In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland's membership of the UN Global Compact Network. Also covered are proposals regarding sustainability assurance, news about the Just Transition Commission, the need for ESG and sustainable finance skills in Ireland, the low uptake of green public procurement by Ireland’s government departments, funding available for sustainability, and the usual policy updates from Europe, articles and upcoming events.
IRELAND
Institute represented at UN Global Compact Advisory Group
Chartered Accountants Ireland is pleased to be a member of the new UN Global Compact (UNGC) Advisory Group. This group was established to support the launch of the UNGC Local Network in Ireland later this year. The advisory group met for the first time this week, with Sustainability Advocacy Manager, Susan Rossney, representing the Institute. The group discussed how the Irish network can support and empower Irish business and other key stakeholders to accelerate sustainability. You can follow the group here.
Chartered Accountants Ireland responds to proposals regarding sustainability assurance
Chartered Accountants Ireland has responded to the International Ethics Standards Board for Accountants (IESBA) proposals contains recommendations from our members, and highlighting concerns regarding certain prohibitions on relying on external experts for sustainability assurance and reporting purposes, and application of requirements to service providers outside the accounting profession. An Institute response to a separate IESBA consultation on sustainability assurance and reporting is due to be submitted by 10 May 2024.
SEAI funding programme open
The 2024 SEAI National Energy Research, Development & Demonstration (RD&D) Funding Programme is open for applications, with up to €20 million in funding available for projects which contribute to Ireland's transition to a clean and secure energy future. Research themes in the thematic strand of applications include heat, electricity, energy efficiency in traditional buildings, offshore wind, bioenergy, critical raw materials, behavioural change, energy storage and sustainable energy communities among others. The application deadline is 12 noon on 13 June 2024.
Approval given for establishment of new Just Transition Commission
The Government has approved the establishment of a new Just Transition Commission to provide advice on how to ensure a just transition to climate neutrality in Ireland. The Just Transition Commission will, among other things, prepare research and advise on policy planning, implementation, and progress. The Commission will have an independent chair, and a recruitment campaign to appoint members to the new Commission will be launched shortly, with a view to its formal establishment and first meeting in Q3 of this year. The announcement was made shortly after Minister for the Environment, Climate and Communications, Eamon Ryan, announced the 15 projects in the Midlands that will receive grant awards amounting to €18 million from the EU Just Transition Fund (JTF) programme.
DECC launches inaugural Research and Innovation (R&I) Strategy
The Department of the Environment, Climate and Communications (DECC) has launched its inaugural Research and Innovation (R&I) Strategy, setting out 39 actions across five goals to be delivered in the period to 2030. The Department will also publish a Research Needs Statement in 2024, to ensure the national R&I system is informed of its research priorities. Separately, DECC has published a draft plan identifying proposed areas off the south coast suitable for offshore wind projects.
Report identifies need for ESG/Sustainable Finance skills
A report published by the Expert Group on Future Skills Needs (EGFSN) on the skills needed for Ireland’s International Financial Services sector has shown that ESG/sustainable finance is among the skills needed if the growth scenarios outlined in the report are to be realised. The report - Skills for International Financial Services – was carried out by Indecon Economic Consultants for the EGFSN addressing actions agreed under the Ireland for Finance Action Plans 2021-2023. Commenting on the report, Minister for Enterprise, Trade and Employment, Peter Burke TD, said “Growth prospects for the sector are strong. And to underpin this growth, there will be a need for a range of specific skills, to include sustainable finance practices and the promotion of environmental, social and governance (ESG) standards across all areas of financials services.”
EPA report shows low uptake of Green Public Procurement in government department contracts
The Environmental Protection Agency (EPA) has published its third report on Green Public Procurement (GPP) activity in government departments. GPP is a process where public authorities seek to source goods, services or works that have a reduced environmental impact throughout their life-cycle. The report details that out of the reported €922 million spend on contracts greater than €25,000 and signed in 2022, just 34 percent of the spend included green criteria. While the report did point to an improvement compared to the previous year (10 percent in 2021 and 34 percent in 2022), it found that overall, the use of green criteria is inconsistent across government departments and at a low level relative to total spend. To address this, the report set out five recommendations, including providing GPP training for relevant staff and implementing systems to monitor and report on GPP.
