Deloitte, EY, KPMG, and PwC come together to deliver, pooling expertise from right across the profession  Developing the structures to support future reporting requirements and recruiting for senior sustainability positions among the themes discussed at Institute’s sustainability conference    Wednesday 25 May 2022:  Chartered Accountants Ireland has today launched its newest qualification, the Certificate in Sustainability Strategy, Risk and Reporting. Recognising that accountants will be at the forefront in driving business transformation, the Certificate will provide a strong foundation in sustainability and ESG issues, and crucially, the reporting requirements and practical application of new frameworks and tools.  In an example of the collaboration that will be required to address the challenges of climate change and living and working sustainably, Deloitte, EY, KPMG, and PwC will come together to deliver this new programme, demonstrating how combined knowledge and expertise can be leveraged for businesses at all levels of the economy, from multinationals to SMEs.  Uniquely this new Certificate is designed with the needs of accountants in both practice and industry in mind and is focused on the key challenges and opportunities those within the profession face and will face over the coming years.  Joe Carroll, Head of Professional Development, Chartered Accountants Ireland said, “In recent years, the Institute has developed a range of tools to help its members move from strategy to action in tackling sustainability issues. Corporate reporting for sustainability is increasing and is no longer seen as just a voluntary option. Every board, senior manager and finance unit will require an understanding of these key issues. There is an exciting and arguably unprecedented opportunity for accountants to take a leadership role and drive radical change. To deliver on this, accountants will need a comprehensive understanding of the impact that sustainability and ESG issues have on their companies and their roles – and equally the impact that they and their companies are having on wider sustainability efforts.” Representatives from each of the accountancy firms who will be delivering the Certificate modules reflected on future trends in sustainability at today’s Chartered Accountants Ireland sustainability conference.  The importance of non-financial reporting and scenario modelling in unlocking future business resilience and building long-term value. Among the trends they identified were: The importance of non-financial reporting and scenario modelling in unlocking future business resilience and building long-term value. Stakeholder demand to quantify and disclose the economic impact that climate change could have on businesses.  With new standards still in draft and the ever-increasing integration of non-financial and financial information, organisations have a short window now to put the structures in place to support future reporting. The limited talent pool that many organisations are experiencing in recruiting for senior sustainability positions.  The use of tech enablers in developing, implementing, and tracking global decarbonisation strategies.  The panel also identified a disconnect between the recognition that sustainability is a priority and meaningful action being taken - some of this is down to organisations not knowing where to start. To address this, Chartered Accountants Ireland has produced a new publication, “Sustainability for Small Businesses”, which was also launched at the conference today. More on the new Certificate:  The new Certificate in sustainability strategy, risk & reporting will provide a comprehensive foundation in sustainability and ESG and equip participants with an understanding and practical application of sustainability trends, issues, tools, frameworks, and metrics to enable them address sustainability opportunities and challenges that the modern accountant faces. Each of the four modules in the course consists of a mix of live online delivery and self-paced study materials.  The Certificate is awarded under the statutory authority of Chartered Accountants Ireland. Members of Chartered Accountants Ireland will be awarded a Certificate in Sustainability Strategy, Risk and Reporting from Chartered Accountants Ireland under the ‘1966 ICAI Charter Amendment Act’. Other participants will be awarded the Certificate in Sustainability Strategy, Risk and Reporting by Chartered Accountants Ireland Executive Education DAC. The Certificate in Sustainability Strategy, Risk and Reporting will commence in October 2022 and will run over 10 weeks. For more information or to register your interest go to charteredaccountants.ie.     ENDS  For more information  Jill Farrelly PR and Communications Manager  Chartered Accountants Ireland                         

The incoming President of Chartered Accountants Ireland has highlighted the need to tackle the continuing capacity constraints facing the profession at the Institute’s AGM in Dublin city centre today. Members of the longest-standing professional accountancy body on the island of Ireland elected Pat O’Neill as President at the Institute’s 134th AGM.   O’Neill noted,  “Despite the recent and current challenges of the pandemic and the re-emergence of significant inflationary pressures, the economy continues to grow. Our economic pillars of large foreign direct investment and successful domestic businesses require appropriate levels of accounting talent; however, several structural factors are causing very real supply side issues in this regard.   “The accounting syllabus at secondary level, introduced over 25 years ago, does little to introduce young people to the breadth of the modern accountant’s role, so it is imperative that the syllabus is made fit for purpose in the 21st century. Otherwise, students will be deterred from a career in accounting, and we won’t have the “bench-strength” to support businesses on this island.”   The Institute, under the auspices of the Consultative Committee of Accountancy Bodies-Ireland last year made a submission on this matter to the Department of Education, including the findings of its accounting syllabus review. O’Neill continued,   “The National Council for Curriculum and Assessment has published its report on its Senior Cycle Review and whilst we are heartened that reform of the senior cycle is now recognised as necessary, the pace of change is just too slow. It will likely be 2027 by the time we see change, and during this time, the impact of a lack of supply of accounting talent is only likely to worsen.”  Accountants are on the Department of Enterprise’s Critical Skills Occupations List, professions with a shortage of qualifications, experience or skills required for the proper functioning of the economy, and the NI Executive has also listed accountancy as an in-demand skill in Northern Ireland.   