Ronan Murray, the incoming Managing Partner of EY Ireland’s Cork office tells us how his Big Four career progressed from audit to mergers and acquisitions, and gives his take on M&A trends in 2024  Ronan Murray is the incoming Managing Partner of EY Ireland’s Cork office. Kerry-born Murray has lived in Cork for over 25 years, forging a successful career in corporate finance, starting in audit and progressing to mergers and acquisitions (M&A) advisory and services. As Partner, Corporate Finance, Strategy and Transactions, with EY Ireland in Cork for the past two years, Murray has provided strategic advice to Irish companies on acquisitions and disposals. Q. Tell us a bit about your background and education?  I grew up in Tralee and I’m still firmly connected to family, friends and clients in Co. Kerry, but I have lived and worked in Cork for a long time. It’s a fantastic place and my two daughters will be proud Corkonians! I started out studying commerce at University College Cork (UCC), graduating in 2001 with a commerce degree and returned to UCC in 2010 to complete an Executive MBA with a focus on developmental leadership education in a knowledge economy.  I met my wife Aideen Creedon, Head of Internal Audit at UCC, while we were both on our Chartered Accountants Ireland training contracts in Cork and studying for our exams.  Q. What inspired you to pursue a career in accountancy?  I remember during the graduate intake period at university reading the various job brochures from companies and organisations. I was struck by the Chartered Accountant (CA) qualification being a portable tool you could use as a foundation to build a wide and varied career in professional services. It certainly hasn’t disappointed. I have been able to gain wide-ranging experience from external audit to transaction services over the course of 22 years working for Big Four firms.  Through secondments, I’ve had the opportunity to live and work in both New York and London.  I started in audit, qualifying as a Chartered Accountant in 2005 and becoming an External Audit Manager in 2006.  I joined the Transactions Team at EY in 2007 and worked until 2016 in various roles before returning to the firm in 2022 as a Partner in our M&A/Corporate Finance Team. I may be biased, but in the world of corporate finance and M&A, the CA qualification is regarded as a differentiator and a distinct advantage.  It is a badge of honour you can take with you into any boardroom environment. The skills I have acquired through the qualification have served me exceptionally well throughout my career.  Q. As your career progressed, what prompted you to move from audit into M&A?   There is one moment that stands out as an important pivot point for me. Back in 2007, I got to spend some time working with a partner preparing the content for an information memorandum relating to a potential transaction.  I was intrigued and excited by the prospect of supporting on the deal. It was this experience that made me consider moving into M&A. I really enjoy the variety the role offers day-to-day. I get to work with so many different people and businesses. It is fast-paced and I find helping business owners to achieve their goals hugely rewarding. My audit experience has been essential in helping me to understand the core value drivers in business and, over time, it enabled me to move towards the M&A side of the market. Q. What does your day-to-day role involve?  I spend most of my time working with business owners to devise strategies that will allow them to de-risk and obtain growth capital while executing a transaction that delivers value.  Achieving the best outcome is a fine balancing act. It’s important to take time to meet with owners, funders, legal intermediaries and wider market players to ensure your “finger is on the pulse” when it comes to potential opportunities for your clients. I have a lot of meetings with local and international investors so I can fully understand their investment criteria and match them with suitable Irish companies.  The rest of my time is focused on deal execution – preparing information memorandums, agreeing heads of terms and reviewing sale and purchase agreements in tandem with legal colleagues.  From a private equity perspective, business owners often have an opportunity to obtain growth capital and commence a ‘buy and build’ process with a defined M&A strategy.  Dealmakers are looking at synergies across the various functions of a larger organisation. Investors are focused on the objectives behind a transaction. Often, the deal is about unlocking the potential and value that exists in an organisation.  Over the course of my career, I’ve been involved in hundreds of exciting transactions on both the buy and sell side. Some of the recent stand-out deals include the sale of PFH Technology Group to Japanese firm Ricoh and Phoenix Equity’s investment in Nostra Technologies. I have also enjoyed working with Zeus Packaging on several acquisitions in recent years.  Q. What are the biggest trends in the M&A market currently?  There was a global slowdown in transaction activity in 2022 and the first half of 2023, primarily due to uncertain debt markets and macroeconomic factors.  The M&A landscape has since improved and the Irish market is well-placed to see an uplift in deal volumes this year, as Irish assets continue to attract interest from investors, both local and international.  Ireland is a very competitive country internationally with an innovative, technology-driven, service-focused and open trading economy.  Our regions have grown and developed into destinations of choice for global companies, as well as providing a platform for indigenous private companies to develop and scale.  Acquirers are seeking strategic assets and the fundamentals of the Irish economy remain strong, making Ireland an attractive location for investment.  Private equity investment in the mid-market, driven by the availability of ‘dry powder’, is also playing a much deeper role in the Irish market. As we move forward, private business optimism coupled with the existence of a more developed and balanced risk appetite, will define the level of activity for the year ahead.  Q. You are currently President of Cork Chamber. How did this role come about and what does it mean to you?  The passing of both my parents in a short period of time gave me more perspective and a sense that maybe I should work to make more of a difference in society and business in a way that would complement my professional role with EY.  I was appointed Chair of Cork Chamber’s Economic and Enterprise Committee for two years in 2013. Then, in 2018, I joined the Board as Honorary Treasurer and became Vice-President in 2020. I was elected President and Chair of the Board of Cork Chamber in May 2022 for a term of two years.  It was a proud moment and I have fully embraced it and enjoy the role.   Being President of Cork Chamber allows me to play a more active business and political leadership role in the region. The chamber has over 1,200 members employing some 120,000 people. Being President gives me a significant platform to represent the business community in the city and county.  Top tips for M&A transactions Ireland remains a highly attractive location for investment and, looking to the year ahead, there is significant appetite to deploy capital as business owners continue to seek growth capital.  The technology sector continues to dominate the M&A landscape in Ireland in terms of transactions, partnerships and strategic alliances.  Other sectors of interest include engineering, financial services, business support services, healthcare, life sciences (both pharma and medtech) and ESG.  The green transition to a lower carbon economy is also driving investment decisions, and companies with sustainability credentials will continue to be attractive. For Irish companies undertaking a merger or exit, being well-prepared is essential for maximising the value of the transaction. Here are my top five tips: Understand key value drivers; this is essential to both preparation and execution; Have a clear growth story with understandable drivers that underpin financial projections to match specific investor criteria and strategic objectives; Align key management in preparation for a transaction process, while also ensuring the team has the bandwidth to focus on the day-to-day running of the business; Ensure the business/economic cycle supports your plan exit (e.g. historic company performance versus forecast performance and macroeconomic environment); Ensure compliance across all areas of the business (e.g. regulatory, environmental and sustainability). Addressing these areas well ahead of undertaking a potential M&A process will help reduce the risk of value erosion during a transaction.  Appointing advisors can also ease the transaction process and enhance value by allowing owners and managers to continue to focus on successful day-to-day operations. And to advisors, I would also say: take the time to listen carefully. It’s important to be humble and confident. There is no place for arrogance. 

From art to accountancy and audit to recruitment, Mark Baker has forged a multi-faceted career that speaks to the diversity and mobility of the profession today In his career as a financial recruiter, Mark Baker estimates he has met “thousands” of accountants. “Not one is the same as the next,” Baker says. “This clichéd idea that we are boring is just not true, but thankfully I think we’re seeing that cliché less and less these days.” Baker puts this shifting perception of accountants down to the rise of professional platforms such as LinkedIn – which has given people greater insight into the reality of the profession and how diverse it is. “Qualifying as a Chartered Accountant gives you such a strong career foundation. It opens up avenues and gives you a lot of different options,” he says. “You can go anywhere you want with it really because, if you are a Chartered Accountant, people know straight off the bat that you have a high level of competence in multiple areas – you need that to get the qualification in the first place.” As joint Managing Partner of Darwin Hawkins, the recruitment firm he established in 2018 with co-founder and fellow FCA Niall O’Kelly (ex-PwC), Baker has a bird’s eye view of emerging trends in the profession and what might lie ahead for the accountant of the future.   Range of career options Darwin Hawkins provides recruitment services to employers and candidates in the finance sector and has as its Chair investor James Caan, CBE, the British-Pakistani recruitment entrepreneur and former judge on the BBC series Dragons’ Den. “Every day, we’re talking to Chartered Accountants about their career options and the sheer range of choices open to them. You can go into a multitude of diverse areas such as data analytics, corporate finance or sustainability,” Baker says. “I’ve always viewed training contracts as apprenticeships. A lot of people train in audit for three-plus years and move directly into roles as financial accountants or financial analysts. “They can often even move into corporate finance on very good salaries straight after training in audit, but those two roles are actually very different. I think that really highlights the quality of the qualification and the mobility it gives you in terms of your career options right from the get-go.” Baker himself qualified as a Chartered Accountant with Deloitte in Dublin, training in audit, and went on to work in the banking sector with Certus, the specialist loan servicing group, before cutting his teeth in recruitment with FK International and partnering with Niall O’Kelly to launch Darwin Hawkins. His path to qualifying as a Chartered Accountant and finding his entrepreneurial niche in recruitment has not been a straightforward one, however, and, as Baker sees it, his story serves as a strong example of the diversity in the profession and varied career paths qualifying as a Chartered Accountant can support. “I really think young people need to hear our stories as Chartered Accountants; about what we do every day, the opportunities we have and how we got to where we are. That’s the best way we can show them what this profession has to offer,” he says.   Path to accounting Baker grew up in the south Dublin suburbs of Shankill and Sandyford, attending Cabinteely Community School, and went on to study Arts at University College Dublin (UCD). “When I was at primary school, all I can remember is that I wanted to play for Celtic FC and, as I got a bit older and wiser, I decided maybe I could be an artist. I was good at art, good at sports. My parents were always very supportive, so I grew up genuinely believing I could be anything I wanted to be,” he says. “I did quite well at school, but unfortunately like many people I know, I can’t say I had great career guidance at secondary school and I wasn’t sure what direction I wanted to go in.” While studying at UCD, Baker discovered his entrepreneurial flair, selling portrait paintings for impressive price tags in local art galleries and then online. “As a 20-year-old at college, in my spare time I was selling my paintings through galleries for €2,000 and €3,000. It was a simple business model – I put the work in and got paid for it in direct proportion. I was able to create something from nothing, go to market, and be financially rewarded. That entrepreneurial mindset was always there, and it was now being validated,” he says. “After college, I made the decision to go full-time doing that for a year to see how it would go – selling art through my website and the Green Gallery in Stephen’s Green Shopping Centre – famous faces, portraits, realism.” “I did reasonably well, but then the recession hit in 2008 and everything just fell off a cliff. Nobody wanted to spend money on paintings. My little bubble burst. I had to step back and ask myself, not just ‘What do I want to do?’ but also, ‘What’s a solid career?’ I didn’t want to be a starving artist.” To this day, Baker continues to paint in his own time and has been commissioned over the years to produce portraits of high-profile subjects, including Barack Obama, Stephen Spielberg and Dave Grohl, lead singer of the Foo Fighters. “I promised myself I would never give up on it and I haven’t. I still sell my paintings and hold exhibitions, but I knew when the recession hit that I also needed security. I liked the open-ended nature of accountancy. When you become an accountant, you can essentially go into any kind of business, and even start your own. That appealed to me,” he says.   Professional diploma in accounting Baker went on to complete the Professional Diploma in Accounting at DCU Business School, a conversion course designed for non-business graduates who want to work in accounting. After graduating, he joined Deloitte as a trainee and qualified as a Chartered Accountant in 2011. “I found Deloitte very supportive. They give you everything you need. The people are the best thing about it, particularly at your own level. You have a support group when you are doing your exams and training contract,” he says. “Without the support of those around me, and the opportunity to ask questions when I needed to, I think I would have struggled. I learned a lot. I learned what professionalism is. I learned what a high standard of performance is – the best in the business. For me, the Chartered Accountants Ireland professional training programme is the peak, the pinnacle. I learned a million little things through my training contract that still stand to me today.” Now, as a recruiter and co-founder of his own firm, Baker is intent on using his experience in life and work to provide candidates and employers with a personal, tailored recruitment experience. “With Darwin Hawkins, Niall and I backed ourselves and each other. We took a risk starting a recruitment business, but it’s also delivered the biggest reward. I believe that people need to take more risks,” he says. “We’re different from many of the other recruiters I’ve come across in our field. We’re a team of qualified accountants. Having met thousands of accountants, I know more now about every facet of accounting and every possible career path, than I ever would doing the one role. “Accountants are very nuanced due to the wide-ranging career paths open to them. Every accountant we meet has a different story, different skillsets, and will have different opportunities. We try to help people realise and seize these opportunities”.   Future of the profession As for the future of the profession? The basics will always matter, Baker says. “Employers will always want to know that candidates have the basics of accounting mastered. Interpersonal skills will always be a major selling point, but I think now with the emergence of different technologies, adaptability is also very important,” he says. “Employers want to know that you will be willing and able to get stuck into tasks and projects that are outside the day-to-day – a systems implementation project, for example, or something that’s heavy on data analytics”. “Knowledge and experience in big data and Power BI data visualisation tools are increasingly important along with a good understanding of systems implementation and process improvement”. “Because technology is evolving so much, these systems have to be implemented and finance teams are heavily involved because they are the ones who are going to be using them. When you get involved, you become an integral part of the business”. “Artificial intelligence is another obvious one. There are multiple AI tools already being used in finance, but you still need the people with the ideas and knowledge to train these systems with the correct prompts, and to ensure that ethical standards are being maintained. “I believe that there will always be a need for accounting talent, no matter what technology brings and how it might change the way we work.”

