In this week’s Sustainability/ESG Bulletin, read about the speech by Central Bank of Ireland’s Governor Gabriel Makhlouf highlighting the need to ensure climate action remains a priority for the financial sector. Also covered are the new measures to enhance road transport’s safety and environmental impact, EFRAG’s draft simplified European Sustainability Reporting Standards and its new ESRS Knowledge Hub, developments in sustainability reporting and due diligence legislation, and the World Economic Forum’s report finding that growth in green investments has not wavered, as well as the latest articles, resources, jobs and upcoming events. IRELAND “A real economy transition” The Central Bank of Ireland’s Governor Gabriel Makhlouf has delivered a speech at the Climate Risk and Sustainable Finance Forum this week where he highlighted the need to ensure climate action remains a priority for the financial sector, and emphasised the Central Bank’s focus on climate risk and sustainable finance. Explaining the need for a focus on tangible outcomes that support the transition and adaptation, Governor Makhlour encouraged the Forum to continue to promote a collaborative approach to how the financial sector supports the transition and adaptation: “We must recognise that the journey to net-zero is, at its core, a real economy transition. The financial sector’s task is not just to manage the risks on its balance sheets, but to provide the incentives and the funding to ensure that households and businesses make the low-emission choices required to secure our collective future. My call to you is that we commit to staying the course together.” New measures to enhanced road transport impact The Minister of State with responsibility for International and Road Transport, Logistics, Rail and Ports, Seán Canney, TD has welcomed EU Council agreement on two major legislative initiatives: the Weights and Dimensions Directive and the Roadworthiness Package. The revised Weights and Dimensions Directive, among other things, promotes the use of zero-emission trucks by allowing them to exceed standard weight limits, supporting the decarbonisation of transport across the European Union. The Roadworthiness Package consists of two legislative proposals to enhance road safety and environmental protection. Following approval by the Council, the presidency can start negotiations with the European Parliament to reach a final agreement. EUROPE EFRAG issues draft simplified European Sustainability Reporting Standards and launches ESRS Knowledge Hub The European Financial Reporting Advisory Group (EFRAG) has published the draft simplified European Sustainability Reporting Standards (ESRS), along with its technical advice to the European Commission. In its press release, EFRAG have highlighted many of the simplifications implemented which it hopes will help reporting companies integrate sustainability reporting into their business. Read more from our Professional Accounting team. “An alarming dismantling of good policymaking”  The EU parliament and member states have reached a provisional deal to update EU rules on sustainability reporting and due diligence requirements for companies. Social and environmental reporting will only be required for EU companies employing on average over 1,000 employees and with a net annual turnover of over €450 million. The net turnover threshold has also been increased for non-EU companies to €450 million generated in the EU for sustainability reporting. Only large EU corporations with more than 5,000 employees and a net annual turnover of over €1.5 billion will need to carry out due diligence to minimise their negative impact on people and the planet, and will no longer need to prepare a transition plan to make their business model compatible with the Paris Agreement. They will remain liable at national rather than EU level for non-compliance and could face fines of up to 3 percent of the company’s net worldwide turnover, reduced from 5 percent as previously stated.  The rules will also be delayed by a year, coming into force from July 2029. Some commentators are likely to welcome the row back: several companies had reportedly consistently lobbied against the regulation, due to be phased in from 2027, which would have required in-scope companies to ensure that their supply chains do not harm the environment or human rights.  