In this week’s sustainability/ESG bulletin we bring you a recording of our recent webinar on green grants and supports for business. We also include news of the Irish Government’s planned measures to secure electricity supplies into the future, new funding announced in Ireland for circular economy projects, the UK National Audit office’s report into public sector greenhouse gas emissions, and the usual technical updates, resources and upcoming events.
News | Technical updates | Of Interest | Events
Expert answers questions on green grants and supports for business
This week, Chartered Accountants Ireland Sustainability Officer Susan Rossney interviewed Gordon Naughton, FCA and Founder of Tactive about green grants and supports available for businesses in Ireland.
In his interview, Gordon pointed out that you do not always need to invest heavily to make a big impact: sometimes building knowledge, and even the process of applying for a grant will identify areas where you can save money, make improvements and be successful in your application. Gordon also mentioned how and where companies can find these sources of funding, and the benefits they can bring. You can find the recording here.
The interview was part of the Chartered Accountants Ireland Ask the Expert Series, a series of bite-sized lunchtime interviews with experts on sustainability/ESG issues.
Government announces new sustainability funding for businesses
The Irish Government has announced a new ‘Green Transition’ fund to help businesses move away from fossil fuels and towards more sustainable, cheaper alternatives. The fund is worth €55 million, and will run from 2022-2026.
The Green Transition Fund comprises two elements: one to help businesses make a plan for their particular company to give them clarity on what needs to be done; and another aimed at the manufacturing industry to invest in less-carbon intensive processes. The fund comprises:
- A Climate Planning Fund for Business, which covers a grant of €1,800 for businesses to develop a personalised plan to identify how best to remove reliance on fossil fuels. It also includes a grant of up to €50,000 matched-funding to go towards specific capacity building within an enterprise. This fund is work €25 million in total and will be run from 2022-2026.
- Up to €1 million is available for businesses to upgrade their processes under the Enterprise Emissions Reduction Investment Fund. This will give manufacturing businesses funding to invest in:
- carbon-neutral heating processes
- smart metering and energy monitoring, and
- research and development.
Pointing to the important role businesses have to play in taking care of the planet, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD, stated that: “many of our business owners are still getting back on their feet after what has been an incredibly difficult couple of years. So, we need to help them when it comes to what is another enormous challenge – reducing our reliance on fossil fuels… We need to help Irish businesses now prepare for a future where economic growth and fossil fuels are not intertwined. This Fund is an important help.”
Interested companies can apply here: www.enterprise-ireland.com/greentransitionfund.
Renewable energy part of Irish Government’s measures to secure electricity supplies
Government approval of the final results of the second onshore Renewable Electricity Support Scheme (RESS 2) auction was announced as part of a package of measures approved by Cabinet this week. The measures are to help mitigate the rising cost of rising electricity bills and to ensure secure supplies to electricity for households and business across Ireland over the coming years.
RESS auctions provide pathways for renewable developers to plan and develop their projects. The RESS 2 projects will bring more indigenous wind, solar and hydro-electric energy onto the National Grid and will be delivered between 2023 and 2025. Collectively they represent a potential increase of nearly 20 percent in Ireland’s current renewable energy generation capacity, reducing our reliance on increasingly expensive imported fossil fuels.
The package of measures also includes increased borrowing limits for EirGrid and Bord na Móna to accelerate the deployment of renewable energy, and the provision of funding for the Commission for Regulation of Utilities (CRU) for back-up generation capacity to secure our supply of electricity over the coming winters.
New funding announced for circular economy
EPA Ireland has announced a €650,000 funding opportunity to support Irish businesses develop circular solutions. Applicants for funding in the range of €50,000 to €100,000 are invited are invited to apply.
The circular solutions can be in product and service design, production and distribution, use of resources including raw materials, and in water, energy and waste reduction. The fund is called Green Enterprise: Innovation for a Circular Economy fund, and is for business-ready innovative projects in the areas of food, water and nutrients; packaging, textiles, plastics; construction and buildings; electronics and ICT; batteries and vehicles.
A circular economy aims to reduce waste at all stages of the economic cycle and ensure materials are used as efficiently as possible. Read more about the Circular Economy on the Chartered Accountant Sustainability Hub here.
New platform to help businesses take strategic action for biodiversity
A new platform has been launched to help businesses measure, design and demonstrate their impact on biodiversity. Funded by the Irish Government, Business for Biodiversity will encourage and incentivise Irish businesses to assess their impacts and dependencies on biodiversity. The four themes of the platform are:
- building awareness
- ·networking and mentoring
- educating on national policy, and
- identifying actions and impacts to address climate change and biodiversity loss.
Speaking at the launch of the platform Minister of State for Land-Use & Biodiversity, Pippa Hackett, encouraged businesses to sign up to the platform:
“The business community has a vital role to play in our response to the biodiversity crisis. … Employees and consumers alike are demanding more from businesses when it comes to their environmental credentials, and this platform will enable businesses to build their awareness of both their impacts and their dependencies on biodiversity. With that awareness, businesses will be empowered to take action to address biodiversity loss and to have a positive impact on the communities in which they operate.”