By championing diversity, equity and inclusion, businesses have  the power to become agents of positive change in an uncertain time, write John McNamara and Conor Hudson Threats to the Diversity, Equity and Inclusion (DEI) agenda are only growing stronger. It is important to understand the context, but more importantly to remind ourselves of the gaps DEI seeks to close and – as members – strive to engage and communicate on these issues more effectively. This year will be the biggest election year in history. More than 60 countries representing half the world’s population – four billion people – will go to the polls voting in presidential, government and local elections. This is also perhaps the biggest test yet for democracy as we continue to see certain extreme views previously confined to the fringes of society migrate to the mainstream. Most recently, this shift has included an anti-DEI movement that is now, perhaps unsurprisingly, featuring in the discourse surrounding the US presidential election due to take place later this year. At its core, anti-diversity activism views affirmative action as being racist and DEI initiatives and targets as being discriminatory. In the US, for example, there is currently a push from certain quarters to reduce funding for inclusion programmes in schools and universities. DEI resourcing levels are under scrutiny and there is also the ongoing weaponisation of transgender issues directly impacting the LGBTQ+ community. So how should we react to this assault, particularly given the likelihood that it will continue to grow and spread? Perhaps the answer lies in returning to the ‘first principles’ of the DEI business case whilst recognising the need to work harder communicating, explaining and persuading on the arguments that support DEI.  In particular, we need to ask ourselves: What role can we play as members in business and practice? Force for good Business can be a force for good and many business people are regarded with trust and respect. Businesses can therefore play a pivotal role in promoting DEI and serving as catalysts for wider societal change.  Embracing diversity within their workforce can foster innovation and creativity in companies, bringing together individuals with unique perspectives and experiences.  Inclusive hiring practices and equal opportunities not only give businesses access to a wider talent pool but also empower marginalised groups, helping to reduce social inequalities.  Moreover, businesses with inclusive policies tend to better understand and serve diverse consumer markets, increasing the likelihood of better financial performance.  Companies can enhance their reputation by prioritising DEI initiatives, creating a positive culture and potentially attracting top talent.  Doing so effectively is, however, about much more than simply adopting the signifiers of inclusivity (celebrating International Women’s Day or Pride, for example). It needs to be backed up by inclusive policies that are truly respected, accepted and enforced from the top down and right across the organisation. By championing DEI, businesses can become agents of positive change, influencing broader societal attitudes and norms. These businesses can, in turn, expect to benefit from an enhanced public image and perception of their brand, which can improve their reputation and lead to greater trust. So how can Chartered Accountants in leading business roles put us back on the right track? To navigate the path to DEI and move beyond the anti-DEI movement, members and business leaders must be aware that individuals in their organisations will be at different points in their personal journey. They should also consider the following steps when implementing their strategy: • Offering a safe space for those with diverse perspectives so that they can ask questions and their concerns can be understood and addressed with empathy. Don’t allow DEI to become a “Them” and “Us” scenario. • Communicate transparently about DEI initiatives, identifying the gaps in the organisation and how DEI policies can close them. Ensure that the initiatives have a strategy focusing on inclusion. Otherwise, they can be counterproductive. • Implement fair and objective metrics for evaluating progress in reaching DEI goals; this helps build credibility and legitimacy, but avoid these KPIs becoming a box-ticking exercise.  • Understand the experience of colleagues from diverse backgrounds in your organisation. Setting and reaching DEI goals related solely to the recruitment process cannot embed and maintain the culture needed to retain these new hires. • Collaborate with external experts or organisations in the DEI space who can provide the necessary insight, guidance and credibility to support a successful DEI journey.  Inclusion as a skill In the face of the anti-DEI movement, the skill of inclusion becomes a crucial asset. Treating inclusion as a skill involves actively fostering environments where diverse perspectives are not only welcomed but also valued.  This skill requires empathy, open-mindedness and effective communication to bridge divides and dispel misconceptions that fuel opposition to DEI efforts.  Organisations can help develop these skills through unconscious bias training, promoting employee resource groups (e.g. LGBTQ+) and actively seeking diverse perspectives in the decision making process. Inclusion as a skill empowers individuals to navigate conversations with those resistant to DEI, fostering understanding and promoting unity.  By emphasising the benefits of diversity and creating spaces where everyone feels heard and respected, individuals equipped with inclusion as a skill can play a pivotal role in countering anti-DEI sentiment. John McNamara is Chair of BALANCE,  the Institute’s LGBTQ+ allies network group and Executive Director and CFO at AIB life. Conor Hudson is a Finance Director and member of BALANCE.  

The implementation of the Corporate Sustainability Reporting Directive will introduce new challenges in business reporting, not least the tricky concept of double materiality, writes Mike O’Halloran In 2024, a new era of corporate reporting has kicked off. The Corporate Sustainability Reporting Directive (CSRD) began to apply to some of the largest entities in Ireland for financial periods commencing on or after 1 January 2024.   The cohort of entities applying the CSRD will increase significantly in the years ahead as the numbers in scope rise in 2025, 2026 and 2028.  Under the European Green Deal, the European Commission aims to transform the EU into a modern, resource-efficient and competitive economy with no net emissions of greenhouse gases by 2050, economic growth decoupled from resource use and no person or place left behind.  In seeking to achieve this goal as part of the deal, the CSRD will not be without its implementation challenges. One of the challenges that preparers will have to navigate is double materiality. The CSRD requires the assessment of the materiality of impacts, risks and opportunities relating to sustainability matters via a double materiality assessment. This will be new to most preparers of sustainability statements and those providing assurance on the information.  Double materiality is a unique concept of reporting under the European Sustainability Reporting Standards (ESRS).  It is the most notable difference between these standards and the International Sustainability Standards Board’s standards (IFRS S1 and IFRS S2), which will be adopted in other jurisdictions outside Europe. This will most likely include the UK where the Department for Business and Trade has indicated that it may be endorsed in 2024 as part of its Sustainability Disclosure Standards. Materiality – two perspectives As the name might suggest, a double materiality assessment is performed from two perspectives – financial and impact. The result forms the basis for what should be disclosed in a sustainability statement.  The use of two perspectives differs significantly from the “traditional” materiality assessments accountants will be familiar with. This is because a double materiality assessment focuses not just on matters that are financially relevant, but also on those that impact stakeholders, both internal and external, and the environment.  Without a double materiality assessment, an entity could simply focus on sustainability matters that are financially relevant to itself and ignore what is important to the wider society it affects. A double materiality assessment involves consideration of the entity’s direct and indirect impact. This means that it covers the entity’s own operations as well as its upstream (e.g. suppliers and pre-production activities) and downstream (e.g. post-production activities and end customers) value chain, when considering its material impacts, risks and opportunities.  The output from a double materiality assessment identifies impacts, risks and opportunities related to sustainability matters that are considered to be material for the entity, its stakeholders and the environment, and therefore must be reported on in its sustainability statement. Financial materiality For a sustainability matter to be material from a financial perspective, it must trigger (or must reasonably be expected to trigger) material financial effects on the undertaking. In assessing this, an entity must consider whether sustainability matters generate risks or opportunities that materially influence its development, financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium- or long-term. The materiality of risks and opportunities should be assessed based on a combination of the likelihood of occurrence and the magnitude of financial effects. Impact materiality Impact materiality looks at how an entity may have an impact on its stakeholders from an environmental, social and governance (ESG) point of view. For a matter to be material from an impact perspective, it must generate (or have the potential to generate) positive or negative impacts on people or the environment. The relevant person affected is the stakeholder and impact materiality is viewed through the eyes of the stakeholder to identify sustainability impacts. When an entity is considering impact materiality, then, it must consider actual or potential impacts, positive and negative impacts and impacts covering the short-, medium- or long-term. The assessment of the severity of its impacts, and therefore whether they are material, is based on three factors: • Scale – how grave or beneficial the impact is; • Scope – how widespread the impact is; and • Irremediability – whether or not the impact can be mitigated or resolved. Furthermore, if an entity is addressing potential impacts, it is required to consider the likelihood that the issue will occur. Engagement with stakeholders is a key consideration when reviewing impact materiality and it will help to inform the entity about its material sustainability impacts, risks and opportunities.  The ESRS do not set out how an entity should engage with its stakeholders and the engagement process should be determined by the reporting entity.  Some of the stakeholder categories an entity may consider as part of its materiality assessment include employees, suppliers, customers, consumers, end users, regulators, local communities and nature. Double materiality sets the reporting boundary When an entity determines that impacts, risks and opportunities related to a sustainability matter are material because of a double materiality assessment, then it is required to disclose information required by the disclosure requirements related to that sustainability matter in the corresponding topical and sector-specific ESRS.  In addition, it is required to disclose any additional entity-specific information when an ESRS does not sufficiently cover this matter. As a result, a double materiality assessment sets the entity’s sustainability reporting boundary. If a matter is material from a financial perspective, an impact perspective or both, then it must be disclosed in a sustainability statement.  The challenges There are several challenges that entities performing a double materiality assessment may struggle with, particularly in the initial years of implementation. These include: Understanding and applying the concept While preparers will already be familiar with materiality, double materiality introduces some new parameters they will need time to become comfortable with. The ESRS do not specify a process to follow when carrying out a double materiality assessment. The reason for this is that no one process would meet the requirements of all the entities reporting under the standards. Therefore, an entity that performs a materiality assessment must design and apply a process tailored to its circumstances, while remaining within the requirements set out in ESRS 1. While such an approach allows entities to tailor their processes accordingly, the lack of a rules-based system may prove difficult for some entities to adapt to, particularly in the earlier years as practices and precedent are being established. In the absence of a strict rules-based approach, entities will need supplementary material to guide their methodologies. Currently the European Financial Reporting Advisory Group is drafting implementation guidelines to assist with this. The assurance requirement A key requirement of the CSRD is external assurance on an entity’s sustainability statement. This will initially require limited assurance before being upgraded to reasonable assurance at some point in the future. While assurance will help to ensure that the integrity and reliability of sustainability information reported on will be enhanced, it will also bring with it a level of complexity whereby the judgements made by preparers will be assessed by assurance providers. This may introduce differing opinions on what should be deemed as material from an impact or financial perspective. All eyes on the first reporters The number of reporters in the first wave of CSRD adopters in Ireland will be low in number but high in terms of market capitalisation.  All eyes will be on the sustainability statements prepared by these entities in early 2025 as users, preparers and other interested parties will be keen to see how they have approached double materiality.  Despite the low number of reporters for 2024 year-ends, many entities will be indirectly impacted as they will be part of the supply chain of reporters. They will therefore be providing information to entities preparing their sustainability statement.  Furthermore, many entities that will be subject to the requirements of the CSRD in future years will be keen to learn from the challenges encountered by the first adopters. Despite the onerous requirements of the new suite of standards and in particular double materiality, it is important for entities and their stakeholders to remember the reasons for their introduction and the underlying cause they seek to remedy.  The EU’s goals under the European Green Deal are ambitious, but they need the full support and backing of businesses to be successful. Mike O’Halloran is Technical Manager in the Advocacy and Voice Department of Chartered Accountants Ireland Double materiality: brewery example Consider an entity operating a brewery in Ireland. In carrying out a double materiality assessment it may, among other things, consider the following matters to be material, from one or both perspectives: Energy (financial perspective) – due to the energy intensiveness of the production process and the financial risk of increased energy prices; Pollution of water (impact perspective) – due to the large amount of water discharged during the production process and the impact that this may have on water quality locally; Water consumption (financial perspective) – due to the cost involved and the availability of sufficiently clean water; Land-use change as a direct impact driver of biodiversity loss (impact perspective) – due to the large amount of malt, barley and other crops used in the production process; Sustainability matters under the heading of “own workforce” including health and safety of employees (impact perspective) – due to the large workforce an entity has employed in its factory; Resource inflows and outflows (impact and financial perspectives) – given the amount and cost of packaging and storage materials used, particularly in an entity’s downstream activities; Personal safety of consumers and end users (impact and financial perspectives) – given the health implications of a breach of food safety regulations on consumers as well as the financial implications that it would bring; and Responsible marketing practices (impact perspective) – given the addictive and age-restricted nature of the product being produced by the brewery. This example is for illustrative purposes only and is not intended to be a complete list, nor a list of the matters that are mandatorily material for a similar entity. Individual judgment must be applied in each instance.

