Sustainability/ESG Bulletin, 3 June 2022

This EU Green Week sustainability/ESG bulletin brings you news of how Ireland is faring against its climate targets and the UN Sustainable Development Goals. Also covered is news that the UK government plans to invest over £31 million to help industry reduce emissions and energy costs, results from the 2021-2022 European Investment Bank Climate Survey, the UN Global Compact Leader’s Summit, and the usual technical updates, resources and upcoming events.

   News   |  Technical updates  |  Resources  |   Events

EPA report warns Ireland likely to miss emissions-reductions target

Ireland is likely to fall short of its target of reducing  greenhouse gas emissions by 51 percent by 2030, a new report from the EPA has warned.

The report found that rather than decreasing, Ireland’s total greenhouse gas emissions are estimated to have increased by 6 per cent in 2021. It also found that planned policies and measures, if fully implemented, could deliver only up to 28 percent (4 percent per annum) emissions reduction up to 2030 (well below the 51 percent emissions reduction required) and that urgent implementation of all climate plans and policies – plus new measures – is needed for Ireland to be on track for climate neutrality by 2050.

Minister for Environment, Climate and Communications Eamon Ryan, TD, reportedly commented on the report, saying that Ireland needs to double down on the implementation of climate action measures. Achieving emissions ceilings for all sectors, the Minister stated, will require a collaborative effort by government, business, communities, and individuals.

Irish firms see both risk and opportunity from net-zero transition

32 percent of Irish firms surveyed by the European Investment Bank (EIB) consider the transition to a net-zero-emissions society to be a risk to their business. The 2021-2022 EIB Climate Survey – the fourth such survey carried out by the EIB – also found while 31 percent of Irish firms see it as an opportunity, Ireland is below the European average in the proportion of Irish firms planning to invest to tackle climate change.

Speaking at last week’s Irish Climate Summit 2022, Head of Group Office for Ireland at the European Investment Bank, Cormac Murphy, referenced the EIB’s survey, reportedly saying that firms are ‘waking up’ to the reality of what climate change and the green transition means for them but that many are adopting a ‘wait-and-see’ strategy.

Ireland remains below EU average in climate action

The European Commission's 2022 European Semester Spring Package published on 20 May, with the accompanying Country Report for Ireland finding Ireland remains below the  EU average in climate action, with net greenhouse gas emissions per capita remaining 80 percent above the EU average in 2020.

While the report described Ireland’s Climate Action Plan as a ‘promising step’ towards limiting this exposure, it identified challenges to achieving the Plan. These challenges included the amount investments required, the availability of skilled workers and the removal of regulatory barriers.

Ireland’s progress against UN Sustainable Development Goal 12

Ireland’s Central Statistics Office (CSO) has published the twelfth in a series of publications monitoring Ireland’s progress towards meeting its targets under the 17 United Nation’s Sustainable Development Goals (SDGs). The report focused on Goal 12 Responsible Consumption and Production 2021 and reported:

• an estimated decrease of €0.6 billion in 2020 from 2019 in fossil fuel subsidies
• an increase of 66 percent (from 2015) in electricity generated from renewable energy sources
• Ireland generated approximately 1.1 million tonnes of food waste in 2019,
• a reduction of 1 percent in municipal waste’s recycling rate from 2018 to 2019

The UN SDGs are a collection of 17 interlinked global goals created by the United Nations in 2015 to be a "blueprint to achieve a better and more sustainable future for all".  Ireland's progress against each goal is measured using a set of United Nations global and European Union agreed targets and indicators.

Green supports for businesses in Ireland – Institute webinar

A wide range of grants and supports are available to businesses looking to make sustainability-related changes to their businesses. How can you navigate them, and choose the best on for your business? Find out during this online interview on 15 June with Gordon Naughton, FCA and Chief Executive Officer at Tactive Commercial Advice. Send us your questions in advance by email or ask them on the day, Tuesday 14 June, 12.15pm. Register here.

