Conal Kennedy writes: Sustainability is probably the most important issue of our times. However, when it comes to sustainability reporting, your first questions may well be how and when does this affect you, your firm and your clients? The short answer is that sustainability reporting will directly affect a large proportion of members in practice, and sooner than they may think. The Corporate Sustainability Reporting Directive (CSRD) has been passed by the European Union and it is in the process of being transposed into Irish legislation. It applies to a number of categories of entities, but of most immediate interest to readers of Practice Matters may be its application to large private Republic of Ireland registered companies, as defined by the Companies Act. Amongst a number of requirements, these must provide detailed information in electronic format in their annual management reports under CSRD for years commencing 1 January 2025 and thereafter. Furthermore, these companies will need to obtain independent assurance that the information is presented in compliance with the Directive. This assurance, which initially will be at the level of limited assurance, will be given and reported on only by properly authorised individuals and firms. A very large proportion of practices have at least one large company client. The impact of inflation in recent years has brought many more companies into the large category, and the future impacts on balance sheets of the proposed changes to lease accounting under FRS 102 will bring in some more marginal cases. These clients may well engage your firm for assistance with reporting under CSRD or the provision of assurance. This will mean applying the European Sustainability Reporting Standards (ESRS), and reporting on their application. These standards are currently published in draft, and are available at this link. As can be seen, the standards are substantial and detailed, and obtaining a working knowledge of them will require a large commitment of time and resources. Assurance standards will also be published in due course. Even if a firm has no large Republic of Ireland company clients, the firms may need to assist clients with the provision of “upstream and downstream” reporting of sustainability information to customer or supplier entities with broader reporting obligations under CSRD. You should determine what level of knowledge you need to obtain regarding sustainability reporting and assurance. I would suggest the following broad categorisation for the purposes of this article: Level 1 – This applies to firms who have no large Republic of Ireland company clients. Knowledge of upstream and downstream reporting requirements sufficient to assist clients to provide this information. Level 2 – Firms with large company clients. A general understanding of the reporting and assurance requirements, reporting dates, size limits as applicable to these clients. Level 3 – A level of knowledge sufficient to assist a large company to report correctly under CSRD. This will mean obtaining a detailed knowledge of the CSRD, the transposing legislation, and the final versions of the ESRSs. Level 4 – The knowledge set out at level 3 above, together with the knowledge, training and authorisation to provide assurance on sustainability reporting. Individuals who are statutory auditors (responsible individuals) on 1 January 2024 or are undergoing the approval process at that time and are approved before 1 January 2026 will be eligible to be grandfathered as assurance providers. Grandfathered sustainability assurance providers will be required to undertake sufficient and appropriate CPD to demonstrate competence. Once the grandfathering window has closed, subsequent applicants will need to follow a set procedure, which will include obtaining sufficient relevant training and practical experience and passing an examination. If your firm has one or more clients who are large companies likely to be affected by CSRD, some of the courses of action open to firms could be set out as follows: Key partners and staff within the firm will obtain the knowledge to provide assistance to relevant clients. One or more partners within the firm may obtain authorisation to provide independent assurance to relevant clients. The firm may recruit staff or partners who have a knowledge of sustainability reporting and assurance in order to provide these services. The firm may decide that it will not provide services related to sustainability reporting, and engages with its large company clients to determine how their needs will be met. The firm may decide that the needs of its large company clients are best served by others who are in a position to provide a full range of financial and sustainability reporting services, and engages with the clients to ensure a smooth transition to new service providers. All of the above courses of action require informed decisions, planning and implementation. A key consideration is the future availability of trained and suitably qualified people to provide sustainability related services. Many firms will see the potential to provide these services to their clients and will make their plans accordingly. Other firms are currently having difficulty in resourcing their current range of services, and this will influence their current and future courses of action. Firms in Northern Ireland, many of whom are registered as Republic of Ireland auditors, may be interested in providing sustainability reporting assistance services and assurance to Republic of Ireland companies. The acquisition of knowledge and training is essential to all firms to enable them to make effective decisions and to provide services to their clients as needed. The Institute is committed to supporting its members though its Technical, CPD and Specialist Qualification offerings. We have had a strong uptake of the Certificate in Sustainability Strategy, Risk and Reporting which first ran in 2022 and is continuing. We expect to launch a Sustainability Reporting Qualification with an assurance aspect in due course. Have a look also at our Sustainability Centre and look out also for our upcoming Sustainability Reporting Hub, which will be supplemented by a selection of Q&As to answer your key concerns. In Practice Consulting, we will ensure that you obtain the supports and toolkits that you need as practitioners. I have concentrated in this article on large private companies. Other entities affected include entities already subject to the Non-Financial Reporting Directive, Public Interest Entity SMEs, and ultimately small and medium sized companies which have a further three years to comply. These have different requirements and timelines, with which you should familiarise yourself if relevant. The important point is that this is an issue that cannot be ignored. If you have already put plans in place, I hope that this article was helpful to you. If your firm is affected by the issues dealt with in this article, and you have not started the planning process, then the message I have is that the Sustainability Reporting train has already left the station. Don’t underestimate the scale of this project and the benefits to be obtained from timely actions.

The European Union’s recently implemented Pay Transparency Directive is set to transform the way companies across the EU approach pay equity and transparency. Doone O’Doherty explores steps organisations should take to implement the Directive. At the end of March 2023, the European Parliament adopted the EU Pay Transparency Directive. This will go through the final formalisation steps, including Council adoption, and enter into force 20 days after publication in the EU Official Journal.  EU Member States will be required to transpose the Directive into national legislation within three years – very likely in 2026.  Given the proposed legislation’s complexity and implications, organisations should start preparing now to ensure a smooth transition from a legal, operational and strategic perspective. Under the Directive, greater transparency will be required in four critical areas.  Gender pay gap reporting and equal pay Organisations above a certain employee threshold will be required to publish gender pay gap figures externally.  Where a pay gap of five percent or more is found in any category of worker and other criteria are not met, a joint pay assessment must also be completed. Recruitment   Organisations will be required to provide information on pay (e.g. pay bandings) as part of the recruitment process, such as adding pay ranges to job adverts or sharing this information with applicants. They will no longer be able to ask candidates about current pay to determine offers.  Pay approach and philosophy  Employers with more than 50 workers must provide workers with information on the criteria used to determine pay and pay progression. Average pay levels Workers will have the right to request information on the average pay level of workers doing similar work to them, broken down by sex. This must be provided within two months of the request.   To whom does this apply? While local implementation may vary, the Directive suggests that the requirements listed above may apply not only to employees but also apply to other worker types (e.g. contractors and gig economy workers).  Key steps to take Given the significance of the measures to be introduced, organisations must identify their biggest risks and opportunities and prioritise activities. This will allow for developing an effective change plan to ensure readiness for the upcoming legislation and wider transparency requirements.  For some organisations, the impact of the EU Pay Transparency Directive will be significant, potentially leading to the widespread transformation of critical people policies and activities. Successful change (including impacted systems and processes) is a multi-year programme.   It will be critical for companies to: Understand the impact: Identify key stakeholders and gain a high-level understanding of key risks and opportunities for your organisation. Provide an initial briefing to identified stakeholders on the Directive and its implications for your organisation.  Assess organisational readiness: Deep dive into the key risks and opportunities identified through interviews and document reviews. Complete a readiness assessment to prioritise activities with stakeholders. Develop an implementation plan: Develop a high-level implementation plan to embed change based on agreed priorities, risks and opportunities.  Doone O’Doherty is Partner of People & Organisation at PwC 