Others commentators, like Richard Gardiner, interim head of EU Policy at ShareAction, reportedly described it as “an alarming dismantling of good policymaking” after intense pressure: “These losses matter. They do not make Europe more competitive. Instead, they weaken Europe’s unique competitive edge.” The announcement comes less than a week after Parliament and Council negotiators reached a provisional political agreement on a one-year postponement of the EU Deforestation Regulation for all businesses. Provisional agreement on EU Climate Law amendment Negotiators from Parliament and Council have reached a provisional political agreement on an amendment to the EU Climate Law, setting a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90 percent compared to 1990 levels. Also agreed on Tuesday was the introduction of ‘new flexibilities’ in how the 2040-target can be met. The EU Climate Law makes the goal of climate neutrality by 2050 a legally binding obligation for all EU member states, establishing a legally binding target for the EU to reduce net GHG emissions by at least 55 percent by 2030, compared to 1990 levels. The European Parliament will now vote on the informal agreement and Council will also have to endorse it. It will enter into force 20 days after it has been published in the EU Official Journal. December issue of Accountancy Europe’s Sustainability Update Accountancy Europe’s December Sustainability Update published this week, with the following highlights: EFRAG provides technical advice with draft Amended ESRS to Commission ENVI-ECON Committees reject motion for resolution to object EU Taxonomy ‘Omnibus’ DA European Parliament supports further delay and simplifications of Deforestation-Free Products Regulation Ombudswoman finds Omnibus I a case of maladministration European Commission simplifies rules for sustainable financial products IAASB provides examples on how to apply ISSA 5000. WORLD The World Economic Forum has published a report finding that, overall growth in green investments has not wavered, despite recent headlines suggesting the climate transition is stalling. The report, published in collaboration with Boston Consulting Group, is titled Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy Worth over $5 trillion per year, and identifies the green economy as the world’s most dynamic growth sector after technology. It suggests that green revenues are growing twice as fast as conventional revenues on average, and companies operating in these markets are typically gaining access to cheaper capital and often enjoy premium valuations on capital markets. ARTICLES Five steps to more inclusive communication (ICAEW) Focus on gender balance is paying off for Irish companies, says B4BB (Irish Examiner) ICYMI Sustainability in Practice: Setting up for Success (ICAEW) EU strikes deal to further weaken corporate sustainability laws (RTÉ) RESOURCES ICAEW has published a primer for finance teams unlock long‑term business value while working with nature. Embedding nature into business: A primer for finance teams links nature‑related information to an organisation’s activities, processes and tools, so allows teams to make nature‑related risks and opportunities visible, manageable and integrated into every decision the organisation makes. It was developed by ICAEW as an output of A‑Track, a four‑year, €11 million project that aims to accelerate transformative action for nature by business, financial institutions and government. Future work by ICAEW in the A‑Track project will build on this foundation, developing additional targeted resources, case studies and training opportunities to support finance and accounting professionals in their daily work. EVENTS Pentland Centre for Sustainability in Business - Lancaster University,  SMEs - Learning about Nature and Biodiversity This is the first in a series of three free webinars from the Pentland Centre for Sustainability in Business aimed at SMEs curious about nature and biodiversity links to business activity. This session provides a natural science introduction to ecosystems and explains how these aspects impact business operations, with examples from different sectors. Virtual, Thursday 15 January 2026, 8:00am – 9:00am | 4.00pm – 5.00pm Dublin Chamber, The Sustainability Academy: Green Public Procurement Training Join us on Wednesday the 4th of February for Half-day virtual workshop on Green Public Procurement as part of Sustainable Academy, sponsored by AIB. All companies now need to learn the green public procurement rules to bid and win new contracts with the public sector. Virtual,  Wed 4th Feb 2026 | 9am - 12.30pm. Pentland Centre for Sustainability in Business - Lancaster University, Starting Your Journey with Tools and Frameworks Second in the series, this webinar explores tools and frameworks that support decision-making for nature and biodiversity, including the Natural Capital Protocol and TNFD. Learn how these approaches help businesses identify relevant priorities and communicate outcomes effectively. Virtual, Thursday 12 February 2026, 8:00am – 9: 00am | 4.00pm – 5.00pm ICAEW, Putting nature on the balance sheet — Troubleshooting session Troubleshooting session to tackle common challenges on how to embed nature into the activities and processes of the finance function. Virtual, Wednesday, 18 February, 2026, 4 - 5pm CET Pentland Centre for Sustainability in Business - Lancaster University, What Does ‘Good’ Look Like in Corporate Reporting? The final session in the Pentland Centre’s free webinar series for SMEs explores what effective reporting on nature and biodiversity looks like. Drawing on global examples, this webinar highlights best practices and practical approaches for integrating nature and biodiversity into corporate reporting. Virtual, Thursday 12 March 2026, 8:00am – 9:00am | 4.00pm – 5.00pm Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

