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Sustainability
(?)

Cop 29: The Baku Finance Goal

The global climate summit ‘COP29’ has concluded in the early hours of Sunday morning, 24 November, a good 32 hours after the summit was scheduled to finish in Baku, Azerbaijan. The gavel descended on the fourth longest COP on record with the agreement ‘The Baku Finance Goal’, a new finance target for tackling climate change. This New Collective Quantified Goal (NCQG) replaces the goal initially agreed in 2009 for developed nations to provide $100 billion annually in climate financing for developing countries.  The final figure of $300 billion a year for climate vulnerable countries has been the subject of much debate, either derided as ‘totally unacceptable and inadequate’ and ‘sleight of hand accounting’, or heralded as an ‘insurance policy for humanity’ and ‘keeping the core principles of the Paris Agreement alive’. COP summits have long been criticised as ‘talking shops’, seen by many as overly influenced by fossil fuel lobbyists. The summits are characterised by round after round of negotiations between the parties (countries) which have agreed to participate in – and be bound by – the UN treaties to the United Nations Framework Convention on Climate Change Treaty (UNFCCC). Progress appears incremental – even tortuous at times – when what is required is urgent, sweeping change in the face of existentialist crises. This was the first COP to have climate finance as the main item on the agenda. The new Baku Finance Goal’ of $300 billion a year is to help developed countries build resilience, prepare for disasters and cut emissions of planet-warming greenhouse gases. However, the new goal falls far short of the $1 trillion that was generally accepted to be the amount needed per year by 2030, rising to $1.3tn by 2035. While a larger overall target of $1.3 trillion per year is posited in the final agreement, most of this is to come from private sources, despite urgent calls from developing countries for it to come from public sources instead. Speaking from Baku, Ireland’s Environment Minister Eamon Ryan, described the agreement as “far from perfect and it does not go nearly far enough, particularly on mitigation, gender and human rights – but it keeps the core principles of the Paris Agreement alive and it gives us a basis to work from as we move forward to make COP30 in Brazil transformational”. EU climate envoy Wopke Hoekstra said COP29 would be remembered as “the start of a new era for climate finance”.  However, UN Climate Change Executive Secretary Simon Stiell warned in his remarks made at the closing of the summit that “like any insurance policy – [the new finance goal] only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives.” Fossil fuels A major theme of COP29 was to build on last year’s ‘global stocktake’ commitment in the UAE to transition away from fossil fuels. The parties Baku failed to reach an agreement on this key issue, with the text lacking any explicit mention of the commitment to “transitioning away from fossil fuels”. The parties chose instead to hold over the decision to COP30 next year in Brazil. Voluntary carbon market Article 6 of the Paris Agreement had set out how countries can pursue voluntary cooperation to reach their climate targets, but it took a decade of deliberation for countries to finally agree a deal at COP29 to allow carbon trading between nations. The framework allows countries to trade carbon credits with each other, as well as companies and, critically, details an accounting system for how a country selling a credit can deduct that from its national carbon ledger to prevent the same credit from being used twice. Although experts worry that the carbon market rules will not be strong enough to weed out bad offsets, many see the agreement as welcome development, with hopes that the signing off of the rules will create an international carbon trading system for countries to meet their Paris commitments. What happens next COP30 will take place in Belém, Brazil. It will focus on efforts by each country to reduce national emissions and adapt to the impacts of climate change (the so-called ‘NDCs’ or ‘nationally determined contributions). It will also be the last of a so-called ‘troika’ of COPs, which started with COP28 in Dubai in 2023 and progressed through COP28, with its focus on climate finance. The idea behind that troika, agreed on at COP28, is that the three COP presidencies will collaborate on various activities to raise ambition across all pillars of the Paris Agreement on a Roadmap to Mission 1.5°C, ‘from Baku to Belém and beyond’. In addition to highlighting the importance of protecting the Amazon rainforest for the planet's ecological balance, COP30 has been described by G20 leaders as “our last chance to avoid an irreversible rupture in the climate system”. Read more Making sense of the COP29 outcome (Financial Times) The Irish Times view on Cop29: multilateral approach on climate just about hangs on (Irish Times) COP29: Key outcomes agreed at the UN climate talks in Baku (Carbon Brief)

Nov 25, 2024
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Public Policy
(?)