A recent survey suggests that Irish CFOs are placing less importance on ESG considerations than they did a year ago, despite growing stakeholder interest, explains Derarca Dennis Ireland’s financial leaders are optimistic about the future despite current challenges, identifying investment in talent as one of their top priorities, the EY Ireland CFO Survey 2023 has found. Interest in environmental, social and governance (ESG) issues has, however, faded over the past year and this is a cause for concern. Just six percent of the 151 finance leaders surveyed by EY Ireland cited increasing the sophistication of non-financial reporting as one of their top strategic priorities for the five years ahead, down from 15 percent in the 2022 survey. Only 10 percent saw opportunities in sustainability and decarbonisation as a priority for driving growth in the year ahead. It is essential to view these findings in the context of the timing of both surveys, however. The 2022 survey took place before the Russian invasion of Ukraine at a time when the world was emerging from COVID-19. There was a decidedly optimistic view of economic prospects and a growing focus on the need to tackle the climate emergency. Conditions in early 2023 could hardly be more different. Spiralling energy costs, inflation at levels not seen for decades, rising interest rates and continuing geopolitical volatility have combined to focus business minds on more immediate survival and growth concerns. ESG viewed as compliance The overall results of this year's EY Ireland CFO Survey suggests that ESG is still regarded as a compliance and regulatory issue rather than as a source of commercial opportunity. Forty-three percent of our respondents pointed to sustainability regulatory compliance as a key focus for the next two years, while just two percent identified non-financial and ESG reporting as a priority for the same period. What is concerning is that organisations not covered by regulations (current or imminent) could face difficulties winning new business or maintaining relationships with existing customers. Organisations that are covered by the regulations, and that have set decarbonisation targets, increasingly require their supply chains to meet the same standards, with potentially severe consequences for failing to prepare adequately, so collaboration across the supply chain is essential. Financial and training implications Organisations raising finance already have to answer questions about sustainability performance and social impact from banks, private equity houses and other potential investors. It is, therefore, imperative to make ESG/non-financial reporting an integral part of their core strategy. There was also a degree of discordance in the findings. When talking about the evolving role of the CFO, 54 percent of respondents claimed their role now includes a greater focus on ESG and non-financial reporting, and 60 percent described their non-financial/ESG performance monitoring and reporting capability as basic or not mature. Despite this, attaining non-financial/ESG reporting skills was identified as a priority for the next five years by just 15 percent of the financial leaders surveyed. Lack of leadership buy-in A lack of endorsement from senior leadership and a paucity of expertise and experience within the finance team were cited as key barriers to more effective ESG reporting at an organisational level. Some 30 percent of the finance leaders surveyed said it was not considered a priority among leadership, which may lead to unaddressed ESG risks in the future. While the current macroeconomic environment and business climate can justify some diversion of attention away from the ESG agenda, the fact remains that it cannot be divorced from the broader needs of the business. Indeed, ignoring ESG will present significant risks in an environment where a business’s ESG credentials and sustainability performance will increasingly become key competitive differentiators. Future-focused CFOs need to be aware of the importance of the ESG ecosystem and mindful of the environment in which they operate, which not only includes Ireland but also the European Union. They must ramp up resource allocation to enable their finance teams to meet rapidly growing ESG and non-financial reporting requirements. Failure to take these steps could see businesses falling behind those competitors that are addressing the ESG agenda today. You can read the full report at EY.ie. Derarca Dennis is Assurance Partner at EY Ireland

OECD countries will not close the gender pay gap for at least 50 years if we continue at the current pace of progress, despite the potential economic gains, writes Ger McDonough To mark International Women’s Day, PwC released the results of our Women in Work Index, assessing women’s employment outcomes across 33 Organisation for Economic Cooperation and Development (OECD) countries. The Women in Work (WIW) Index shows that female workforce participation across the 33 OECD countries increased slightly in 2021. Progress towards gender equality remains too slow, however.  In fact, based on OECD countries’ gender pay gap of 14 percent in 2021 and historical rates of progress towards gender pay equality, our findings show that it will take more than 50 years to close the gender pay gap. This means that a 20-year old woman entering the workforce today will not see pay equality in her working lifetime. At the same time, our analysis also shows that, by closing the gender pay gap, OECD countries could make trillion-dollar gains. By increasing women’s average wages to match those of their male counterparts across the OECD, female earnings would rise by more than US$2 trillion per annum, our research has found.  In Ireland, closing the gender pay gap could boost women’s earnings by US$4.32 billion per annum (8%) and increasing women’s employment could boost Irish GDP by US$50 billion per annum or nine percent. Ireland ranks in 12th place overall out of the 33 OECD countries in our latest WIW Index, up from 15th place in the year prior. This improvement was in large part due to a rise in the female labour participation rate from 65.6 percent to 69.6 percent. Our research also reveals that just 25 percent of women in Ireland have an established plan to advance their career with their current employer, however, compared to 35 percent of women globally.  If the rebound from the COVID-19 pandemic has taught us anything, it is that we can’t rely on economic growth alone to produce gender equality—unless we want to wait another 50 years or more. Employers can make a material improvement to women's empowerment in the workplace now by focusing on fair reward, autonomy, inclusive leadership and instituting a data-driven diversity strategy. Women working full-time in person have the lowest empowerment score in our WIW Index. This trend follows suit for men—suggesting that autonomy over how, where and when people work fuels feelings of empowerment across the workforce. According to our WIW Index, the women who are most empowered also have greater opportunity to work remotely (74%). However, close to half (48%) of women can’t do their job remotely.  Of the 11,285 women who can, 29 percent are working remotely full-time, and 56 percent had some level of hybrid work pattern. Autonomy fuels empowerment for both women and men, but women currently have less autonomy over how, when and where they work.  Demand for flexibility is a talent-wide proposition, and one that cannot be ignored by employers as they seek to enhance diversity, fuel engagement and innovation, and position themselves as an employer of choice. Ger McDonough is Partner and Leader of the People and Organisation Consulting Practice at PwC Ireland 

The Windsor Framework provides for the smoother flow of goods between Britain and Northern Ireland, but is it enough? asks Eoin O’Shea It's been just over ten years since David Cameron, the UK's then Prime Minister, unveiled the idea of holding a referendum on EU membership. On that fateful day, 23 January 2013, Cameron made the rather prophetic statement: "If we leave the EU, we cannot, of course, leave Europe. It will remain for many years our biggest market, and forever our geographical neighbourhood. We are tied by a complex web of legal commitments." The latest addition to the post-Brexit tsunami of legal commitments entered into by the UK and the EU, including a 177-page Withdrawal Agreement and a 2,530-page Trade and Co-Operation agreement, is the Windsor Framework. The Windsor Agreement aims to update the 63-page Northern Ireland Protocol agreed by the UK and EU as part of the Withdrawal Agreement.  The Windsor Framework – in reality, several legal and political documents – was launched last week by the president of the EU's executive branch, Ursula Von Der Leyen, and UK Prime Minister Rishi Sunak at Windsor Guildhall.    The Windsor Framework came about because the Northern Ireland Protocol to the Withdrawal Agreement operated, in parts, like a manual for a United Ireland. Back when former UK Prime Minister Boris Johnson was 'getting Brexit done', there was a fear that Ireland, north and south, might have different laws concerning trade, the movement of goods, customs, taxes and the like, leading to a hard border on the island of Ireland. To counter such a border, it was decided by the UK and the EU that Britain would have its own British laws on those border/market/trade issues, and the Island of Ireland (north and south) would follow EU rules. Leaving Northern Ireland subject to EU laws, the oversight of the EU court of justice in Luxembourg, and the full panoply of EU officialdom. One view of the Northern Ireland protocol was that it permitted goods to flow between Northern Ireland and Ireland/EU without customs checks, duties, or paperwork. It also allowed for the free movement of goods between Northern Ireland and the rest of the UK.   Economist John Fitzgerald dubbed the situation as providing "unique dual access to both the British and the EU markets". Similarly, Michael Gove, then a member of the UK cabinet, stated: "That means that businesses in Northern Ireland have the opportunity to enjoy the best of both worlds; access to the European single market, because there's no infrastructure on the Island of Ireland, and at the same time unfettered access to the rest of the UK market." Unfortunately, the Northern Ireland protocol didn't work. Neither politically nor economically.  Excessive paperwork and administrative uncertainty made it difficult, expensive, and slow for goods to move to and from Northern Ireland and Britain. Imports and exports between Ireland and Northern Ireland skyrocketed as businesses in Northern Ireland found buying goods from Ireland/EU easier than from the neighbouring island. In the first five months of 2022, for example, exports from Ireland to Northern Ireland increased by 42 percent compared to the previous year. Politically, the original Northern Ireland protocol caused significant problems, including a boycott of the Stormont Assembly by the DUP and a threat by the UK to unilaterally override, with domestic legislation, the Protocol's operation.  All sides were fearful for the continued operation of the Good Friday Agreement and the possibility that relationships between communities within Northern Ireland and north/south and east/west ties could be negatively affected, perhaps for a generation. In short, all roads have been leading to last week's Windsor Framework for some time.  The highlights of the Framework include the following: The introduction of a trusted trader system in Britain to facilitate smoother transport of goods to Northern Ireland; Identity and physical checks on goods are to be drastically reduced; The same food will be available on supermarket shelves in Northern Ireland as in the rest of the UK; Goods moving from Britain to Northern Ireland that are destined for the EU or at risk of entering the EU will be subject to full customs checks and controls; People in Northern Ireland will be able to get medicines, including new medicines, at the same time and under the same conditions as people in the rest of the UK; Certain goods travelling from Britain to Northern Ireland may carry labelling "not for EU", ensuring that products remain in Northern Ireland; Consumer-to-consumer parcels will be entirely exempt from the main customs requirements; Travel to and from Britain with pets will be easier and require reduced documentation; Garden centres in Northern Ireland will have an easier time stocking plants, shrubs, trees and seeds from Britain; The UK has agreed to share live data with the EU on movements of goods from Britain to Northern Ireland to give additional comfort to the EU that goods transfer rules are being adhered to and that the single market is not at risk; and The number of proposed changes to the application of EU VAT and excise duty requirements to Northern Ireland.  It has been agreed that members of the Northern Ireland Assembly might, by way of a 'Stormont Brake', to stop new EU law from applying in Northern Ireland (as a last resort). It is also proposed by the parties that there be enhanced involvement of Northern Ireland interests in the operation of the joint committees set up between the UK and the EU on the management of relationships. As can be seen, the arrangements under the Windsor Framework provide for a much smoother flow of goods between Britain and Northern Ireland than was the case under the Northern Ireland protocol. But, as also can be seen, the arrangements are not as smooth as before Brexit. Eoin O'Shea is a Barrister at Law and Chartered Accountant

