are very consistent across the board. For people who are optimistic about it, impact ranks ahead of returns in driving that view. But for people who feel negatively, return concerns dominate. This result is independent of region, age group and investment knowledge. Sustainability as an investment input and output The question is: should people expect a specific level of return from sustainable funds? Broadly, there are two groups of people. The first group views sustainability as that little extra – that magic ingredient that can lead to higher returns. The second, much smaller group are those who view sustainability as a portfolio constraint and, as such, can only lead to a worse or suboptimal risk-return outcome than if there were no such constraint. What they both have in common, however, is that they view sustainability solely as an input. But what if sustainability is also an output? We could think of sustainability as an outcome where sustainable business models can identify trends, risks and opportunities and adapt in an ever-changing environment. This is how value is created. Investors have many tools at their disposal to assess which businesses operate sustainably. Some tools involve financial metrics, some non-financial. Some cannot even be adequately quantified, like culture. Taking sustainability factors into consideration is about broadening the toolkit and using multiple lenses to assess if a company is likely to continue operating and growing. A company that is harming people and the planet while creating profits is not sustainable. Its social licence to operate will expire sooner or later through litigation, consumer action, policy action etc. There are different approaches one could take to get to address this and achieve sustainability. One may involve screening, another may involve targeting an outcome alongside returns such as impact or thematic investing. Yet another may involve active ownership, which is using your influence as an investor to help a company improve and become more sustainable. At the end of the day, it matters very little what road to sustainability one takes. It is the end-station that is important: sustainable businesses underpin sustainable returns. Anastasia Petraki is the Head of Policy Research at Schroders. Grace Canavan is the Head of Intermediary Business Development at Schroders. A version of this article was originally published at thefmreport.ie.

Oct 29, 2021
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Three technologies driving the future of accounting

The last 20 months have seen organisations transform how they do business. Francois Lacas highlights the technologies that will shape the profession in the future. The change in working conditions brought about by the pandemic has forced many companies to accelerate their technology strategies. Cloud technology is rapidly becoming a critical investment for future-proofed businesses, with 30% of companies planning to move to cloud systems and adopt Software-as-a-Service (SaaS) platforms as a top priority next year. The benefits of cloud computing in finance have long been the driving force behind adoption. But an additional advantage of the technology in reducing costs, ensuring server availability, and preventing unforeseen disasters is something businesses have become all too familiar. Alongside these black swan events have been the sudden changes in working environments, moving to more flexible/remote practices, and more questions being raised about cybersecurity. There are three technologies companies should prioritise to help them embrace the future of their business. Remote cybersecurity Thanks to new technology, colleagues are working wherever they please, with the new office environment being anywhere from the kitchen table, city-centre office, or the beach. But cyber issues are continuing following changes in working habits. Employees log in to their computers using less secure public networks – hotel Wi-Fi signals, the gym between workouts, their iPad in the park while walking the dog – increasing the risk of sensitive data. The situation creates an opportunity for cybercriminals to identify a chink in the armour –  a weak password or an outdated software system – to hack into networks and steal vital business information. So how can you ensure your IT infrastructure doesn’t come crumbling down? Staff first need to be armed with the knowledge they need to protect your information. Basic cybersecurity training can go a long way here as many colleagues aren’t aware of how cybercriminals gain access to systems. You can go as far as to operate a “live fire” exercise to show how easily you can fall victim to an attack. Second, make encryption your friend. For employees working from home or a remote location, encryption can protect company files from unauthorised access and theft. Therefore, accounting departments should invest in an accounts payable solution that offers encryption services when the data is not in use. Remember that cybersecurity is a team effort, and you need to put your employees in a position to succeed. Cloud technology Mobility is the top new trend in the working environment, so the priority for businesses is to minimise unknown disruption by becoming as flexible as possible while ensuring finance teams can access data while on the move and without being compromised. By using the cloud, accountants can provide their clients with a more nimble service, but it can also lead to greater flexibility for the accountants themselves. Client information and inventories available from any internet-connected device can enable them to work flexibly and in ways that suit them, which is invaluable. Automation Automation in the finance department is quickly becoming the glue that holds processes and teams together, helping mitigate risk, decrease the time taken to alert stakeholders and increase speed to resolution. Automation in finance improves data accuracy by removing repetitive manual administration tasks from employee tasks. Finance system integration synchronises critical data between databases, reducing the risk of human error and making processes quicker and easier. The range of automated solutions out there means core finance tasks, such as invoicing, book-keeping, expense management, can now be automated. This not only reduces the risk of delays and inaccuracies; it also frees your team to do much more useful stuff. Automated traceability and cyber security are part of this rigorous process, making these solutions effective in fighting fraud. Accounts payable automation allows data to be captured and stored securely and efficiently shared through data visualisation and ERP solutions to support remote working employees across the business and enable finance leaders to access real-time data. Francois Lacas is the Deputy COO at Yooz.

Oct 29, 2021
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Five cybersecurity issues that SMEs must address now

According to recent research, SMEs rate cyber attacks as the top threat to their organisation's growth. But are private businesses right to be worried? Pat Moran outlines five issues SMEs should be aware of and what they can do about it. The reality is that the cyberthreats facing private businesses are no different from any other type of organisation. Cybercriminals are essentially opportunistic and will look to attack wherever they see vulnerabilities. However, private, small businesses have some distinctive characteristics that create specific cybersecurity risks that need to be addressed. These are the five areas that we believe SMEs should address now to make themselves more cyber-secure. 1. Educate family members on the importance of online security Apart from reputational damage and personal safety, the unguarded use of social media can create many risks. If you're the principal in the family business, you're probably reasonably careful with your online activities. But what about the rest of the family? For example, do you know what photos your children are posting on social media? What locations, properties or people are showing in the background? Are location services enabled that show exactly where the photo was taken? Educating family members about the acceptable use of social media may help mitigate some of these risks. 2. Make cybersecurity an embedded part of the business culture Some private business owners may feel that they're not big enough to be attractive targets. This mindset can lead to an unwillingness to spend money on cybersecurity until a threat materialises. However, cyber attackers don't generally chase specific targets but focus on opportunities to gain entry. Rather than being an afterthought, cybersecurity needs to be baked in at all levels of the business—owners, executives, employees—through regular awareness training and practical guidance. Security is everyone's responsibility, and everyone must be alert to the risks. This applies to members of the owner's family too. 3. Implement a mobile device management tool According to Statista, over six billion people globally have a mobile phone. The problem is that many people use the same handset and apps for their personal and work activities. If a device is compromised or lost, it can impact the business' data and systems and possibly offer attackers an access point. The solution is to implement a mobile device management tool on everyone's handset that segregates the work and personal data, ensuring it's properly managed, protected and backed up. 4. Control access to all company data: both virtual and physical Data is the lifeblood of any business and the main target for cyberattacks. At a minimum, make sure that your company applies tools like multi-factor authentication, strong passwords that are updated regularly and the latest security patches. In SMEs, it can be common for people to share passwords and accounts. Don't do this: it makes it much harder to tell who was involved or responsible if an incident occurs. It's not just a company's frontline data that you need to be careful with, but also any backups exposed to the internet. Companies must back up vital and sensitive data while also ensuring the backup is segregated from access via the internet so attackers can't reach it. Don't forget the physical data. Cybercriminals still rely on getting someone into the office to breach systems, so it's vital to have proper physical access controls and logs. It's equally important to perform due diligence on anyone with remote access to the systems, such as suppliers or contractors. 5. Have a plan If a cyber-incident does occur, it's imperative to have a plan already in place for what to do. While most private businesses have IT support, they can lack the forensic and information security skills they'll need once a breach occurs. In advance, you should determine what steps you'll take and which cybersecurity expert you'll call to investigate and help. One option to consider is cyber insurance. As well as potentially covering costs, such as systems remediation and business interruption, insurers will often have lists of approved experts. A world of blurring risks Today, digital and physical security are becoming indivisible, and everything we do online has consequences in the real world. From critical business systems to social events, virtually every aspect of work and life is exposed to the all-seeing gaze of the internet and thereby to cybercriminals. And when they come knocking, SMEs need to be ready. Pat Moran is a PwC Cyber Security Leader at PwC.

