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.

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.

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.

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.

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.

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.