While uncertainty over energy price shocks and supply continue to dominate the national conversation, there is also an opportunity for Ireland, writes Colm O’Neill The first documented energy crisis unfolded in the late 16th century when industrialised regions in Europe literally ran out of trees to burn. This caused enormous political and social upheaval but also generated tremendous opportunities for countries with the natural resources and ingenuity to capitalise on the transition. It was the start of the Industrial Revolution. Ireland’s green energy advantage Today, Ireland has everything required to become a global green energy powerhouse. Our position on the northwest corner of Europe offers some of the best available offshore wind resources. The strength of our skill base and our strong collaborative research community mean we also have the ingenuity to capitalise on it. Ireland has a large offshore wind generation capacity, so the potential is clear. If we act quickly and with purpose, Ireland could achieve energy independence and become a hub for energy-intensive industries and a net energy exporter.   But ours is not the only country in Europe with this potential. Scotland is investing heavily in its offshore wind resource, as is Portugal, which also has the additional benefit of significant solar capacity.  Time to act Although the benefits are long-term, decisive action is required now if Ireland is to grasp the opportunity. However, change is needed in three crucial areas: planning, regulation and gas infrastructure. Planning The energy transition will require spending billions of euro on constructing energy infrastructure on a scale never before seen in this State. However, despite An Bord Pleanála having a statutory timeframe to decide on applications for wind energy projects by June, the average time for a decision is over a year, and some projects have waited for more than two. This slow pace puts Ireland on the back foot when competing for international investment. The current review of the planning system in Ireland urgently needs to address this critical area. Regulatory change required Commission for Regulation of Utilities (CRU) was established in 1999 to support the liberalisation of energy markets in Ireland as part of Europe’s first liberalisation directives. Implementing this was a challenging task: while there has been active customer participation and switching at the retail level, there has been less investment in new thermal generation capacity. The CRU’s mandate has expanded over time to include other utilities and energy safety, and the CRU now plays a central role in Ireland’s energy transition.  To reflect the scale and importance of this mandate, the CRU needs investment in resources, a review of governance structures and changes to the agency’s statutory mandate. These changes are vital if the regulator is to support Ireland’s development as a major European energy powerhouse, with this objective at the centre of their strategic agenda. Gas reliance Ironically, transitioning to a modern, low-carbon energy system requires lots of energy. And for many years, the generation of that energy will rely heavily on natural gas. Despite the undoubted potential of an array of ‘green gases’ from biomethane to hydrogen, the reality is that natural gas will need to be part of our energy system for decades to come. Energy policy must recognise this. We currently import around 75% of our natural gas demand through a pipeline from the UK. Any realistic strategy for energy independence must have a plan for reliable sourcing of natural gas while at the same time promoting investment in developing ‘green gases’. This includes building facilities to import liquified natural gas (LNG) and developing storage for natural gas locally. This can be done while also supporting exciting developments in hydrogen and biomethane that are already happening across Ireland. Gas of all types will be central to our energy system, and we need a plan and investment that delivers security in both the short and long term.  We need to be pragmatic The actions outlined above are very straightforward but far from easy. Progress is often sacrificed to idealism and dogma. We need to be pragmatic; we need to take calculated risks and accept that we may take action that may not deliver the perfect outcome immediately but will help us bridge to a greener energy future.   The benefits of acting now will be reaped in the coming decades, not the immediate months or years. This is a time for bold visionary decisions on the part of both investors and the government. These are multi-generational initiatives that need to be actioned today. The unfolding climate catastrophe won’t wait. The window of opportunity for Ireland to become a global energy transformation hub will close. To quote the Chinese proverb, “The best time to plant a tree is 20 years ago. The second best is now.” Colm O’Neill is Head of Energy, Utilities & Telecoms at KPMG

Work to achieve parity in the workplace is often assigned to women, but research shows that when men advocate for equity, everyone wins, says Andrea Dermody Gender equality issues are nothing new in the boardroom. Grant Thornton’s 2022 report Women in Business: Opening the door to diverse talent revealed that just 33 percent of senior leaders globally are female. Time and again, research shows that the more diverse a company, the better its performance. So perhaps it’s time to shift the focus and consider how men can play their part in the pursuit of parity. Men as allies Too many organisations still miss the mark on gender balance efforts by focusing gender initiatives solely on what women can do to level the playing field—or, at best, inviting men to attend diversity and inclusion events designed for women. An alternative drive towards ‘allyship’ is, however, steadily gaining pace. For men, this is about acknowledging and using their privilege to help others. When they do, they can help to share knowledge, break down barriers, and promote equal access. Why allyship matters Notably, the more women occupying a seat in a company’s C-suite and corporate board, the better its sustainability, corporate social responsibility, and business performance. With this in mind, having men as allies should be a business imperative. Empowering men is one pathway towards allyship. Male allies can help advocate for women’s voices to be heard, and that commitments to equity and inclusion are taken seriously. But believing in the cause is only part of the equation. Men must actively work to achieve it.  Grant Thornton’s 2022 research suggests male allies can support progress towards gender parity among senior leadership in several impactful ways, from exerting influence to change behaviours in their circles to facing down sexist behaviour and supporting and encouraging female colleagues. The result is reciprocal reward. The business performs better, and male allies experience personal growth, broaden their network, and, most importantly, experience the associated benefits of a unified, energised and collaborative team. Allyship is a verb, not a noun For men, the message is clear: you must take action. W. Brad Johnson and David G. Smith, authors of Good Guys: How Men Can Be Better Allies for Women in the Workplace, offer five ‘rules to live by’ for men who aspire to better ally behaviour in the service of promoting tangible gender equity in the workplace: Allyship is a journey, not a destination. Nobody ever “arrives” as an ally. Allyship is with, not for. Make your ally actions collaborative.  Allyship perpetuates autonomy, not dependence. You must hold yourself accountable for the net outcome of your ally behaviour. Allyship is about decentring, not standing in the spotlight. Speak less, hand the mic to women with key expertise, and structure projects, so women gain credit.  Allyship is critical to improving the status quo. Examine longstanding practices that perpetuate systemic inequities. Overcoming barriers  Allyship is growing trend, as is training in this area, but there is a gender gap in the perception of what success here means. Research shows that women and other underrepresented groups see less evidence of measurable workplace change than men. In short, men are essentially worse allies than they think. In this no-holds-barred report released in 2018 by the Harvard Business Review, the authors also suggest there can be a cost to men who act as allies. The authors describe the ‘wimp penalty’ of allyship, where men who advocate for female colleagues are seen as less competent by both men and women.  Finding the balance Barriers aside, it’s clear from the evidence that progress towards gender balance in senior leadership is accelerated when men act as allies. The more positive interactions men have with women in professional settings, the less prejudice and exclusion they tend to demonstrate. Here are some practical suggestions for closing the allyship gap: Make allyship an organisational value and priority: ensure senior leaders can talk clearly about the importance of allyship as it connects to core business outcomes, demonstrating how they value it personally and in their business. Listen and collaborate: demonstrate generous listening, show that you understand, and take meaningful action. Move from awareness to action: consider actions and techniques to overcome, challenge, disrupt, and prevent these behaviours and inequities. Create a community of allies who share and grow: allyship is not a ‘one-and-done’ process. Allow your communities to continue to learn and develop the skills they need to support the women in your organisation. There is a role for allyship to play in gender parity efforts. Ensuring that men are given a dignified, respectful role in becoming allies will bring wide-ranging benefits associated with a truly inclusive team. And then everyone wins. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody

The benefits of AI extend across all business functions, but its potential for the finance function is especially striking, writes Paul Tully Organisations are investing in artificial intelligence (AI) to improve efficiency, reduce operating costs, and open up new business opportunities. From smart map apps and fuel consumption optimisation, to sophisticated financial tools for fraud detection, AI is becoming embedded in businesses in every sector. The question for those looking to harness the power of AI in the best way possible, is whether to build, buy, outsource the technology, or utilise a combination of all three. At a high level, AI is used to unlock the power of data to deliver better predictive and analytics capability. The technology can explore “what if” scenarios and offer insights into competitive threats and market opportunities that might arise in the future. The opportunities extend across all business functions, but the potential benefits for the finance function are especially striking. AI benefits for CFOs A growing number of CFOs are using AI to address changes to accounting regulations. We have seen large companies save manpower by using natural language processing (NLP) to review lease contracts, for example. Without AI, this would be a labour-intensive process. CFOs also need to balance the delivery and growth of performance targets, while ensuring compliance with legal and accounting regulations. AI offers enhanced insights that can support strategic decision-making in asset valuation, predicting future customer trends, and identifying market growth opportunities through predictive modelling. The ability to create fraud detection processes leveraging AI, can also help CFOs to create a robust control environment and manage risk more effectively. Options here include mechanisms that recognise suspicious behaviour and classify alerts as high, medium or lower risk. Finance operations and control Perhaps no part of any enterprise has as many repetitive, routine tasks as the finance department. Inputting invoices, tracking receivables, and logging payment transactions are high-cost, low-return activities, and not of high interest to employees. AI can increase efficiency by automating manual people-intensive finance processes, such as the order-to-cash cycle, helping to predict customer debts and improve working capital management. Accurate, timely and consistent data, generated automatically, can help finance teams to add value to their organisation, leveraging customer behaviour modelling to identify opportunities to grow margins, while also forecasting with speed and accuracy. Furthermore, using AI to analyse internal financial control points and improve fraud detection can create a more robust reporting environment. Banks and other financial services organisations are leaders in establishing or acquiring their own AI capability. This is unsurprising given the cost and regulatory challenges facing the sector. They are using the technology in customer support, automated loan approval processes, “self-repairing” mobile banking apps, and payment optimisation. They also use AI for automated fraud detection, anti-money laundering checks, customer portfolio management, electronic trading, and property market intelligence. Third-party solution business Professional services firms are leading the field in developing third-party AI solutions for clients. These range from bespoke solutions for individual clients to more general products in areas such as automated insurance claims processing, regulatory compliance checking, HR support, and the use of machine vision to monitor automated production lines. Third-party solutions are not confined to the professional services sector, or the broader technology and software services industry. Organisations with well-established AI capabilities are making their solutions available on the open market as an additional business line. Paul Tully is Head of Finance Analytics at EY Ireland AI Labs