Oct 29, 2021
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The CFO leading the way on sustainability

  There is increasing evidence that strong ESG (environmental, social and governance) credentials can boost a company’s bottom line while also generating access to capital. Investors, clients and employees alike are seeking out companies with credible ESG profiles. There are many reasons why it makes sense for CFOs to take on the task of aligning financial and ESG goals. CFOs work in a variety of organisations. What unites them is that they are all trusted advisors and are core to both daily operations and long-term strategies. They recognise risks and opportunities and act on them. They are involved in critical decision-making and provide reliable information to investors and boards. They advise and influence action in others and are uniquely placed to be a positive force in driving change. What distinguishes CFOs from other financial advisors is their potential to influence and encourage greener choices at an executive level within their organisation. They have the authority to advise on procurement policies and procedures that focus on sustainability as much as cost control. CFOs also have a key role in the preparation of annual reports and in deciding on what they include. Measuring sustainability-related activities and reporting on them is an integral part of becoming a sustainable business. Choosing from among the many frameworks and standards is an example of the leadership a CFO can offer, particularly in the absence of standardised and comparable frameworks. Business models are moving away from placing shareholder value at the centre. Instead, broader sustainable measures are being embraced, and the CFO will play a critical role in this process. Susan Rossney is Public Policy Officer at Chartered Accountants Ireland.

Oct 18, 2021
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Budget 2022: what does it mean for business?

Budget 2022 is forward-facing, but how will it impact businesses now and in the long-term? Emma Arlow comments on the key takeaways from the Budget address. In Budget 2021, we saw unprecedented levels of intervention and financial supports being provided to support the Irish economy against a challenging backdrop created by COVID-19 and the expectation of a no-deal Brexit. With more positive economic indicattaors than in prior years, Budget 2022 now looks to the post-COVID-19 era and to building recovery and confidence across all sectors of the economy. Inflation One key takeaway from the Minister for Finance’s Budget address has been the increased attention on rising inflationary pressures, notwithstanding the strong rebound in the domestic economy. The indexing of income tax bands and credits to take account of inflation will be welcome not only from the perspective of taxpayers but also for employers who, going forward, may find themselves under pressure to attract and retain the talent so vital for business growth. Business growth The need to plan for sustainable business growth also featured heavily in the Minister’s Budget address. While previous Budgets have given relatively little focus to the domestic business landscape, this year would appear to have moved the dial with respect to changes to the Employment Investment Incentive Scheme to provide greater access to funding for early-stage companies. The exact detail of the changes remains to be seen, but the Minister’s speech suggests that the future of domestic business is a key theme emerging in the medium- to long-term. Climate change The ever-present challenges in respect of climate change and sustainability were given considerable attention. As noted by the Minister: “Future generations will not tolerate inaction from the leaders of today”. We expect to see further changes and an increased focus on sustainability in the years to come. We have already seen such changes come to pass through amendments announced to the VRT system, and amendments to tax relief on certain energy efficient equipment. International tax Budget 2022 and the upcoming Finance Bill 2021 include several well-flagged changes to Irish tax law, including the imminent introduction of interest limitation rules required by the EU law. Such measures will operate to restrict a company’s net borrowing costs, and while they represent Ireland’s last remaining commitment under the EU Anti-Tax Avoidance Directive, commentary both on Budget Day and from the Minister in the days prior make it clear that this will not be the last we  hear of disruption in the international tax landscape. The recent announcement from the Minister that Ireland is to agree to the OECD international tax reform proposals on Pillars One and Two, which will alter the way in which multinationals (including Irish PLCs) tax their profits globally. A key focus in 2022 and onwards will, therefore, be on the design of such rules. We may expect to hear an update on this in next year’s Budget speech from the Minister for Finance. Early engagement with the business community on these imminent changes is vital to ensure that implementation of these rules is made as manageable as possible and continues to allow for innovation and growth in Irish business going forward. Emma Arlow is Director of Tax in Deloitte.

Oct 15, 2021
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The secret to networking: giving

The most powerful tool in a networker’s arsenal is the ability to give back to your network. By following the 10 key points outlined by Jean Evans, you’re guaranteed to cultivate a strong and supportive business network. One of the first things you learn about networking is the importance of giving back to your network, and most people starting out can become overwhelmed by this notion. You might think you don’t know anyone, or you’re worried that you don’t have anything of value to give to another person in your network. However, it’s a lot easier to give back than you think. Here are 10 things you can do to give to your network. Show up consistently If you’ve taken the time to join a network, I’m going to make a bold assumption and say that you’ve done your due diligence and you know the schedule and the frequency. Put this in your diary and schedule any other meetings around your networking meetings. This time spent networking should be sacrosanct. The know, like and trust factor Schedule one-to-one time with people in your networking groups as part of your networking process. Do a minimum of one of these individual meetings each week per networking group you are a part of to consistently and constantly build up your network. It’ll be noticed and appreciated. Add value As you get to know people and their businesses in your network groups, you’ll start to understand what matters to them. For example, you might come across an article that could be of interest. Why not email it on, share it on LinkedIn, or tag the person on a social media post? Then, they’ll see the article or post and know you were thinking of them. Referrals People generally network to get referrals. Of course, it’s great to be able to refer business to your fellow networkers. A word of caution, however: don’t be hasty. Always do your one-to-ones in advance to learn about a person’s offering before giving a referral. Testimonials If you’ve used a service or product of someone in your network, think about how a testimonial might add value to them personally or to their business. For example, a personal recommendation or testimonial might be put on LinkedIn. If it’s a business testimonial, ask where is best to place a recommendation (e.g. Google Reviews, LinkedIn, or just sending a testimonial by email that can be published on their website). If you include your full name and your company, it’s a little bit of micro-networking for your business too. Get social Find out what social media channels people are on, both personally and professionally. Then, follow them and start engaging – commenting, sharing, tagging others – with relevant content. Get involved and show you care. Be a connector Everyone in business has problems and pain points they are trying to solve. You might not be in a position to help, but you might know someone who could. Make the introduction and connect the two parties. They’ll both remember you for this gesture and the fact that you took time out to help. Share your knowledge One of the amazing benefits of networking is how much you learn from other people in your groups. Most networks have an ‘ed slot’ where five minutes are assigned to a member sharing business insights with the rest of the group. Be willing to share your knowledge. Be yourself Be your authentic self. Know your values, beliefs, and what you stand for, and be sure you can articulate this. This is important as, bit by bit, you’ll want to build a network of people aligned with your values. Don’t try to be something you’re not. Follow up If you offer to do something, be it giving a testimonial, an introduction, or organising a one-to-one, make sure to follow up. This is mission-critical. Everything succeeds or fails based on our ability to follow up. This speaks to your reputation and your reliability. All these actions go towards building up your social capital. If you invest in yourself and build relationships consistently over time, you’ll become known as a stellar networker. It does take discipline, effort, energy and time, but the rewards could be great. Jean Evans is a Networking Architect and Founder at NetworkMe.