COP29 – X marks the spot

COP29 – the 2024 global climate summit – is coming to a close, after two weeks of negotiations in Baku, Azerbaijan. Climate finance has been a major focus of the summit, particularly the setting of a new finance target called the New Collective Quantified Goal, or NCQG, for tackling climate change. The goal will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries.  (Here’s a quick refresher on COP from the Chartered Accountants Ireland website). X marks the spot in the draft of the agreement Negotiations on the first draft agreement on climate finance have failed to produce a document acceptable to all parties. It was immediately deemed inadequate by EU negotiators, with EU Climate Commissioner Wopke Hoekstra stating “As for the text overall, I'm not going to sugarcoat it - it is clearly unacceptable as it stands now”. The 10-page draft of an agreement on a ‘new collective quantified goal’ (NCQG) did not contain even a range of values for the headline goal, recognising that developing countries need a commitment of at least “USD [X] trillion” per year. This mystery figure – and who will pay it – are among the sticking points at COP this year, which can be summarized as follows: How much money? The amount of finance needed by developing countries to fight climate change has been the subject of much debate. Rich nations have pledged $100 billion a year. Many developing countries say that $1.3 trillion a year is accurate. (For context, $2.4 trillion was spent on weapons in 2023, and at least $1 trillion on fossil fuel subsidies in 2022.)   Grants or loans? Developing countries are advocating for the money to be given in the form of grants from rich governments, and not loans which would add to the national debt of vulnerable countries. Speaking at the summit, Ireland’s Minister from Climate Eamon Ryan, described this as “a fundamental justice issue”, and stated that COP is about “changing the financial system so that fundamental injustice does not continue into the future.” (Minister Ryan has been asked by the UN and the Cop29 presidency to lead negotiations on adaptation).   Public or private? Developed countries want all sources of finance, including public money and private investment, to be counted toward the goal.   Which countries should pay? The definition being used at COP of a ‘developed’ country dates from 1992. Delegates from both developed and developing countries have described this definition as ‘obsolete’. They advocate for China and India in particular to no longer be treated as developing countries and to provide financial assistance to poorer countries. Other issues Fossil fuels At last year’s COP in Dubai, the final agreement contained a pledge to “transition away” from fossil fuels. It was the first time in the history of the climate negotiations that nearly 200 countries agreed to even mention fossil fuels in the agreement. Many commentators have expressed concern that this pledge is being neglected at this year’s COP in Baku, and the high number of representatives from fossil fuel companies, and the location for the conference itself, has drawn criticism from several sources: Azerbaijan’s total economy is heavily dependent on oil and gas, which account for about half of and more than 90% of its exports, and the Chief Executive of the international climate summit was secretly filmed promoting fossil fuel deal by an undercover climate organisation days before the conference was to get underway. Who was there – and who wasn’t Another issue of note this year was the absence of various world leaders (including Ireland’s), although US President Joe Biden did travel to the Amazon to launch the new Brazil Restoration & Bioeconomy Finance Coalition (BRB Finance Coalition), members of which include the World Bank Group and the World Economic Forum. Europe’s official COP29 delegation was led by Lídia Pereira, with European Commissioner for Climate Action Wopke Hoekstra convening a press conference with representatives of ‘like-minded ambitious countries’ to underscore their commitment to delivering Nationally Determined Contributions (NDCs) that are aligned with a 1.5°C trajectory. Ireland’s national statement to the summit was delivered by Minister for Climate Eamon Ryan, who highlighted the importance of a successful conclusion to the talks: “Giving up would be unforgiveable, but success can help restore belief in multilateralism and restore confidence.” Another Irish commentator at COP29 was the Chair of the Elders and former President of Ireland Mary Robinson. Mrs Robinson drew attention to the discrimination and inequality that climate change causes globally to women and children and was critical of what she described as attempts by the Vatican, Russia and Saudi Arabia to blocking progress on a gender-related climate action plan.   The Global Carbon Market Another important highlight of this COP was the endorsement of a global carbon market framework under Article 6 of the Paris Agreement. Under Article 6 countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets. Although the COP29 presidency welcomed this ratification of the last part of the Paris Agreement as an ‘early win’,  other commentators fear that there are still unresolved fundamental and technical issues. Separately, the Integrity Council for the Voluntary Carbon Market has approved three methodologies for generating high-integrity carbon credits aimed at reducing emissions from deforestation and forest degradation in developing countries (‘REDD+’). The multi-stakeholder-led independent not-for-profit organisation was set up in 2021 in response to the final recommendations of the Taskforce on Scaling the Voluntary Carbon Markets (TSVCM).   Read more Fight over cash at climate summit as time runs out at COP29 (BBC) COP29 climate talks enter final phase: What happens next? (RTÉ News) UAE urges countries to honour fossil fuels vow amid Cop29 impasse (The Guardian) COP29: The selfish case for climate finance - New academic paper argues climate-focused grant finance is in rich countries’ economic interest (Financial Times) – Premium G20 helps lift mood at Cop29 climate talks (Irish Times)