The foundations for a common polity are eroding as increasingly polarised views and influences continue to flourish, writes Cormac Lucey It looks like voters in the United States will have to decide between Joe Biden and Donald Trump in November’s presidential election. It is symptomatic of how polarised American politics have become that the strongest argument for voting for Joe Biden is that he isn’t Donald Trump and vice versa.  Why have politics in the developed world become so opposite? And what is the likely future direction of travel? In my opinion, several secular factors are eroding the political centre and promoting the rise in political extremes.  Narrowcasting has replaced broadcasting. In the past, TV and radio channels were limited in number and had to cater for a large audience. The result was broadcasting that was jointly watched or listened to by large sections of the community. Today, it is viable to create media and social media offerings that cater for very narrow and specialised audiences. Broadcasting has been replaced by narrowcasting. Sectional views are being promoted. A common, integrated view is being relegated. Social media algorithms seek to maximise their audiences even if it means promoting a one-sided view of what’s happening. Just look at the US where the difference in political perspectives offered by Fox News and MSNBC is such that, even when covering the same story, they often appear to be reporting on different events. The commercial imperative to maximise audiences means that people are increasingly being told what they want to hear resulting in an echo chamber effect where contrary views are downplayed or ignored. Division is promoted – unity is structurally disadvantaged. The growth of technology has turbo-charged the division of labour. The essence of the Industrial Revolution is that people ceased to be farmers and moved off the land to earn their living by doing increasingly specialised tasks. While specialisation has promoted greater efficiencies and higher economic growth, it has come with the cost that we now have a reduced understanding of what others do and of how the entire system hangs together.  Society has become more politically polarised around socio-economic differences. In his book The Road to Somewhere, David Goodhart explained the shock of the Brexit and Trump 2016 votes. He described a UK society that was divided between “Somewheres” and “Anywheres”.  “Somewheres” are firmly rooted in a specific community and Goodhart reckons that this group constitute about half of the UK population. “Anywheres” are typically socially liberal, well-educated and generally living in cities – they could live and work anywhere (as the pandemic illustrated).  Goodhart reckons that they comprise just 20 to 25 percent of the population but dominate politics and the media. “Inbetweeners” oscillate between these two groups. Brexit and Trump represented a shock victory for the “Somewheres” over the “Anywheres”. Recent protests in Ireland against immigration by asylum seekers are probably being carried out by “Somewheres,” angry at the immigration policies of Dublin’s “Anywhere” political establishment.   In the future, the challenge will be that each of the drivers of political fragmentation listed above seem likely to continue to grow. If the foundations for a common polity are eroding, reaching political agreement is likely to be increasingly difficult in the future.   *Disclaimer: The views expressed in this column published in the February/March 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

Charlotte Rose Keating reflects on her path from a law graduate to achieving FCA status, highlighting the transformative power of stepping out of your comfort zone so you can achieve more in work and life I was awarded FCA status in January. Reflecting on my career journey so far, with its twists and turns, I am grateful for the chain of events that led me to become a Chartered Accountant and excited to see what being a Fellow will bring.  At school, I never imagined it would be possible for me to be a member of the accountancy profession. Maths was my Achilles heel. I believed I wasn’t numerical. Being a fan of debating and problem-solving through words, I got my law degree from Trinity College Dublin.  I graduated in 2008, but with the uncertainty of the financial crisis, it was not the ideal time to apply for graduate jobs. This, combined with uncertainty in my personal life, drove my need to secure a good role.  One evening, while applying for law firm training contracts, an advertisement for Deloitte popped up on my screen. Intrigued, I clicked to learn more and was pleased to see that the firm encouraged applications from individuals of varied backgrounds, not just those with accounting and finance-related degrees.  “I’ll take the risk” As I selected the Enterprise Risk Services Department, I thought, “I’ll take the risk,” and applied. Like magic, things started to fall into place.  While on holiday, I got called for an interview and as it turned out, one of my travel companions had trained with Deloitte and specialised in risk. She and her partner sat me down around a campfire to give me advice and conduct a mock interview.  Sure enough, it ended up being a fantastic interview experience.   When I was offered the role, I couldn’t wait to get started, seeing it as an opportunity to diversify, understand the business world and overcome a long-held fear of numbers.  Working mainly in internal audit and regulatory compliance for various public and private sector clients, I leveraged my law degree while developing new skills and confidence.  Training and qualifying as a Chartered Accountant involved stepping out of my comfort zone, but it is one of the best decisions I’ve made. Yes, it gave me security, but it provided me with so much more, including the opportunity to travel and fulfil a lifelong dream of living and working in New York City.  The qualification was an invaluable asset when I pursued professional acting, not a fallback. Being a member of the profession provided me with the tools and the self-belief I needed to set up my own coaching and training business – Act On It Coaching – where I work with individuals and companies to support personal and professional development.  Despite taking my qualification in a different direction, I still use it daily to support and add value to my clients. My membership is something I treasure and I value the support of the Institute. The bias challenge Since my training days and throughout my career, I have been fortunate to have had wonderful role models and mentors who reflected my strengths and encouraged me, guiding me on where to improve and imparting advice drawn from their own career journeys.  I’ve had the privilege of working with many inspiring, strong women. Having female camaraderie and confidantes is extremely beneficial at any stage in one’s career.  Bias, both conscious and unconscious, is still a challenge in the workplace, and there remains a lack of female representation in key decision-making roles. As the saying goes, “If I can see it, I can be it”, and female role models at the partner and senior executive levels are essential in enabling junior-level women to envision their own career pathways. Mutual respect and people accepting one another’s unique qualities and differences naturally fosters inclusion and encourages individuals to play to their strengths to make a positive impact and contribution in what they do. Take responsibility for your career  When it comes to navigating career advancement, the most effective strategy, in my opinion, is to start with you. Take responsibility for your career.  I have asked myself what I want to achieve as I have learned that self-reflection is so important to set short- and long-term goals. I have reflected on my strengths, achievements and the aspects of work I enjoy to build confidence in the present that can propel me towards future achievements.  To keep focused, on track and in charge of my career, I check in regularly and ask myself questions like: • What do I need to do more of? • What do I need to do less of? • What do I need to start doing? • What do I need to do differently? • What do I need to stop doing altogether? This practice helps me to identify professional opportunities and be prepared to put myself forward confidently.  It’s also highly beneficial to get clarity from others. Asking a senior colleague the simple question, “how am I getting on?” can help you to understand whether or not you are meeting expectations.  Seeking feedback from clients and junior staff is also fundamental to growth and career progression.  Good and timely communication prevents conflicts and misunderstandings and dramatically reduces anxiety. It’s important to be technically strong, of course, but we need to hone our soft skills, especially in this era of artificial intelligence. As I was in a small but growing department when I started with Deloitte, I was fortunate to have ample opportunities to develop leadership skills early on.  An aspect of my work that I particularly enjoyed was coaching and mentoring junior staff members and designing and delivering training for them.  This led to me developing the Trainee Toolkit, a programme I have been rolling out across different firms to support the next generation of Chartered Accountants in succeeding in their exams and training contracts, assisting the efforts to plug the talent gap and future-proof the profession.  Tap into your professional community  Being part of the family of Chartered Accountants provides us with community, whatever stage of our career we are in. It’s vital to tap into this community and make the most of the support available to advance our careers.  Collectively, we give ourselves a sense of purpose, an appreciation of our individuality and health and wellbeing benefits.   Nurturing relationships and building connections within this community can be particularly beneficial for women, who face various unique challenges in the profession.  Mentoring and networking allows women to brainstorm collectively, share solutions to challenges, professional and personal experiences, to thrive, build confidence, take control of their careers and ultimately experience greater fulfilment in all that they do. Managing work-life balance As a self-confessed adrenaline junkie, I love saying yes to new challenges. This is my biggest issue when it comes to work-life balance. I take on a lot because I don’t want to say no to opportunities to grow. Being mindful and focusing on each task to the best of my ability helps me to avoid feeling overwhelmed.  Good time management is also key; anticipating unforeseen events and factoring buffer time into my projects reduces pressure. A non-negotiable is my daily walk. It’s my chance to reflect, exercise and clear the cobwebs. I often go out with a problem and come home with a solution. Living a more holistic life where we can be at our best involves recognising that nothing is wasted, all experiences in and out of the workplace, all the successes and setbacks shape us into who we are, and it’s good to take stock of this daily. Cultivating personal and professional relationships helps us perform at our best and feel good in the process. Charlotte Rose Keating, FCA, is CEO of Act On It Coaching  My Story So Far: Women's Career Series Last year, Accountancy Ireland introduced a new series in collaboration with the Gender Working Group of the Institute’s Diversity Equity and Inclusion Committee. Focused on the women in our membership, we are relaunching this series this year under the new banner ‘My Story So Far: Women’s Career Series’. It follows the 2022 publication of a global Chartered Accountants Worldwide survey which explored opportunities for women in the profession. The survey found no obvious gender-related barriers to entry into the profession but revealed that a growing number of women were making the decision to leave or pivot within the profession mid-career. ‘My Story So Far: Women’s Career Series’ seeks to highlight the experiences of the women in our membership and provide a forum to share their insights into how they have managed their careers in tandem with their lives and overcome the challenges and obstacles they have encountered along the way.