You can find more information about the platform here: www.businessforbiodiversity.ie. From January 2023, the platform will put a paid membership model in place with a tiered fee system to suit every scale from small-to-medium enterprises to large multi-nationals.
For more on biodiversity and accounting for nature, visit the Chartered Accountants Ireland Sustainability Hub: https://www.charteredaccountants.ie/sustainability-centre/resources/accounting-for-nature
Measuring and reporting public sector greenhouse gas emissions
The UK’s National Audit Office (NAO) has published a report on the extent to which the UK government measures and reports public sector emissions in line with its ambition for the public sector to be a leader in decarbonising its activities.
Titled Measuring and reporting public sector greenhouse gas emissions, the report examines:
- public sector emissions measurement and reporting
- current measurement and reporting requirements for public sector bodies
- progress in improving the transparency of reporting across central government, and
- the use of emissions data to inform future planning.
The report found that while central government departments have made progress in reducing their direct emissions over the past decade, there are inconsistencies regarding reporting within the Greening Government Commitments (GGC) framework. It also found ‘patchy compliance’ with HM Treasury’s reporting guidance and a lack of clarity about what is expected of the rest of the public sector.
The report stated: “with better, more consistent data, central government departments could improve cost estimation and inform priorities for reducing emissions. This will require active leadership from the centre of government to strengthen its management of the measurement and reporting regime.”
The NAO is the UK’s independent public spending watchdog, with the purpose of supporting the UK Parliament in holding the government to account and helping to improve public services through audits.
Bank of England finds that greatest quantifiable losses would result from No Action and Late Action scenarios
Results of the Climate Biennial Exploratory Scenario (CBES), which have been published by The Bank of England (BoE), show that while the financial system might be adequately capitalised to absorb the shocks of climate change scenarios, the sector would suffer losses across each scenario. The greatest quantifiable losses would be suffered if action was taken too late, or not taken at all, which it describes as a ‘No Action and Late Action scenario’, reaffirming the BoE’s drive to an “early and orderly transition to a net-zero economy”.
The CBES explores the financial risks posed by climate change for the largest banks and insurers operating in the UK. The findings of the report are in line with the findings of other central bank stress tests across the world.
Technical updates
From our colleagues in Professional Accountancy
- On 16 June, Chartered Accountants Ireland welcomed a team from the FRC to our Dublin office for an in-person event for members. During the session Phil Fitz-Gerald from the FRC Lab gave an update on recent projects completed by the Lab, including structured reporting, ESG data, Net Zero disclosures and cybersecurity risk disclosures.
- In the last few weeks, the International Sustainability Standards Board (ISSB™ Board), EFRAG and the SEC have all published proposed sustainability reporting standards. All of them represent significant steps towards greater connectivity between sustainability reporting and financial reporting. In a recent podcast the three leaders of the KPMG global corporate and sustainability reporting team offer a high-level overview of the proposals.
- EFRAG, jointly with BusinessEurope and EuropeanIssuers, will hold a joint outreach event on 4 July 2022 to discuss the EFRAG Exposure Drafts on Draft European Sustainability Reporting Standards (ESRS).
Did you know?
Today – 17 June – is the UN World Day to Combat Desertification and Drought. There are some things we can do to help.
Articles of interest
- Setting the agenda for sustainable investment (Link)
In Accountancy Ireland this month, recently appointed Vice-Chair of the International Sustainability Standards Board (ISSB), Sue Lloyd spoke to Elaine O’Regan about the ISSB’s a key role in paving the way for a “global baseline” for reliable ESG investment criteria.
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A new global baseline? (Link)
Also see ICAEW’s Financial Reporting Faculty interview with ISSB Vice-Chair Sue Lloyd about the need for high-quality, global sustainability disclosure standards.
Events
- Accountancy Europe is organising a webinar on 20 June at 3pm (Brussels time) bringing together key stakeholders to discuss audit committees’ role in the effective implementation of sustainability and ESG aspects in business. They will also present the recent Accountancy Europe paper ESG Governance: recommendations for audit committees. Register here.
- Join this ICAEW webinar on 22 June for a deep dive into the International Sustainability Standards Board (ISSB) proposed standards on general sustainability-related disclosures and climate-related disclosures. Mardi McBrien, Managing Director, and Ravi Abeywardana, Technical Director of the IFRS Foundation will answer questions on the exposure drafts.
- Attend this free event on how Chartered Accountants can combat modern slavery. Speakers include Professor Jan Bebbington, Intel’s Adam Schafer, and Caroline Haughey, OBE QC. Modern slavery is a significant issue worldwide and is pervasive in supply chains. Chartered Accountants need to be aware of this risk and know what to look out for. They also need guidance on how to act. Register here.
You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.