Oct 15, 2021
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Reigniting your team in a post-COVID office

With mixed feelings about returning to the office, how can leaders inspire and invigorate their employees? Paul O’Donnell shares his five top tips to manage expectations and morale. It is difficult to think of an aspect of our existence that the COVID-19 pandemic has not impacted. A recent Harvard Business Review survey, What COVID-19 Has Done to our Wellbeing, gives stark data on mental decline in general and burnout in particular. Now organisations are reopening, leaders must address a new challenge: how to rebuild their businesses in a manner that is safe and culturally adapted to reflect the new world while also taking account of the often-unspoken elements of stress in the workplace. Every crisis intensifies the need for solid leadership competencies. If you are a new leader, it will be a rapid learning experience. Here are five steps to get you started. 1. Re-connect your team to the vision or create a new compelling ambition  Operational recovery as a purpose is short-term. It creates initial buy-in but fades quickly. Your employees want to know that the work they do matters and fits with the organisation’s long-term objectives. If your team’s mission has changed because of the pandemic, redefine what that means for your team, communicate it clearly, and work carefully to create engagement. 2. Recognise and celebrate small wins What we took for granted pre-pandemic are often key successes during a challenging return. Small wins matter. They are often achieved against greater adversity when in recovery mode. These wins help raise the bar on what your team believes is achievable. Hunt out daily progress – even small moments of recognition can ignite an employee’s engagement. 3. Be honest about challenges and failures Create a two-way communication forum and make it safe for employees to share their concerns and perspectives. Be clear about the challenges; talk about what has and hasn’t worked and why. Encourage contribution. Don’t let ill feelings or worries fester; it can turn minor personal concerns into significant team disputes. 4. Keep what works and worked well Not everything you did before the pandemic was perfect, but some of it is still fit for purpose. If your team works or worked remotely, reflect on what you did differently and any efficiencies you achieved. Work with your team to find the best blend of “before” and “during” phase activities to create the right “beyond” plan. If your team is hybrid-working, ensure time is set at least once a week for the team to meet safely and discuss any issues they wish to raise. 5. Be clear that you care Your employees may have different personal priorities now from those before the pandemic. In addition, their experiences during, and continued navigation through, the pandemic has created anxiety and altered expectations. Bridge these new needs with the needs of your business through a clear focus on employee wellbeing, transparency in all matters, and alignment with all public health directives. It is easy during these times to fall back on old ways of getting things done. However, the strongest leaders will avoid that trap and take this opportunity to grow engagement and performance. These are the leaders who know the difference between surviving and thriving. Paul O’ Donnell is the COO of HRM Search Partners.

Oct 15, 2021
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When ‘doing enough’ on sustainability is not enough

Many organisations in Ireland demonstrate a compliance-led mindset when it comes to sustainability but overlook the opportunities presented by value-led sustainability. Stephen Prendiville explains. It is time for organisations to consider why sustainability matters to them. If it only matters because governments and pressure groups are telling them they need to improve their environmental performance, then the war is already lost – not just for them but also for the planet. It may sound somewhat cliché, but organisations that are not part (and playing an active part) of the solution really are part of the problem. The EY State of Sustainability 2021 report reveals some green shoots of the value-led mindset, but compliance is the driving force for the majority. 53% of respondents believe that compliance with government regulations and requirements on sustainability is sufficient. Similarly, more than half (54%) do not utilise any form of recognised standard or benchmark to measure their sustainability performance. To boil it down, most Irish businesses, with predominantly Irish customers and operating in Ireland, see the Government as the standard-setters. They are then reporting on their own performance against their own set of standards. The EY survey was conducted before the publication of the latest report from the Intergovernmental Panel on Climate Change (IPCC) and the subsequent Met Éireann, Marine Institute and Environmental Protection Agency report, The Status of Ireland’s Climate. It is encouraging that the factor cited most often as the driving force for organisations is the desire to do good (22%), with compliance coming in second (16%). So too is the finding that just under a quarter (22%) of Irish medium-sized businesses have a science-based target to help guide them on their sustainability journeys. While initially, this could be cause for concern, setting science-based targets is a significant undertaking in itself, and we are heartened to see Irish businesses embrace this. Increasing this uptake over the next 24 months will be a defining feature of our sustainability readiness as a nation. Despite these green shoots, there is a lingering sense that organisations overlook the opportunity presented by taking a value-led approach to sustainability. There is a view still held in some quarters that sustainability actions add cost and reduce business efficiency. This needn’t be the case. Indeed, it shouldn’t be the case. Sustainability actions implemented correctly in the right place, at the right time, and using the right approach can reduce costs, improve efficiency, enhance a company’s brand, and make it more attractive to investors, customers and employees. This is what we call ‘value-led sustainability’. Unfortunately, there appears to be a low level of awareness of the opportunities on offer. For example, less than half of the organisations surveyed say they regularly assess current and emerging sustainability-related risks and opportunities. That lack of awareness means that sustainability actions and strategies are unlikely to add meaningful value to the business. Achieving sustainable performance Achieving superior sustainability performance is not as great a challenge as many people might think. The approach required is nothing new. It has been used for many years in ‘lean’ organisations. The same approach of questioning why everything is done and empowering everyone in the organisation to look for improvements in every aspect of what they do will deliver immediate and lasting sustainability gains. That requires accurate and verifiable sustainability metrics. What gets measured gets done, but in this instance, there is a dearth of such metrics. While 62% of organisations say they have management systems to record sustainability-related data, less than half (46%) say their sustainability reporting is aligned to recognised frameworks and standards. Employee buy-in is another prerequisite for value-led sustainability. Without employees at all levels embracing sustainability, understanding the targets and their importance, and believing in the organisation’s commitment, the objectives will be almost impossible to achieve. One third (33%) of respondents claim to have a sustainability-related employee incentive scheme in place. That low figure may represent an exaggeration of the true position as there is likely to be some confusion with employee benefits such as the Bike-to-Work scheme. This presents a huge opportunity for organisations to leverage a powerful cohort, who will be pivotal to the success of their sustainability efforts over the coming years as we approach 2030 and, later, 2050 sustainability targets. Overall, the findings contained in the EY State of Sustainability 2021 suggest that most Irish organisations could be missing the point when it comes to action on sustainability. Going forward The trajectory that should be followed is an acknowledgement of the scale of the crisis, accountability and responsibility at an individual level (no matter the position in the organisation), and a commitment to take real action. Organisations that fail to take a proactive approach to the issue and embrace value-led sustainability will find themselves struggling in the wake of competitors who do. It is not too late for Irish companies to share the rewards and opportunities offered by the sustainability transformation ahead. However, time is running short – both for them and the planet. Stephen Prendiville is Head of Sustainability at EY.