Nov 22, 2024
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Tax
(?)

Maintaining Ireland’s Competitive Advantage Post 2024: Chartered Accountants Ireland and IDA Ireland launch FDI guide

Chartered Accountants Ireland has today launched its new guide to Foreign Direct Investment (FDI) in Ireland at an event in conjunction with IDA Ireland in Dublin.  Over 100 attendees gathered in Chartered Accountants House to hear from a panel of: Cróna Clohisey, Director of Public Affairs Chartered Accountants Ireland Feargal O'Rourke, Chair, IDA Ireland Barry Doyle, President Chartered Accountants Ireland Ireland faces greater competition as a location for global FDI than ever before as we move into 2025, with other countries enhancing their offering at pace. While Ireland’s FDI policy has stood the country in good stead for decades, a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means Ireland’s inward investment model is now at a crucial inflection point. Commenting at the event, Cróna Clohisey, Director Public Affairs, Chartered Accountants Ireland said “Ireland’s record of attracting FDI has been the envy of other countries for decades and IDA Ireland has played a pivotal role. However, against a backdrop of heightened geopolitical uncertainty and intensifying global competition for inward investment, we cannot afford to be complacent about our offering. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.” Barry Doyle, President, Chartered Accountants Ireland said “We are all familiar with the advantages that Ireland holds in attracting FDI - EU membership, strategic location, young talented workforce and a stable business environment. Our members also represent a key competitive advantage, with Chartered Accountants playing a central role in supporting FDI the length and breadth of the country. “Competition has never been greater for the flow of FDI around the world, and with a new US administration taking office in a matter of weeks, there is an increased chance of disruption to the traditional flow of FDI globally. However, investors with a long term, sustainable outlook will look beyond short-term protectionism. Ireland as a safe and stable environment will continue to benefit greatly from FDI and we as Chartered Accountants will be there to lead and support such investments.”

Nov 12, 2024
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Investment Business
(?)

Ireland must protect and grow FDI success in new competitive landscape

Increased global competition one of several challenges to FDI model Addressing infrastructural deficit critical to ensuring continued FDI growth Chartered Accountants Ireland launches FDI guide, highlighting critical role its members play in supporting investment   Ireland faces greater competition as a location for global Foreign Direct Investment (FDI) than ever before as we move into 2025, with other countries enhancing their offering at pace. While Ireland’s FDI policy has stood the country in good stead for decades, a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means Ireland’s inward investment model is now at a crucial inflection point, according to Chartered Accountants Ireland.  The Institute, the largest professional body on the island of Ireland, representing over 38,400 members, has today launched its new guide to FDI in Ireland at an event in conjunction with IDA Ireland in Dublin.   Cróna Clohisey, Director Public Affairs, Chartered Accountants Ireland said  “Ireland’s record of attracting FDI has been the envy of other countries for decades and IDA Ireland has played a pivotal role. However, against a backdrop of heightened geopolitical uncertainty and intensifying global competition for inward investment, we cannot afford to be complacent about our offering. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.” Barry Doyle, President, Chartered Accountants Ireland said  “We are all familiar with the advantages that Ireland holds in attracting FDI - EU membership, strategic location, young talented workforce and a stable business environment. Our members also represent a key competitive advantage, with Chartered Accountants playing a central role in supporting FDI the length and breadth of the country. “Competition has never been greater for the flow of FDI around the world, and with a new US administration taking office in a matter of weeks, there is an increased chance of disruption to the traditional flow of FDI globally. However, investors with a long term, sustainable outlook will look beyond short-term protectionism. Ireland as a safe and stable environment will continue to benefit greatly from FDI and we as Chartered Accountants will be there to lead and support such investments.”    