With new EU cybercrime rules coming down the line, now is the time to step up your organisation’s ICT security strategy, writes Neil Redmond Increased regulatory scrutiny is among the five most important ways businesses have been impacted since 2020, according to the Irish senior executives who participated in PwC’s Global Digital Trust Insight Survey 2023. Regulators are becoming increasingly cognisant of the risk posed by cyber threats to businesses and their customers. As part of new legislation, the European Union (EU) aims to address cyber, and information and communications technology (ICT) risks. By understanding these regulations and knowing how to prepare, organisations can act now to align with the requirements of new EU legislation. Four key pieces of the new legislation are introducing additional requirements for business: the Network and Information Security Directive Revision 2 (NIS2); the Digital Operational Resilience Act (DORA); the Digital Services Act (DSA); and the Digital Markets Act (DMA). How can your business best prepare to comply with these legislative changes? By taking the following key actions, you can ensure that your organisation is ready ahead of time. 1. Assess the maturity of your organisation’s cybersecurity Reviewing your business’s systems and information security is critical to prepare for the upcoming regulations. Assessing your organisation’s cybersecurity and ICT risk management controls can provide executives with valuable information regarding the business’s cyber risk profile. By finding potential compliance gaps in their cybersecurity, firms can improve their posture before legislation comes into force, mitigating the risk of non-compliance and subsequent consequences, such as brand damage and financial penalties. 2. Test your business’s operational resilience at the enterprise level As part of a cyber maturity assessment, evaluating the organisation’s resilience to disruptive events will be key in preparing for upcoming regulations. While executives may believe that their business is robust and can continue to operate in adverse circumstances, the testing of business continuity and disaster recovery plans allows businesses to measure their resilience and continuously enhance their cybersecurity posture. The first step is to ensure that the organisation has contingency plans for different scenarios. These scenarios should be exercised and iteratively improved to ensure that they are fit for purpose. Examples include switching failing systems to backups or simulating a response to a malware attack on your network. All relevant stakeholders, including third parties, should participate in the testing of contingency plans—in today’s world of sophisticated threat actors, executives must ensure that their entire business is ready to respond. 3. Enhance your incident reporting processes A cornerstone of NIS2 and DORA is reporting ICT and cyber incidents. Businesses need to review their existing reporting channels and procedures, implementing processes to monitor, log, classify and report on incidents consistently. An effective way to ensure that reporting is standardised and complies with regulatory requirements is to centralise incident reporting across the organisation. Establishing formalised processes for managing reported incidents can support businesses in fulfilling their regulatory obligations. Furthermore, the DSA and DMA will require organisations to report to authorities regularly. National Digital Service Coordinators will be established, and they will be responsible for compliance monitoring. Reporting to new supervisory bodies will be a feature of these upcoming legislative changes—a trend likely to be seen in future regulations. 4. Analyse and understand your ICT and third-party cyber risk Today’s business world is deeply interconnected, with organisations often relying on a wide network of suppliers to conduct business. Reliance on third parties can increase the organisation’s susceptibility to cyber-attacks, increasing both the attack surface available to threat actors and the potential for attacks to affect operations significantly. Regulators have grown concerned about gaps in organisations’ third-party risk management processes in recent years as businesses become increasingly reliant on third parties. NIS2 and DORA build on existing guidance and legislation, such as NIS1 at the EU level and the Central Bank of Ireland’s Operational Resilience Guidelines and Guidance on Outsourcing at the national level. In particular, DORA will set out many provisions for businesses to report on the ICT risks stemming from their dependency on third parties, requiring them to describe this reliance in detail. Analysing your business’s exposure to cyber risk through the lens of third parties is a key means of securing your customers’ data and satisfying regulators. Neil Redmond is Director of Cybersecurity Practice at PwC Ireland

Sometimes, the hardest part of networking isn’t the meet-and-greets, but the follow-up. Jean Evans gives us her five top tips on how to maintain and nurture your network. Many people confidently attend networking events and meetings but falter on the follow-up. And as we all know, it’s all in the follow-up. That’s where the magic happens. Why you should nurture your network Building relationships take time, effort, energy and intention. Importantly, your relationships must be built and developed strategically on a foundation of authenticity. You must have done this before having an ‘ask’, like looking to someone for help, an introduction or a connection. You have to be intentional and focused about the follow-up. Know how much time and effort you can put into the process, and how best you can nurture relationships with the people in your network. Here are a few pointers to help nurture your network. 1. Keep a pad and pen handy I never leave home without a little notebook and pen. I never know when I might meet someone or come across a piece of information, a useful podcast, an article, or something I can share. The pen and paper are for writing down any useful information obtained, and the person to whom I want to pass this valuable information on to. Alternatively, there are loads of opportunities to find interesting bits and pieces others might value on social media platforms. If you come across an image, article or even an appropriate meme you think could be good, screenshot it and send it on to them. 2. One-to-ones Get to know people in your network on a more personal basis. This is imperative if you want to move the needle on the relationship. This can be done in person (best option), digitally, or by phone. However you do it, the key is taking the time to really connect with the other person. 3. Broker introductions Two people may be in the same network and not know each other yet, but you think these remarkable people should get to know each other. Share the love (and they’ll surely share it with you)!  If you hear of someone who is looking to hire, needs a job or is looking to source a supplier, and you know the perfect person, make a introduction by sending a friendly email to both, highlighting their expertise and suggesting they connect to move forward. You can also separately discuss the connection with the concerned party and assess if it’s appropriate in terms of need, fit for time, etc., before making an introduction. 4. Send a letter or message I have a stash of thank-you cards and notelets, and I also keep a roll of stamps to hand. Write a handwritten note of thanks to people who help you by nurturing their connection to you. Social media platforms are great for reminding us of birthdays, anniversaries and new jobs, so utilise this service by reaching out to those marking a special occasion. Don’t just use the pre-written text suggested by LinkedIn or other platforms. Personalise it. The recipient will remember your kindness, and you’ll develop that feel-good factor. 5. Invitations Invite people in your networks to visit other networks that you find valuable. If you’re learning, engaging, connecting and growing, why not share this opportunity with a friend, colleague or acquaintance? Jean Evans is the Founder of Network Me.

Each year the District Societies plan lunch or evening events for members to celebrate the season. Here is a round up of the events that were held around the country in 2022.   London Society Dinner – Thursday 1 December  The London Society enjoyed their event, "A Christmas Celebration: An evening of music and stories", at the Women's University Club in London. Leinster Society regional dinner – Thursday 1 December Thank you to all members who came along to Kelly's Resort, Rosslare for the Wexford dinner. Mid West Society Dinner – Thursday 1 December Members in the Mid West gathered in the Savoy Hotel, Limerick and heard from Ray Goggins of RTÉ's Ultimate Hell Week and Donn O'Sullivan Leinster Society regional lunch – Friday 2 December Members from Kilkenny and surrounding areas got together for lunch in the Ormonde Hotel. Ulster Society Lunch – Friday 2 December  Members in NI gathered in the Europa Hotel in Belfast for a sold-out lunch and entertainment from comedian Neil Delamare. Their charity partners were NICHS and The Family Appeal. Thank you to all who supported.  Western Society Lunch – Friday 2 December  Members in Galway and surrounding areas got together in the Dean Hotel for lunch and to hear from Izzy Wheels. The event was in support of charity partner, Oscar's Kids. Thank you to everyone who supported.  Cork Society Lunch – Friday 9 December Members in Cork got together in the Maryborough Hotel and heard from guest speakers Donal Lenihan and Billy Holland. Leinster Society Lunch – Friday 9 December The Leinster Society hosted members in the Clayton Hotel in Dublin for lunch with entertainment from comedian Neil Delamare. Members and their guests raised money for Aware.  North West Society Lunch – Friday 9 December  Members from the North West celebrated in the Glasshouse Hotel, with Pat McCann as their guest speaker.