The Solicitors Regulation Authority who regulate solicitors and law firms in England and Wales is consulting on proposals to strengthen the accountants' reports regime. The proposals aim to improve transparency and provide better assurance of compliance by requiring the submission of all qualified and unqualified accountants' reports, firm declarations, and direct report submission to the SRA by reporting accountants.     They welcome feedback from members of the accounting profession to help shape the final requirements. The consultation paper is available on the SRA website SRA | Further consultation on client money in legal services: Protecting the client money that solicitors hold | Solicitors Regulation Authority. The consultation will close at 12.00 on Friday 20 February 2026.

From the Technical Accounting team … Members and readers may be aware that the European Anti Money Laundering Authority (AMLA) commenced its work this year. Part of its remit is to provide regulatory technical standards (RTSs) and guidelines for both financial and non-financial obliged entities on areas dealt with in the AML Regulation and AML Directive, the European Union 6th Anti-Money laundering package, informally known as AMLD6. These laws were passed in 2024 but most of the provisions do not come into force until 2027. The provisions apply to all obliged entities including accountants, auditors, and tax advisors. As AMLA’s work continues over the coming years (throughout 2026 and 2027), the Institute will monitor and distribute more information and guidance of interest and importance to members in the anti-money laundering area. In the meantime, we have prepared Technical Alert 05/2025, which outlines selected changes to current AML law under AMLD6. The Alert provides a high-level outline of some of the changes which will occur when AMLD6 comes into force in 2027. While this seems like a relatively long time away, it will pay to gain an early insight and understanding of the changes prior to provisions coming into force. The Alert highlights differences from current law, which are likely to be of most relevance or interest to our members. It is a comparison document rather than specific or detailed instructions or guidance on AMLD6. Nonetheless, we hope that it will provide some useful information for our members in gaining further understanding of the new compliance requirements under the AMLD6 package. Some of the changes, which members should take note of include: More detailed requirements for customer due diligence (CDD) procedures. EU Ban on cash payments over €10,000. Individual member states may set even lower limits. More closely defined AML roles, governance structures, and internal control framework. An independent audit function within entities or the possibility to outsource this to an external expert. This may pose challenges for sole practitioners, and it is going to be an additional cost of being in practice (where independent audit functions do not currently exist). New outsourcing rules and outsourcing prohibitions. Wider definition of a Politically Exposed Person (e.g. to include the siblings of PEPs in certain cases). More detailed beneficial ownership provisions. The Institute will continue to keep track of AMLA’s work and deliverables over the coming months. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

Typically, the festive season is a joyous occasion and a time for celebration, but it can equally be an extremely busy and demanding time that often puts extra pressure on us whether socially, financially or emotionally.  For some, it is a time where they acutely feel the loss of loved ones and feelings of loneliness. The festive period can affect your mental health in many ways and can bring up feelings of being overwhelmed, anxious, stressed. Our Thrive wellbeing team has compiled a list of tips to help you look after your mental health this Christmas. Realistic expectations It is easy to get carried away with the expectations of a perfect Christmas and everything that goes with it. However, this can cause disappointment and impact our self-esteem if it doesn’t turn out how we hoped. Be realistic about what you can expect from the festive season and avoid unhealthy comparisons with others. Create your own Christmas agenda for how you want to spend your time, focusing on a couple of things that are most important to you. Take a break The Christmas period can be the one time of year where we can truly take a break from the demands of day-to-day life. It is essential for our mental wellbeing to have some time-out to help prevent stress and feelings of being overwhelmed. Take this time to rest and restore your energy especially if you are feeling particularly drained. Make sure you set time aside to be by yourself if you need it and engage in activities that help you relax and unwind. Christmas is a time of compassion and giving, so why not indulge in some self-compassion and treat yourself. Reflect As the year draws to a close, you can quickly fall into the trap of thinking about everything you didn’t achieve and all those forgotten resolutions and goals. Try not to be too hard on yourself as you begin to reflect on the year that has passed. Accept the year for what it was and acknowledge the (big and small) things you have achieved and where you are now.   Say no Leading up to and during Christmas you can find yourself inundated with social engagements, invites, and being surrounded by people. If you are feeling uncomfortable or unsettled with the incoming invitations, the key is to give yourself permission to say no. You may want to limit your social interactions and while it is important to maintain some social connection it is imperative that you set clear boundaries with yourself on how much interaction you want to have. Balance your sense of social obligation against your need for self-care and time by yourself.   Healthy habits The temptation to overindulge is ever present at Christmas - the few extra tipples, lounging on the couch watching Christmas movies or over-doing it on the mince pies and rich food. Overindulging can cause your motivation levels to diminish and make you feel sluggish and not ‘yourself’. Alcohol may make you feel relaxed at first, but it is a depressant which can cause low mood and irritability. Strive to maintain some balance across the festive period if you can. Maintaining a relatively healthy diet and getting some exercise will give your mental health a much-needed boost. Get outdoors, wonder at the Christmas lights and decorations in your area or head out on a nature walk, it will do you a world of good. It can be quite difficult to maintain your usual routine over the holidays too. The best way to retain some semblance of routine and structure is keeping a healthy sleep pattern. Sleep is an essential component to not only positive mental health but also our physical health. Talk to someone The expectations of the festive season can take its toll and the pressure to have a good time can be overwhelming. How we feel can become all-consuming. If you are struggling it is important to talk to someone about how you are feeling. Your family and friends are your best support system, reach out to someone you feel comfortable disclosing your feelings to. If Christmas is a hard time for you, it's important to remember that you are not alone. Help is here if you need it. The Institute’s wellbeing hub, Thrive, provides an array of mental health supports to members and students. Whether you need a listening ear, wellbeing advice or professional counselling, we are here for you. You can contact the team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294 Merry Christmas!