Oct 08, 2021
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Employer considerations for the return to the workplace

With the requirement to work from home soon expiring, employers must be proactive in their approach to the return to the workplace. As restrictions lift and the vaccination rollout continues, planning and preparation are needed to ensure a seamless return, says Dera McLoughlin. With the successful rollout of Ireland’s vaccination programme against COVID-19, many Irish employers and workers are now preparing to return to their physical workplace after a considerable period of working from home. To ensure that the return to work aligns with current Public Health advice and measures to keep workplaces safe, the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, has published an updated Work Safely Protocol. It will help ensure that employers and workers continue to contain and prevent the spread of COVID-19. While many retail and hospitality sectors returned to work in May 2021 in line with Government advice at the time, a phased return to the office and workplaces for those currently working from home will now take place from 22 October 2021, when the requirement to work from home will be removed. This will allow employees to return to physical attendance in the workplace on a phased and cautious basis appropriate to each sector. Lead worker representative A key component for ensuring adherence to the Protocol is the role of the Lead Worker Representative (LWR) in the workplace. Employers are required to appoint at least one LWR who will work with the employer to assist in implementing and monitoring adherence to the Protocol to prevent the spread of COVID-19 in the workplace. LWRs should be trained appropriately by their employer and be the conduit between workers and the employer for any concerns about the implementation of the Work Safety Protocol. Guidelines within the Work Safely Protocol The Work Safely Protocol sets out comprehensive steps for employers and workers to reduce the risk of exposure to COVID-19 in the workplace, including: Updating the COVID-19 response plan; Implementing and maintaining policies and procedures for prompt identification and isolation of workers who may have symptoms of COVID-19; Developing, updating, consulting, communicating and implementing workplace changes or policies; and Implementing COVID-19 Infection Prevention and Control (IPC) measures. The Protocol also provides guidance on workplace and community settings, occupational health and safety measures, and a library of resources for employers and workers. Considerations for employers Through many workplace surveys carried out in the past year, it is evident that many office-based employees wish to avail of some form of remote work in the future. Many companies also indicate that they want to adapt and accommodate their employees and continue to offer a degree of flexibility. A recent survey from CIPD Ireland outlined that one in two businesses in Ireland plans to adopt remote working in some form permanently in the future. When organisations consider their working arrangements, any decisions made must be based on several factors such as business objectives, employees’ wishes, potential office space adaptations and associated costs. Here are some key considerations. Health and safety requirements Before any employee returns to their workplace, the work environment must be safe and compliant with all relevant Government and HSE guidelines and in line with the Safety, Health and Welfare at Work Act requirements. Companies are advised to create and/or update policies that reflect the environment, health and safety, and emergency protocols to align with HSE guidance. It is also essential that the organisation establishes clear protocols for returning to the building, provides the requisite training on accessing shared workspaces and equipment, and the measures in place if an employee displays symptoms of COVID-19 while in the workplace. The price of returning to work Before returning to the workplace, an organisation must evaluate and understand the costs of bringing people back to the office. There will likely be costs such as reconfiguring office space and seating, increased cleaning costs, and potential PPE costs. Types of work and phasing the return to work Before returning to the workplace, each role and team should be reviewed strategically to identify which roles need to be on-site and which roles use technology or machinery. When determining which teams should be prioritised, an organisation will plan a phased return to ensure maximum productivity. The voice of the employee The difficulties that employees have faced over the past year while remote working cannot be understated. Therefore, before employees return to the workplace, employers must assess and understand employees’ needs, personal situations, welfare, and mental health. Where possible, businesses must understand such employee concerns while ensuring productivity is maintained. Tax Hybrid working is the future, and while employers can provide certain benefits to staff tax-free (e.g. specific office equipment, mobile phone etc.), these are limited. Employers must be conscious of published Revenue guidance on what expenses and benefits the employer can provide tax-free to remote working employees. If the employer inadvertently provides benefits not addressed in Revenue guidance, the benefit would be considered a taxable benefit, resulting in a payroll exposure for both the employer and employee. Employers should look for any potential new measures that may be announced in Budget 2022. Dera McLoughlin is Partner, Head of Consulting at Mazars.

Oct 08, 2021
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Relocating to Ireland – what you should know

Ireland’s attractive immigration policies and work permit procedures have drawn attention to companies wishing to expand into Europe in a post-pandemic, post-Brexit world. Emma Richmond outlines what companies should consider before making a move. As travel restrictions ease globally, many businesses are focusing on strategic expansion into Ireland in a post-pandemic, post-Brexit world. In many cases, this expansion is driven by a business need to have an English-speaking European base. In addition, the desire of key employees who, having reassessed their lifestyle over the past 18 months and now wish to relocate with their family to explore new opportunities, is also a driving factor. Compared to other EU member states, Ireland’s immigration policies and work permit procedures are relatively straightforward. This is something that continues to attract multinationals and foreign direct investment to Ireland. We have seen a significant increase in work permit applications over the past three months, driven by activity in the market. The records show that 9,526 work permits were issued to non-EEA nationals between January and August 2021, which creates a significant amount of work for business in Ireland. Here are some things companies should consider. Work permits All non-EEA citizens require a work permit to work in Ireland, and certain non-EEA citizens will also need a visa to enter the country. Typically, companies investing in Ireland are interested in the Critical Skills Work Permit and the Intra Company Transfer permit. Critical Skills Work Permit This is easily the most popular type of work permit sought by companies relocating to Ireland. The key advantage of this permit is that it provides long-term access to citizenship in the event of the employee wishing to relocate to Ireland permanently and provides easy access for the spouse or dependant of the work permit holder to the jobs market. These are all key considerations where there is a long-term goal for either the company or the employee. The role offered needs to be on the Critical Skills Occupation List and have a salary of at least €32,000 per annum. However, all roles with a salary of €64,000 and above (and not on the ineligible list) are eligible. Intra Company Transfer Permit This permit provides for the temporary transfer of key personnel to Ireland on an initial two-year basis, which may be extended up to five years. Typically, this is used for crucial personnel required to establish the business in Ireland, ensuring the right local personnel are hired and providing a key decision-maker on the ground when critical start-up decisions are made. The maximum duration of this work permit is five years, so it is ultimately not suitable for someone looking to relocate permanently or achieve citizenship. Employment documents A copy of a valid contract of employment or letter of appointment will be required as part of the permit application. The employer must also demonstrate that they have registered with Revenue as an employer, and their ERN will be needed for the application. Additional documents such as employee handbooks and policies will assist the employer in running their business as it grows but will not need to be furnished at the application stage. Emma Richmond is Employment and Immigration Partner at Whitney Moore Law Firm.

Oct 08, 2021
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The coach’s corner - October 2021

Julia Rowan answers your management, leadership, and team development questions. I recruited a team member three years ago. She had great qualifications and experience and, on many levels, was a good performer. I found it hard to give her feedback – she took it very personally. I often ended up taking work back from her and completing it rather than give her feedback. She is moving on and I’m about to recruit her replacement. How can I avoid this happening again? A. People often find it hard to hear feedback: they may see correction as failure, have come from a place (home, school, previous employer) where ‘feedback’ was a dirty word – and generally only given when things went wrong. It can be useful to set expectations by asking a feedback-related question at interview. For example: “In this firm, we share a lot of feedback. Can you give me an example of some helpful feedback that you have received in the past and what the impact of that was?”   When your recruit joins, revisit the feedback issue as part of a broader induction conversation: “We loved the example you gave at interview about the feedback you received. On this team, we share a lot of feedback about what works well and what doesn’t work well so let’s sit together regularly to reflect on how you are doing.”  Make sure to follow up on this regularly and acknowledge what they are doing well. It’s easy to overlook good performance. Give the positive feedback first and then bridge to the developmental feedback. Don’t use the word ‘but’ – it negates the positive feedback. Make sure that your body language, vocal tone and the words you use support the ‘feedback is normal’ message. Rehearse the feedback you plan to give out loud with a warm, confident tone. Your recruit has a right to know how they are doing. In my boss’s eyes, everything is urgent and important. Priorities change by the day and there is always a sense of panic. I like my boss and this firm, but I don’t want to work like this. How can I improve this situation? A. It sounds like your boss is stressed, not doing her best thinking, and unlikely to realise the impact of her behaviour. You need to think this through carefully before you talk to her and work out: what is the positive intention behind her behaviour? In this case, that could include setting high standards, giving clients great service, or avoiding a backlog.  Work out what you want in place of the current behaviour (a weekly meeting to agree priorities, an agreement that you decide on priorities etc.) and request a meeting. Give your boss a heads up on what you want to talk about. When you meet her, don’t describe her behaviour; instead, connect with her intention (“I appreciate the high standards you set”), and agree with her (“I want to meet those standards”). Then ask for a recurring meeting to plan the week ahead.  Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Oct 04, 2021
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Cracking the ‘EP’ code