Coined in the seventies, the term ‘the glass ceiling’ has become a mainstay of discourse on gender equality in the boardroom, but over 40 years on, have we even come close to breaking it? Liz Riley reports It was during her speech at the 1978 Women’s Exposition in New York City that Marilyn Loden, the American feminist author, and workplace diversity advocate, coined the phrase ‘the glass ceiling’.  Forty-four years on, the term is still relevant—outliving Loden, who died in early August 2022. “I thought I would be finished with this by the end of my lifetime, but I won’t be,” Loden said in an interview with The Washington Post in March 2018.  “I’m hoping, if it outlives me, it will [become] an antiquated phrase. People will say, ‘There was a time when there was a glass ceiling’.” So, what is the glass ceiling—and how relevant is it to the workplace of today? Defining the glass ceiling The ‘glass ceiling’ is a metaphor describing the barrier preventing women from rising beyond a certain level in their profession. They have a clear view of what is beyond their reach, but they can’t break through to the other side. “There are two aspects to the glass ceiling,” explains Louise Molloy, Director of Luminosity Consulting, and an executive and team coach specialising in leadership development. “Well recognised are the limits organisations, culture, society, and behavioural norms, put on women.  “It is now also recognised that there are limits that we, as women in the workplace, might inadvertently put on ourselves. We do this through the options we advocate for, how we position ourselves, and the career decisions we make. To really break the ceiling, we need to work on both.” With gender pay gap reporting coming into effect this year, you might think that the end to the glass ceiling is surely near. According to a recent report by the European Commission, however, the number of women in Ireland holding senior management positions stood at just 28.8 percent in 2020, up from 15.3 percent five years prior. Ireland has made “excellent progress” on gender equality, the report states, but not everyone agrees. “While progress has been made in Ireland, women here are still substantially underrepresented in senior roles and decision-making spaces,” says Emma DeSouza, Women’s Leadership Coordinator with the National Women’s Council of Ireland.  “According to the latest CSO Gender Balance in Business Survey, in 2021, only 22 percent of the members of Boards of Directors in Ireland were female, one in eight CEOs in large enterprises in Ireland were women, and men accounted for 86 percent of Board Chairpersons.” While Chartered Accountants Ireland (the Institute) currently has 42.6 percent female membership overall, the 24-44 age group has an average 51 percent female membership, showing clear progress among the younger generations of Chartered Accountants.  Of the 1,686 people who have listed their job descriptions and identify as ‘senior executive’, however, just 287 of women. “I think we have made progress, but progress is not necessarily good enough”, says Sinead Donovan, Chair of Grant Thornton, and Deputy President of Chartered Accountants Ireland, “The end destination is to break through the glass ceiling. It is distressing that we are not there yet. Every year we celebrate that we are getting closer to breaking it. Sometimes, I wonder if that is a helpful narrative or not. “At the end of the day, if the intake to our profession is more than 50 percent female—and has been more than 50 percent for several years—and the population is more than 50 percent female, well, then we shouldn’t be celebrating anything until we are at that 50 percent mark.” Progress in the profession Eileen Woodworth became the first woman to be admitted to the Institute in 1925, but progress in the years that followed was slow. Professor Patricia Barker, Lecturer of Business Ethics at Dublin City University, was the 20th woman admitted to the Institute—48 years after Woodworth.  The issues preventing women from entering the profession didn’t stop at admittance. “Most people couldn’t conceive of a woman being a Chartered Accountant,” says Barker. “I was regularly addressed as a man with the name, ‘Mr Patrick McCann’. There were no women’s bathrooms for members in the Institute at Fitzwilliam Place. I had to use the librarian’s loo. Miss Jenkins was not pleased.” When she “pitched up to conduct the audit”, clients assumed she was the comptometer operator, Barker recalls. “There have only been two women presidents of Chartered Accountants Ireland since its inception, Margaret Downes in 1983 and Shauna Greely in 2017—a wide 34-year gap.”  This gap is closing, however. Sinead Donovan will take the reins as the Institute’s President in 2023. “It is an improvement, but one from a disgraceful base,” says Donovan. “It is shocking that it has taken this long.  “However, I think we are in a good place now for the future. It’s key to look at the movement [the Institute has] made on the composition of Council, which is currently sitting at a 47/53 percent split. We should maintain those numbers and aim for at least a 40/60 percent split for Council officers going forward.” Former Institute President Shauna Greely, who is currently Chair of the Institute’s Diversity and Inclusion Committee, also feels positive about the future. “Lots has been achieved in the past 50 years with gender representation in the profession,” says Greely.  “We have gone from 20 female members 50 years ago to 13,000 today. It is hugely important to have female role models, and we have many. Female graduates are encouraged to become Chartered Accountants, and female members can aspire to what others have achieved before them.” Diversity and inclusion It is now common for organisations to have initiatives and strategies specifically aimed at diversifying the employee pool. Molloy thinks this is helping women to find equity in the workplace. “Industry-level initiatives such as the 30% Club and Women in Finance and Tech are great for spotlighting the issue at a macro level,” Molloy says. At a company level, employee resource groups such as Meta’s ‘Women@’ initiative also help to create a space for women to share their experiences and build alliances, Molloy adds. “Through specialist sessions on topics such as how to communicate impactfully about your work and ambitions and how to network strategically, women learn to empower themselves,” she says.  “Many of the groups I work with have men as well, both as champions of diversity and attendees. These initiatives tend to be hugely successful as they are self-empowering and drive change from within.” Like Molloy, Donovan feels that support from both women and men is needed in any effort to help women get ahead. “We need to call it out. It cannot be down to women to ask about female representation on committees,” she says.  “It upsets and annoys me, and I know it annoys the lads when I’m the one who has to say it, when we all know it shouldn’t have to be me. The whole board should think about the diversity of the organisation.” Ultimately, Donovan believes that ‘Gen Z’ (the next generation of professionals, born between 1997 and 2012) could be the ones to pave the way for true workplace equality.  “I think they will flip a switch, but, whether it’s a switch for gender equality, I don’t know. I think equality and diversity will be a by-product of their way of working. Because of Gen Z, working will become more virtual, less about relationships and more about deliverables,” she says. “They are just not into developing relationships in the way that we were. That should mean the output will be more diverse, but I don’t think that’s the driving force. They’ll ask if it makes their work-life balance better or gives them space to do what they want to do. That will be their driving force rather than ticking diversity boxes.” Barker agrees, saying it will be interesting to see “if women retain the foothold they have achieved” as we move into new models of working, incorporating working remotely and a potential drop in employment opportunities “as inflation rises”. Breaking the glass ceiling As for actually breaking the glass ceiling, Donovan doesn’t hold out much hope. “I don’t think we will ever, as a country and a culture, waiver from the fact that women ‘need’ to stay at home to rear children or take time out from their careers to have children,” she says.  “Whilst that is there, I think it will always be a barrier to equity. I think if we get to 40/60 at the top levels of the profession, that might be where we cap out. We will never have enough momentum to enable the progression needed to achieve parity. Does a break from work impact a woman’s career? It does. It absolutely does. This will only be corrected when it becomes accepted and ‘the norm’ for men to take a gap to share in the family responsibilities.” Barker is, however, a little more optimistic: “It is not so much a question of breaking through the glass ceiling—it’s more a question of women defining the landscape of the ceiling once they get up there”.

Chartered Accountants Ireland 2022 #CharteredStar Fiona Smiddy ACA, will represent the Institute and Chartered Accountants Worldwide (CAW) at the international One Young World summit in Manchester from 5 – 8 September 2022. About One Young World  The annual One Young World (OYW) Summit brings together 2,000+ of the brightest young leaders from every country and sector, working to accelerate social impact both in-person and digitally. Delegates from 190+ countries are counselled by influential political, business, and humanitarian leaders such as Justin Trudeau, Paul Polman and Meghan Markle, and many others to harness the knowledge and skills needed for being impactful change makers.  Delegates participate in four transformative days of speeches, panels, networking, and workshops. They also have the opportunity to apply to give keynote speeches, sharing a platform with global leaders with the world’s media in attendance.  Delegates have the opportunity to challenge world leaders, engage with, and be mentored by expert industry influencers and make lasting connections. Together we celebrate our young leaders through social events and the unforgettable Opening and Closing Ceremonies. About Fiona Fiona qualified as a Chartered Accountant in 2016 having trained with KPMG in their Management and Risk Consulting Department. Following this, she joined Gaelectric, a renewable energy developer, as Senior Accountant. Fiona took the opportunity in 2018 to go travelling and it was while travelling that she identified the gap in the market for her own business, becoming increasingly conscious of how our daily lifestyle choices impact the environment and wanting to make sustainable living more accessible and widespread in Ireland.  Fiona is now owner and founder of Green Outlook, a company that promotes sustainable living and products. Green Outlook provides a range of products to help consumers lessen their environmental impact. Each product has been sourced to help people to shop consciously. Many are plastic free, and all are made with natural ingredients and sustainably sourced. Most are sourced in Ireland, further reducing their carbon footprint.  Fiona is also co-lead of the Climate Action workstream of the FinBiz2030 Irish Taskforce and is particularly passionate about Sustainable Development Goal 13: Climate Action.   Follow Fiona’s journey Fiona will keep her followers up to date daily and share a behind the scenes peek into the summit. Follow Fiona’s journey at OYW 2022 on Instagram, Twitter or LinkedIn.