In Irish news, the Department of Finance and the Revenue Commissioners have launched a joint public consultation on an eWHT (electronic withholding tax) system for Ireland, and we remind you of the approaching capital gains tax (CGT) payment deadline on next Monday 15 December. In UK news, the Institute’s new Making Tax Digital (MTD) hub has now launched to assist members ahead of the first tranche of mandation from 6 April 2026, and the second part of our detailed UK Autumn Budget 2025 coverage includes an update on our recent engagement with HMRC and the publication of the Finance (No. 2) Bill.  In International news this week, the OECD announces its intention to implement a new framework for the exchange of offshore real estate information. Ireland 1. Read about the joint public consultation, launched by the Department of Finance and the Revenue Commissioners, on an eWHT (electronic withholding tax) system for Ireland. 2. We remind members that the payment deadline for capital gains tax liabilities arising in the period 1 January to 30 November 2025 is next Monday, 15 December 2025. UK 3. Ahead of the first tranche of mandation from 6 April 2026 of Making Tax Digital (MTD) for income tax, the Institute’s new MTD hub has now officially launched to assist members and businesses in their preparations for this major change. 4. Part 2 of our detailed Autumn Budget coverage highlights recent engagement with HMRC on the Budget and outlines details included in Finance (No. 2) Bill which was published last week. International 5. Read about the announcement by the OECD on a new framework for the automatic exchange of offshore and real estate details. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.    

In today’s dynamic and competitive professional environment, the value of quality mentorship cannot be exaggerated. Whether you are just beginning your career or navigating the complexities of leadership, having a mentor can provide clarity, confidence, and direction. A mentor is more than just an advisor — they are a trusted guide who shares experience, perspective and knowledge to help you achieve your goals. Learning and skill development One of the most sizable benefits of having a mentor is the ability to learn quicker. Mentors have already walked the path you are on, and they can share insights that textbooks and training programs often overlook. This real-world wisdom helps you avoid common mistakes and focus on strategies that work. Objective perspective and sound advice When faced with difficult decisions, it’s easy to feel overwhelmed or uncertain. A mentor provides an objective viewpoint, helping you see situations from different angles. They are not emotionally invested in the outcome, which allows them to offer unbiased advice. This perspective can be invaluable when you’re considering career moves, negotiating roles, or managing workplace conflicts. Having someone who can challenge your thinking constructively ensures that your decisions are well-informed and strategic. Confidence building and personal support Confidence is a critical ingredient for success, yet it often wavers in the face of new challenges. Mentors play a key role in building confidence by offering encouragement and constructive feedback. They help you recognize your strengths and develop areas for improvement without judgment. This support fosters resilience and empowers you to take on responsibilities that might otherwise feel daunting. Over time, this confidence translates into greater leadership potential and career advancement. Networking and career opportunities Mentorship often opens doors to new opportunities. Experienced mentors typically have extensive professional networks and can introduce you to influential contacts. These connections can lead to collaborations, job opportunities, or invitations to industry events. In many cases, these relationships become stepping stones to long-term career growth. Accountability and goal setting Another advantage of having a mentor is accountability. Mentors help you set realistic goals and track your progress, ensuring that you stay focused and motivated. Regular check-ins create a sense of responsibility and momentum, making it easier to achieve milestones. This structured approach to growth can be particularly beneficial for individuals who struggle with self-discipline or time management. A safe space for honest conversations A mentor provides a safe, confidential space where you can discuss challenges without fear of judgment. Whether it’s navigating office politics, managing stress, or exploring career transitions, mentors offer guidance that is both empathetic and practical. Why mentorship matters more than ever In an era of rapid technological change and evolving business models, continuous learning is essential. Mentorship bridges the gap between theory and practice, offering insights that are timely and relevant. For professionals in fields like accounting, where regulations and standards are constantly shifting, having a mentor can help you stay ahead of the curve and maintain a competitive edge. Mentorship is not a one-way street—it benefits both parties. Mentors gain satisfaction from sharing their knowledge and shaping the next generation of leaders, while mentees receive guidance that accelerates their growth. This reciprocal relationship fosters a culture of collaboration and lifelong learning. Final thoughts Investing in a mentoring relationship is one of the most impactful steps you can take for your career and personal development. It’s about more than advice - it’s about building a partnership that nurtures growth, resilience, and success. Whether you seek a mentor within your organization or through professional networks, the benefits are clear: accelerated learning, expanded opportunities, and a stronger sense of purpose. If you haven’t yet found a mentor, please consider the Chartered Accountants Mentor Programme.