Chartered Accountants have a unique set of skills that can help guide and support the valuable work of Ireland’s charities and not-for-profits Orla Roche, FCA, TMITI, has been volunteering in the not-for-profit sector since childhood and began to carve out a career in charity after qualifying as a Chartered Accountant with KPMG in Dublin and returning to live in her native Galway in 2002. “I volunteered for charities from a young age and became involved in the sector because I find the objectives of charities very interesting; they make a difference,” explains Roche, who is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group.  After returning to Galway, Roche also qualified as a tax technician with the Institute of Taxation and established Roche Chartered Accountants, her own business, offering tax and business consultancy services. “I’ve worked in both the corporate and not-for-profit sector for the likes of Galway Simon Community, Pobal, Connacht Rugby, St Vincent de Paul, GAA, Trócaire and Goal in Sudan,” she says. “Because profit is not the objective of a charity, my roles have been more varied and rewarding; it is not just about ‘doing the numbers’.” Roche is currently Finance and Governance Manager with First Fortnight, a mental health charity, which recently hosted its annual arts festival at locations nationwide in January. “First Fortnight challenges mental health stigma through arts and cultural action. We offer creative art therapy to children, adolescents and adults who are homeless or at risk of homelessness and we’ll be expanding this service to new locations around the country this year,” Roche explains. First Fortnight is one of more than 11,500 charities registered in Ireland ranging from small, local and volunteer-only to large, national or international organisations with thousands of employees, according to the Charities Regulator. Although all charities are classed as not-for-profit organisations, not all not-for-profit organisations are charities. Under the Charities Act 2009, a charity must be set up to promote one or more charitable purposes, promote only that charitable purpose and deliver a public benefit. “Ireland’s strong charity sector plays a central role in our society. The diversity of the sector’s activities is reflected in the Register of Charities, which includes over 3,600 schools as well as libraries, museums, youth clubs, daycare centres and much more,” explains Helen Martin, Chief Executive of The Charities Regulator. Aside from their societal impact, charities have a significant financial impact on the Irish economy. About 281,250 people are employed by registered charities, according to the Report on the Social and Economic Impact of Registered Charities in Ireland published last year by the regulator. “That’s equivalent to almost one-in-eight workers. Total direct expenditure by Irish charities was estimated in our report at €18.6 billion in 2022, an increase of 28 percent over 2018. The overall financial impact of the charity sector was estimated at €32.1 billion in 2021, when the indirect and induced effects of activity are also included,” Martin says.   Personal motivation  Tony Ward, FCA, has worked in both voluntary and professional roles within Ireland’s charity and not-for-profit sector, prompted initially by his personal experience. “My introduction to the sector came through my diagnosis with a degenerative eye condition in the early nineties, which led me to become involved with Fighting Blindness as a board member while working in practice, consultancy and the private sector,” he says. “I would go on to become an employee of Fighting Blindness and then Director of Finance with The Wheel – Ireland’s national association of community and voluntary organisations, charities and social enterprises – until May 2022 when I went into consultancy, largely in the charity sector.” Ward is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group and sits on the board of several charities and not-for-profit organisations. He has firsthand experience of the benefits they can bring to individuals who need supports and services. “I have benefited personally from continuing to be involved with charities working in the area of blindness and sight loss while learning about many others and the great work they do. They often fill gaps left by the State in the provision of essential services or enhancing aspects of society that are important to all, such as arts and sports,” he says. “I think it is very important that we give back and what easier way to do it than in an area where we all have existing competencies, which probably fit with the skills charities desperately need?” Chartered Accountants, in particular, have skills of great potential value to charities and not-for-profits, Ward believes.  “I would urge Chartered Accountants to give back by helping the charity and not-for-profit sector. Many are already involved and, the more I’ve become involved myself, the more I understood how complex and important the ‘business’ of running a charity is.  “Charities are all subject to the same or similar governance controls, business metrics and operational concerns as other organisations. It is very important that they have people with suitable skills involved,” he says. Valuable professional skills Orla Roche agrees that Chartered Accountants have a lot to offer Ireland’s charity and not-for-profit sector. Even if they don’t work full-time in the sector, they can bring valuable professional skills to the table on a voluntary basis. “I feel my qualification has brought a much-needed function to the charities I have worked with. Governance and accountability are vitally important to charities,” Roche says.  “Since the establishment of the Charities Regulator in Ireland and the impending Charity Amendment Bill, charities have to be more transparent and I welcome these changes.”  For those Chartered Accountants who may be interested in volunteering, Roche says that there are safeguards in place to protect them from potential risks. “Pitfalls might exist in very small charities with very few or no staff and few financial controls where the onus might lie with the directors,” she says, advising that these risks can be mitigated by:   • Using the Charities Statement of Recommended Practice (SORP); • Keeping up to date records; • Working closely with an auditor; and  • Complying with the relevant Companies Registration Office and Charities Regulator rules.   “The way I see it, Chartered Accountants have a vital role to play by joining the boards of charities in a voluntary capacity,” Roche says. “Our analytical, financial and people skills can increase the transparency and accountability of the sector and you will find many Chartered Accountants sitting on the finance sub-committee of charity boards around the country. “They can also help in producing accounts and ensuring financial controls and best practice are adhered to. This increases the transparency and accountability of the charities they volunteer with.” For those interested in volunteering their skills for the first time, Tony Ward advises reaching out to their family, friends and local community or logging on to Boardmatch.ie, an Irish charity specialising in not-for-profit board recruitment, or Volunteer Ireland at volunteer.ie. “There can be a lot of work involved, less so perhaps in organisations that have their own dedicated staff, but in my experience, a Chartered Accountant who understands how systems work can fairly easily slot into a charity board or committee,” he says. Áine Crotty, ACA, first became involved in charity and not-for-profit volunteering while completing her training contract with KPMG in Dublin. “I trained in financial services audit and then moved into risk consulting and then the insurance industry, but it was initially through my involvement in some of KPMG’s fantastic Corporate Social Responsibility (CSR) initiatives that I realised the benefits and rewards that could come from using my skillset to help charities as a Charity Trustee,” Crotty explains. Role of trustees The Charities Regulator defines Charity Trustees as the volunteers that sit on the boards of charities (or committees in the case of associations).  “They are the people who ultimately exercise control over, and are legally responsible for, a charity,” Helen Martin explains.  Her advice to existing trustees and Chartered Accountants who may be thinking of becoming a trustee is to familiarise themselves with the responsibilities of the role. “I would advise them to check the charity’s entry on the Register of Charities to ensure that it has filed its annual report with the regulator and that key details, such as the names of the charity’s trustees, are up to date,” says Martin. Through Boardmatch.ie, Áine Crotty secured her first role with a charity on the Audit and Risk Committee of the Board of Paralympics Ireland. She now also sits on the board of Gerri’s Place. “Gerri’s Place is a not-for-profit, social enterprise that provides wellbeing breaks for people who need time and space to focus on their emotional and mental wellbeing,” she says. “I have volunteered with and supported various mental health charities from a young age, as I had seen the effects of poor access to mental health services in my community. Joining the Board of Gerri’s Place has allowed me to continue contributing to a cause that is close to me. The skillset of a Chartered Accountant is invaluable to organisations like Gerri’s Place, Crotty says. “I see my Chartered Accountancy qualification and the skillset that comes with it as a privilege; it’s an even bigger privilege to be able to use that skillset to give back to those in need.”  For other Chartered Accountants keen to explore trustee roles in Ireland’s charity and not-for-profit sector, Crotty has this advice: “If you are confident in your skills and ready to give back some of your time, there is a place for you. With the charity sector becoming more and more regulated, there is a real need for professionals such as Chartered Accountants to get involved.” Regulatory environment Like all legal entities, not-for-profit organisations are subject to general laws and regulations dependent on a number of factors, explains Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, a board member of Age Action Ireland and co-founder of non-profit Chapter Zero Ireland. These include:   • How they are established (e.g. Companies Acts applying to companies); • Their purpose or cause (e.g. Charities Act applying to charities); • Their responsibilities (e.g. safeguarding legislation if caring for vulnerable people); • Their activities (e.g. licencing or permit conditions for fundraising or events); • Their governance structure (e.g. constitution, trust deed, etc.); and  • How they operate (e.g. employment legislation/health and safety legislation).    “In addition, the non-profit organisation may be subject to regulations or conditions because of where they source funding from,” Fitzgerald says. A sporting organisation receiving funding from Sports Ireland, for example, will be required to comply with the Governance Code for Sport. A charity receiving government funding, meanwhile, may be required to comply, in full or in part, with governance requirements for state organisations. “The financial reporting requirements for not-for-profit organisations also vary according to considerations similar to those outlined above,” Fitzgerald says. In Northern Ireland, requirements are defined for charities as a category of non-profit organisations by the Charities (Accounts and Reports) Regulations 2015. Under these regulations, the Charities Statement of Recommended Practice (FRS 102) (Charities SORP FRS 102) applies to charities with income exceeding £250,000.  In the Republic of Ireland, the Charities Governance Code requires charities to produce full unabridged financial accounts, and to make sure these are made publicly available. The Charities (Amendment) Bill 2023, meanwhile, provides for a number of amendments to the Charities Act 2009. The bill, currently under scrutiny in the Dáil, aims to provide greater transparency for the public in relation to the finances and operations of registered charities.  “The amendments proposed will facilitate the introduction – for the first time – of much-needed financial accounting regulations for registered charities in Ireland,” Helen Martin explains. “This will introduce greater transparency in the way charities report on their finances and ensure that all charities are treated equally regardless of whether they operate as a company or an unincorporated entity such as an association or charitable trust.” This in turn will ensure that the financial statements of charities are more informative and more comparable than is currently the case.  Níall Fitzgerald recommends that not-for-profit organisations undertake a regulatory mapping exercise to determine the extent of the legislation and regulation each is subject to. “This can be a useful process for a not-for-profit organisation of any size, enabling it to better design a fit-for-purpose governance structure that facilitates effective compliance and reporting, while the organisation mainly focuses on achieving its purpose and objectives,” Fitzgerald says. Crucial role of accountants Public trust and confidence is the bedrock of a charity’s existence and this applies whether it is a large organisation or one of Ireland’s smaller charities, writes Helen Martin.  Close to 50 percent of charities, excluding schools, have an annual income of less than €100,000.  Accountants can help support and enhance governance standards within charities. We know from our engagement with charities that many use accountants on a voluntary or professional basis to provide support on a wide range of financial matters, such as:   • Developing internal financial controls; • Preparing financial reports, including management accounts; and • Advising on and assisting with transactions and investments.    Promoting and supporting the principals of good governance helps ensure Ireland has a vibrant charity sector that is valued for the public benefit it provides across many facets of society.  This ranges from ensuring a robust risk management system is in place to making certain a charity’s details on the Register of Charities are correct and it is up to date with its filings. Another key area in which accountants can play a role is in supporting transparency and accountability. We know from research that there is a strong link between greater transparency and accountability and public trust. Accountants are accustomed to the requirement to comply with regulations and professional standards. Whether working on a professional or voluntary basis, as a charity trustee or a service provider, they can help charities by being familiar with their key regulatory obligations and making sure they are in a position to comply.  For example, it is essential to know when the charity’s annual report is due to be filed with the Charities Regulator and what your obligations are, as a charity trustee, if you receive a statutory direction to provide information under the Charities Act 2009.  Failure to file an annual report on time or respond to a statutory direction is a criminal offence and could also put a charity at risk of being removed from the Register of Charities. Getting started: three-step checklist for new trustees Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, outlines three steps he recommends members take before agreeing to volunteer for a charity or not-for-profit. 1. Reflect on your personal motivation and the cause or purpose that matters most to you This passion will be a key source of the energy required for any commitment you make, but it will also be an important filter when choosing which not-for-profit organisation to get involved with. For some members, the motivation will be clear from the outset. For others, you will know it when you see it—perhaps when you hear about the impact a certain charity is having or as you come across examples of its work. 2. Think about the skills, experience and level of commitment you can bring to a not-for-profit This can be about much more than your financial or compliance acumen as a professional accountant, also taking into account any of the skills and abilities attained in your life and career. It is also useful to have an idea of the amount of time you can give to an organisation as this may be one of the key factors determining the extent to which you get involved. 3. Invest time and effort in identifying the right opportunity Whether you are searching for a voluntary position or approached about a vacancy, it is recommended that you carry out some form of due diligence on the organisation. This includes getting a clear understanding of its vision, mission and values, and how these fit with your own. One tip here is to consider the ‘SPF factor’ – Strategy, People and Finance – and ask these three questions: • What is the organisation’s strategy and what resources/capacity does it have to achieve this? • What is the profile and skillset of the people leading and running the organisation? • What is the state of the organisation’s financial position and performance?  In addition, consider the organisation’s expectations of you and your ability to deliver on them. Many of these matters are considered further in the Chartered Accountants Ireland Concise Guide for Ethics and Governance in the Charity and Not-for-profit Sector, available in the Ethics Resource Centre online at charteredaccountants.ie. Produced in 2018, the guide will be revised later this year to reflect more recent developments in the sector.

The Department for the Economy unveiled an ambitious plan to boost the Northern Ireland economy in 2021, but will it be up to scratch? Professor Anne Marie Ward, Dr Esmond Birnie and Dr Stuart Henderson crunch the numbers to find out if the 10x Economy vision can deliver. Some argue that the Northern Ireland (NI) economy has strong potential given its apparent unique trade position as a halfway house between Europe and Britain, combined with the Department for the Economy’s (DfE) ‘10x Economy’ policy, which targets innovation, inclusion and sustainability. Yet, despite experiencing 25 years of peace, NI continues to suffer from political uncertainty and lower economic productivity relative to Britain and the Republic of Ireland (ROI). Moreover, ongoing uncertainties associated with Brexit continue to dampen potential foreign direct investment, which has been vital to the strong economy in ROI. It is against this backdrop that the DfE introduced a new growth policy in May 2021 aimed at achieving a 10-times better economy (‘10x economy’) by 2030.  The 10x vision is underpinned by objectives grouped into three pillars—innovation, inclusive growth and sustainability—and focuses on six priority sectors:  1. Agricultural technology (agritech); 2. Life and health sciences; 3. Advanced manufacturing and engineering; 4. Financial services and financial technology (fintech); 5. Software (including cybersecurity); and 6. Screen and low carbon.   The data The Northern Ireland Economic Trade Statistics (NIETS) is a new dataset that provides details on trade between NI and Britain for the first time. We have analysed this dataset, which covers the period 2014–2020 and comprises a sample of enterprises that are VAT or PAYE registered and trade in NI.  Approximately 5,000 to 7,000 enterprises respond to the survey annually. As part of our research, we examined the 10x priority sectors over the period 2014–2020.  Data on financial services and fintech are not included in the dataset and due to GDPR issues, we had to merge some of the 10x priority areas, ending up with four 10x sectors:  • Agritech;  • Health and life sciences; • Advanced manufacturing (including low carbon); and  • Software and screen.  Approximately 11.4 percent of the total sample is classified as being 10x. Here is a summary of our findings. Growth in sales and gross value added (GVA) As shown in Table 1, the 10x sectors of the NI economy were relatively resilient from 2014–2020 as total Gross Value Added (GVA) increased over the period, though agritech was negatively impacted by COVID-19.  Performance of the non-10x sectors improved over the period 2014–2019, as evidenced by increased total GVA (except traditional manufacturing, which declined by 20.35%). Most non-10x sectors were adversely impacted by COVID-19, however, except manufacturing and ‘other’ production.  Productivity Productivity is measured by the ratio sales per employment and GVA per employment. As illustrated in Figure 1, for 2014–2020, the wholesale and retail sector had the highest sales per employment, followed by agritech and other production. Other production has the highest GVA per employment, followed by construction, health and life sciences and software and screen. Agritech has the second lowest GVA per employment. External sales behaviour A country’s wealth is influenced by its ability to attract funds from external markets. To determine how NI is doing, we investigated the trade behaviour of NI enterprises using four ratios, which reflect the percentage of overall sales each business undertakes with Britain, ROI, the rest of the European Union (REU) and the rest of the World (ROW). The average percentage for each year (2014–2020) for the whole sample is provided in Table 2.  The most important external market is Britain, accounting for on average 11.75 percent of sales, followed by ROI (6.18%), ROW (2.69%) and REU (1.74%). Generally, the percentage of total sales to these external markets increased steadily over the period 2014–2019 and declined in 2020, coinciding with COVID-19. Patterns in the percentage of total sales to the four markets are further analysed by sector over the period 2014–2020 in Figures 2 to 5. Sectoral differences are evident. Generally, non-10x enterprises (the six to the left-hand side of each figure) are less engaged with external markets relative to 10x enterprises (the four to the right-hand side of each figure).   Differences in the relative importance of markets is also observed across sectors. For example, the ROI market is most important to the agritech sector (Figure 3), and the ROW market is most important to the health and life sciences sector (Figure 5), probably indicative of sales to the US. This sector is also very active in markets in the REU (Figure 4).  Note: When interpreting these results, be aware that the data is based on the largest enterprises in NI and the authors had to design their own 10x categories based on Standard Industrial Classification codes.   Will it work? The number of enterprises in NI that can be classed as ‘10x’ increased over the period from 619 in 2014 to 723 in 2020. They are contributing GVA to the economy and, importantly, most of their turnover is to external markets, which is beneficial for a small regional economy where local demand is limited.  These enterprises seem to be resilient, with little change in behaviour observed in the period after Brexit, and, with the exception of agritech, they continued to grow despite COVID-19 (though the data was only available for 2020).  In theory, the DfE’s ambitions are laudable. Cluster approaches have proven successful in other countries, including ROI, where foreign-owned high-tech enterprises pay higher wages, invest in R&D for future growth and have high exports.  Moreover, the vision of sustainable growth and prosperity for all (levelling up) aligns with more holistic concepts of economic growth that account for social and environmental concerns alongside economic prosperity.  There are concerns, however. This is an ambitious undertaking that will take time to implement. The 2030 target set by the DfE is tight, the support structures to fuel 10x growth are not yet fully established, ‘10x’ is not yet fully defined, ‘place’ is not yet fully defined and hence the data are not (yet) available to enable 10x to be identified and analysed by place.  This will hinder the ability to foster clusters and build networks, which are important for innovation. Also, change will be difficult due to existing established structures.  For example, most policy and government action is managed through Local Government Department (LGD) level structures. However, clusters of enterprises may cross LGD boundaries, complicating a joined-up approach.  In addition, economic and social development is not only managed by the DfE; many other bodies such as central government and local government departments, business networks and educational establishments, are involved. Role for accountants Accountants can play an important role in the success of the DfE’s policy and the future of the NI economy. Accountancy firms are present in most towns across the region. Accountants are part of local business networks and have first-hand knowledge of entrepreneurship and innovation within communities.  Moreover, accountants are well-equipped to facilitate the creation of priority clusters and expanding networks that enable local businesses to connect and grow both within and beyond their communities. This will be good for communities and for the accountancy profession.   *Note: The tables and diagrams in this article are from the authors’ full report, available on the Northern Ireland Statistics and Research Agency website. Professor Anne Marie Ward, FCA, is Professor of Accounting at Ulster University; Dr Esmond Birnie is Senior Economist at Ulster University; and Dr Stuart Henderson is a Lecturer in Financial Services at Ulster University.

