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  In this week's Public Policy news, read about a positive economic forecast for Ireland for 2021, preliminary analysis showing a drop in Ireland’s power-generation and industrial emissions, and new guidance published on human rights for business enterprises. In other news, the UK’s BEIS Department’s has announced that next month’s ‘Your business journey to Net Zero’ will focus on Northern Ireland SMEs, and the EU is to borrow €806 billion to finance its green and digital plan.  Positive economic forecast for 2021 Minister for Finance, Paschal Donohoe TD, this week published the Government’s Stability Programme Update for 2021. This update sets out the Department of Finance’s macroeconomic and fiscal forecasts for the period 2021­–2025. The update, which must be submitted by all Member States to the European Council and Commission by the end of April each year, forecasts the following for 2021: a 4.5 percent expansion of GDP a 2.5 percent growth in Modified Domestic Demand (MDD), described as ‘a more useful indicator of domestic economic conditions’ a 16.25 percent averaging of the unemployment rate an 80,000 increase in the employment level a General Government Deficit of 4.7 per cent of GDP The projected economic recovery over the second half of 2021 will depend on the success of the vaccination programme and the assumption of an easing of public health restrictions. Employment is projected to remain below its pre-crisis peak until 2023. Commenting, Minister Donohue said: ‘The impact of the pandemic on the domestic economy and the public finances has been severe. However, the acceleration of the vaccination programme means that the beginning of the end is, hopefully, now in sight.  The strength of our economic model and more importantly, our people, clearly demonstrate that we should face this current period with optimism.  We can and we will rebuild our economy, get our people back to work and safely emerge from the pandemic.” EPA report shows drop in Ireland’s power generation and industrial emissions Preliminary analysis from the Environmental Protection Agency released this week reveals that greenhouse gas (ghg) emissions from Irish power-generation and industrial companies covered by the EU Emissions Trading Scheme (ETS) fell by 6.4 percent in 2020, their lowest level since the EU ETS was introduced in 2005. This compares however with a decrease of approximately 11-12 percent across Europe. The decrease is due to the impact of lower production in some industrial sectors during the COVID-19 pandemic, combined with a significant drop in emissions from power-generation. Emissions from the electricity-generation sector decreased by 8.4 percent, due to increased use of renewable energy (mainly wind generation) and less of fossil fuels, such as peat, in our energy mix. The EPA did report that some sectors such as dairy processing and pharmachem are increasing emissions year on year. The EPA is the Competent Authority in Ireland for the EU Emissions Trading System (ETS). This is an EU initiative which was set up to help it reach its climate targets under the Kyoto Protocol. It is the world’s first carbon market, and remains the largest. It operates as a ‘cap-and-trade system’ in which governments set an allowable total amount of emissions (‘cap’) over a certain period and issue tradable emission permits (‘trade’). These permits are typically good for 1 tonne of CO2 and are the are the currency in carbon markets.  Further information about Ireland's overall greenhouse gas emissions is available on the EPA website, along with infographics and detailed greenhouse gas inventory. New guidance published on human rights for business enterprises Minister for Foreign Affairs and Minister for Defence, Simon Coveney, TD, has this week launched new guidance on human rights for business enterprises. The guidance was developed by a multi-stakeholder group with representatives from business, government and civil society, as part of the implementation of the National Plan on Business and Human Rights. This plan aims to promote responsible business practices at home and overseas, including in developing countries, by all Irish business enterprises. Breege O’Donoghue, Chair of the plan’s implementation group, pointed to the legislative developments in the area of sustainable corporate governance that are taking place at EU level, and stated that “it is essential that businesses familiarise themselves with the UN Guiding Principles on Business and Human Rights and implement best practice in their operations.” She went on to urge Irish businesses to consult the guidance and also avail of a practical workshop for businesses, which is being organised by the Trinity Centre for Social Innovation, in partnership with The Global Business Initiative on Human Rights. The new Guidance on Business and Human Rights for Business Enterprises is available here. ‘Your business journey to Net Zero’ in Northern Ireland – Thursday 29 April 2021 10:00-16:20 The Department for Business, Industrial Strategy & Energy (BEIS) is bringing its popular ‘Your business journey to Net Zero’ to Northern Ireland on 29 April. In conjunction with the Northern Ireland Office and the Federation of Small Businesses Northern Ireland, BEIS will run the event virtually and it is aimed at SME businesses in  Northern Ireland that want to take part in tackling climate change, but are unsure of where to start ‘Your business journey to Net Zero’ will help SMEs understand the practical steps for embarking on their own Net Zero journey, and will help businesses consider the opportunities stemming from the transition to a low carbon economy.  