NORTHERN IRELAND & UK
€1 million in funding for 35 cross-border projects under the Shared Island Initiative
Funding for 35 new projects, amounting to €1 million, has been awarded through the Department of Foreign Affairs Shared Island Civic Society Fund. Selected from across the civic society sector, north and south, each of the projects has a strong cross border dimension and will facilitate the development of new links and strengthen existing relationships on issues of common concern for civic society groups on both sides of the border. These projects are in a broad range of sectors and themes, including in the areas of climate and the environment, community development, heritage, social enterprise, charitable and voluntary work, and sports.
£20 million energy support fund for businesses in Northern Ireland
An Energy Efficiency Capital Grant (EECG) has been launched in Northern Ireland with the aim of supporting local businesses purchase and install energy efficient equipment to reduce energy consumption and carbon emissions. The five-year programme, worth £20 million overall, will offer businesses grants of up to £150,000 for investments in areas such as lighting, heating and cooling equipment, motors and drives, compressed air systems, and onsite renewable energy generation. Full details are available here.
Separately, Northern Ireland’s Economy Minister Conor Murphy has announced that he intends to bring forward a proposal to ban onshore oil and gas exploration and production in the region. Commenting, Minister Murphy stated: “As climate change is one of the defining challenges of our time, one of the key objectives of my Economic Vision is to reduce carbon emissions. To meet our net zero targets, a priority will be to move away from petroleum to renewables. I intend to ban all forms of onshore petroleum exploration and production – including fracking. This will not only help us transition from fossil fuels to renewables but also towards a greener economy and more sustainable way of life.”. There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020.
Scaling the Edge Net Zero programme
An 8-week programme is available that will enable businesses within Northern Ireland to validate and accelerate their net zero products or services. The programme aims to give businesses a competitive position in global markets and increase productivity. The deadline for applications is Wednesday 22 May 2024 and further information is available at Scaling the Edge Net Zero programme.
EUROPE
The European Parliament has approved the Net-Zero Industry Act, which aims to bolster EU production in technologies needed for decarbonisation. The Act, already informally agreed upon with the Council, sets a target for Europe to produce 40 percent of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs). It further aims to capture 15 percent of the global market value for these technologies by introducing faster permitting procedures and ‘net-zero industry valleys’, speeding up the permitting process by delegating parts of the evidence collection for environmental assessments to member states.
Separately, MEPs have consented to the EU withdrawing from the Energy Charter Treaty, following a recommendation from the Industry, Research, Energy, and International Trade committees. Parliament’s consent is required so that the Council can now adopt the decision by qualified majority. The Energy Charter Treaty (ECT), established in 1994 to govern trade and investment in the energy sector, has become controversial. The European Parliament has also voiced the need for the EU to exit in a resolution adopted in 2022.
The European Commission has adopted an Implementing Regulation updating the templates for Member States to report their climate action data. The data collected through these reporting templates helps the Commission determine whether Member States and the EU are on track towards their climate targets, and feeds into the annual EU Climate Action Progress Report.
The European Commission also announced it is awarding nearly €720 million to seven renewable hydrogen projects in Europe, selected through the first competitive bidding process under the European Hydrogen Bank. The funds for this auction come from the revenues of the EU Emissions Trading System. The winning bidders will produce renewable hydrogen in Europe and will receive a subsidy to bridge the price difference between their production costs and the market price for hydrogen, which is currently driven by non-renewable producers.
GLOBAL
- The International Federation of Accountants (IFAC) has unveiled proposed changes to the International Education Standards (IESs) that embed sustainability—from analysis to reporting to assurance—across aspiring professional accountants’ training. Key proposals include emphasizing working with experts and in multi-disciplinary teams; introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis; referencing relevant sustainability reporting and assurance standards; and creating a new assurance competence area and learning outcomes. To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. Visit the IFAC website for additional details and to register.