Nov 12, 2024
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Sustainability
(?)

Accounting for nature – the ‘Biodiversity COP’ and what it means for business

  COP16, the major United Nations summit on biodiversity, concluded on 1 November in Cali, Colombia, after a record number of attendees attended two weeks of negotiations on progress towards the goals of the United Nations Convention on Biological Diversity. Governments failed to agree on how the goals of the 2022 Global Biodiversity Framework will be financed, but some key agenda items were adopted and are now operative (see below). This article provides background to the summit and what it means for accountants.   What is the Biodiversity COP? ‘COP’ stand for ‘Conference of the Parties’. COPs are the main decision-making bodies of the United Nations treaty bodies. At COPs representatives of all the ‘Parties’, i.e. countries that have agreed to participate in and be bound by the treaties, converge to discuss their progress on achieving the goals of the treaties. The Biodiversity COP – also known as the Convention on Biological Diversity (CBD) or the ‘Nature COP’ – was established to promote the conservation and sustainable use of biodiversity, as well as the fair and equitable sharing of benefits arising from genetic resources. While the more famous ‘Climate COPs’ take place every November, the Biodiversity COPs happen every second October. Biodiversity COPs are becoming increasingly relevant to business as the scale of biodiversity destruction, and its impact on people, planet and economies, becomes clear.   What was the theme of COP16? The headline of the COP16 summit was “peace with nature”. It focused on how the nature crisis is entrenching poverty and jeopardizing economies and undermining the Sustainable Development Goals.  The theme of COP16 was ‘COP of the People’, as explained by Susan Gardner, director of the Ecosystems Division at the United Nations Environment Programme (UNEP): “For too long, humanity has viewed itself as separate from nature…That perspective is starting to shift and COP16 will be an important opportunity to re-enforce the message that humanity and nature are intrinsically linked.”  This summit saw the launch of The World Coalition of Peace With Nature: A Call for Life,  a coalition of 21 countries that agreed to a set of principles aimed at changing humanity's relationship with nature. It called for “the development of public policies to strengthen institutional and human capital, governance, intercultural dialogue, technical capabilities, and adequate finance to achieve a balanced and harmonious relationship with nature”.   Why was this COP so important? The primary agenda of COP16 was the implementation of the ‘Kunming-Montreal Global Biodiversity Framework’ (GBF) Often described as the “Paris Agreement for nature”, the ‘GBF’ had been adopted at COP 15 in December 2022 in Montreal, Canada. It set out four long-term goals and 23 specific targets to be achieved by 2030 to halt and reverse biodiversity loss. Under the GBF, countries are expected to submit updated national plans detailing how they will meet their targets under GBF. These National Biodiversity Strategy and Action Plans (NBSAPs) were to be submitted by the start of conference on October 21. Only 17% of the 196 countries had submitted their updated NBSAPs by the start of the conference, among them Colombia, Mexico, Suriname, and Cuba. By the close of the summit, only 44 out of 196 parties – 22% – had come up with new biodiversity plans.   Why does biodiversity matter to business? UN Secretary-General António Guterres has emphasised how prompt and effective action on the nature and biodiversity crisis makes economic sense: “Every dollar invested in ecosystem restoration creates up to thirty dollars in economic benefits.” At COP16, Guterres warned delegates that humanity faces a “dangerous and uncertain tomorrow” caused by its destruction of life-sustaining nature. Many businesses and financial institutions have already acknowledged the real risks this presents to business and livelihoods and signed a call to heads of states and governments for renewed policy ambition in advance of COP16 to implement the Global Biodiversity Framework and halt and reverse nature