 What is executive presence and can it be learned? Paul A. Slattery explains the three pillars of executive presence and how to put them into practice. This enigmatic and elusive notion of ‘executive presence’ (EP) may be a term surrounded by secrecy and shrouded in certain degree of mystique. Many of us may view it as something obscure and elite that is set aside for the use of leaders. How do you acquire it, and how can you project it?  A highbrow concept  What first springs to mind when thinking about executive presence is that it can’t be easily described, but it is recognised immediately when encountered. We all know people who have it. Before coming up with a list of politicians and celebrities, it may be prudent to think of someone we know or have encountered on a professional or personal level. That someone had the demeanour projecting an air of confidence and we are immediately engrossed in their presence. This person had the power of transforming rooms and conversations. That is how we know they had it. The revelation here is that EP can be learned, and it is not such an implausible dream as may be commonly thought.  No one lands a top job or develops a significant following without this subtle but necessary combination of confidence, poise, and authenticity. This amalgam of qualities subtly persuades us we’re in the presence of someone remarkable. In other words, it’s a blend of attributes projecting to others that one deserves to be in charge.  Cracking the EP code means you’ll be given a chance of doing something extraordinary with your life. What is notable about EP is that it steadily proves to be a precondition for success regardless of your social standing and your profession.  The practical stuff The first thing to know about EP is that it is a skill and not a personal characteristic, which means it’s something you can learn and nurture. EP is inarguably attainable for everyone, but as with every skill, it requires regular practice and systematic effort in order to advance. As I mentioned already, you can have all the experience and qualifications of a leader, but without EP, you won’t progress.  That said, expressing those qualities doesn’t come easily. Your topic may be universally interesting and fascinating, but unless you minimise distractions for your audience, you’ll never manage to convey that interest.  In 2013, Chia-Jung Tsay, an associate professor at the University College London School of Management, demonstrated through her piano competition experiment that the most accurate predictor of success in competition was not the musical performance itself, but whether a pianist could communicate their passion through body language and facial expressions.  Then, in 2020, she carried out a similar study, this time in a venture capital pitch competition. The participants were asked to forecast interview winners after reviewing the contestants’ presentations in different ways, which included videos with sound, silent videos, sound recordings, and transcripts. The silent videos most accurately allowed people to identify the winning entrepreneurs, showing that, in the context of entrepreneurial pitches, stage presence is more than crucial – it is fundamentally everything. That being the case, a question arises whether effective communication is more about the medium rather than the message – and EP appears to be the answer. The start Having or projecting EP begins by making the decision to start using EP. Workplace expert and professor, Sylvia Ann Hewlett lists the three areas that form the backbone of EP:  Gravitas – how you act;  Confidence – how you look; and  Communication – what you say and how you say it. She also points to how interdependent these features are: if your communication skills lend you a “command of a room”, your gravitas will proportionally expand.  Gravitas These universal dimensions are not equally important, however. According to Hewlett, gravitas is the very essence of EP. It is gravitas that helps us articulate the qualities that mark us as worthy to be entrusted with accountability and serious responsibility. Without it, you will not be seen as a leader, no matter your credentials. Gravitas is what signals to the rest of the world that we should follow you. In opposition to charisma – the former superstar term in the world of business communication – gravitas is understood as the “ability to appear calm, confident, and steady” in the face of uncertainty, and is vital for every business’s survival.  The importance of appearance As we saw from Tsay’s studies, appearance is our main critical filter. It is quite deceptive and contrary to what people may be articulating. A person’s ‘grooming and polish’ is a key contributor to executive presence. It’s very important to understand that the key to EP in the area of appearance is not a matter of what you were born with, but of what you do with what you have. The good news is that this can be learned and cultivated. The authenticity conundrum The primary struggle between conformity and authenticity is complicated. To what degree should we attempt to fit in and how much should we stand out? This tension can be particularly harrowing for women and minorities, due to the ‘straight white man’ archetype still so prevalent in the professional/corporate world. With age and experience, however, many of us notice that being different and authentic doesn’t necessarily keep us from moving up – on the contrary, it drives our progress. The three pillars of EP This ‘command-the-room and zoom’ quality essentially rests on the following three pillars:  Credibility Credibility can come in the form of your source of information and formal introduction.  When it comes to your source of information, there are a few questions you can ask yourself: where does the information you are sharing with the audience come from? Are you providing information that is current and well-researched? Are the findings and facts true, and from a reliable source? On top of your sources, it’s important when you are addressing an audience to share your background and your experience, and the longevity of your career, especially if you’re talking to external stakeholders. Sharing the credibility of your team is critical in demonstrating the integrity and authenticity that surrounds you.  Lastly, the trustworthiness of the organisation you represent – its values and vision for the future, and how well they align to your own values and outlook – will contribute substantially to yours. Approachability  You engage with the audience through your speaking skills and ability to remain amiable and authentic. Staying true to yourself and letting your enthusiasm speak through your body language connects you to your audience. Being able to look your audience in the eye when speaking and presenting has a transformative effect on your ability to meaningfully engage and inspire. Be mindful of other non-verbal cues: your tone of voice, poise and your attire can also add to, or detract from, your power to hold attention.  Structure EP relies heavily on solid structures, and without proper preparation, rehearsal and a routine that is consistently practiced, EP will become scrambled and non-existent. Thorough preparation leads to more confidence. I believe that we all need to find our own structured routine that will support us prior to connecting with our audience over video, but that also projects our EP in person, such as what social psychologist Amy Cuddy refers to as a power pose. When it comes to handling questions and objections from the audience, your EP is under the microscope. As Leil Lowndes, author of How to Talk to Anyone says, “Every smile, every frown, every syllable you utter, every arbitrary choice of word that passes between your lips, can draw others toward you, or make them want to run away.”  Hence the reasons why a structured response is vital to maintaining approachability and credibility all the way to the end of your presentation. While knowing your topic is a prerequisite, practicing your delivery is crucial.  Building and cultivating your executive presence comes down to three aspects of our behaviour that can be learned with training and practice. The crucial next step is a decision to acquire and cultivate one’s executive presence. It is a choice on how you want to act, how you want to be perceived, what to say, and most importantly, how to say it. For some people it is a strenuous process, more obvious for others. There are no quick fixes; the practice requires commitment and effort. Once you develop awareness of your behaviour, have a personal power pose, know your stuff and constantly practice your delivery, you will be on your way to finding your own EP formula. Paul A. Slattery is Founder & Managing Director of NxtGEN Executive Presence, an education company specialising in executive training, mentoring and coaching services for business leaders and company executives.