Minister for Small Business, Consumers and Labour Markets, Paul Scully, and Minister of State at the Northern Ireland Office, Robin Walker will open the event. The UK government’s Net Zero Business Champion, Andrew Griffith MP, will be holding a panel session with businesses, and the Minister for the Economy in the Northern Ireland Executive, Diane Dodds MLA, will be also providing her closing comments in the afternoon. In addition, there will be a virtual exhibition hall for delegates to find out about local and regional Northern businesses and institutions, along with more products and services that will be of interest to them as they look to lower their carbon emissions.   Click here for details and registration. All sessions will be recorded, and any questions can be emailed to business.engagement@beis.gov.uk EU to borrow €806 billion to finance green and digital plan The European Commission has outlined plans to borrow €806 billion on the capital markets to finance its Recovery and Resilience Fund to allow it give hundreds of billions of euros in grants and low-interest loans to EU countries. The move makes it the biggest debt issuer in euros. Around 30 percent, or €250 billion, will be issued in green bonds (the Commission will present a green bond standard later in 2021). In addition to the €386 billion in loans to be repaid by EU countries, the Commission is expected propose new EU-wide levies in June to cover €407.5 billion in grants and service interest. The Recovery and Resilience Fund is the centrepiece of ‘NextGenerationEU’, the EU’s temporary recovery instrument to respond to the coronavirus crisis and to support the economic recovery and build a greener, more digital and more resilient future. The Recovery and Resilience Fund is an instrument to provide grants and loans to support reforms and investments in the EU Member States.   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre

  The Department for Business, Industrial Strategy & Energy (BEIS) is bringing its popular ‘Your business journey to Net Zero’ to Northern Ireland on 29 April. In conjunction with the Northern Ireland Office and the Federation of Small Businesses Northern Ireland, BEIS will run the event virtually and it is aimed at SME businesses in  Northern Ireland that want to take part in tackling climate change, but are unsure of where to start ‘Your business journey to Net Zero’ will help SMEs understand the practical steps for embarking on their own Net Zero journey, and will help businesses consider the opportunities stemming from the transition to a low carbon economy.  Minister for Small Business, Consumers and Labour Markets, Paul Scully, and Minister of State at the Northern Ireland Office, Robin Walker will open the event. The UK government’s Net Zero Business Champion, Andrew Griffith MP, will be holding a panel session with businesses, and the Minister for the Economy in the Northern Ireland Executive, Diane Dodds MLA, will be also providing her closing comments in the afternoon. In addition, there will be a virtual exhibition hall for delegates to find out about local and regional Northern businesses and institutions, along with more products and services that will be of interest to them as they look to lower their carbon emissions.   Click here for details and registration. All sessions will be recorded, and any questions can be emailed to business.engagement@beis.gov.uk

Ireland's leading business-to-business sustainable energy event   The SEAI Energy Show, Ireland's leading sustainable energy business event, will take place on Wednesday, 28 and Thursday, 29 April 2021. The online programme of free workshops, expert briefings, and best practice demonstrations will help businesses learn about the latest energy market developments and how to save energy and costs for their organisation. Learn about the latest innovations in energy efficiency and renewable energy and understand future policy developments underpinning Ireland’s clean energy ambitions. The show will focus on two distinct audiences: Day one will focus on the supply chain and professionals delivering building energy upgrades for whom there are significant opportunities to expand. Day two will focus on businesses and public sector energy users who are learning to reduce their energy use and decarbonise their business for the long term." Key sessions of interest to businesses, include: Upgrading our building stock – the challenges and opportunities Building the energy upgrade supply chain Achieving business decarbonisation Inspirational climate leadership – interview with Wyeth and Terra Spirits and Liqueurs on their climate action journey For more details and to register in advance for this FREE event, visit here. Once visitors are registered and have access to the online portal, they can schedule their own itinerary for the two days