loss this decade. In recognition that businesses and the accountancy profession need to be part of the solution, the Global Accounting Alliance (GAA) in March 2022 launched a call to action to the accounting profession in response to the nature crisis. In October 2024, it published a report taking stock of the GAA’s collective accomplishments against its four nature commitments. The report, The GAA’s Progress and Pathway to 2030, considers relevant trends affecting the profession, such as the growing market trend towards transparency, reporting and regulation on nature-related issues. It also sets out actions that the GAA and its members will take to help further accelerate collective progress towards our nature commitments.   Accounting and finance at COP Finance was a critical issue at COP16, as $700 billion annually is reportedly needed to achieve the GBF targets on biodiversity protection and restoration. For the second time in its history, a Finance & Biodiversity Day took place at a Biodiversity COP, but funding commitments have fallen short of the target, with only seven countries pledging a total of $243 million to the newly established UN fund for the GBF. The lack of sufficient funding threatens the implementation of biodiversity projects on the ground. A new ‘Cali Fund’ was agreed to collect voluntary contributions from pharmaceutical and other companies to cover their use of genetic data from nature, but overall COP16 failed to reach consensus on global finance for nature.   Nature-related reporting was a major theme at COP16, with discussions on how companies can better assess and communicate their impacts and dependencies on nature. This includes aligning business practices with the UN Sustainable Development Goals (SDGs), particularly those related to responsible consumption and production, climate action, and sustainable cities and communities. Among the highlights:   The International Sustainability Standards Board (ISSB) attended the summit, organising events particularly focused on biodiversity, ecosystems and ecosystem services disclosures.   The Association of Chartered Certified Accountants (ACCA) released a paper designed to help accountants support organisations to undertake nature-related reporting and tackle sustainability-related challenges: Empowering Business: Navigating Nature-Related Reporting”.   The Taskforce on Nature-related Financial Disclosures (TNFD) published a draft paper as part of its work to help markets access decision-useful nature-related data.A roadmap for upgrading market access to decision-useful nature-related data is now available for consultation and feedback.   Biodiversity credits were also to the forefront in COP16, with three international organisations releasing a set of 21 high-level principles for biodiversity credits which aims to steer the emerging market. The organisations were The World Economic Forum (WEF) the Biodiversity Credit Alliance (BCA) and the International Advisory Panel on Biodiversity Credits (IAPB). These principles were first launched in 2022 in an attempt “to explore the potential of biodiversity credits to unlock new financing for measurable positive outcomes for nature and its stewards.” The WEF also published a new report, Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature, that aims at empowering business leaders to take decisive actions towards a nature-positive future.   What’s next? This is the first of three UN environment COPs taking place in 2024. The Climate COP - COP29 – will take place in Azerbaijan from 11-22 November. In December, Saudi Arabia will host another COP, this one focused on desertification. Chartered Accountants Ireland will bring you highlights as they happen.   Articles COP16: Key outcomes agreed at the UN biodiversity conference in Cali, Colombia (Carbon Brief) UN summit agrees deal on genetic data but fails on wider finance to protect nature (Financial Times) Countdown to COP16: are businesses and government turning the tide on nature loss? (Business for Nature) Malcolm Noonan tells Cop16 Ireland making progress in ending biodiversity loss (Irish Times)     For more resources on nature and accounting, visit Biodiversity - Accounting for Nature in the Chartered Accountants Ireland Sustainability centre.