The inaugural Chartered Accountants Worldwide Global Young Leaders Think Tank has set the stage for a shared vision for the future of the profession The drive to attract and retain talent is not news for anyone in the trenches of day-to-day recruitment and retention, but for the accountancy profession, the challenge of attracting new entrants is a global one – and a global problem requires global thinking. To foster exactly this, the Institute was delighted to facilitate the inaugural Chartered Accountants Worldwide (CAW) Global Young Leaders Think Tank in early January.   The session saw representatives from the next generation of leading professional accountancy organisations come together to discuss their shared vision for the profession. Present at the inaugural Think Tank in Dublin last month were representatives of: • The Institute of Chartered Accountants in England and Wales (ICAEW) • The South African Institute of Chartered Accountants (SAICA) • The Institute of Singapore Chartered Accountants (ISCA) • Chartered Accountants Australia and New Zealand (CAANZ) • The Institute of Chartered Accountants Scotland (ICAS); and  • Chartered Accountants Ireland.  The CAW Global Young Leaders Think Tank initiative is the brainchild of Sinead Donovan, President of Chartered Accountants Ireland. After meeting the global delegation representing CAW at last September’s One Young World summit in Belfast, Donovan saw an opportunity to further strengthen the connections forged between members of the CAW delegation at the conference and give these young leaders a lasting platform.  You can view photos from the event here. Community of difference makers “Seeing the energy, enthusiasm and appetite for tangible collaboration amongst the CAW delegation in Belfast, we recognised the opportunity for CAW and its member institutes to derive substantial value from establishing a think tank,” Donovan explains.  “CAW is more than just a worldwide network, we are a community of difference makers and we need to embrace the opportunity to build stronger connections within the global Chartered Accountancy community and amongst our leaders of tomorrow.”  Facilitated by Donovan and Sinead Fox-Hamilton, FCA, Relationship and Professional Development Manager with Chartered Accountants Ireland (and herself a former Chartered Star), the inaugural CAW Global Young Leaders Think Tank took place at Grant Thornton’s Dublin office on Friday, 19 January. During the session, representatives shared their ideas on how best to communicate with the next generation, how to tackle myths surrounding accountancy careers and potential barriers to entering the profession. Also on the agenda was their shared insights into what they most value as a member of their respective Institute and the importance they place on their own professional development, now and in the future.  Platform for future strategies Focused on giving the profession’s young leaders a platform to express their insights freely, the goal of the Think Tank’s first session was to discuss strategies to evolve the profession and engage Gen Z and Gen Alpha to ensure a strong talent pipeline.  Despite differences in paths to qualifications and entry requirements across the jurisdictions, representatives universally agreed that one of the biggest barriers to recruiting the next generation of accountants were the misconceptions that persist about the profession.  These include the mistaken belief that the profession is dull, overly focused on numbers and suitable only for introverted personalities naturally skilled at maths. Combined with a narrow understanding of the various career paths and roles available to Chartered Accountants, these perceptions are limiting the appeal of the profession. While those in the profession know this couldn’t be further from the truth – with the Think Tank delegation being the very embodiment of the diversity of industries and career paths the qualification opens up – dispelling these outdated myths for the wider public, those not already ‘in the tent’, is key.  The Think Tank participants discussed the need to reposition Chartered Accountancy as the exciting, purpose-driven profession it truly is, emphasising its role in enabling business leadership and fostering innovation. They also highlighted the teamwork inherent in the profession and multitude of potential career paths it offers. Also highlighted was the ability to travel with the qualification to work overseas and avail of visas in locations not as readily available to other professions and in sectors outside accountancy.  Global opportunities for profession Think Tank participants identified the mobility of the qualification as a key attraction, particularly in the context of third level students who may have had their key university years curtailed somewhat by COVID-19 restrictions.  Other key areas of discussion included how representatives viewed the value of their membership and what they saw as priorities for lifelong learning.  The group advocated for an increased focus on qualitative skills to reflect the increasingly advisory or consultative nature of the role of the Chartered Accountant in business.  Soft skills identified include communication and presentation skills that could better enable them to articulate the ‘narrative behind the numbers’ and convey their strategic insights and recommendations to businesses and clients.  Among their many recommendations, the group also discussed the importance of fostering skills in relationship management, teamwork, leadership and conflict resolution and the need to include these more in professional development programmes.  Developing these skills in a hybrid or remote work setting was put forward as a big challenge, particularly for students in the post-COVID-19 landscape for whom hybrid working may be their predominant experience of working today.  CAW white paper The findings and perspectives gathered at the inaugural Think Tank will be summarised in a CAW white paper analysing key trends. This white paper will be circulated to each Institute in its global network to inform their own strategies. The energy and enthusiasm garnered for this pilot event further cements the need for future Think Tanks, where issues affecting the global accounting community, such as sustainability and technological change, will be discussed and progressed. The success of the inaugural session has set out a template and vision for a continued series of annual Think Tanks event, hosted by each Institute in the CAW network in turn, all aimed at building stronger connections within the global community of Chartered Accountants and giving future leaders a platform to help shape the profession for future generations.  Among this year’s inaugural delegation were several of Chartered Accountant Ireland’s past Chartered Stars. These included:  • Michael Walls, Associate Director, Management Consulting, KPMG Ireland;  • Aisling McCaffrey, Director, Sustainability and Financial Services Advisory, Grant Thornton;  • Caroline McGroary, Assistant Professor, DCU, Research Fellow and Fullbright Scholar, Boston College; and  • Patrycja Jurkowska, Global Programme Finance Lead, Self Help Africa.  The international delegation comprised Chartered Accountants working across Ireland and the UK, each representing their own respective Institutes. They included: • Jane Carroll, Client Relations Associate with AllianceBernstein in London (but originally from Brisbane representing CAANZ); • ISCA representative Joanna Chung, now based in Berlin as a junior consultant with Boston Consulting Group; • ICAEW’s James Skilton, Client Manager with London’s Cooper Parry; • Lisa Blum, ICAS, Finance Manager at Lloyds Banking Group in Edinburgh; • Louise Chunnett, IT Internal Audit Manager, Bidvest Group, based in Dublin and representing SAICA; and  • Mishka Hajee, Vice President of Internal Audit and Integrated Risk at Citi Bank, also based in Dublin and representing SAICA.   

The achievements of the vibrant network of over 700 Chartered Accountants in the US continue to represent the best of the profession and provide a crucial conduit for inbound investment to our shores US members represent best of the profession  For decades, Ireland’s Chartered Accountants have beaten a well-worn path across the Atlantic, writes Sinead Donovan, President of Chartered Accountants Ireland. Facilitated by a Mutual Recognition Agreement with the American Institute of Certified Public Accountants (AICPA), our members have had the opportunity to build their careers in roles across industry and practice. Many make the move in the early years of their career, looking to explore the world and gain post-qualification experience in a new market. As you will see in this special report, many remain there through their careers, becoming embedded in the local economy, their achievements in senior positions representing the best of the Chartered qualification. These more established representatives of our profession become highly effective advocates across the United States, and indeed for the island of Ireland, as they become influential ambassadors for inbound investment to our shores. This flow of investment is well-established and mutually beneficial for our economies, and I am proud of the critical role our members play in driving and servicing this. As a membership organisation, one of the most critical things we can do is support members in this work. In what I like to call the “family” of accountants, I have come to realise that no matter how far from home members are located, there is that strong desire for community and a sense of belonging with their fellow members overseas and with the Institute at home. On the ground in the US, there is also a strong network of overseas chapters, run so effectively by local volunteer members, many of whom I had the pleasure of meeting last year when I visited. The other crucial way we support members is through the power of our professional network. Over the years, we have built strong and enduring relationships with AICPA, the National Association of State Boards of Accountancy and Chartered Accountants Worldwide, among many others. This collective voice is invaluable in continuing to help our profession to grow and further develop meaningful economic and societal impact.  Colm Mackin, Act+Acre As co-founder and Chief Executive of Act+Acre, the New York headquartered haircare business he runs with his wife and business partner Helen Reavey, Colm Mackin has just launched the brand in 235 US outlets of Sephora, the cosmetics retail giant. It is a major milestone for Mackin, a Chartered Accountant from Co. Down, and Reavey, a top hairstylist from Armagh, who launched the brand together in 2019. They partnered with scientists at Stanford University to develop a range of patented cold-processed haircare products designed to resolve scalp-related issues ranging from product build-up to thinning hair. Since then, Mackin and Reavey have employed a successful e-commerce strategy that has seen Act+Acre grow from strength to strength, netting the venture US$12 million in private investment. “That first spark of an idea came from Helen’s experience working at Paris Fashion Week with all these models who were going from show to show,” Mackin explains.  “They had nothing to remove scalp build-up and their hair wasn’t performing. We saw this gap in the market for a range of products that could address these issues and promote scalp health as the basis for healthy hair.” At the time, Mackin had transferred from PwC in Dublin to work on the international tax team at the firm’s New York office. His decision to leave a secure role in practice for the unfamiliar world of entrepreneurship was bolstered by his pure belief in the Act+Acre concept. “What I had been doing in practice gave me a really good grounding for what we’ve gone on to achieve with Act+Acre, but there are different chapters to the story,” he says. “We spent six months researching our products and the cold-processed process behind them. Then, you must get the product/market fit right, build your team and raise the money you need. “I think that’s where I’ve really seen the benefits of my qualification coming through. America is a place where you have access to investors you wouldn’t necessarily find in smaller markets and being Irish helps because we’re naturally good storytellers and we are naturally passionate.  “That helps to get the conversation started, but being a Chartered Accountant also means I have a very good understanding of profit and loss on a balance sheet. I can speak with confidence to investors; it’s just innate. I can answer their questions. You’re speaking to them on their level and that helps hugely when you’re out there raising money to build your own business.” US market appeal Mackin is one of over 700 members of Chartered Accountants Ireland currently living and working in the US.  More than one-in-three are in the 24-44 age bracket, demonstrating the market’s ongoing appeal to, and demand for, talented Chartered Accountants from Ireland building their careers.  While concentrated in cities such as New York, Boston, Chicago, San Francisco and LA, their footprint can be found right across the country, from Washington State to Florida and from Texas to Michigan.  Eighty-two percent of Institute members in the US work in business. The second largest cohort (10%) work in practice.   Una Troy, SS&C Technologies One of the 82 percent of Institute members in the US working in business is Una Troy. Troy is a Managing Director with SS&C Technologies, a provider of services and software to the financial services and healthcare industries with some 20,000 clients and offices around the world. Based in New Jersey, Troy qualified as a Chartered Accountant in Dublin and had already worked in high-level positions in the funds industry in the UK and Australia by the time she found herself en route to the US in 2005. “I was working with BISYS Fund Services in Dublin in 2005 when the company started hiring people to support its growing hedge fund business in the US and I decided to make the move across to New Jersey,” she says. Almost immediately, Troy found her qualification as a Chartered Accountant beneficial to her career progression in the States. “At the time, BISYS had acquired the hedge fund administration arm of an accountancy practice and I was able to help that business integrate into BISYS,” she says. “My accountancy background gave the local leadership team confidence in me and the group I was leading and, when BISYS was sold to Citi, I became Global Head of Operations for Citi’s hedge fund business.” Troy was subsequently appointed Managing Director, SS&C GlobeOp, following SS&C Technologies’ acquisition of Citi’s Alternative Investor Services Business. “I have found the US very welcoming as a place to live and work. There are a lot of commonalities culturally between Ireland and the US; both share a very strong work ethic. There are great career opportunities here and your efforts are rewarded.” Troy’s advice to Chartered Accountants who have relocated to the US more recently is to make full use of the professional network facilitated on-the-ground by Chartered Accountants Ireland. “You’ll start to form a network of colleagues within your work role, but it’s also important to broaden your contacts outside that,” she says. “Attend events hosted by Chartered Accountants Ireland and other organisations relevant to your work. Once you start to attend these events, you automatically start to broaden your network.” The Chartered Accountancy qualification is relatively well-recognised in the US and associated with high professional standards, Troy says, but certain roles may require applicants to hold a Certified Public Accountant (CPA) designation.  “For many Irish Chartered Accountants, the qualification itself will suffice but where a CPA designation is required, an accelerated path has been facilitated by the American Institute of Certified Public Accountants (AICPA) and the National Association of the State Boards of Accountancy (NASBA) through a Mutual Recognition Agreement (MRA) with Chartered Accountants Ireland,” she says. About the MRA Chartered Accountants Ireland first signed its MRA with the AICPA and NASBA in 2004 and the agreement has since been renewed several times.  “Irish Chartered Accountants can access the US designation and gain practice rights in the US,” explains Ian Browne, Director of Education, Chartered Accountants Ireland. “This is of particular relevance to those who wish to work in practice in the US and is increasingly required by US firms.” To successfully complete the process, Chartered Accountants are required to pass the International Qualification Exam (IQEX) operated by NASBA. This can be done in Ireland before moving to the US. “Additionally, as the US CPA qualification includes audit rights, you should ideally have obtained the Irish Audit Qualification before you leave should you plan to work in audit,” Browne says. Ken L. Bishop, President and CEO of NASBA, says the MRA gives Irish Chartered Accountants a relatively easy route to securing the necessary certification to work in the US. “Irish Chartered Accountants are typically highly valued by the US profession and many have taken advantage of the MRA,” Bishop says. “I believe that the MRA and the flexibility and mobility of practice privileges that can be accomplished is hugely important. We live in an increasingly global economy, and the business and economic nexus between the US and Ireland continues to increase.” Alan T. Ennis, former Revlon CEO For Alan T. Ennis, who has lived and worked in the US since 1999, his qualification as a Chartered Accountant provided the crucial foundation on which he has been able to build a high-flying career in business. Ennis studied commerce at University College Dublin and qualified in 1991 with Arthur Andersen, where he continued to work as a manager for a few years before moving to the UK to join Ingersoll Rand in Manchester. It wasn’t until he negotiated a transfer to the US multinational’s New Jersey office in 1999, however, that his career really began to take off. “I moved through various different financial roles from internal audit to financial planning and investor relations there,” he says. In 2004, as he was considering a potential move to North Dakota to take up a position as CFO of Ingersoll Rand’s Bobcat division, Ennis was headhunted for a very different role. “I was offered the position of head of internal audit at Revlon. I was in my early thirties and my choice was between Bobcat in Fargo, North Dakota, and this other role with a very different and much smaller company that would put me in New York.  “Revlon had a lot of debt at the time. It was a high-risk move, but I thought, ‘you know what, I’m going to go for it’.” It was a risk that would pay off for Ennis who quickly climbed the ladder at Revlon. “Being a Chartered Accountant put me in a very good place to understand the financial operations of any corporation and that really stood me in good stead at Revlon,” he says.  “I could understand financial statements, I understood the importance of profitability and cash and how investments work.  “What happened next was really a combination of readiness and serendipity. Within two-and-half years, I had gone from Head of Internal Audit to Corporate Controller to President of International and then Chief Financial Officer.” As CFO, Ennis again found his training as a Chartered Accountant invaluable. “The Board of Directors could see that I knew how the business worked; how it operated.” After two-and-a-half years as Revlon’s CFO, Ennis was appointed to the top role of Chief Executive of Revlon for five years. “I had a great run and a superb team of people behind me and when I left that role in 2014, I got a great package and I wasn’t under pressure anymore really to prove myself. I had choices,” he says. In the years since, Ennis has “dabbled in private equity and joined a couple of boards, both profit and not-for-profit.”  “In everything I’ve done here in the US, my qualification continues to be the most valuable jewel in my chest of knowledge,” he says. “My advice to Chartered Accountants moving from Ireland to the States now is to make sure you start to connect with other Chartered Accountants over here straight away – and there are lots of us in New York, Boston, San Francisco and other places. That’s a valuable network. “The other piece of advice I would have is that it’s okay to put yourself out there – in fact, it’s a good idea. Americans tend to be confident in how they present themselves professionally. They are proud of what they have done and they’re confident in their success and in abilities.  “They’re not afraid to talk about it. Irish people, myself included at times, tend to downplay our achievements and abilities. In the US, people won’t necessarily understand that so it’s not a bad idea to learn to advocate for yourself, your skills and talents.” Significant contribution to New York business community Irish Chartered Accountants make a significant contribution to the New York business community, writes Helena Nolan, Consul General of Ireland in New York. Its active members are a testament to the wide reach of Irish and Irish American accounting professionals in the broader New York business and finance sectors. It was a pleasure to host Chartered Accountants Ireland again for another networking event at the Consulate in New York during St. Patrick’s week in 2023 and an honour to have Irish Minister for Education, Norma Foley TD, present to address the gathering of members and partner organisations. Networking events like these are important for showcasing members’ contribution, for raising awareness of the increasing opportunities available now for businesses in Ireland and to help underpin the vibrant professional relationships between professional organisations and individuals in the United States and Ireland. The Consulate team is always pleased to support and reinforce these strategic linkages between our two countries and our two economies, where we see an increasingly mutual relationship, in terms of trade and investment, and great potential for the future. Chartered Accountants play important role in winning FDI for Ireland    Ireland’s investment relationship with the US is strong and enduring with about half of all IDA Ireland clients headquartered in the US, writes Brian Conroy, Executive Vice President and Director, North America, IDA Ireland. These US companies employ more than 180,000 people in Ireland across a range of sectors such as technology, life sciences, financial services and engineering. US investments in Ireland are by no means gained effortlessly. With over 30,000 members, Chartered Accountants Ireland plays a very important role in the winning of FDI for Ireland. The Institute’s members work in senior positions in practice and industry both in Ireland and in the US and provide the financial leadership and talent crucial to Ireland’s success. A key reason our country is an attractive place for US companies to do business is because people here in government, industry and academia work hard to make it that way. The activities of US multinational companies supported by IDA Ireland make a crucial contribution to our FDI success. US members: key decision-makers driving NI inward investment Alongside our wider diaspora network, professional membership bodies like Chartered Accountants Ireland play a significant role in bringing people together, writes Andrea Haughian, Executive Vice President and Head of Americas with Invest Northern Ireland.  Organisations like Chartered Accountants Ireland afford agencies such as Invest Northern Ireland the opportunity to engage with members across the US, many of whom are, or can facilitate access to, key decision-makers responsible for investment decisions. We deeply value the relationships facilitated by Chartered Accountants Ireland. For more than 20 years, Invest Northern Ireland has supported US companies to successfully establish centres of excellence in Northern Ireland.  Northern Ireland’s global reputation as a trusted business partner with a thriving entrepreneurial ecosystem, talented workforce and deep expertise in research and innovation, has long been a magnet for significant foreign direct investment from the US. Companies such as Seagate, Citi, Aflac, and Microsoft have joined more than 230 US-owned businesses operating across the region and employing over 30,000 people in sectors as diverse as technology, advanced manufacturing and engineering, life and health sciences and financial and professional services.  Demonstrating the importance of the relationship between the US and Northern Ireland, US President Joe Biden has appointed Joe Kennedy III as the US Special Envoy to Northern Ireland for Economic Affairs with a focus on advancing economic development and investment opportunities. 

