In this week’s Sustainability/ESG bulletin we cover the Institute’s response to Ireland’s public consultation on carbon budgets, the new Government retrofitting scheme, as well as funding for sustainability and climate-change start-ups. Also included are links to a TCFD survey, a beta-test programme for the UK’s SME digital carbon calculator, the first of our Ask the Expert Series, and a Leinster Society event on the importance of ESG for both listed and private companies.

1. In the news
2. Technical updates
3. Resources
4. Events

 

In the news

Chartered Accountants Ireland responds to Public Consultation on Carbon Budgets

Chartered Accountants Ireland has responded to the public consultation on the proposed carbon budget programme, which sought views on the Climate Change Advisory Council (CCAC)’s carbon budget letter to Minister Eamon Ryan and the accompanying technical report published on 25 October 2021. 

Carbon budgets are part of a roadmap of actions that are set out in the Climate Action and Low Carbon Development (Amendment) Act 2021. This Act commits Ireland to reach a legally-binding target of a climate neutral economy no later than 2050 and a reduction in emissions of 51 percent by 2030 compared to 2018 levels. The carbon budgets will determine the level of greenhouse gases that may be emitted in Ireland in a given five-year period and will be consistent with furthering the achievement of the national climate objective.

In our response Chartered Accountants Ireland supported carbon budgets as a required element in enabling Ireland to achieve its climate targets, but warned that carbon budgets alone will not be sufficient to meet these goals. Further measures will be required, such as:

• supports and incentives for people and businesses to switch to less carbon-intensive technologies through the provision of affordable and viable alternatives
• a Government-led communications drive to ensure that each stakeholder is aware of what they need to do achieve the carbon reduction targets, and that highlights the long-term benefits and savings of decarbonisation
• public sector leadership in the transition to net zero
• consideration by the Government of the current skills gap in relation to this area, with the development of appropriate guidance to ensure employers know what is expected and to support businesses to upskill their people.

In the submission, we also suggest that Chartered Accountants in their role as advisors to businesses will be critical in achieving Ireland’s climate targets, and that they must be empowered to do so. Accountants are sometimes the only professional advisors to which a business has access, and can provide information about the risks and opportunities posed by climate change, as well as advice on how businesses can reduce carbon emissions. As an Institute we feel that accountants should be empowered to do this at an individual, business and community level, and we stated that the Institute can work with Government to amplify its messaging and connect our members to the relevant tools to facilitate them in this work.

Our response to the consultation can be found here.

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Government launches retrofitting supports

The Irish Government has this week approved a package of supports that aim to make it easier and more affordable for homeowners to undertake home energy upgrades.

Key measures in the package include a new National Home Energy Upgrade Scheme which aims to help significantly improve energy efficiency and ultimately reduce gas and electricity bills for homes. The Scheme will provide increased grant levels of up to 50 percent of the cost of a typical ‘deep retrofit’ to a B2 BER standard (up from 30-35 percent grants currently available).

Also included are ‘One Stop Shop’ project management services, including access to financing, for home energy upgrades; a significant increase in the number of free energy upgrades for those at risk of energy poverty (400 per month – up from an average of 177 per month in 2021); and a special enhanced grant rate, equivalent to 80 percent of the typical cost, for attic and cavity wall insulation for all households.

The supports will help to deliver the National Retrofit Plan, part of which was published in Climate Action Plan 2021, and which sets out how the Government will deliver on its retrofit targets. The schemes will be administered by the Sustainable Energy Authority of Ireland (SEAI).

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Irish financial services sector  committed to net zero

Results from a survey of Irish financial services organisations suggest that the sector is  committed to achieving “net zero” carbon emissions, it was reported this week. The survey, which sought to gain insights into the actions taken and planned within Irish workplaces towards becoming more eco-friendly, was conducted by the Compliance Institute, the professional body for compliance professionals in Ireland.

While 79 percent of firms surveyed were committed to achieve net-zero, the study found that 24 percent of the 166 organisations surveyed plan to achieve the net zero target by 2030, while 13 percent say this should be achieved by 2040 or 2050. According to Michael Kavanagh, Compliance Institute Chief Executive, “Even the one in five who say they don’t have a dedicated net-zero plan have actually introduced measures to become more environmentally friendly”. Mr Kavanagh added: “businesses have little alternative but to commit to the wider global commitment to net zero if they want to avoid being left behind in the race to meet changing market and consumer demands”.

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Funding for sustainability and climate-change start ups

The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD and the Minister for Finance, Paschal Donohoe TD have launched a new €90m fund for Irish start-ups at Trinity College Dublin’s Tangent Ideas Workspace for student entrepreneurs. Investment will be targeted and prioritised in areas such as regional development, climate change and female entrepreneurship. The fund will focus on sectors that have experienced difficulty in attracting early-stage investment, including sustainability and climate change, and will be led by Enterprise Ireland. The European Investment Fund will act as fund manager and a first call for proposals under the programme will launch later this week on the European Investment Fund website.

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Net Zero transition risks and opportunities for UK’s ‘left-behind places’

The Net Zero transition could create huge opportunities for many of the UK’s ‘left-behind places’, but also poses risks for them which, if unmanaged, could be damaging. This is according to the new policy paper Levelling Up the United Kingdom, which states that the largest transition will be required in some of the least well-performing areas of the UK. In some of these areas more than one in every two jobs are in carbon-intensive industries (in the Midlands, the North and Scotland), and “significant upskilling” will be required to avoid long-term unemployment. Reskilling was a key focus of the UK government’s Ten-Point Plan and Net Zero Strategy (Build Back Greener, published in October 2021).