Nov 07, 2024
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Public Policy
(?)

FDI in Ireland and the US Presidential Election

Three Chartered Accountants weigh in on how the outcome of the US presidential election might impact the future of foreign direct investment in Ireland, exploring potential economic shifts and changes to the corporate tax regime Paraic Burke Head of Tax PwC Ireland Despite international uncertainties, Ireland’s economy continues to be one of the best-performing in Europe.  Employment remains at a historic high, our fiscal position is strong and inflation is easing. Global companies here continue to see the opportunities Ireland presents as a gateway to Europe and further afield, with a highly skilled workforce in a stable business environment.  The impact of the US election on Ireland’s FDI from a tax and business perspective is two-fold:   1. The US election should determine how the US responds to the stalled element of global tax reforms led by the Organisation for Economic Cooperation and Development. While Ireland and EU member states have enshrined Base Erosion and Profit Shifting Pillar Two into their domestic law, the US has not.  Depending on a complex series of political factors, we could see increasing tensions between the US and Europe, which could have big implications for Ireland. Under a clause in the Pillar Two agreement called the undertaxed profits rule (UTPR) – a way of ensuring that multinational companies pay the globally agreed 15 percent corporate tax rate on their profits – the Irish Government, like others across the EU, could find itself having to tax US profits.  This would not sit well with the US Government. If it is not dealt with, it could have serious trade implications for multinational companies exporting from Ireland. The outcome of the election will very likely have a significant impact on the US approach in this context. 2. This US election will also determine who deals with the potential expiration in 2025 of the individual tax rate cuts introduced by Donald Trump in 2017.  As part of the overall strategy in this context, Democratic candidate Kamala Harris has outlined a plan to raise the US corporation tax rate to 28 percent (currently at 21 percent), but this is likely to be politically impossible.  On the other hand, if elected as US President for a second term, Trump has mentioned a reduction in the US corporate tax rate to 15 percent – although, again, this is likely to be impossible given the overall US fiscal position.  In addition, Trump has regularly stated that he may adopt a policy of applying tariffs on all US imports, a move that could greatly disrupt global trade, including Irish exports.  Cormac Kelleher International Tax Partner Forvis Mazars The upcoming presidential election in the US, due to take place in November, is delaying US companies in making their foreign direct investment (FDI) decisions.  Uncertainty over upcoming trade policy is causing new and existing US businesses to pause decision-making. However, it has not stopped firms from exploring and readying themselves for investment decisions in 2025. If the US introduces or strengthens existing tax repatriation programs post-election, as seen in the Tax Cuts and Jobs Act of 2017, it could incentivise US companies to bring profits and operations back home, possibly reducing FDI in Ireland.  However, given Ireland’s low corporate tax rate (12.5%) and status as a key EU hub for the technology and pharmaceutical sectors, US firms might still find Ireland an attractive location for their European operations. It will be interesting to watch the level of US engagement with the OECD’s BEPS 2.0 tax proposals.  This year has delivered probably the most significant level of tax reform practitioners are likely to witness.  The effective 15 percent rate has caused multinational groups to grapple with a plethora of complex and challenging legislation. Despite initial positive soundings from the US Treasury, achieving sufficient political appetite for the introduction of BEPS 2.0 (Pillar Two) has proved elusive.  The rules, however, will result in US-headquartered groups being affected by the global minimum tax rules from 2026 onwards.  If Pillar Two plans continue to have momentum, commentators will watch with interest to see how the US will react and whether retaliatory measures will be introduced. While tax policy is an important feature of Ireland’s FDI offering, there are many other features that are equally attractive and important to organisations when seeking to establish an international presence.  This is particularly important for firms establishing their first presence outside the US.  Ireland will continue to be an important cog in the global international tax expansion plans of US-based multinational groups. Fundamentals – including making Ireland an attractive location for people to relocate to – will play a greater role in years to come. Catherine Drysdale Consultant Barden Ireland's job market is highly interconnected with global trends and events. There are a number of key factors impacting the employment industry in Ireland at present, including the upcoming US election and potential impact on FDI, geopolitical conflicts, climate initiatives, uncertainty regarding policy and regulatory changes and interest rates and inflationary impacts. How these directly impact talent looking for opportunities within US companies headquartered in Ireland will be sector dependent. Certain sectors, for example, will be impacted more significantly by policy and regulatory changes including technology, pharmaceutical and financial services industries.   The challenges for acquiring talent may include: Changes in visa policies and global mobility restrictions; Cautious spending that could result in longer, more complex hiring processes coupled with the risk that companies will prioritise hiring local talent in the US due to shifting labour policies or cost-saving measures; A shift to contract opportunities, a trend we have already witnessed, reflecting employers’ desire for flexibility and a cautious approach to permanent hires; and Increased competition among jobseekers for a reduced number of opportunities, potentially leading to longer lead time to secure new roles. The stance companies are taking on hybrid and remote working arrangements remains in flux. We saw the recent announcement from Amazon CEO Andy Jassy regarding a mandatory full-time return to office. Whether others follow suit remains to be seen.  Organisations could adopt permanent remote working policies. While this may open up opportunities for a broader talent pool and flexible working arrangements, professionals in the Irish market would likely face increased competition from the global talent pool, potentially leading to downward pressure on salaries as companies seek cost-effective labour. With potential changes in the US economic environment post-election, given their established presence in Ireland, US companies with operations here may need to adjust their salary structures to remain competitive in attracting top talent, particularly if remote work opportunities expand.  A focus on enhancing their existing localised talent acquisition strategies, coupled with a strong emphasis on employer branding to showcase corporate culture and values, will help to make positions more attractive in a competitive market.  

Oct 09, 2024
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