A new framework for the commercial semi-State sector to address climate action objectives has been approved by Government.
The Climate Action Framework for the commercial semi-State sector (‘the Framework’) aims to help the commercial semi-State sector play a lead role in Ireland’s transition to a carbon neutral economy and society. It comprises of a series of five commitments, and by signing up to the Framework, each commercial semi-State company would be entering into the commitments it contains.
The five commitments are:
Commitment 1: Governance of Climate Action Objectives
Oversight at Board level and integration of climate action objectives in the company’s strategic business planning
Commitment 2: Emissions Measurement & Reduction Target
Formal adoption, on an ongoing basis, of Government emission reduction targets for the public sector and the SEAI measurement methodology
Commitment 3: Measuring and Valuing Emissions in Investment Appraisals
Incorporate the value of emissions in investment decision making
Commitment 4: Circular Economy and Green Procurement
Promote circular economy measures and green procurement
Commitment 5: Climate Related Disclosures in Financial Reporting
Compliance with a relevant and appropriate climate related disclosures framework within a defined timeframe
The Framework will apply to each of the 22 companies in commercial semi-State sector and provides them with a means to demonstrate how they are meeting their obligations under the Climate Action and Low Carbon Development Acts 2015 to 2021. These Acts place an obligation on public bodies, including commercial semi-State companies, to carry out their functions in a manner that is consistent with national climate action ambitions. Many of these companies operate in sectors that have a key role to play in the transition to a carbon-neutral Ireland, and include Bord na Móna, CIÉ, Coillte, EirGrid, ESB and Gas Networks Ireland, and their subsidiaries.
The Framework was prepared by NewERA to reflect “the exemplar role [commercial semi-State companies] are to play in decarbonisation, while also recognising the need for commercial independence in their respective operating environments”, as set out in the Climate Action Plan 2021, Chapter 9. Under the Climate Action Plan 2021, the public sector will “lead by example, inspiring the necessary climate action in wider society to reduce Ireland’s greenhouse gas (GHG) emissions by 51% by 2030, and to become climate neutral no later than 2050”.
In preparing the Framework NewEra collaborated with the Department of the Environment, Climate and Communications, with input from the Department of Public Expenditure and Reform. NewERA is a business unit within the NTMA which provides financial and commercial advice to Government Ministers and departments in relation to State-owned companies across a range of sectors.
The Minister for the Environment, Climate and Communications will now write to relevant shareholding Ministers to ensure that their respective shareholder letters of expectation are updated to include the commitments covered by the Framework. NewEra will report biannually to the Minister for the Environment, Climate and Communications on the implementation of the Framework.