Oct 04, 2021
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The State pension: one piece in a complex puzzle

Drawing on research and global experience, Munro O’Dwyer explains why the creation of a sustainable State pension system is a knotty – but not insurmountable – challenge. The Pensions Commission was established in November 2020 to “examine sustainability and eligibility issues… and outline options for the Government to address issues including qualifying age, contribution rates, total contributions and eligibility requirements”. One of the terms of reference was to examine how private sector employment contracts specifying retirement ages below the State pension age may impact on the State’s finances and pension system. While the report is yet to be published, it is of interest to look at the retirement ages and policies of other countries to put Ireland’s approach into context. Many countries have adopted policies that seek to tap into the social and economic benefits of longer working lives. The United States abolished mandatory retirement in 1986 while, with some exceptions, New Zealand followed in 1999 and Australia in 2004. The UK followed suit in 2011, although a compulsory retirement age remains. This can apply if a job requires certain physical abilities or has an age limit set by law. The PwC Golden Age Index helps to explain the rationale for these policies. The Index is a weighted average of seven indicators, which reflect the labour market impact of workers aged over 55 in OECD countries, including employment, earnings, and training. The most recent report identifies that the OECD could achieve a $3.5 trillion boost to GDP in the long-term if countries raise the employment rates of those aged over 55 to match New Zealand levels (with New Zealand having the greatest level of employment market participation across older workers). For Ireland, the potential gain was estimated to be around 9% of GDP, or roughly €25 billion. The Index identified key drivers of employment for older workers – successful policy measures include increasing the retirement age, supporting flexible working, improving the flexibility of pensions, and further training and support for older workers to become ‘digital adopters’. So, what influences the age to which we work? Many factors influence workforce participation at older ages, from marital status to gender participation gaps and public expenditure on family benefits, among others. It is interesting to step through a few of the factors in more detail in the context of the debate in Ireland. It is reasonably intuitive that life expectancy generally has a positive impact on employment patterns for older workers as the longer people are expected to live, the more likely they are to spend more of their life working. Life expectancy also captures other factors that may influence the employment rate for older workers – the level of health, for example, which could be impacted by healthcare policies, medical advances, and technological developments. Repeated studies have shown that health influences the age at which a worker retires. Greater expenditure on pensions is expected to reduce the incentive for older workers to participate in work, as increases in State pension wealth are associated with a lower retirement age. Interestingly, studies across several countries on the effect of general employment protection laws and age discrimination laws have been mixed. Some studies argue that these laws negatively affect employment among older workers, as employers see older workers as a greater burden if they have greater protection, even though the intended effect is to help improve employment prospects for older workers. This highlights the complexity involved in setting retirement ages and supporting older workers to participate in the workforce. What burden will fall on younger generations? Much has been written about the potential for significant changes in Ireland’s demographics, with the dependency ratio (the number of persons in employment relative to those in receipt of pension benefits) projected to fall over the coming decades. This will potentially create strains around the financing of the system into the future and may create a perceived intergenerational inequity. The Pensions Commission is tasked with identifying measures to review the projected changes in demographics, earnings, and the labour market, and the associated costs of these changes. Aside from potential pension financing cost arguments, will longer working lives limit opportunities for younger workers? The argument is often made that the amount of work in an economy is fixed, so one more job for an older person means one less job for a younger person (the ‘lump of labour’ theory). Research has repeatedly shown that this theory is not observable in practice, and instead identifies that the number of jobs in an economy is elastic – labour markets are dynamic, and economies adapt to labour force changes. Simply put, an economy can and will create more employment opportunities to reflect extra participants entering the labour force. Policies enforcing mandatory retirement ages do not help create jobs for younger members of the workforce. In fact, they reduce the ability of older workers to contribute – both directly and in terms of the experience they bring. What other perspectives exist? In a recent Ibec survey, 67% of respondents believed that abolishing an employer’s right to fix a retirement age would have a negative impact on their business, although 73% of those surveyed also consider retaining staff beyond their fixed retirement age, with most of those surveyed using the option of a post-retirement fixed-term contract. Arguably, these responses are somewhat in conflict with each other, highlighting the complexity of the issues in question. A key concern of employers is that the current legislative framework presents many difficulties, particularly where an employer seeks to facilitate employee requests to work longer. Similar concerns were identified in terms of employers’ ability to conduct effective workforce planning. In contrast, the Citizens’ Assembly has called for an end to mandatory retirement ages. Allied to the introduction of pension auto-enrolment, these were seen as the most appropriate means of responding to the challenges created by the State’s ageing population. An Interdepartmental Group on Fuller Working Lives reported that retirement at the age of 65 was impractical given the potential for a gap to emerge between that age and the State pension age. To the extent that there is common ground, it is arguably around setting the retirement age at a level consistent with the State pension age. This would address the gap that would otherwise emerge for employees leaving the workforce, but who are ineligible for State pension benefits. What model should Ireland adopt? Looking at experience globally, the State pension age is simply a single aspect of a complex system. Contribution and coverage levels across the private pension system, mandatory retirement ages, the role of the State in providing social insurance benefits, employment levels more generally – the range of factors goes on and on. There is greater consensus around what “good” might look like. Where people live longer and healthier lives, the wish is that employees will want to, and will be supported to, remain in the workforce for longer, which in turn enables increases to the State pension age. Increases to the State pension age in turn allow the payment amount to keep pace with the expectations of retirees. This virtuous circle then supports greater sustainability across the social protection system. The Pension Commission report will offer several proposals for consideration. It is to be hoped that decisions made will set the course for a sustainable pension system that appropriately supports generations of retirees into the future. Munro O’Dwyer is a Partner at PwC Ireland.

Oct 04, 2021
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Fighting the climate crisis