Members and students are advised that planned maintenance will take place on the Institute website from Friday 19 August at 5pm until Saturday 20 August at 1pm. During this time, the website will be unavailable. We apologise in advance for this inconvenience.   We would like to reassure students that the Learning Hub will be unaffected by this maintenance and can be accessed directly during this period via https://students.charteredaccountants.ie. Login details for the Learning Hub can be found by viewing this short video, Student guide - how to log into the Learning Hub   If members or students have any questions, please contact webmaster@charteredaccountants.ie.   

Technology is shaping the future of financial services and creating exciting opportunities for innovative professionals at the heart of the fintech revolution As Chief Executive of Swoop Funding, Andrea Reynolds occupies a unique position at the nexus of fast-changing trends in financial services, emerging technologies, and the evolving role of the financial professional. The Chartered Accountant established Swoop in 2017 with Ciarán Burke, the company’s co-founder, to develop software that could help accountants identify the best funding options for SMEs. “The platform has been used now by 75,000 businesses to access funding, ranging from equity and grants to loans and tax credits. That’s given us an interesting overview of how much technology is changing the world of finance,” said Reynolds. Headquartered in Dublin, Swoop was founded in the UK where Reynolds had been working as a management consultant with KPMG in London before deciding to go into business with Burke. “At the time, everyone was moving to cloud accounting and open banking was coming down the line with the EU’s Revised Payment Services Directive (PSD2). We were seeing these new fintech lenders emerging, offering alternative funding to businesses and consumers,” she said. “In accountancy, you are trained to solve a problem by breaking it down into smaller elements, and that’s basically what I did with Swoop. I built a platform that could bring all of these funding options together in one place and do the heavy lifting for accountants advising SMEs.” Five years on, Swoop is on course for expansion in North America and other markets, having recently raised €6.3 million in Series A funding. “Finance is increasingly data-driven and borderless and that creates opportunities for fintechs like us, but different markets also have different strengths and weaknesses,” said Reynolds, pointing to her experience launching her own start-up in Ireland and the UK. “The idea for Swoop originally came from my experience navigating the funding system for SMEs in the UK, which is a lot more fragmented than the Irish system,” she said.  “The flipside is that the UK has been much more open to alternative finance, as have other European countries. That’s meant a lot more activity in non-bank lending, whether that’s crowdfunding, or loan finance from the likes of Wayflyer, Clearco or Youlend.” By comparison, Ireland is in ‘catch-up mode’, but it is catching up fast, said Reynolds. “Wayflyer is a huge fintech success story and there are other alternative lenders in the Irish market, like Linked Finance, Flender, and Accelerated Payments.  “Ireland already has a very strong fintech base in regulatory technology, anti-money laundering, ID verification, and Know Your Customer (KYC) technology. Where we still have to build up momentum is in the area of open banking.”  Automating auditing For David Heath, FCA, it was his early experience training as an auditor that sparked the idea for Circit, the fintech venture he co-founded in Dublin in 2015. “I trained with Grant Thornton, and it was a really great experience because the firm was so ambitious and the clients so varied, but as an entrepreneur, your starting point is always ‘what is the problem and how can we solve it?’  “For me, it was a case of thinking back to those early years in my career and digging into the processes that were the most challenging,” said Heath. “Auditors typically have a good relationship with their clients but getting the information they need from third party evidence providers is a big pain point.  “You have to verify the information your client gives you with an independent source—usually a bank, law firm or broker—and that process can take anywhere from three to six weeks.” Heath saw an opportunity to solve this problem with the advent of PSD2, using the EU’s open banking regulation to create a digital verification platform for auditors.  A cloud-based open banking platform, Circit connects auditors to their clients’ banks, solicitors, and brokers, allowing them to verify information within seconds.  Circit is approved by the Central Bank of Ireland as an Account Information Service Provider (AISP) under PSD2. It works with more than 300 accounting firms in Ireland and overseas and recently closed a €6.5 million funding round. “The funding will help us to increase our footprint and build out our open banking and regulated products, leveraging the license we have from the Central Bank of Ireland,” said Heath. “The problem we’re addressing may be niche, but it has global application.” Global ambition This global ambition is a common trait among Ireland’s most promising fintechs, according to Matt Ryan, a director in the Financial Services Consulting Group at Deloitte Ireland. “The ones to watch—the ones that do well quickly—tend to be thinking globally from day one. They have the talent and the funding, but they also know that Ireland is a very small market, so they are thinking in cross-border terms from the get-go,” said Ryan. Ryan points to Transfermate and Wayflyer as two such Irish fintech ventures whose global vision is paying dividends. A business payments infrastructure company founded in 2010, Transfermate closed a $70 million funding round in May, valuing the Kilkenny fintech at $1 billion. Wayflyer secured $300 million in debt financing in the same month following a $150 million Series B funding round, closed in February, which earned the Dublin start-up a $1.6 billion valuation and coveted ‘unicorn’ status. The pandemic effect The speed with which Wayflyer’s revenue-based financing and e-commerce platform succeeded globally reflects a wider trend in fintech. “The pandemic really accelerated the development of the sector as businesses and consumers suddenly moved online en masse,” said Ryan.  “Fintech was already a fast-growing market, but COVID-19 has made digital and contactless payments the norm and that has catapulted financial technology into a new era of growth.” While fintech awareness among consumers tends to centre on high-profile digital banks like Revolut and N26, the fintech sector globally, and in Ireland, is far more diverse.  “People usually think of full stack providers like Stripe and Revolut when they think of fintech, but that’s really not the whole story,” said Ryan. “Equally relevant are the technology companies selling services and solutions to financial institutions. “There are some very successful Irish companies in this space, such as TansferMate and Fenergo, which specialises in KYC technology for banks.” Fintech in Northern Ireland The established financial services sector is equally important to the fintech ecosystem in Northern Ireland, according to Alex Lee, Executive Chair of Fintech Northern Ireland (Invest NI). Figures published last year by Fintech NI found that there were 74 fintech companies in the region and 7,000 people employed in fintech jobs. “The financial services sector here has a good track record of attracting foreign direct investment (FDI), particularly over the last 15 to 20 years,” said Lee. “Large institutions like Citi, Allstate, CME, TP ICAP and Liberty Mutual have all established a meaningful presence here.” Together, these US multinationals form ‘the foundation’ on which Northern Ireland’s fintech sector has continued to build, Lee said.  “Attracting big international players has helped to grow out our fintech expertise and talent pool, because most of these companies have global technology development centres running out of Northern Ireland, and that has contributed to the rise of some really successful homegrown fintechs,” he said. FinTrU is one such success story. Founded in 2013, FinTrU develops regulatory technology for investment banks, ranging from legal, risk and compliance, to Know Your Customer (KYC). The Belfast-headquartered company employs 1,000 people and, in July, announced plans to create a further 300 jobs at a European Delivery Centre in Letterkenny, Co. Donegal. Another scaling success story in Northern Ireland is FD Technologies (formerly First Derivatives).  Founded in 1996, the Newry-headquartered data firm employs 3,000 people at 13 offices in Ireland and globally and recently announced plans to create 500 jobs at a new technology hub in Dublin. Northern Ireland is also continuing to attract FDI. In June, the Bank of London announced plans to establish a Centre of Excellence in Belfast, creating 230 jobs by 2026.  “We are making strides now and my hope is for a homegrown fintech ‘unicorn’ to come out of Northern Ireland. We’re not quite there yet, but I would like to see this ‘poster child’ for the sector emerge soon,” said Lee. Decline of the unicorn Such is the pace of growth in the fintech sector globally, however, that even the much sought-after ‘unicorn’ moniker is losing its lustre.  “In developed markets at least, I think there is a view that ‘unicorn’ status has lost some of its cachet,” said Ian Nelson, FCA, Head of Financial Services and Regulatory at KPMG Ireland, and a member of the board of the Fintech and Payments Association of Ireland. Even Stripe—perhaps the best-known ‘unicorn’ with Irish origins—has outgrown the label.  Established in Silicon Valley in 2010 by Limerick brothers Patrick and John Collison, the online payments giant’s $95 billion market capitalisation has soared beyond the $1 billion unicorn requisite. “Stripe is really now a ‘centicorn’, if you like, and there are numerous other fintechs in the same sphere, and ‘decacorns’ valued at $10 billion coming up behind them,” said Nelson. “At $1 billion, becoming a ‘unicorn’ has less meaning for fintech start-ups in developed markets, but it will continue to be an important building block for start-ups in emerging markets and less mature fintech hubs.” Among the other trends Nelson is keeping an eye on is the role technology will play in supporting environmental, social, and governance (ESG) capabilities in business. “Since COP26, we have seen a lot of attention directed towards fintechs with ESG capabilities,” he said.  “This really reflects the growing prioritisation of ESG in financial reporting and financial services generally. ESG is going to be a really important play in fintech. “We can expect to see more fintech companies focused on climate change, decarbonisation and the circular economy, and more jurisdictions setting up incubators specifically focused on ESG solutions.” Digital innovation in financial services Already a leader in payments globally, Ireland is now shaping the business environment for digital finance, writes Seán Fleming TD, Minister of State at the Department of Finance As Minister of State with responsibility for financial services, I lead the whole-of-government strategy for developing international financial services in Ireland, titled Ireland for Finance. I very much welcome this timely report on fintech.  In recent years, new entrants and long-standing financial institutions have looked to capture the opportunities presented by digital technologies.  Ireland is well-placed to benefit from the application of new technologies in the financial services industry. We have both a well-developed financial centre and a renowned technology sector.  This makes Ireland a centre of excellence for start-ups and big-name companies that want to establish operations in the European Union.  Ireland has shown leadership in shaping the business environment for digital finance. Important to this is Ireland’s education system, which has produced some of the finest innovators in the world. These graduates are leading the development of cutting-edge technologies.  The Government has an ambitious agenda for education. Two out of 15 Cabinet Ministers are dedicated to education and skills. Consecutive Governments have invested substantially in education, making it a cornerstone of Ireland’s economic strategy.   This economic strategy has created a strong mix of multinationals that have chosen Ireland as a place to do business. We have been very successful in supporting high-potential start-ups, with over 200 Irish fintech firms at various stages of development. Ireland is a leader in payments, and a number of firms have substantial development operations here. The digital finance ecosystem has expanded in recent years to include institutional financial services providers that have chosen Ireland to help them develop their fintech capability. The importance of fintech is reflected in the Ireland for Finance strategy. I identified Fintech and Digital Finance as one of the five themes in Action Plan 2022.  The Department of Finance’s Fintech Steering Group leads the cross-government approach with other departments and state agencies, and with representatives of the financial services and information technologies industries, and third-level researchers. Financial Services Ireland, the Ibec sector representing financial services companies, recently identified the future talent pipeline as being critically important. Particular areas they identify are fintech, digital finance and the environmental, social and governance agenda. I will shortly be publishing the updated Ireland for Finance strategy and fintech will be a key theme, and it will be at the centre of our work in the coming years.