The CSRD requires business leaders with ESG expertise, strategic vision and ethical leadership who can drive lasting organisational change, writes Michele Stokes With the advent of the Corporate Sustainability Reporting Directive (CSRD), large and listed EU-based firms will be required to collect and provide dependable and standardised sustainability data. This will give stakeholders the opportunity to assess the non-financial performance of companies and evaluate the organisation’s impact on people and the environment. So how will this change the way leaders are recruited? C-suite executives who understand the importance of sustainable and socially responsible business practices are preparing for the CSRD by formulating environmental, social and governance (ESG) strategies that align with their organisation’s goals. Executives will need to possess technical knowledge, strategic thinking and a deep understanding of sustainability principles. They will also require considerable organisational change skills. The future of work Leaders will need to be adept at navigating this transition and engaging with investors, clients, employees and regulators. The collection and handling of CSRD data presents huge technical and organisational challenges. Several companies in industries such as oil and gas, food and beverage, manufacturing, and consumer goods are already using ESG reporting and data management software from IT providers. Process effectiveness will sit across many functions including risk, finance, HR, legal, technology, procurement, supply chain and sustainability. The latter is expected to grow in importance quite substantially. Leading effectively We outline below eight competencies that are essential to lead effectively in the area of sustainability: 1. Sustainability expertise – A strong grasp of ESG sustainability concepts and how these relate to an organisation’s operations and business strategy. 2. Technical expertise – Knowledge of best practice for data management and solutions that enhance firms’ ESG performance. 3. Regulatory knowledge – The ability to interpret and implement mandatory and voluntary reporting regulations effectively. 4. Strategic vision – The integration of sustainability goals with corporate strategy, embedding sustainability objectives in the organisation’s long-term vision. 5. Risk management – The identification and mitigation of ESG risks in compliance with sustainability reporting directives. 6. Ethical leadership – Authenticity and ability to inspire and lead cross-functional teams dedicated to sustainability initiatives. 7. Monitoring and reporting performance – Tracking sustainability initiatives through KPIs and incorporating sustainability data within management reports. 8. Financial acumen – Understanding the financial implications of sustainability initiatives and making sound financial decisions related to sustainability investments. How to recruit for sustainability According to KPMG, 43 percent of CEOs in Ireland view the greatest challenge in their ESG strategy as attracting new talent. The challenge for executive search firms and HR leaders will be in selecting C-suite executives aligned to their organisation’s commitment to sustainability. The recruitment process should be rigorous, comprehensive and include each of the following stages: 1. Define role and responsibilities: Responsibilities should include developing and implementing sustainability strategies, assessing risk, ensuring compliance with relevant standards, reporting on corporate social responsibility (CSR) performance, evaluating technology and engaging with stakeholders. 2. Identify key qualifications and skills: Seek candidates with a strong background in sustainability, ESG practices and driving CSR initiatives. They should demonstrate experience in using technology to drive these initiatives efficiently. 3. Prepare a detailed briefing document: Highlight the company's dedication to CSR in the briefing document and throughout the assessment process. 4. Conduct comprehensive competency-based interviews: Assess candidate knowledge of CSR, values and ability to drive sustainable practices. Seek evidence of implementing CSR programmes and their outcomes and ascertain their approach to stakeholder engagement. 5. Evaluate cultural alignment and leadership proficiency: Evaluate the candidate's leadership style for alignment with company culture. Executives should possess the ability to motivate and guide teams towards enduring CSRD objectives. 6. Plan onboarding and integration: Formulate an onboarding strategy that encompasses an introduction to the company's CSR initiatives and organise introductions to key stakeholders. Role specifications will vary depending on the size, scale and complexity of an organisation. However, a commitment to sustainability and a willingness to adapt are essential for C-suite leaders to effectively navigate compliance with the CSRD and broader sustainability initiatives. Michele Stokes, is Director and Head of Research at HRM Search Partners

The explosive growth of AI has transformative potential but also raises critical privacy concerns that must be addressed, writes Pat Moran The world of artificial intelligence (AI) took a massive leap forward with the emergence of ChatGPT in November 2022. Since then, there has been a surge in the design and implementation of AI use cases across industries such as healthcare, retail, financial services, manufacturing and others. While the emergence of AI is transformative, this powerful tool is not without its challenges, particularly the profound privacy concerns it raises. As organisations eagerly harness the potential of AI, it is vital to know the associated privacy risks, such as: Data collection and breaches – As AI models evolve, their training datasets will likely grow, increasing the risk of personal and special category data being included. These datasets must be stored and processed securely while training AI systems. Algorithmic bias and discrimination – Biased algorithms may inadvertently perpetuate biases and lead to decisions that could negatively impact certain groups of people without the organisation’s intention to discriminate. Data subject requests – Once the AI systems are trained and deployed, responding to certain data subject requests becomes increasingly difficult. Transparency – As AI systems become commonplace in organisations, users will increasingly unknowingly interact with these systems, including instances where users are affected by automated decision-making. Regulatory requirements and industry standards – Even though AI is considered a novel technology, there are existing and upcoming regulations and standards that define and guide its usage. Organisations must demonstrate compliance with these regulations and standards to maintain customer trust and meet procurement standards in the market. Misuse of personal data in AI-enabled cyberattacks – Malicious actors have begun leveraging personal data such as audio clips and deep-fake content for advanced phishing attempts and other scams. Inaccurate responses – It is common for generative AI programs to respond based on probabilities identified within the data sets used to train the AI instead of actual, accurate data points. This can result in inaccurate responses and may cause issues if users do not verify the authenticity of the system’s responses. Organisational changes for AI To successfully traverse the concerns listed above while developing and integrating AI systems, organisations should consider the following best practices: AI governance: The teams involved in developing AI governance should be interdisciplinary, including teams in AI development, legal, privacy, information security, customer success and others. Privacy by design: The foundation of responsible AI lies in the concept of ‘privacy by design’, which states that data protection and privacy considerations must be implemented throughout the development lifecycle for any AI system. This includes incorporating privacy-enhancing technologies, ensuring appropriate security, compliance with regulatory requirements and other privacy-specific principles. Some AI systems have a ‘black box’-like nature, which makes it harder to detect and fix ethical, privacy and regulatory issues once deployed, increasing the need for privacy by design. Further, there might be other processes that pose too high a risk to move towards automation through AI and will require controls such as “a human in the loop”. Transparency: Users must be provided with clear and transparent communication in the form of privacy notices and other means including: confirmation that AI systems are used to process their data (including details of automated decision-making, if present); how their data is collected and processed; how long it will be stored; an outline of their rights, etc. The information helps users provide informed consent and builds trust in AI systems as well as the organisation. Fairness: An important step is to perform regular audits of AI systems to test their performance and ensure no bias or discrimination against users. The review should include the automated decision-making algorithm, and the process by which the algorithm makes decisions should be transparent and explainable. Data management: Ensure data ingested by the AI system during training is lawfully obtained, high-quality, and rigorous vetting and anonymisation have been performed. Technologies such as pseudonymisation or data aggregation should be implemented to ensure compliance with data minimisation and retention privacy principles. Up-to-date records of processing activities should also be maintained to ensure data is managed effectively throughout its lifecycle. Remember, organisations cannot use publicly available data to train AI systems without a valid lawful basis. Risk management, compliance and information security: A risk-based approach, including a data protection impact assessment, should be implemented to assess the level of risk involved before AI systems are deployed. The organisation should also sign off on the risk levels, controls and mitigations. AI compliance monitoring should be incorporated into the organisational, regulatory compliance programme or privacy programme. The wider organisational information security programme should include AI systems and their underlying data to prevent data breaches and malicious attacks. Technical and organisational measures such as encryption, data masking, password management, access controls and network security should be implemented. Employee training: As AI is a new technology, employees must be trained periodically on responsible AI usage. Training should include the privacy impact of AI systems, compliance with data protection regulations while using AI, misuse of personal data in AI-enabled cyberattacks and how to guard against it, and data protection best practices. Conclusion The advent of AI may be compared to the invention of the combustion engine. While organisations can move faster, they will also require stronger brakes. These brakes may address these multifaceted concerns, which necessitates a holistic approach, combining technological innovation, ethical practices, user empowerment and regulatory adherence. Organisations’ responsibility will be to innovate and ensure that innovation aligns with the values of privacy, ethics and user trust. Pat Moran is the Leader of Cybersecurity Practice at PwC.