- UN Global Compact Networks and companies met in Brussels with Members of the European Parliament and representatives of the European Commission to discuss how they can support companies under new sustainability regulations, such as the Corporate Sustainability Reporting Directive. With more than 9,000 participants in the EU, the UN Global Compact “can play a significant role advancing the EU corporate sustainability agenda,” said Ole Lund Hansen, Chief of Global Operations. Read more here.
Technical Roundup
(From our colleagues in Professional Accounting)
- The Department of Enterprise, Trade and Employment (DETE) is consulting on one of the member state options of the CSRD to introduce Independent Assurance Services Providers (IASPs). The deadline for responding to the consultation is 19 July 2024.
- Ahead of the anti-greenwashing rule coming into force on 31 May, the Financial Conduct Authority (FCA) is supporting industry with guidance to help them meet the standard. It is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained.
- The International Sustainability Standards Board (ISSB) has announced that it will commence projects to research disclosure about risks and opportunities associated with biodiversity and human capital. The ISSB has issued its April 2024 Update and Podcast.
- The inaugural IFRS Sustainability Disclosure Taxonomy was published on 30 April. The Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures and their accompanying guidance.
- The IFRS Foundation and EFRAG have jointly published guidance material which illustrates the level of alignment achieved between the ISSB’s Standards (IFRS S1 and S2) and the European Sustainability Reporting Standards.
Articles
- Accountancy Europe welcomes CSDDD approval despite weakened provisions (Accountancy Europe)
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Emissions from electricity usage down 21 percent last year (The Journal)
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The UK’s gender pay gap will take decades to close at the current rate The Financial Times
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The volcano where CO2 emissions are being turned to stone (European Commission)
Upcoming Events
- Chartered Accountants Ireland North West Society 2024 - Time Out for Development CPD Day
Hear about Doing Good Business – Sustainability with Shelia Killian and other topics at this face-to-face CPD day away from the screen and the constant demands of the office! Following the success of this conference last year, tth North West Society Committee has listened to the suggestions of members and has prepared this jam packed CPD event to include topics that have been suggested locally.
In person, 16 May, Sligo Park Hotel, Pearse Road, Cornageeha, Sligo, 9.00 – 17.00
- European Commission Supporting companies in applying the European Sustainability Reporting Standards (ESRS)”
In-person and virtual: 16 May , 09:00 - 13:00 CET
Half-day event to showcase ongoing initiatives and discuss ideas for further mechanisms to support companies that apply the new European Sustainability Reporting Standards.
- ICAEW, Preparing your business for the green workforce, (time to be confirmed)
This webinar will provide an overview of the latest trends on green skills in the UK economy and the key steps businesses are to take to develop an inclusive green talent pipeline. The speakers will feature case studies of UK businesses that have implemented green skills development initiatives and key recommendations.
21 May, Virtual
- Department of Enterprise, Trade & Employment, Responsible Business initiatives: Rising expectations
The need for businesses to operate responsibly is increasingly reflected in mandatory measures creating obligations for enterprises. This event will describe the Responsible Business landscape, and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, proposed EU regulation on prohibiting products made with forced labour from the Union market, and the proposed EU Directive on Corporate Sustainability Due Diligence
Virtual, 22 May, 2.30pm
- National Sustainability Summit 2024
In person (RDS, Dublin), May 28-29
- Chartered Accountants Ireland, Everyday Acts of Inclusion
A collaboration between the Institute’s Balance LGBTQ+ Network Group, the Ethnicity Network Group and the Age/Disability working group, this event will highlight the benefits of diversity and inclusion and will explore the importance of focussing on intersectionality. Staff, students and members are all welcome to attend this free event.
In person, 30 May, 6pm, CA House Pearse Street, Dublin 2
- 1Business World, 2024 Global Natural Capital Conference
Virtual, June 3-4, 2024
Network for Chartered Accountants working on ESG projects
Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?
Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.
- Next meeting: Wednesday, 29 May, 14:00-15.30
- Teams
If you would like to attend, please email sustainability@charteredaccountants.ie
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.
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