Over the duration of a successful career as a Chartered Accountant, Suliyat Olalekan has learned the value of hard work, commitment and, above all, kindness From as far back as she can remember, Suliyat Olalekan wanted to become a Chartered Accountant. “I was really good at maths from a very young age and I was always very certain that I wanted to have a career as an accountant,” says Olalekan.  “I didn’t want to be an academic, studying mathematics or statistics in a university. I wanted to apply my skills in the real world. Accountancy seemed to me to offer a lot of possibilities, but I can’t say I had any real sense back then of what the role would actually involve day-to-day.” Born in southwestern Nigeria, Olalekan was raised in a tight-knit family in Ibadan, the capital of Oyo State. One of five siblings, she moved to Ireland as a teenager, settling in south Dublin, and went on to study Leaving Cert Accounting.   Though Olalekan had “absolute conviction” about her career aspirations, acclimatising to the Irish way of life after relocating from Ibadan as a young teen came as a culture shock. “I found the education system in Ireland fantastic, but it was very different to the education I had experienced in Nigeria, which was highly academic,” she says.  “When I started secondary school in Ireland, I was ahead of the syllabus so it was an easy transition starting out. I was able to focus instead on integrating socially and learning about the culture and way of life in this new country that was so different.” Learning to adapt at a young age has stood to Olalekan over the course of an accomplished career as a Chartered Accountant that has taken her from practice to industry, and from Dublin to London. “It is so important to do your research in any profession. This is my go-to approach when I am considering a potential new role, or finding my feet in a new job, and it’s the reason I think I’ve been able to adapt well to new roles and responsibilities,” she says. “I reach out to people and lean into my network, so that I can find out as much as I can about a new role on offer—and not just the role itself, but the organisation, and the wider industry. The same goes for how I approach my work day-to-day. I always try to learn from other people who are experts in their role, their field, or sector.  “If I need advice on a tax issue, for example, I will go to a tax expert—and I never jump into anything. When I start a new job, I stand back and take stock of what is happening around me; what the dynamics are; how things work. I never dive in. I take my time and I do my research. This balanced approach has worked well for me in my career.” Now Chief Accountant at SFL Corporation, an international NYSE-listed maritime company, Olalekan manages a team in London and Oslo responsible for accounting and reporting on US Generally Accepted Accounting Principles (US GAAP).  She began her career in practice, training with Deloitte in Ireland after graduating from Dublin Business School in 2007 with a first-class honours degree in accounting and finance. “I knew I wanted to train with a ‘Big Four’ firm and I really enjoyed my time with Deloitte. Joining their Audit Graduate Programme was a really wonderful start to my career and they sponsored my Master of Accounting at UCD Michael Smurfit Graduate School of Business. “From there, I went straight into the Final Admitting Examination (FAE) with Chartered Accountants Ireland in 2012 —and then I reached a point where I wasn’t quite sure what I wanted to do next.” Rather than mapping out a strict career plan, Olalekan instead decided to hang back and gain more experience where she was, before deciding on her next move.  “A lot of my friends and peers around that time were moving to Australia, the Cayman Islands, Bermuda — and thinking ahead to ‘what’s next?’ I was happy enough where I was though, so I stayed with Deloitte, moving from Audit Senior on to Assistant Manager and then Manager.” It was when Olalekan was offered a secondment with Bank of Ireland that she got her first taste of working life beyond practice. “I got this fantastic opportunity to see what it was like on the ‘other side’ working in capital investment, and I found I really enjoyed it,” she says. The experience prompted Olalekan to look further afield and, when she decided to relocate to London in 2014, she found herself open to a move into shipping – a sector she had no experience in at the time. “It was my brother who told me about this job as Group Reporting Manager with SFL Corporation and, straight away, I was intrigued,” she says. “I knew nothing about the maritime sector at the time, but shipping is such a traditional and tangible industry. I thought ‘that’s how food gets to my table and how furniture gets to my home’.  “SFL Corporation is also listed in the US, which meant I could get experience in US GAAP. I already had experience in UK GAAP and International Financial Reporting Standards (IFRS) in Ireland. I thought US GAAP would be a challenge that would really stand to me.” Olalekan was promoted to her current role as Chief Accountant with SFL Corporation in London in 2017. “They have been very persuasive in keeping me, and I really enjoy the work I do here because it is just so interesting,” she says. “My day-to-day can go from journal approvals on really important qualitative items to filing statements to the US Securities and Exchange Commission’s EDGAR [Electronic Data Gathering, Analysis, and Retrieval] system. “I’m involved in preparing financial data for press releases, and in constantly reviewing and ensuring the accuracy of the information we make available to the public. I advise our commercial and operational teams on the accounting implications of new business contracts and potential transactions. My role is so varied and I find that incredibly rewarding professionally.” As her career has progressed, Olalekan has settled into an open, approachable leadership style centred on building strong relationships with the people on her team, as well as those she reports to and colleagues in the wider organisation. “There are many ways you can approach leadership and different styles work for different people—but I have always leaned into genuine, positive relationships and that continues to work really well for me to this day. “I make sure that I am seen as a ‘can-do’ person; someone people won’t hesitate to approach to ask for help. This has been very beneficial because people know I don’t shy away from work and that I’m not afraid of challenges.  “In any new role, you can’t know everything straight away. That is what growing and learning as a professional is all about. If you are seen as a positive can-do person who can be relied on to work hard, it is more likely that you will be offered promotions because your managers will trust that, even if you are not 100 percent ready, you will rise to the occasion, learn, and do what is needed.” Approachability, and a willingness to help others and collaborate to solve problems, is equally important for managers who want to support, encourage, and get the best from the people on their team. “Just as my managers know they can trust me, my team learns the importance of trustworthiness from me. It creates a positive chain reaction,” says Olalekan.  “They know they can come to me with problems and challenges, and that means they are also more likely to come to me with ideas, insights and solutions that can benefit the business. That is very rewarding for me as a manager.” A mother to two young children, Olalekan still finds time outside her work and home commitments to support her profession. A committed member of the London Society of Chartered Accountants Ireland, she was among four members recently elected to Council. “I am honoured to have been elected and to have the opportunity to give something back to the profession that has been so good to me in my career,” she says. “We train people to be robust, to be intimate with numbers, to be able to analyse the data and make sense of the figures. You don’t need to be the CFO of a FTSE 100 to be a success in this profession.  “My own ambition now is to add value to the organisation I work for, and support the people I work with. Even though I was so sure so young that I wanted to be an accountant, I couldn’t have known then how fulfilling my career would turn out to be. I am exactly where I want to be.”  