UK government invests over £31 million to help industry reduce emissions and energy costs

New government funding has been announced to support industry in reducing its reliance on fossil fuels and reduce carbon emissions, it was announced this week. The funding will also support the development of innovative carbon capture and green energy technologies in the UK, as well as supporting green jobs and encouraging investment.

UN Global Compact Leaders Summit

Thousands of leaders, officials and experts gathered this week for the United Nations Global Compact Leader’s Summit on 1-2 June, under the theme ‘The World We Want’. The annual event aims to empower business leaders at every level to take collective action and inspire future leaders to embed a sustainability mindset in their work.  Find out more here

The UN Global Compact is a voluntary initiative based on CEO commitments to implement the universal sustainability principles and take steps to support the UN Sustainability Development Goals. Chartered Accountants Ireland joined the compact in 2021.

Social entrepreneurial projects showcased at Chartered Accountants Ireland

The finals of Enactus Ireland were held this week in Chartered Accountants Ireland House in Dublin. The winner will go on to compete in the Enactus World Cup in San Juan, Puerto Rico, 30th October – 2nd November 2022.

Enactus Ireland supports third-level students to create and implement social entrepreneurial projects which have a positive impact on their communities. These projects are financially, socially, and environmentally sustainable. Working within the worlds of business and academia, Enactus students and their projects are mentored and trained by business and faculty advisers, equipping them to create real change.

Technical updates

From our colleagues in Professional Accountancy

• The Central Bank governor at a recent meeting of financial leaders discussed the role of central banks in tackling climate change. He said central banks along with others have to play a role in tackling the climate challenge, climate change affects the capacity of central banks to meet their mandates. Of the Central Bank of Ireland, he said they have identified the risks of climate change and support the transition to a carbon-neutral economy as an integral theme in their strategy. He mentioned also the dedicated Climate Change Unit which it has established to help steer that agenda and bring additional focus to their work in this area and their recent call for expressions of interest to join their Climate Forum.
• EFRAG have issued the set of Basis for Conclusions of its European Sustainability Reporting Standards Exposure Drafts. The Basis for Conclusion accompanies, but is not part of, the Exposure Drafts and as a result has no authoritative status. Instead, the Basis for conclusion illustrates the objectives and context of the draft standards and the process followed. They are a useful source of information for those who plan on responding to the ESRS public consultation launched on 29^th April.

• SEAI has release a new free e-learning course “Leading Sustainable Change for Decarbonisation”. Learn how your business can approach, measure, and report on sustainability, what decarbonisation means for your business, and more.

• In case you missed it, watch the Chartered Accountants Worldwide ‘Difference Makers’ webinar which uncovers the issues around mental health and wellbeing affecting Chartered Accountants and the business & finance sector.

• Interested in how energy data for the island of Ireland? Learn about the demand on the energy system and see how much energy is being generated in real time with this link.

• ‘Nudge theory’ and outright bans – alternative approaches to commercial travel by different companies (Link)
• Why social enterprises work (Link)

Events

• The Reuters Responsible Business Europe 2022 conference will take place between 8–9 June at the Hilton London Tower Bridge, UK. The title of the event is “Delivering the just transition and sustaining commercial success with 80+ CEO and executive speakers.

• The ICC Belfast Sustainability Summit 2022 will take place on 9 June from 09:00 – 17:00. Industry experts will share insights on achieving net-zero carbon, sustainable tourism, waste and resource management, diversity and inclusion and more.

• 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.
• A wide range of grants and supports are available to businesses looking to make sustainability-related changes to their businesses. How can you navigate them, and choose the best on for your business? Find out during this online interview on 15 June with Gordon Naughton, FCA and Chief Executive Officer at Tactive Commercial Advice. Send us your questions in advance by email or ask them on the day, Tuesday 15 June, 12.15pm. Register here.