Our Climate Champion

This week our Climate Champion is Niamh McLernon. Niamh is a recently qualified Chartered Accountant working as an ESG Consultant in Belfast within KPMG’s Sustainable Futures team. Her role involves working with companies to develop, embed and report on their Environmental, Social and Governance (ESG) strategies. She is also a member of the Irish task force of FinBiz2030, a joint initiative between One Young World and Chartered Accountants Worldwide with the aim of engaging the finance and business communities globally to achieve the UN Sustainability Development Goals by 2030.  

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Technical Updates

The Department of Finance recently launched an interesting document entitled “IRELAND FOR FINANCE – The strategy for the development of Ireland’s international financial services sector to 2025”.

It is the fourth action plan under the Ireland for Finance strategy. This is a whole-of-government commitment in partnership with the private sector to further develop the international financial services sector in Ireland. Topical themes dealt with in the strategy include sustainable finance with implementation of Ireland’s Sustainable Finance Roadmap, a priority measure of the Action Plan. Other themes are Fintech and Digital Finance and Regionalisation and Promotion which looks to promote Ireland as a location for industry and support regional development.

Read the press release.

 

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Resources

Recording available: ‘Ask the Expert’ Climate for Accountants

Consider installing an electric vehicle charger on your premises for clients as a visible demonstration of your commitment to carbon reduction. It may also become a differentiator for attracting and retaining clients, employees or customers. This was one of the many suggestions made by Brian O'Kennedy of Clearstream Solutions at Chartered Accountants Ireland's first 'Ask the Expert' Sustainability Q&A this week. During this free, virtual, ‘bite-sized’ event, Brian explained terms like offsets and Scope 3 emissions, and gave his top three actions all accountants can take immediately to take action on the climate crisis:

• Reduce
• Buy greener ('the power of the PO'!)
• Work with your value chain

Watch the recording for more and register for our next Ask the Expert event about Electric Vehicles here.

Recording available: ‘The importance of ESG for both listed and private companies’

An insightful webinar from Jack Lee, Anthony Raivellur, and Bláthnaid McCauley ACA of Deloitte's Sustainability Reporting and Assurance team discussed the importance of ESG for both listed and private companies, with Susan Rossney of Chartered Accountants Ireland also providing some information of resources available from the Institute. Topics covered included the UN Sustainable Development Goals, the Task Force on Climate-Related Financial Disclosures (the ‘TCFD’), what to expect from the Corporate Sustainability Reporting Directive (the ‘CSRD’), the Sustainable Finance Disclosure Regulation (the ‘SFDR’), and the EU Taxonomy. Also discussed was the accounting impact of ESG Reporting, and the International Sustainability Standards Board (‘ISSB’). If you would like a recording of the event, contact Leinstersociety@charteredaccountants.ie.

Climate Ready Academy Energy Leaders Programme

Accountants or their colleagues who are responsible for energy management within their company could consider the Climate Ready Academy Energy Leaders Programme. The programme has the dual target of developing trainee skills at an individual level and delivering tangible impacts at the site level. Run in collaboration with the SEAI (Sustainable Energy Authority of Ireland), it aims to equip businesses and energy professionals with the knowledge and expertise on how to reduce energy waste, optimise cost savings, and protect the environment.

Take the TCFD survey

The Task Force on Climate-related Financial Disclosures (TCFD) is conducting a 15-minute survey of asset managers and asset owners on their climate-related financial reporting practices. Survey results will be published in the TCFD 2022 status report, along with a summary of TCFD-aligned reporting practices and challenges across asset managers and asset owners. This information should help asset managers and asset owners implement the TCFD recommendations and help a wide range of stakeholders understand the current state of asset manager and asset owner TCFD-aligned reporting.

The closing date for the survey is Friday 25 March 2022, and you can contact info@fsb-tcfd.org if you have any questions.

UK SME digital carbon calculator – testers needed

The UK’s SME Climate Hub is in the final stages of building a digital carbon calculator specifically created for small businesses.  It is now seeking small businesses committed to the SME Climate Hub to be amongst the first users of a two-week closed beta programme from February 16. The beta programme gives businesses completely free access to the carbon emissions measurement tool, and data on their CO2 footprint that can be utilized beyond the beta program. In return the Hub is asking businesses to conduct their first CO2 calculation through the tool and participate in survey research to guide the product's improvement.

You can sign up here to be included and find out more here. All beta users who finish their calculation within the two weeks of the programme will be credited with a virtual shopping voucher.

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Events

Ireland
Wednesday 23 February, 1pm
‘Ask the Expert’ - Electric Vehicles
Our next ‘Ask the Expert’ series will be on Electric Vehicles (EVs). The Irish Government aims to have one million electric vehicles on the road by 2030. But consumers have many questions: should you buy a hybrid? What about depreciation? How do the grants work? What is the range? To answer these and other questions SEAI’s Electric Vehicle Programme Executive Emer Barry and Motoring Correspondent for the Sunday Independent, Geraldine Herbert will join the Ask the Expert Q&A on Wednesday 23 February at 1pm.

You can email your questions beforehand or ask them on the day. This bite-sized virtual event will be recorded and uploaded to our Sustainability Centre

Northern Ireland
Wednesday, 23 February, 12.30-1.30pm
Ulster Society - Public Sector Webinar: Climate Change and Sustainability Reporting
Debbie Caldwell, Belfast City Council; Dr Judith Wylie, University of Ulster Business School; Keith Scott, NI Water will examine how organisations can meet their sustainability obligations, act responsibly and play their part in addressing climate change.

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You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.