To be truly successful in the fast-changing world of work, employers must start to think more strategically about the skills they need now as well as the skills they will need in the future, writes Niamh O’Brien. We are hearing a lot these days about emerging workplace trends and disruptors, such as Artificial Intelligence, smart working, and the gig economy. While it’s clear that all are having a marked impact on how we work and experience the workplace, what is less clear for many employers is how best to factor these far-reaching changes into their ongoing approach to people management. Evolution of technology, processes and skills Technology not only influences the work employees do but can also change the entire working environment—by facilitating remote working and providing access to a broader talent pool, for example, or transforming everyday processes and procedures. As a result, employers must start to think differently about their people, the skills they need right now, and the skills they are likely to need tomorrow. For many, this will require a more strategic, agile, and future-focused approach to managing their talent pool—not just for ‘right now’, but also for the future. Adding to this challenge are the evolving needs and demands of today’s workforce. More people are looking for greater opportunities to experience meaningful work, greater flexibility in their working lives, and more opportunities for personal development, training and upskilling. Employer value proposition To be truly successful, your people strategy must therefore encompass and build on all of these elements, but—no matter how complex or demanding the process of putting it together may be—your future-focused people strategy won’t, in itself, be enough.   As with any strategy, the real challenge often lies in bringing it to life, and it’s impossible to talk about people strategy without touching on Employer Value Proposition (EVP). Your EVP – that is, your employee branding and the way your organisation markets itself to attract talent – is integral to your people strategy. Without robust employee branding, you will lose people to your competition. The only way to gauge an active and engaged EVP is through measurement and KPIs. Keep on top of this and you are far more likely to achieve the desired results. This is because a measurable strategy, with clearly defined KPIs and a cyclical model of assessment and realignment, is far more likely to deliver results. Future-proofing your people strategy Your strategy should also span your entire talent ecosystem, including permanent employees, temporary or contingent staff, contractors, consultants, and gig workers. Only by mapping flexible solutions, which allow you to fill skills gaps in your organisation today and plan for the future, will you be able to implement a truly effective people strategy that can support long-term growth. Niamh O’Brien is Director of Talent Management at BDO.

Pat O’Neill outlines his priorities for the year ahead, including the need to increase the supply of accounting talent nationwide and reach out to members globally post-pandemic.  As Pat O’Neill begins his term as President of Chartered Accountants Ireland, his driving focus will be on tackling the ongoing capacity constraints facing the profession. Speaking at his election by members at the Institute’s 134th AGM in Dublin recently, O’Neill pointed to the urgent need to address the ongoing shortage of critical accountancy skills in the Irish labour market. “Despite the recent and current challenges of the pandemic and the re-emergence of significant inflationary pressures, the economy continues to grow,” O’Neill told attendees at the AGM on Friday, 20 May.  “Our economic pillars of large-scale foreign direct investment and successful domestic business require appropriate levels of accounting talent, both within their organisations and also in the accounting profession upon which they rely for their transactional and regulatory compliance needs.”  Despite this fundamental need, however, the reliable supply of accounting talent continued to be disrupted by structural issues requiring urgent action, O’Neill said. “If we don’t work hard to tackle significant issues facing accounting supply in this country relating to education, qualifications and permits, this ongoing shortage could have a significant impact on businesses here, both indigenous and FDI, potentially harming the wider economy in the future.” Second-level syllabus One of the primary factors impeding the supply of accounting talent nationwide is the accounting syllabus at secondary level. “The syllabus was introduced over 25 years ago,” said O’Neill.  “Not only does this mean that our students are being taught material and concepts, which are now somewhat obsolete, but the syllabus also does little to introduce our young people to the breadth of what the modern accountant’s role actually is—and how they add value to businesses, the economy, and society as a whole.”   It is crucial that the syllabus be reviewed, refreshed, and made “truly fit for purpose” in the 21st century, O’Neill said.   “Without this, students will be deterred from pursuing further studies and a career in accounting due to a fundamental misunderstanding of what accountancy involves and the career opportunities and choices it provides,” he said.  “Another consequence is that we have an insufficient number of students emerging from second level through third level and into professional qualifications. Ultimately, this means Ireland won’t have enough ‘bench-strength’ to support Irish businesses—but, thankfully, it is within our power to create positive change now.”   Departmental submission The Institute, under the auspices of the Consultative Committee of Accountancy Bodies-Ireland, last year made a submission on this matter to the Department of Education, including the findings of its accounting syllabus review.   “The National Council for Curriculum and Assessment has published its Report on its Senior Cycle Review and, whilst we are heartened that reform of the senior cycle is now recognised as necessary, the pace of change is just too slow,” O’Neill said.   “It has taken four years to reach this stage and it will likely be 2027 by the time we see changes coming through in the first tranche of subjects, which are still to be determined.  “Unfortunately, during this time, the issues facing Irish businesses in terms of the lack of supply of accounting talent are only likely to worsen.”  As it stands, the accountancy profession is already included on the Government’s Critical Skills Occupations List.  Compiled by the Department of Enterprise, Trade and Employment, the list catalogues professions required for the proper functioning of the economy, which are being impacted by a shortage of qualifications, experience or skills. The Northern Ireland Executive has also listed accountancy as an in-demand skill north of the border. Recognition of qualifications In addressing the capacity issue, O’Neill also referenced the need to ensure that the needs of business and the profession are met through the adequate recognition of qualifications. With more than 30 years’ experience as an audit partner with EY, he has significant involvement at board level with many plcs, providing insight and best practice guidance regarding boards’ risk and corporate governance agendas. “In the Republic, a substantial amount of the work required for the audit qualification must be statutory audit work,” O’Neill said. “This means that, despite students spending a significant amount of their training supporting US FDI businesses with their US reporting requirements—and with much of this controls work also used in the statutory audits of Irish subsidiaries—it will not count towards qualification. “The same goes for experience gained in auditing UK subsidiaries by students based in the Republic. The Department of Enterprise Trade and Employment and the Irish Auditing and Accounting Supervisory Authority (IAASA) must be involved in finding a solution to this situation.” Sourcing overseas talent O’Neill noted that, as a growing economy, if Ireland cannot source sufficient accounting capacity at home, we must ensure that we do all we can to attract candidates with the necessary skills from other countries. “It is my steadfast belief that people and businesses achieve great things when they come together and that diversity of background and thought is key to any profession,” he said. “I benefited from my own upbringing from an early age in Shannon, Co. Clare, which was at the time perhaps a uniquely multinational community in the regions. “Early in my career in audit, I moved from Dublin to the UAE where I spent some time working in Dubai in the early nineties. I was thrown in at the deep end and had the opportunity to work with some companies over there that followed US accounting rules.   “That experience turned out to be incredibly useful for me professionally for many reasons, not least because—when I returned to Dublin in 1995—Ireland’s tech boom had begun and indigenous companies like CBT, Smartforce, Iona, and Trintech, were listing on the Nasdaq.  “The experience I had gained working with those companies in Dubai following US accounting rules was suddenly invaluable, so I know first-hand just how important experience gained in other jurisdictions can be in our career.” Chartered Accountants Ireland has been working closely with the government in recent months to promote the need to reduce application processing times for Critical Skills Employment Permits granted to accountants from outside the European Economic Area who have been hired to work here.  “The improvement now coming through in the processing time for such permits as a result has seen wait times reduced to six to eight weeks from as high as four months,” said O’Neill.  “Now, however, we must retain—and even improve upon—these shorter processing times to attract the right talent.” Northern Ireland Protocol  O’Neill highlighted the need for certainty and stability in the wake of the most recent Assembly Elections amid ongoing disagreement on the Northern Ireland Protocol.  “The Protocol remains a subject of debate now more than ever, and there is no doubt that challenges exist, but predictability and certainty are key for business and the economy in Northern Ireland,” he said.  “The Institute was an early advocate for the unique benefits of the Protocol for businesses located in Northern Ireland.  “We have almost 5,000 members there, and it is incumbent upon us to convey the positive feedback the Institute has received regarding the unique market access they have into both Britain and the EU.” Power of connection Now that the worst of the COVID-19 restrictions are behind us, O’Neill stressed the need for greater connection and acknowledged the crucial role played by the Institute in supporting a global network and helping to forge valuable professional and personal connections among members the world over.  “The benefit of networking to our 30,000+ members, and the critical importance of the physical interaction of our students, cannot be understated,” he said.    “We will continue to work towards a return of our networking events to pre-pandemic levels to the extent we can over the coming year. We have been highly successful in our innovations in training, and ability to shift to examining our students remotely through the pandemic.   “Through the Institute’s Education Department, and in conjunction with our training firms, we will be looking at how to achieve a balanced blend of online and physical learning delivery in the future to facilitate this interaction.”  O’Neill is a longstanding member of the Institute who has served on the Council of Chartered Accountants Ireland since 2014. He is a former Chair of the Institute’s Audit, Risk and Finance Board, and a former Chair of its Leinster Society.   “The importance of the Institute and our District Societies both here, across the Island of Ireland, and abroad in connecting—and now reconnecting—our members is not lost on me,” said O’Neill.  “I have benefited enormously from my membership over the years, and during my Presidency, my hope is that I can give back to the Institute and to all of our members whose commitment is so highly valued.” Global membership Established in 1888, Chartered Accountants Ireland today represents more than 30,000 members in over 90 countries and has responsibility for educating 7,000 students.   The Institute’s objective is to create opportunities for members and students, and ethical, sustainable prosperity for society.   It is a founding member of Chartered Accountants Worldwide, the international network of over one million Chartered Accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe, and the International Federation of Accountants.     “The Institute is here to serve our members and students and I feel privileged to be able to support this effort in my role as President,” said O’Neill.