It is clear why sustainability matters. Added to its obvious importance are the climate action plans rolled out by governments, the global sustainability initiatives lead by agencies such as the UN and NGOs like the World Economic Forum. There is also the increased emphasis on sustainability among deciders of capital allocation, including investors, financiers, grant providers and donors, and the rising environmental awareness in society, which expects higher standards of ethics and governance from institutions. If, as a director, you occasionally feel overwhelmed by the volume of information regarding sustainability, then you are not alone. If you wonder how sustainability is relevant to your role and what difference you can make, take assurance from Socrates that “wonder is the beginning of wisdom”. How Sustainability is Relevant to Your Organisation Whatever an organisation does, regardless of its size, sustainability will impact: its legal and regulatory requirements, how it provides a service or produces a product, whether it retains or attracts talent, whether it is attractive to customers, or whether it is perceived as a viable prospect for banks or investors. The fiduciary duties of directors require them to act in the best interests of the organisation and have regard to other stakeholders. Addressing sustainability issues and looking after the organisation’s business are clearly relevant to these duties. Sustainability may be the ultimate disrupter for businesses. Even if an organisation does nothing to address sustainability issues it will still be impacted by them. For example; What is the risk of a change in regulations challenging current business models? What is the risk of more sustainable technological advancements displacing current products, service offerings or production processes? To what extent can carbon tax increases be passed on to the consumer? What impact will phasing out of oil and gas have on residual values of assets or cost of replacement in the future? Standing still is not an option if an organisation wants to manage the impact of sustainability. Directors, acting as the mind and will of an organisation, have a key role to ensure it is appropriately identifying and responding to relevant sustainability risks. How You Can Make a Difference If you are a director or a member of a board sub-committee wanting to raise the issue of sustainability (even if this is not currently seen as a priority), consider the following approach: Get informed: Find out more about the type of sustainability issues that impact your industry. Sustainability will affect regulatory requirements, consumer demand, availability of resources and all the necessary components of the ability to do business. You do not have to become an expert on sustainability, but a little knowledge or awareness can prompt the right questions. Find Allies: Engage with other board members. Discuss how sustainability impacts the business and how the board might address the issues. You may find that you have more support than you expect. Be Honest: It is important to be pragmatic and constructive as to the reasons why the organisation should address sustainability and how it does so. There may be some immediate measures the organisation can take (‘quick wins’), but more substantive measures may be required to be taken to achieve lasting long-term benefits. Collaborate: Lasting change cannot be achieved alone. If your organisation is not clear on what to do or what direction to take in relation to sustainability, consider collaborating with other organisations on similar journeys. Be curious: Ask questions about sustainability, explore alternatives and respectfully challenge traditional assumptions. Invite others to discuss the issues and embed sustainability objectives in the organisation’s strategy. Questions beginning with ‘What if?’, ‘How?’ or ‘Could we?’ will spark curiosity and give rise to more possibilities and sustainable solutions. Sustainability cannot be achieved alone.  Strategy and know-how shared among organisations and individuals will inform, create awareness and provide confidence for the journey ahead. Directors must be confident to ask advice and seek help from others. If we agree that we all have a stake in sustainability, then we all have a stake in finding solutions to the key risks of our time.   Chartered Accountants Ireland’s Governance Conference 2021 focuses on how boards can embed sustainability in organisations and takes place online on 22 April 2021 from 9:30am. Niall Fitzgerald Head of Corporate Governance & Ethics at Chartered Accountants Ireland 