With the launch of the 1,000 Chartered Accountants campaign, four members explain what they are doing personally to combat the climate crisis and share their advice to help others in the profession do the same. Kate van der Merwe Sustainability advocate I grew up with an appreciation of nature, its power and our place in it. As my awareness of the climate crisis and biodiversity loss grew, so did my frustration and sadness with the inequitable, one-dimensional systems we’ve become embedded in and their repercussions. However, the recent emphasis on holistic, inclusive, multidisciplinary thinking gives me hope. Over time, as I learn more about sustainability, I have adapted my personal and professional choices to minimise my carbon footprint and drive positive impact. I’ve been pleasantly surprised that these changes often yield unanticipated benefits. Personally, I focused on my consumption (energy use, diet, travel, consumer choices) and finances (pensions and savings). Professionally, I brought a sustainability perspective to my roles, such as flagging future regulatory considerations and chairing the Young Professionals 2017 sustainability-themed year. I went on to do a MSc in Renewable Energy and Environmental Finance and am exploring roles that will give me more direct sustainability scope and impact. There’s a growing acceptance that business-as-usual won’t continue, as it will be transformed either by devastating climate breakdown or deliberate, significant lifestyle and system changes to avoid the worst. When people are informed about issues, they can have a very strong will for action, as demonstrated by the Citizens Assembly which proposed the most stringent climate action, subsequently diluted within the Climate Action Plan. Each individual has a unique set of strengths and sphere of influence to make their positive climate impact, be it towards personal or system change. Considerations may include democratic action (e.g. voting), consumption habits and financial decision-making. Within the workplace, every decision – budget allocation/investment, targets etc. – must incorporate a sustainability perspective. How does the decision benefit society? What are the emissions/energy/biodiversity impacts across the product/service lifecycle? Is the impact equitable? These considerations are key for the future and align with the EU sustainable finance trajectory (green and socially inclusive). We need holistic and multidisciplinary approaches for comprehensive solutions. It’s time to ask questions, get creative and collaborate. We urgently need bold and brave action! Dr Judith Wylie Senior Lecturer, Ulster University Business School I love the great outdoors – living near the beach has given me an appreciation of the importance of blue water, clear sky and green space. Having local spaces where we can walk, swim, explore and find peace have become even more important to us all in recent times. My interest in sustainability has led me to researching Irish companies’ approach to corporate social responsibility. At the beginning of my studies, almost 10 years ago, I was told “you can’t study ‘hugging dolphins!’” What is pleasing, however, is how much this attitude has changed over the last decade with increased corporate action and public awareness of sustainability issues. My own research indicates that many Irish companies are listening to stakeholder concerns and are providing innovative solutions on climate change as well as committing to important sustainability goals.  It can be overwhelming when we hear news of the climate crisis and how much we have damaged our planet already; it can be easy to wonder what difference a single action can make. However, taking responsibility for small things can collectively have a big impact. I love fashion but I am conscious that the World Bank reported that the fashion industry is responsible for 10% of annual global carbon emissions, more than all international flights and maritime shipping combined. By moving away from ‘fast fashion’ and being more conscious about investing in sustainable brands, hiring clothes for special occasions and buying second-hand, I can make a difference and have fun in the process! We can all try to reduce our carbon footprints both at home and in our workplaces. Set the example for your family, friends, and co-workers. For example, eat less red meat each week, take public transport or cycle to work, or encourage the businesses you engage with to operate more sustainably. Although making changes can be difficult, use your hope for a better world to drive you and bring others along on the journey to a more sustainable society.  Tommy McLoughlin Founder & CEO at ButterflyCup My colleague, Joe Lu, invented ButterflyCup to eliminate the need for plastic lids and was looking for a business partner to help commercialise his invention. When introduced, I immediately saw its potential in the takeaway coffee and cold drinks sectors. Our cup does not require a water-proof laminated plastic coating, thereby eliminating the plastic normally required for both regular plastic-coated paper cups and for plastic lids. 600 billion cups and 600 billion lids are used globally each year between hot and cold drinks – that’s a lot of plastic. People are generally well-intentioned, but change happens relatively slowly – even when the facts are compelling. The key to rapidly altering behaviours at the pace now required because of climate change is a combination of meaningful (rather than token) regulatory incentives, disincentives and bans. Rebalancing business and customer costs is critical to changed behaviour.  For example, most people are now favourably disposed to switching to electric cars, but the cost differential remains prohibitive. This also applies to the over-use of plastic, which has a high negative environmental impact in both its production and disposal. If changes are made so that plastic costs more, it will be used less.  Improved infrastructure in areas such as vehicle electrification, waste segregation and recycling is also key to progress.  It is vital that businesses operate for the greater good rather than focusing on narrow and short-term self-interest. Unfortunately, many big corporates that are motivated by share price, CEO bonuses and so on act to protect the status quo by engaging in ‘greenwashing’ and often misleading PR while at the same time lobbying legislators in order to delay and derail environmentally positive progress – similar to how the tobacco and oil industries behaved in the past.  The voluntary actions of businesses and consumers alone is inadequate to achieve vital climate targets. Real environmental reform must be driven by legislation and regulation.  Probably the most effective contribution individuals can make is to call out bad practices and advocate for positive change, both within their work and business networks and on social media. Plus, as consumers, people need to ‘vote with their feet’ by actively supporting ethically sustainable businesses, products and practices. Prof. Pat Barker Lecturer in Business Ethics, DCU   Chartered Accountants, as professional individuals, should take a lead in focusing on what they, as individuals, are doing when it comes to fighting climate change. It’s not enough to look to big corporations and government, loudly demanding that they need to do something. Neither is it enough for us to wave generally in the direction of turning off lights at home, reducing food waste, flying less and investing in green pension funds. We need to change our lifestyles in ways that really pinch and evoke the ‘ouch’ response.   My ouch response was caused by my 11-year-old granddaughter’s suggestion that I, her mother and she adopt the One Dress for 100 Days Challenge. She hit me with this climate change challenge just as I contemplated the impending opening of the shops and the delicious prospect of buying myself some new clothes, footwear, underwear, makeup and some accessories after 14 months of lockdown. She scrambled up onto her Zoom soapbox and told me that I still have a wardrobe of perfectly wearable clothes, there’s no need to have a different outfit every day; that I wash my clothes too much and that nobody notices what I wear anyway. She delivered the killer blow – I was supporting the waste of scarce resources, encouraging child labour, and unnecessarily filling up landfill. So, I agreed to give it a shot and the three of us are now on day 20 as I write this. The feeling of doing something positive for the environment is accentuated by a sense of finding contentment in a life of less. I have recognised that 90% of the clothes we wash are not dirty enough to be put into a washing machine. I have been digging into the depths of my wardrobe to change the look of the dress and have not bought anything new. I don’t know how I will feel after 100 days, but I notice that my focus has shifted from how I look in my clothes to feeling comfortable in my own skin. Most people have not noticed that I am wearing the same dress day after day and I have embraced my own rejection of a life of unsustainable over-consumption.   I am definitely experiencing the ‘ouch’, but I do expect the lessons (if not the dress!) to persist beyond the 100 days.

Oct 04, 2021
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The north-west: in the frame for FDI

Dawn McLaughlin explains how the north-west’s reputation as a prime location for foreign direct investment has been sixty years in the making. Sixty years ago, the US industrial fibre giant, DuPont, established a base on the outskirts of Derry/Londonderry. At the time, few international corporations were based in Northern Ireland, and very few would have considered this part of the world when choosing where to invest. DuPont’s decision was not only courageous but helped kick-start and sustain economic growth and development for nearly half a century. The company remained in the region throughout the dark days of the Troubles, sustaining jobs and keeping families in work at a time when our economy was underdeveloped and primitive in many respects. For 30 years, the company put the city at the cutting edge of innovation and technology by producing Kevlar, one of the world’s most important materials, at the site. As important as the jobs were to thousands of local working-class families, DuPont’s presence was almost more important for its role in attracting other global companies to the region. DuPont became an ambassador for the north-west and strengthened its status as a region well-equipped for foreign direct investment (FDI), with its low-cost structure, strong talent pool and high standard of living. Other American and European companies were encouraged by DuPont’s positive experience in the north-west and saw Northern Ireland as a viable and strategic place to invest. FDI has been a significant driver of the North-West City Region’s economic growth over the past three or four decades. The late John Hume’s role in bringing Seagate to the city is well-known, and it has gone on to be an integral part of the local economy. By the company’s 20th anniversary in the city in 2013, it had invested over £720 million in the region, contributed nearly £50 million in annual wages, and boomed to become the city’s largest employer with a workforce of almost 1,400. To this day, Seagate remains one of the region’s most important organisations. US tech giant and insurance company, Allstate, was one of the first foreign companies to invest in Northern Ireland after the signing of the Good Friday Agreement. Starting with an initial staff of just 20 in Derry, the firm has blossomed into one of the north-west’s most recognisable employers and has spread further into the region with its Strabane office. Taking a leap of faith like Allstate’s is a brave one for a business, but one that has generated great gains for both the company and the community. With more and more companies choosing to invest in the north-west, the economy has diversified and matured. We now have a cluster of cutting-edge and exciting tech, fintech, health and life-sciences, artificial intelligence, and diagnostics firms. The Derry and Strabane City Deal is a once-in-a-lifetime capital investment package, which will help attract even more companies and nurture this ecosystem of innovation, research and development, and technology. Inward investment and FDI have played a key role in our local economy over the past sixty years and will continue to do so. As we emerge from the pandemic, partners within the city will be working hard to attract more investment, jobs, start-ups, and business. Thanks largely to the courageous decisions of companies like DuPont to come to the north-west all those years ago, this region now has a diverse and innovative economy and is an ideal location for FDI. Dawn McLaughlin FCA is Founder of Dawn McLaughlin & Co. Chartered Accountants and President of Londonderry Chamber of Commerce.

Oct 04, 2021
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A decade to deliver: CFOs’ ESG considerations

Ambrose Shannon explains how CFOs can play a lead role in limiting the future impacts of climate change during what he describes as “the decade of action”. Throughout the summer of 2021, heat waves, wildfires, droughts, and hurricanes served as stark reminders that we should not take our planet for granted. The recently published report from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) has made it very clear that unless immediate and large-scale actions are taken to reduce greenhouse gas emissions, these weather patterns, and the corresponding commercial impacts, will only become more severe. In Ireland, like elsewhere, companies are looking at their own commitments to environmental, social and governance (ESG) objectives (see sidebar) encouraged by both regulatory initiatives and wider societal pressures. For example, the Climate Action and Low Carbon Development (Amendment) Bill 2021 is intended to achieve net-zero carbon by no later than 2050 throughout the entire Irish economy. This entails the introduction of five-year carbon budgets on a rolling 15-year basis. In China and South Korea, where similar measures have been deployed, companies have seen significant impacts on their business models, strategies, and performance. Furthermore, the required Local Authority Climate Action Plans are expected to set out ambitious measures to significantly increase renewable energy production, decrease transport emissions, and reduce the impact of agriculture on the environment. Irish businesses have a critical role in achieving this climate-driven transition. And CFOs can play a pivotal role in areas such as leading strategic reviews, allocating capital investment, securing funding lines, protecting credit ratings and driving sustainable business performance. According to Accenture’s 2021 report, CFO Now – Breakthrough Speed for Breakout Value: 73% of respondents claim that the CFO is best placed to ensure the resilience of the organisation in today’s operating climate; and 68% of CFOs globally are now responsible for ESG monitoring and reporting. And momentum is accelerating. In November, the United Nations Climate Change Conference of the Parties (COP26) will bring world leaders together to accelerate movement toward the goals of the 2015 Paris Agreement. We expect agreement on ambitious goals, meaning that politicians, policymakers, regulators, and investors will need to work together with businesses to deliver on ESG objectives. Failure to act on climate change represents an existential risk to society and the global economy and poses a clear financial risk to businesses themselves. The impetus for business to act is time-sensitive and will likely be driven by four key factors: Governments setting legally binding emission reductions and net-zero targets; Investors and financiers wanting to understand climate-related financial risks and long-term business model viability; Employees placing increased importance on the ESG values and actions of their employer; and Customers placing ever more importance on the sustainability of the products they consume – with many seeking “champion brands”.  For business to meet these demands, CFOs and executives need to create and operationalise a comprehensive ESG strategy. Key considerations Regulators have for some time now warned about the threat that climate change poses to the stability of the financial system. Mark Carney, formerly Governor of the Bank of England, is leading a World Economic Forum (WEF) initiative to explore the risk posed to global financial systems associated with the energy transition. According to the Bank of England, as much as $20 trillion of assets could be at risk from climate change alone. The progress of delivery against ESG transition plans varies greatly from sector to sector and geography to geography. A report by Arabesque S-Ray found that just 25% of public companies worldwide are on track to deliver on their ESG-related commitments. Our research and work in this space suggest that CFOs and the wider finance team are uniquely positioned to guide their organisations in the following ways: Assessing the ESG impact on existing business models. CFOs can play a crucial role in assessing and measuring the potential impacts of ESG on current business operations. For example, identifying and modelling risks could include scenarios on the P&L impacts of a 1.5-degree world, the impacts of a higher carbon tax on profitability, the introduction of subsidies, or pricing signals to parts of the supply chain. Highlighting risks associated with ownership of certain assets. It is rational to expect the valuations of certain assets on the balance sheet to fluctuate as we progress through the transition towards net-zero. For example, we have seen large write-downs in valuations among many of the global oil majors. On the other hand, it is equally rational to expect certain asset classes to rise in value, such as those parts of the economy that support the electrification or home insulation agendas. Either way, CFOs will want to avoid holding stranded assets and will need to make more material bets on a more frequent basis over the coming decade. Identifying where investment will be needed to transition to a sustainable economy. Ireland’s transition to a more sustainable future is expected to have a wide-reaching impact on key sectors of the economy. For example, Ibec’s report, Building a Low-Carbon Economy, suggests that Ireland’s electricity and transport systems will need to reduce emissions from 1990 levels by up to 92% by 2050 and that buildings and factories will need to reduce emissions by up to 99%. Decarbonisation needs to go hand-in-hand with technological innovation, and CFOs will play a key role in identifying where investment is needed to ensure that business outcomes are achieved in a way that is economically and environmentally sustainable. Responding to investor demands and attracting investment. In the US, one-third of the $50 trillion of assets under professional management is invested in ESG strategies, according to research by the NewClimate Institute. ESG considerations are increasingly being adopted in assessing the sustainability and risk of investment decisions. At the same time, investors and pension funds are applying pressure on companies to provide products and services aligned with the UN’s Sustainable Development Goals (SDGs). Turning ESG commitments into action. Credibility is not a new concept to finance but is vital in the ESG space. As a profession, we can help our organisations avoid even the suggestion of ‘greenwashing’. Credibility is enabled by robust transition plans with regular and transparent disclosures on progress against them. Some CFOs are investing now to create enterprise-wide data provisioning and analytics solutions for ESG. This will enable them to model multiple commercial scenarios and inform the optimal pace and sequence of the pivot. Conclusion While executing a successful ESG pivot depends upon a strategy that is unique to the qualities and context of the organisation, there are a few best practices you can leverage: Conduct a materiality assessment. These sometimes behind-the-scenes assessments are a data-driven, holistic view of ESG risks and opportunities to identify gaps and prioritise the issues of focus against business and stakeholder importance. Build an effective communication method for the company’s ESG commitments and progress. This typically takes the form of a disclosure with a newly crafted framework and reporting metrics for standalone ESG disclosures, leveraging industry-leading practices. Formalise ESG governance. Stakeholders must be identified as explicitly responsible for new associated ESG activities. The company needs to craft a defined governance model and roadmap for execution, mobilising internal resources and data for ongoing assessment and reporting. These three steps have helped organisations successfully navigate and focus an ESG pivot and capture the associated resiliency and revenue potential. This is the decade of action to dramatically limit the future impacts of climate change – time is of the essence, and the time to act is now. Ambrose Shannon is a Managing Director at Accenture and CFO and Enterprise Value Lead for Ireland and the UK.

Oct 04, 2021
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