In addressing the capacity issue, O’Neill also referenced the need to ensure that the needs of business and the profession are met through the recognition of qualifications, stating,    “In the Republic, a substantial amount of the work required for the audit qualification must be statutory audit work, so despite students spending a significant amount of their training supporting US FDI businesses with their US reporting requirements, with much of this controls work also used in the statutory audits of Irish subsidiaries, it will not count towards qualification. The same goes for experience gained in auditing UK subsidiaries by students based in the Republic. The Department of Enterprise Trade and Employment and IAASA must be involved in finding a solution.”  Finally, O’Neill noted that, as a growing economy, if we cannot source sufficient accounting capacity from home grown talent, we must ensure we attract the required talent into the country from elsewhere, saying,  “It is my steadfast belief that people and businesses achieve great things when they come together and diversity of background and thought is key to any profession. As an Institute, we have been working closely with government in the last few months to promote the need to reduce the required Critical Skills Employment Permits application processing times for accountants from outside the European Economic Area, who have already been hired by businesses and the profession to come and work here. The improvement now coming through in the processing time for such permits as a result has seen wait times reduced to 6-8 weeks from as high as four months. We must retain and even improve upon these shorter processing times to attract the right talent.”  Leveraging the Northern Ireland Protocol for business  Pat O’Neill highlighted the need for certainty and stability in the wake of the Assembly Elections, amid ongoing disagreement on the Northern Ireland Protocol.   He concluded,  “The Institute was an early advocate for the unique benefits of the Protocol for businesses located in Northern Ireland. We have almost 5,000 members there, and it is incumbent on us to convey the positive feedback that the Institute has received regarding the unique market access into both Great Britain and the EU that they enjoy. The Protocol remains a subject of debate this week more than ever, and there is no doubt that challenges exist, but predictability and certainty are key for business and the economy in Northern Ireland.”  Pat O’Neill has over 30 years of experience as an audit partner with EY. He has significant involvement at Board level with many plcs providing insight and best practice around Boards’ risk and corporate governance agendas. O’Neill has served on the Council of Chartered Accountants Ireland since 2014; is a former Chair of the Institute’s Audit, Risk and Finance Board; and former Chair of its Leinster Society. He holds a Bachelor of Business Studies Degree (Hons) from the University of Limerick.  At today’s AGM, Sinead Donovan was elected Deputy President of Chartered Accountants Ireland and Barry Doyle was elected Vice-President.   ENDS  

With demand for electricity expected to double by 2030, renewable sources will be key to decarbonising Ireland’s energy sector, writes Laragh Musselwhite. The decarbonisation of our electricity system has been one of Ireland's great success stories. Emissions from electricity generation in Ireland fell by 51.4 percent from 2001 to 2020.   This sizeable drop reflects improvements in the energy efficiency of modern gas-fired power plants as well as the increased share of renewables in the electricity system here.  The government has set ambitious targets for the ongoing roll-out of renewable energy generating capacity, including five gigawatts of offshore wind by 2030. Given that demand for electricity is expected to rise by anywhere from 19 to 50 percent over the next decade, meeting these targets will not be without challenge. Electricity in the Climate Action Plan The Climate Action Plan identifies the energy and electricity sector as a key enabler to Ireland meeting our Net Zero goal by 2050. The plan sets out an overall target of reducing carbon dioxide equivalent (CO2eq) emissions in the sector to between two to four mega tonnes of CO2eq by 2030. Our most significant challenge is, however, the rapidly rising demand for electricity across Ireland. In a high-demand scenario, our electricity needs are expected to as much as double by 2030. At the same time, our electricity emissions need to be reduced by 60–80 percent. Renewable energy Renewable energy will be key to decarbonising the sector. In 2020, electricity generated from renewable sources accounted for 42.1 percent of all electricity generated in Ireland — up from 33.3 percent in 2018. Ireland has significant renewable energy resources, with wind energy accounting for 36 percent of the country's electricity in 2020. We currently have an installed wind capacity of 4.2 megawatts, and the Climate Action Plan commits to increasing this to 13 gigawatts of combined onshore and offshore wind by 2030. The generation opportunity Alongside large-scale renewables, microgeneration and small-scale generation have an important role to play in empowering and driving engagement and participation. Both create opportunities for domestic, community, farming, and small commercial customers to take the first steps towards investment in renewable technologies, potentially helping to shape electricity demand and decarbonise homes and businesses. The Climate Action Plan also provides for a Microgeneration Support Scheme (MSS) aimed at supporting the deployment of an anticipated 260megawatts of new micro renewable generation by 2030. A separate small-scale generation scheme will also come into effect to support the deployment of rooftop and ground-mounted solar photovoltaic (PV) modules in cohorts not suited to other support measures. What does this mean for businesses? While the large-scale deployment of renewables will facilitate the decarbonisation of the national energy system, a growing number of individuals are also seeking to decarbonise their own operations. Options here include: investment in energy-efficiency; corporate power purchase agreements for renewable energy; and small-scale renewable asset deployment. As a first step, businesses are advised to calculate, monitor, and report on their Scope 2 emissions. These are the indirect emissions associated with the purchase of electricity, steam, heat, and cooling. By doing this, businesses can help to identify opportunities for reducing these emissions—and it’s worth noting that improving the energy efficiency of both property portfolios and business operations is crucial here. Potential measures for reducing Scope 2 emissions include securing direct renewable energy contracts, upgrading electric systems (e.g. lighting), generating renewable energy on-site, and optimising manufacturing and production facilities. Given the ongoing volatility in energy prices, the business case for reducing these emissions has never been stronger – and, by making considered choices, businesses can also expect to save on operational costs. The decarbonisation of Ireland's electricity system, therefore, presents a potential opportunity for businesses. In addition to the potential cost savings, other benefits could include reduced exposure to energy price volatility, stakeholder alignment, regulatory compliance and improved brand perception. Laragh Musselwhite is an Analyst at KPMG Sustainable Futures.