The end of January sees several customs changes that will have a significant impact on Irish exporters to the UK. Brian McNamara discusses what you need to know to avoid delays and charges After several delays, HMRC will finally introduce full UK import checks on goods coming from the island of Ireland. On the same day, the UK Department for Environment, Food & Rural Affairs (DEFRA) import controls will also begin for certain food and plant products coming from the European Union. Below are three important points businesses moving goods to the UK should be aware of in relation to these changes: 1. UK import declaration and goods movement reference The biggest change from 31 January is that UK customs filings must be done prior to departure of the goods. Up to this point, there has been an easement in place allowing the import declaration to be carried out after the event. From Wednesday next, if the UK import declaration has not been submitted, the goods simply won’t get on the ferry in Dublin or Rosslare. Further, truck drivers will need to scan a goods movement reference (GMR) document when checking in with the ferry company. The import declarations for all goods on the truck need to go into the GMR. Exporters should talk to all parties in their supply chain (freight companies, clearance agents and UK suppliers) and get comfort that all necessary documents will be in place to ensure their goods keep moving. 2. DEFRA controls The 31 January also sees the introduction of health controls on the import of certain foods of animal origin (FOAO), plants and plant products from the EU. While the EU insisted on such checks on UK imports straight away on 1 January 2021, the UK government elected to delay the introduction of a similar regime. These DEFRA import requirements include the advance notification of the consignment on the UK’s IPAFFS system, and the submission of an export health certificate for certain goods. DEFRA has classified all FOAO, plants and plant products as either low, medium or high risk. The exact requirements each category of goods is subject to will depend on their risk classification. Exporters in the agri-food and plant industries should get a clear picture of the risk category of their goods and ensure all necessary steps are taken. As with the general UK import controls, if the correct submissions are not made, the goods won’t move. 3. Repairs/goods moving for processing Ireland is a smaller market than the UK. In some industries there isn’t the same level of capability locally, so it’s not unusual for goods to go to the UK for repair or further processing. A common misconception concerning customs is that, if goods are not being bought/sold, people think there is no import duty due on them – machinery moving to the UK temporarily for repair, for example. This is not the case, however. Once goods cross a customs frontier, an import declaration is required, and the goods are potentially liable to import duty. It is possible to gain relief from import duties on goods entering the UK temporarily by using Customs Special Procedures such as Inward Processing or Temporary Admission. However, businesses should be aware that it can take time to properly put these procedures in place. Taking short cuts could lead to the goods getting stuck and/or incurring import duty and VAT. So to an extent, the full impact of Brexit will only now be felt by Irish companies moving goods to the UK. To stay on top of this, businesses should make sure that all the correct documents are in place to keep their goods moving, minimise import duty and stay customs compliant. Brian McNamara is MD at SwiftFile Customs.

In the complex landscape of corporate decision-making, understanding the differences between ESG and sustainability is crucial, writes Dan Byrne Corporate decision-making today involves a lot of talk about the environment, social and governance (ESG) and sustainability – precisely, how your company will fit into both movements. No one wants to discover they don’t know the difference between the two in the middle of a board meeting. While the two ideas share a lot of overlapping principles, they are different. It is essential to understand these difference because, once you sit down with colleagues to oversee core strategic decisions, you must have robust knowledge about the relevant topics. The difference between ESG and sustainability Sustainability is a principle dictating that, while we must look after the needs of our current society, it cannot be to the detriment of future generations. The concept of sustainability is so broad that it inevitably means different things in different boardrooms. The common thread in most organisations is that sustainability principles guide stakeholder expectations and, as a result, company strategy. ESG isn’t a principle; it’s a framework for measuring specific impacts and risks. It is a tool that can help investors and stakeholders to understand where their money is going. Why the confusion? There is a lot of overlap between ESG and sustainability, so organisations often file them under the same heading. In practice, companies embracing ESG will often commit to not harming the planet (environment), its people (social) or themselves (governance). While this should always be approached with the understanding that ESG is an investment metric and tool for analysing risk, it can be easy to generalise to the point that ESG is instead viewed as a sustainability metric or simply another name for sustainability itself. This is particularly true when companies focus on the “E” part of ESG. It’s popular across multiple industries and wins the backing of key stakeholder groups. An organisation’s focus on the environment creates a natural overlap with sustainability activities. Avoiding confusion in the future If you are in a board meeting and find yourself hovering around both topics, be sure not to hint that they’re the same with these tips: Remember that ESG is a collection of metrics; sustainability is a principle; If you’re talking about ESG, you will likely end up talking about numbers, quantities, reporting and investment opportunities. If you’re talking about sustainability, it’s expected more in the context of organisational goals, culture and policies; and Sustainability, in many respects, is the end goal. ESG is a pathway and a framework that will allow you to get there. Dan Byrne is a writer with the Corporate Governance Institute

As artificial intelligence and hybrid working reshape roles, accountants must begin to embrace IT, analytics and real-time data. Mark Lam explains why Bean counters, excel spreadsheets, sums and calculators – just some of the stereotypes and imagery that are associated with accountants. In 1955, General Electric began to use computers to perform accounting functions, and in 1978, VisiCalc, the first spreadsheet software allowing financial modelling, was developed. Since then, technology has continued to evolve and become more complex and central to the role of the accountant. A worker is only as good as the tools they are given to complete the tasks at hand and accountants are no different. Spreadsheet software itself revolutionised the profession, turning a “20-hour per week bookkeeping chore into a few minutes of data entry”. We have been seeing a more recent new shift in the profession in the past decade and this has been exacerbated in the years since the COVID-19 pandemic with the rise of hybrid working and artificial intelligence (AI). Technology has clearly advanced since the introduction of that first spreadsheet, with developments in computer systems and software connecting each function of the business to a single Enterprise Resource Planning (ERP) system. Just like in the 1970s, accountants are going to need more IT skills in order to stay competitive in the current market. New roles for accountants have emerged, such as the project accountant, financial system accountant, system accountant or data accountant. All are technically the same role, requiring high levels of IT systems and process knowledge­ and functioning as the intermediary between the IT and financial functions of businesses.   Future skill requirements As digital transformation is becoming more of a hot topic, companies are seeking continued improvements in efficiency combined with the need for real-time data causing businesses to increase data collection and connectivity between business processes. ERP systems providing the solutions to these needs offer just one part of the answer. Business leaders increasingly want accurate real-time data and information to aid decision-making. Accountants are required, not only to understand how the systems work, but also produce meaningful reports for bosses. Employees who understand how these systems work can build processes around them and extract and present the relevant information to help management leverage ERP systems to best effect. To stay ahead of the curve, businesses need to consider the future skill requirements of their financial teams, just as accountancy bodies will have to consider the curriculum provided to trainees to meet those needs. Businesses that take on trainees may start to consider taking on those who come from an IT background instead of accountancy, for example. Accountancy firms should be able to train accountants but can’t train computer programmers, after all. It may be more important to have new skills at the organisation’s disposal rather than more traditional accountancy functions. Accountants have always been more than just bean counters, but now this stereotype is becoming a distant memory. Mark Lam is H&W Group Financial Reporting Manager at Vhi and Chartered Accountants Ireland Technology Committee Member The Chartered Accountants Ireland Technology Conference will aim to inform members about this change, to allow us to bravely step into the world of digital transformation having learned from our peers and industry experts. Industry leaders such as Microsoft and Sage will present on the best practice around digital transformation at the conference and there will be case studies from fellow accountants detailing their digital transformation journey and lessons learned. Sign up now.

Real-Time PAYE has supported five years of streamlined tax compliance, but employers face expanding reporting demands in 2024. Olive O’Donoghue outlines key deadlines and requirements in 2024 Real-Time PAYE has been up and running for five years and many will agree that the real-time system has introduced tax compliance efficiencies for employers and employees alike. Employers still have significant reporting obligations that fall outside of the Real-Time PAYE, however. Further, the scope of real-time reporting is expanding with the introduction of Enhanced Reporting Requirements and there is an obligation for employers to operate PAYE on the exercise of stock options from the start of 2024. Below we outline key reporting deadlines and obligations employers need to put in this year’s calendar for timely action. 2023 Employer SARP return – February 2024 The deadline for employers to file a 2023 Employer SARP return is 23 February. The Special Assignee Relief Programme (SARP) provides personal income tax savings of up to 12 percent for employees who relocate to Ireland and meet certain conditions for up to five years. The return covers both local employees and expats and requires details of earnings and the value of the SARP deduction provided through payroll per employee. It also requires details of tax-free items, such as flights or school fees, which may not be readily available in the payroll data. Employers should factor in the time it takes to collate off-payroll information and information on employees who have relocated to other jurisdictions. It is essential to have a solid process for the timely collection of accurate information to avoid or minimise follow-up queries from Revenue. 2023 Employer Share Award Returns – March 2024 Employers are obligated to report details relating to various forms of share-based remuneration provided to employees in 2023 by 31 March this year. This includes all Revenue-approved schemes but also unapproved stock options, restricted stock units and various other direct share awards. Several different returns exist, so it is important for employers to report the right details on the right return. All matters relating to unapproved share options are reported in Form RSS1. However, the return with the widest application for employers is the Employer Share Award (ESA) return. The ESA is a catch-all return and covers all forms of share-based remuneration, including awards that are cash-settled and not specifically reportable on other share returns. Specific returns then exist for KEEP, an Approved Profit Share Scheme (APSS), and a save-as-you-earn (SAYE) scheme. Failure to comply with this mandatory filing obligation can result in a financial penalty for employers, so a timely review of share plans and cash-based incentive arrangements is crucial to determine if the employer has a reporting obligation. Enhanced Employer Reporting from 1 January 2024 2024 heralds the rollout of the Enhanced Reporting Requirements (ERR) which places an obligation on employers to file an additional electronic return with Revenue on or before any payment or reimbursement of in-scope reportable benefits to an employee. Reportable benefits include the remote working daily allowance of €3.20, certain categories of travel and subsistence payments, including vouched and unvouched payments, and benefits covered by the small benefits exemption. ERR will enable Revenue to undertake more targeted PAYE reviews into certain expenses and benefits provided to employees. Revenue has stated that it will not operate a compliance program or apply penalties for non-compliance with ERR until 30 June 2024. While employers must comply with ERR from 1 January 2024, they should use the respite period to the end of June to continue to review and align expense systems to establish a robust process for managing ERR. PAYE on stock options from 1 January 2024 Another significant change from the start of this year is the introduction of the requirement to operate PAYE when an employee exercises a stock option. This represents a significant shift from the previous tax collection system whereby income tax, USC and PRSI payable on stock options were settled by the employee directly with Revenue within 30 days of exercise. While the move to PAYE on the exercise of stock options will be welcomed by employees as it removes their obligation to settle their taxes, significant challenges may arise for employers who will be required to gather the necessary data to report the stock option gains via the payroll on a real-time basis. PAYE must be operated even where an option is exercised by a former employee, for example. This can give rise to practical challenges related to timing and the ability of the employer to collect taxes from the individual. Employers may also face challenges operating PAYE on stock options exercised by cross-border employees who worked in different countries throughout the vesting period. Employers will need to have access to accurate travel data to enable them to correctly determine the portion of any option gain that is taxable in Ireland. Olive O’Donoghue is a Tax Partner with KPMG’s People Services tax practice 

Do boards truly understand the risks and opportunities AI presents? Ryan McCarthy explains why many are ill-prepared for this game-changing technology There can be no doubt that the era of artificial intelligence (AI) has arrived. Barely more than a year since ChatGPT landed with a bang, investment has poured into the sector. Google has launched its Gemini system and Elon Musk’s X has introduced Grok, an AI modelled on the Hitchhiker’s Guide to the Galaxy. Spurred by the proliferation of AI tools in the EU, the European Council and Parliament have reached provisional agreement on the world’s first comprehensive AI law. Given all this, you might expect that AI must surely be on the agenda at every board meeting. This is not quite the case, however. We’re not yet seeing AI discussed around boardroom tables in any meaningful way. When it is discussed, it is generally with very little depth. This needs to change. Every board member must take it upon themselves to understand the issues and implications of AI now and in the future – don’t leave it to someone else. Threat and opportunity On the occasions AI does come up at board meetings, the discussion invariably turns to the emerging threat or risks it may pose. What hasn’t been discussed yet are the business opportunities it may also present. AI tends to be viewed as an external factor that could affect an organisation rather than an operational item to be examined from the inside. Thematically, we are seeing continued focus on AI as a broad, external and conceptual threat. Board room discussion remains very much at the surface level. Risk: rules vs principles Boards have become focused on risk primarily from a corporate governance, rather than a practical, point of view. The risk section in a typical annual report is getting thicker and thicker – not without reason, but it can contain a lot of ‘cookie-cutter’ risks: cyber-attacks, supply chain challenges and climate change, for example – and now, AI. There has been a steady drift over time towards rules rather than principles. People ask whether the risk is written down and documented, as opposed to asking, ‘What’s really going to sink the ship?’ You rarely find a strong example of a business identifying a risk that is clearly explained alongside an outline of how it has been contained or overcome. Advising the experts So, if boardroom discussions about AI are still only skin-deep, what will move it onto the business agenda? You have to look at modern governance structure, which involves companies drawing on specialists in areas including audit, risk, nomination/remuneration matters and, more recently, sustainability. Some companies, particularly in the US, have created the dedicated role of Chief AI Officer. There may be a gap for a technology or ‘emerging tech’ committee at board level. There are already requirements regarding the correct number of financial experts needed on a board. Should every board now also have technology experts? Diversity behind the boardroom door This leads to a broader point: given the close correlation between youth and emerging technology, does the typical top-level boardroom have the right demographic to deal with AI? We have come a long way in terms of boardroom diversity, but there is another layer to diversity that is exposed here: do we have young people?  Do boards have people from different educational and skill backgrounds, particularly when it comes to technology and innovation? I would say that many don’t. Outside the boardroom, a company’s executive – including the HR function – should also be getting to grips with AI. If something like the AI opportunity is not coming up through the organisation to the board level, then you’ve probably got to ask whether you have an executive that is tuned in. In the same way you need day-to-day skills to fully embrace environmental, social and governance requirements, do you have the right skills for AI? The workforce question What I haven’t yet discussed with any client is the opportunity AI could potentially present for the workforce. Part of the reason is that we haven’t yet fully figured out use cases. It looks as if these use cases will become more apparent in 2024 and beyond. One Dublin hospital has begun using AI to assess radiology scans, for example, while the National Weather Service has an academic collaboration in place to explore the use of AI and data science in weather and climate services.  The medical profession is producing more and more diagnostic information yet there is a worldwide shortage of people to review it. Could AI provide a possible solution? Companies with large customer service operations have been through the cycle of using onshore customer service teams to moving some elements offshore and then introducing bots or some combination of all three. Could AI provide a better option? Curiosity is key I expect AI to feature more prominently in boardroom discussions in the future. The best board members – and by extension, the best boards – have an innate curiosity. Right now, there are two things in the world we should be curious about now: one is geopolitics, and the other is technology – more specifically, AI. If you sit on a board and you’re not curious about these two things and their potential impact on your business, you may be in trouble. Ryan McCarthy is Audit Partner and Board Leadership Centre Lead at KPMG

As finance leaders grapple with the Corporate Sustainability Reporting Directive and its complex demands, IT collaboration will become increasingly important, writes David Codd Finance Directors and Financial Controllers are working hard to understand the implications of the Corporate Sustainability Reporting Directive (CSRD) and to put the necessary reporting in place in their businesses. But their colleagues in IT also have a vital part to play. This is an unusual challenge for IT, and it’s important to consider how to collaborate effectively. What are the pitfalls to avoid? And how can you build a strong partnership to deliver your sustainability reporting programme? The CSRD, finance teams and IT The CSRD will expand sustainability reporting which will become mandatory for publicly listed companies (plcs) in 2025 for 2024 performance and a year later for all large companies. Finance teams are now performing double materiality assessments and assessing what new measures and information will be required. However, the underlying data itself must be identified and sourced, its reliability established, and processes put in place to extract and interpret the data and report accurately on an ongoing basis. This has the potential to become very onerous. IT support will be critical to an effective and efficient process, i.e. high-quality reporting with minimum manual intervention. An unusual IT challenge This is an unusual challenge for IT departments for various reasons: The scope is exceptionally broad The activities that impact the environment are conducted across an organisation’s operations and – for Scope 3 emissions – through multiple steps in the supply chain. So, the systems and datasets your IT colleagues will have to work with are unusually disparate and will even fall outside the boundaries of the technology estate they control. The standards are still being rolled out IT project managers like clear definitions at the start of a project. However, the first sustainability reporting standards have only recently been released, and the taxonomy for digital reporting is a work in progress. Plus, the “limited assurance” concept will give rise to different interpretations of the quality of the audit trail needed. This is a big project without a conventional monetary business case Chief Information Officers usually have many more attractive-sounding initiatives in the pipeline than they can deliver at once. So, they work with their finance and functional colleagues to prioritise, and resources are allocated based on financial payback or loss avoidance. Your CSRD-driven reporting programme does not neatly fit these criteria.      How to manage risks There are several risks when working with an IT team on sustainability reporting. Confused responsibilities You usually work with a financial systems team, but IT business partners for supply chain or manufacturing operations will already have been partnering with sustainability managers to develop scorecards. Muddled ownership and communications can result in lost time. In a large business, reporting is a full-blown programme consisting of several streams. It needs experienced management to coordinate it and manage the relationship with you. I would also recommend that accountability for IT delivery sits with the head of financial systems, and the IT project manager should sit on the team. This keeps the ownership and lines of communication as simple as possible. Your IT team can’t resource the project Since the 2000s, IT resource has shifted from enterprise systems to ecommerce, data analytics and security. Enterprise resource planning systems teams have been staffed to make incremental changes on the basis that resources can be contracted in as needed. However, consulting firms are now experiencing heavy demand for their sustainability reporting expertise as deadlines approach. The work should be scoped out with IT as early as possible. Most of the scope can be clarified now. Finance and IT should accept that adjustments will be needed, but it’s wise to use resources now and make progress. In this case, perfect is the enemy of good. Motivation The tech community loves stimulating work – through either buying into a goal or working with innovative technology (and preferably both). You need enthusiastic professionals volunteering for this project, but you’re competing with exciting fields such as artificial intelligence and the possibility of going to other employers. The people you need have lots of options. Be aware of the nuanced differences between finance and tech culture and accept that you’re competing for talent. Reach out to the IT community in your business, explain that CSRD prevents greenwashing and that high-quality reporting is a noble undertaking that will help your business to show the world what you’re doing. True partnership is key Recognise the significant challenge presented for both IT and finance by the imperative to develop a quality, efficient sustainability reporting process at pace. A true partnership between finance and IT is the key to successful reporting. David Codd is a Non Executive Director and Strategy and Transformation Consultant

Kevin Empey explores the three phases of flexible work adoption, from foundational steps to future-focused strategies As we enter a new year, there is still a noticeable gap between desired employer policy and employee practice and expectations as to how flexible work arrangements should operate. This gap narrowed in 2023, with both employers and employees taking steps to make flexible working fit-for-purpose more standard practice, but the evolution of more flexible work models is far from over. The employment market in 2024 looks set to be split between two types of employers. First, there will be the employers who continue to be open about how and where work is done with an eye to emerging influences such as artificial intelligence (AI) and the four-day work week. Second, there will be those who revert to more ‘fixed’, pre-COVID work models and mindsets with minor concessions to demands for some form of hybrid working offering.  While other business and employment priorities take over the agenda in 2024, it doesn’t mean flexible work design is done and there is further change ahead.  In our experience, there are three distinct phases in the transition to flexible work models and how organisations are adapting to new and emerging realities. Phase 1: Base camp Some organisations (not many) are still in the early stages of settling on their flexible working vision. They are continuing to lay the groundwork for establishing new work models that cater to evolving work patterns and demands as well as organisational priorities. This phase involves embracing the basics, getting the framework up and running and also considering their flexible working strategy for frontline roles and work that cannot be done remotely. Phase 2: Integration Most businesses find themselves in this second phase. They have spent 12 to 24 months adapting to their declared approaches (the ‘what’) and are now in a position to refine and integrate their flexible models (the ‘how’) with the demands of their business. This involves addressing specific challenges encountered in recent months, bridging gaps between employer policies and employee preferences, and adapting legacy processes and definitions of productivity. The opportunity presented by this phase is to ensure that work redesign will be an ongoing expectation and reality and is just not about getting hybrid right. The risk of this phase is that employers allow poor habits and practices to set in and that the expectation and need for ongoing reform and improvement is not made clear.   Employees are also considering whether their employer’s flexible working models align with what they want. Continued flexibility and ongoing dialogue will be critical to keeping people on board.  Phase 3: Beyond hybrid Organisations that have reached this stage have moved beyond the hybrid conversation. They have integrated hybrid working into a broader flexible work model. Their experiences and approaches provide valuable insights into how this transition can best be managed. A critical theme in this phase is the shift in narrative, where the focus is not solely on the hybrid debate but on achieving work flexibility and adaptability more broadly across the organisation. This will include open work design conversations involving AI solutions, four-day work week options and other influences on how and where work can be done better and faster. This encompasses reforming processes, enhancing employee experiences, reconfiguring workplaces and aligning change with ongoing cultural and transformational agendas. In this phase, the emphasis also shifts to enabling teams to drive changes and improvements collaboratively rather than imposing them from the top down. Furthermore, continuing support for managers to lead ongoing change becomes paramount in ensuring sustained success. It is also quite common to see some organisations shift from one phase to another and back again, as they re-set strategies and solutions with employees and their people leaders. The future agenda  As we move forward into 2024 and beyond, the perspective is shifting beyond the mere transition to hybrid working models. Building on recent hybrid working experiences and fostering a culture of adaptability and agility will be transformative for both employers and employees, narrowing the gap between what employers offer and employees want. The journey towards a flexible and adaptive workplace is ongoing and will continue at pace, with new chapters and milestones on the horizon. Those organisations that prioritise learning from recent experiences and adapting to change as an ongoing habit will be best-equipped to succeed and minimise the employer/employee gap. Kevin Empey is the Managing Director of WorkMatters

Trusted data is becoming a cornerstone of competitiveness as more organisations embrace analytics and AI. Eoin O'Reilly explains why Data plays a crucial role in almost every aspect of our lives. How our food is produced, how we interact with public services, how we manage our finances, how healthcare is delivered—all are critically dependent on data and how organisations use it. While the ability to leverage data is rapidly becoming a competitive differentiator for organisations, their challenge lies in the degree to which they can trust the data they use. Trust in information is becoming increasingly important as a new wave of artificial intelligence (AI) innovation blurs the lines between internal and external data. Published in December, The EY Ireland Trusted Data Report 2023, surveyed eight public and private sector organisations to establish how far advanced they are on data usage, AI adoption and data trust. Irish organisations demonstrated a strong understanding of the need for trust across the data lifecycle, the survey found, while progress had been made on key elements of the trust journey. Data that isn’t subject to continuous oversight cannot be fully trusted. It must be subject to constant verification and validation from the point of collection all the way along its journey to its use in analytics and AI. Data trust continuum As organisations embrace the increased use of analytics and AI, more must be done to extend and formalise the data trust continuum. With the rise of AI and generative AI (GenAI), in particular, the issue of data trust has assumed even greater significance. A breach of trust at any point on the continuum can have potentially devastating consequences for the organisation and society. Strong governance and data management are critical for data trust. There needs to be a more holistic approach to building data trust in organisations. This starts with determining how data aligns with business strategy and runs through to data control across the data lifecycle and its responsible use. Organisations need to develop a comprehensive framework that balances strategic vision with the appropriate management of risks and controls. EY’s survey reveals that organisations are at various points on their data trust journeys, with the strategic focus shifting to how data can be leveraged to add value to the business. They have robust data governance and compliance frameworks in place, but there is acceptance that these are merely the starting point on their journey along the data trust continuum. Irish organisations recognise and appreciate the crucial importance of data trust for their business operations. While there is a significant variation in the data maturity of organisations, they understand the need for continuous management and data monitoring at every point along the trust continuum. They are taking a wait-and-see attitude to AI, but they must take care that this does not mean they miss out on valuable opportunities. Eoin O'Reilly is Partner and Head of Data, Analytics & AI at EY Ireland. You can more about the EY Ireland Trusted Data Report 2023 here.

With tech-enabled fraud on the rise in Ireland, businesses must carefully assess and manage potential risks, writes Sara McAllister Ireland is a hub for data storage and technology organisations and, as such, we are at the fore of innovation and transformation. There is a flipside, however. As this industry grows and technology evolves, so too do risks associated with fraud. Businesses and organisations in Ireland have become a greater target for fraudulent activity by criminals looking to exploit vast amounts of data created, shared and uploaded every single second. The challenge now is how best to identify, monitor and manage this risk. The National Risk Assessment 2023, published by the Irish government earlier this year, points to Ireland being especially vulnerable due to the scale of technological infrastructure developed here. Its exploitation by bad actors could cause significant disruption. A rise in the volume of fraudulent attacks carried out in Ireland speaks to the appetite of those looking to exploit weaknesses in infrastructure, industry or organisations. With this heightened focus on Ireland, business and organisational leaders here may find themselves under pressure to assess, manage and prepare for risks attached to operations, both in-house and outsourced. Artificial intelligence As new technologies come on stream, the focus on risk reduction will need to move at a faster pace. Advances in artificial intelligence (AI) have helped scale businesses via real-time automation, but this technology comes with its own risks. Ultimately, it is a double-edged sword. On the one hand, AI has been a game-changer in areas like audit and forensics, allowing businesses to deploy ‘needle in a haystack’ algorithms to identify anomalies and exposures. This is one of the reasons we are seeing an improvement in the detection of fraudulent activity. On the other hand, AI has allowed bad actors to identify new opportunities to carry out fraudulent attacks, penetrating weaknesses in the new and novel AI technology businesses are learning to use. Hybrid and remote work Most businesses have introduced remote and hybrid working processes in recent years, and many will continue to review these policies in line with changing business needs. A key consideration in this context is the risk associated with social engineering threats, which rely on human error and can be much more difficult to detect than other fraud-related risks. Where employees work remotely, evidence suggests they are less likely to consider the legitimacy of communications they receive by email, for example, and may be more inclined to respond to fraudulent requests that appear to have been sent by colleagues or superiors within their organisation, creating vulnerabilities across entire business networks as a result. Security training and awareness is the first line of defence against social engineering, yet many organisations fail to sufficiently consider the risks associated with employees working on-site and remotely. Fraud trends Several other trends are raising concern for businesses, too, beyond AI and hybrid working. Synthetic identity theft uses legitimate and fabricated information to exploit vulnerabilities and remains problematic for businesses as it is increasingly difficult to detect. Account takeover fraud remains prevalent and, as the number of personal online and social media accounts increase, so too do attacks by criminals attempting to gain access to personal data or bank details, often through stolen information. Crypto currency fraud, albeit less mainstream, also fundamentally exploits technology control weaknesses to attempt to steal coins, such as Binance Smart Chain, Ethereum and Bitcoin. Necessary risk assessment The heightened risk landscape is part of a changing cybersecurity picture where digital technology is constantly being attacked and weaknesses are identified and accessed by criminals to exploit data and information for their own gain. Fraud risk must always be a key factor for consideration when managing shared infrastructure, data breaches, preventing unauthorised access and engaging with third-party providers, among others. Industry and political stakeholders are acutely aware of the challenges in this space. Without the proper risk assessment, governance and control mechanisms in place, any single attempt at fraud could potentially put a business at the centre of a perfect storm with a highly damaging aftermath.  Sara McAllister is Partner and Head of Business Risk Services at Grant Thornton