With just under four months to go to the commencement of Making Tax Digital (MTD) for income tax from 6 April 2026, the Institute is pleased to present our new MTD hub. The aim of the hub is to assist members and businesses in their preparations for this key change in UK tax administration. Read the latest news and guidance on this key change in addition to more detailed information on what MTD for income tax is, the timetable for mandation, exemptions, deferrals, how to sign up and much more. The Institute will continue to develop the hub in the coming weeks and months as policy changes are announced and as HMRC publishes tools and information to assist agents, businesses and landlords in their preparations.

The guidance on the interest limitation rule has been updated by Revenue to provide details in relation to the ‘association’ tests in the context of partnerships. The guidance is consistent with the relevant information included in the guidance on the anti-hybrid rules and guidance on the taxation of partnership. An additional appendix has been included to provide clarifications on the population of the Form CT1 with respect to the interest limitation rules.

The Central Statistics Office has published the Quarterly National Accounts for the third quarter of 2025 confirming GDP decreased by 0.3 percent in the third quarter of this year while Modified Domestic Demand grew by 2.3 per cent in the quarter. The publication outlines that exports increased by 2.1 percent while total imports rose by 10.4 percent. Personal spending on goods and services which is seen as a key measure of domestic economic activity, was up by 0.1 percent in the quarter. Commenting on the figures, Tánaiste and Minister for Finance, Simon Harris said: “Today’s figures confirm the continued resilience of the domestic economy. Modified Domestic Demand grew by 5 per cent in the third quarter on an annual basis. While this may overstate the underlying performance of the economy at present, I am encouraged by the strength of consumer spending which grew by 2½ per cent over the same period.  Alongside the robust exchequer figures released yesterday, today’s figures highlight the relatively healthy position of our domestic economy at present.”

Last week saw the House of Commons debate the Budget resolutions following which the Finance Bill was published and introduced to the House. Finance (No. 2) Bill 2025/26 had its first reading last week with second reading subsequently scheduled for 16 December 2025. The Bill, as introduced, contains the legislation for a range of announcements in November’s Budget but also features the draft legislation on the changes to agricultural property relief and business property relief from 6 April 2026. Explanatory notes to the Bill are also available. The House of Commons Library has also published a research briefing on the Autumn Budget 2025 and the Finance Bill.  The Finance Bill also includes the primary legislation for the UK’s carbon border adjustment mechanism legislation (CBAM) which will commence from 1 January 2027. More information on the UK’s CBAM is available in a policy update and factsheet. Finance (No. 2) Bill 2025/26 also includes further amendments to the UK's Pillar Two multinational top-up tax and domestic top-up tax. According to HMRC, these amendments are “those identified from stakeholder consultation or otherwise necessary to ensure the UK’s legislation remains consistent with the commentary and administrative guidance to the GloBE rules developed by the UK and other members of the OECD/G20 Inclusive Framework”. HMRC has also confirmed that the Finance Bill does not include any amendments to reflect any ‘side-by-side package’ as this is still being finalised by the Inclusive Framework. The ‘side by side package’ is a proposed political agreement which would allow the existing Global Intangible Low-Taxed Income Tax regime of the USA to coexist with the OECD's Pillar Two global minimum tax rules. The objective of this arrangement would be to exempt US parented multinational enterprises from some key Pillar Two rules.

The Pillar Two registration deadline for in-scope entities with a fiscal year ending on or before 31 December 2024 is 31 December 2025. At a recent Main TALC meeting, Revenue’s Large Corporates Division (LCD) highlighted that the number of registrations to date remains low. Revenue outlined the importance of completing registrations well ahead of the deadline and urged practitioners to ensure that any clients within the scope of Pillar Two are registered on time. Revenue had previously sent a letter to Irish companies who may be in scope of Pillar Two taxes, advising them of their registration obligations. The Pillar Two registration link can be found on the ROS homepage under ‘Other Services’. Further details are outlined in an earlier newsletter item.

Revenue has published a further warning of fraudulent emails, SMS (text messages) and phone calls seeking personal information from taxpayers. The press release outlines that Revenue has recently had sight of scam emails which claim that a taxpayer is “due an audit” and which include a link requesting the taxpayer to arrange the audit by a specified date. These messages are not from Revenue. Revenue will never contact a taxpayer by email, SMS or phone call to inform you of a tax refund or bill. Taxpayers who have provided Revenue account details in response to an email, SMS or phone call are advised to reset their password immediately. Taxpayers are advised to contact their bank or credit card provider if they have provided bank or card details.