  In this week's Public Policy news, read about new training that is available for businesses responding to climate change; a report on the submissions received to the public consultation on Statutory Sick Pay; a public consultation on the introduction of a statutory right to request remote work and an increase to the UK’s National Living Wage and National Minimum Wage.  ‘Climate Ready’ Programme for Irish Businesses launches A five-year national initiative was launched this week that aims to equip businesses with skills to respond to climate change. The initiative, Climate Ready, is a partnership between Skillnet Ireland, Chambers Ireland, Wind Energy Ireland, and Sustainable Finance Ireland. It includes training on reducing energy waste, saving costs and protecting the environment, as well as reducing water consumption and helping staff understanding their impact on climate action. Speaking at the launch Minister for the Environment, Climate and Communications, Eamon Ryan, TD, described the actions that will be taken by business as “critical” to achieving Ireland’s ambitious targets. These targets are to halve greenhouse gas emissions by the end of the decade and achieve net-zero by 2050, as set out in the recently approved Climate Action Bill. Climate Ready also supports the aims of the Department of Further and Higher Education, Research, Innovation and Science’s Statement of Strategy 2021-2023, in respect of climate action, ensuring the provision of a workforce skilled in sustainable techniques and technologies. Public Consultation on putting the right to request remote working into law The Department of Enterprise, Trade and Employment has announced a public consultation on the introduction of a statutory right to request remote work. Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, TD, has encouraged employers and employees to engage with this consultation. Commenting, the Tánaiste stated that putting the right to request remote working into law would provide “a clear framework around which requesting, approving or refusing remote work can be based”. He further stated that the Government would take a balanced approach with the new legislation in recognition that remote working may not work for everyone or for every organisation. The announcement comes after the coming into effect last week of the Code of Practice on Right to Disconnect Right to Disconnect, which gives employees the right to switch off from work outside of normal working hours. The closing date for submissions to the consultation is Friday, 7 May 2021. Statutory Sick Pay public consultation - report on the submissions received The Department of Enterprise, Trade and Employment have released a report on the submissions it received from the public consultation for Statutory Sick Pay which broadly showed support for the introduction of such a scheme in the private sector. A total of 118 submissions were made, including a response from Chartered Accountants Ireland. Some of the headline responses include: 50% of respondents were in favour of the rate of payment to be a fixed percentage of the employee’s weekly earnings, with 59% of that cohort recommending full pay 43% said there should be no minimum period that the employee must be out sick before statutory sick pay applies 54% said statutory sick pay should only apply to illnesses that have been certified by a medical professional or medical body 67% were in favour of financial supports for employers who genuinely cannot afford to pay statutory sick pay More detailed responses can be found on gov.ie.  You can also read the Institute’s submission. Survey by the OECD-NDA on employment of persons with disabilities in Ireland The Organisation for Economic Cooperation and Development (OECD) has partnered with the  National Disability Authority (NDA) to conduct a review of employment of persons with disabilities in Ireland. As part of the project, the OECD has prepared an online survey for companies on how they can better create job opportunities for persons with disability. Closing date for survey responses is  Wednesday, 21 April 2021 and the survey takes approximately 15 minutes to complete. Northern Ireland report shows decrease of economic output Economic output in Northern Ireland decreased by 1.4 percent over the quarter to December 2020, according to a report on the Northern Ireland Composite Economic Index (NICEI), the quarterly measure of Northern Ireland’s (NI) economic performance based on available official statistics. The report, published this week by NI Statistics and Research Agency (NISRA), suggests that the decrease in economic growth was largely driven by the decline in the Services, Production and Construction sectors. The level of economic activity in Northern Ireland is currently 9.5 percent below the maximum value recorded during the economic downturn in Quarter 2 of 2007, while UK GDP is estimated to be 5.1 percent above its pre-economic downturn peak.    UK National Living Wage increases An increase to the UK’s National Living Wage and National Minimum Wage has come into effect, with increases per age group as follows: National Living Wage (23+) up 2.2 percent from £8.72 to £8.91 National Minimum Wage (21-22) up 2 percent, from £8.20 to £8.36 National Minimum Wage (18-20) up 1.7 percent from £6.45 to £6.56 National Minimum Wage (under 18) up 1.5 percent from £4.55 to £4.62. The age threshold for eligibility for the National Living Wage has also been lowered from 25 to 23 years for the first time increasing the number of young people eligible for the National Living Wage since it came into effect in 2016. For those from school-leaving age to 22, the National Minimum Wage will apply. The Apprentice Rate has also increased 3.6 percent from £4.15 to £4.30.   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre

  In this week's Public Policy news, read about Ireland's unemployment figures and a €20 million boost for apprentice provision, Northern Ireland's public consultation on a new energy strategy, and an expansion in the UK's 'Race to Zero' campaign.  CSO publishes March 2021 monthly unemployment statistics Figures released by the Central Statistics Office (CSO) this week show that the ‘COVID-19 adjusted’  unemployment rate for March 2021 was 24.2 percent if all claimants of the Pandemic Unemployment Payment (PUP) were classified as unemployed. This figure is down from 24.8 percent in February 2021, and up from 21.1 percent this time last year. The seasonally adjusted figures show that the rate of unemployment in Ireland in March 2021 remains unchanged from the February 2021 figure of 5.8 percent, and 0.8 percent up on the figure for this time last year.  These figures classify claimants of the PUP as employed. This is the first time the CSO has been able to analyse a full year of unemployment figures using the new COVID-19 Adjusted Measure. First published in April 2020 as part of the March 2020 Monthly Unemployment Estimates release,  this measure assumes that all those who are in receipt of the PPUP would be classified as ‘Employed’ for the standard measure on Monthly Unemployment and ‘Unemployed’ for the COVID-19 Adjusted Measure of Unemployment. The CSO also noted that at least 8.1 percent of all recipients of the PUP recipients are certified as attending full-time education.  €20 million funding announced for apprenticeship provision Capital funding of €20 million has been announced for the expansion of apprenticeship provision across further and higher education in Ireland. The expansion of the national apprenticeship system has been a key Government priority since 2016 and responds to the growing demand for apprenticeships. 1Speaking at the announcement, Minister for Further and Higher Education, Research, Innovation and Science Simon Harris, TD, announced that the move “reaffirms the Government’s strong commitment to enhancing and expanding the apprenticeship system.”  As of 31 January 2021, 19,773 apprentices are in training, employed by over 7,200 employers on 60 different apprenticeship programmes, Minister of State for Skills and Further Education Niall Collins, TD, stated that the investment would help mitigate the impacts of the COVID-19 pandemic and facilitate long-term expansion: “The forthcoming Action Plan will set out to place apprenticeships at the centre of the education and training system, increase the attractiveness of the programme to employers and learners of all ages, and ensure that the apprentice population is reflective of the general workforce in respect of diversity as well.”  Public consultation on new Energy Strategy for Northern Ireland Northern Ireland’s Economy Minister Diane Dodds this week announced a public consultation on a new energy strategy for Northern Ireland. The consultation seeks views on options for achieving net zero carbon and affordable energy, concentrating particularly on the contribution of domestic and business consumers, as well as the energy industry. Stressing the opportunities in the drive towards net zero carbon and affordable energy to create jobs and encourage investment, Minister Dodds stated: “These changes will offer numerous opportunities including the creation of new jobs, developing skills and encouraging local investment. The new Energy Strategy will help Northern Ireland rebuild stronger as a greener economy, as well as providing healthier lifestyle choices for us, our communities, and our environment.” This is the second stage of public consultation in the development of a new Energy Strategy for Northern Ireland. The first stage of consultation was a Call for Evidence which closed on 3 April 2020, and involved thematic workshops, stakeholder engagement and collaboration between five working groups covering energy efficiency, heat, power, transport and consumers. This new consultation is open from now until 30 June 2021.  UK expands efforts in its ‘Race to Zero’ campaign The UK government is set to expand its 2050 ‘Race To Zero’ campaign to encourage smaller businesses to join the initiative. Andrew Griffith, who leads the UK net-zero business strategy, announced this week that up to 30 companies in the FTSE 100 index – one-third of the biggest companies in the UK – have signed up to the campaign, including Aviva, SSE, Tesco, and Unilever. Commenting, UK High Level Climate Champion for COP26 Nigel Topping, said that: “With over 15% of the global economy - and now 30% of the FTSE100 - in the Race to Zero, we are close to a critical inflection point, with credible net zero commitments fast becoming the new normal. If they don’t join soon, the companies that have so far failed to engage with climate change risk falling behind the curve.” Race To Zero is a global initiative, backed by science-based targets and spearheaded by the United Nations Framework Convention on Climate Change (UNFCCC). It commits businesses, cities, regions, investors and universities to achieve net zero emissions by 2050. To be accepted into the Race to Zero campaign, company leaders must pledge to reach net-zero by 2050, commit to publishing 5–10-year plans of how they will achieve their target, and sign up to Science Based Targets to monitor and assess their progress.    You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre