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  Today is National Tree Day in Ireland. On this day the Tree Council of Ireland – a non-governmental voluntary umbrella body for organisations involved in the establishment, management and conservation of trees in Ireland – encourages primary schools across the country to plant a tree. It is a good day then to announce that Chartered Accountants Ireland has planted a native Irish tree for each of its 2022 Sustainability Conference speakers. This year 20 wonderful speakers addressed the conference, the second such annual event to be held by the Institute. This year’s theme was ‘Moving Beyond the Pledges’ and speakers shared their expert knowledge on how businesses can understand climate risks, transform to an ESG culture and collaborate in the future to leverage knowledge for the benefit of all levels of the economies. We were delighted to partner with Wolfgang Reforest for our planting. Wolfgang Reforest is an Irish company that is reforesting 15 acres in the River Ow valley just beyond Aughrim in County Wicklow. It is restoring this land to its former glory as a native Irish woodland, planting a diverse forest that will act as a breeding ground for wildlife, provide rich nourishment for the soils and revitalise the waters of the River Ow. Chartered Accountants Ireland’s commitment to reversing nature loss Experts warn that biodiversity loss poses as much of a threat to our planet as climate change. But businesses struggle to understand their connection with biodiversity and its relevance to their business. This leaves them potentially vulnerable to a range of risks, and leaves nature vulnerable to increasing depletion. In recognition of this, the CEO of Chartered Accountants Ireland, Barry Dempsey, joined the chief executives of 10 of the world’s leading accountancy institutes in March 2022 to support a new call to action in response to the nature crisis. Working together as part of the Global Accounting Alliance (GAA), the CEOs signed the call to action ‘Nature is Everyone’s Business’ to signal the important role the profession plays in this crisis.  You can also find resources on  in the module Biodiversity – Accounting for Nature in the Chartered Accountants Ireland Sustainability Hub. Chartered Accountants Ireland’s journey to zero  Chartered Accountants Ireland has publicly committed to achieving net zero greenhouse gas (GHG) emissions. Our journey to net zero began in December 2020 and will continue until we have balanced the residual carbon dioxide equivalent emissions with high-quality, nature-based offsets. Following an internal energy audit by a SEAI-registered energy auditor in 2021, we have progressed with decarbonising our Scope 1 and 2 emissions, and are focussing on Scope 3 in 2022. This journey is part of a project to improve how we use resources like water, paper and electricity and how we manage waste.

  A new framework for the commercial semi-State sector to address climate action objectives has been approved by Government. The Climate Action Framework for the commercial semi-State sector (‘the Framework’) aims to help the commercial semi-State sector play a lead role in Ireland’s transition to a carbon neutral economy and society. It comprises of a series of five commitments, and by signing up to the Framework, each commercial semi-State company would be entering into the commitments it contains. The five commitments are: Commitment 1: Governance of Climate Action Objectives Oversight at Board level and integration of climate action objectives in the company’s strategic business planning Commitment 2: Emissions Measurement & Reduction Target Formal adoption, on an ongoing basis, of Government emission reduction targets for the public sector and the SEAI measurement methodology Commitment 3: Measuring and Valuing Emissions in Investment Appraisals Incorporate the value of emissions in investment decision making Commitment 4: Circular Economy and Green Procurement Promote circular economy measures and green procurement Commitment 5: Climate Related Disclosures in Financial Reporting Compliance with a relevant and appropriate climate related disclosures framework within a defined timeframe The Framework will apply to each of the 22 companies in commercial semi-State sector and provides them with a means to demonstrate how they are meeting their obligations under the Climate Action and Low Carbon Development Acts 2015 to 2021. These Acts place an obligation on public bodies, including commercial semi-State companies, to carry out their functions in a manner that is consistent with national climate action ambitions. Many of these companies operate in sectors that have a key role to play in the transition to a carbon-neutral Ireland, and include Bord na Móna, CIÉ, Coillte, EirGrid, ESB and Gas Networks Ireland, and their subsidiaries. The Framework was prepared by NewERA to reflect “the exemplar role [commercial semi-State companies] are to play in decarbonisation, while also recognising the need for commercial independence in their respective operating environments”, as set out in the Climate Action Plan 2021, Chapter 9. Under the Climate Action Plan 2021, the public sector will “lead by example, inspiring the necessary climate action in wider society to reduce Ireland’s greenhouse gas (GHG) emissions by 51% by 2030, and to become climate neutral no later than 2050”. In preparing the Framework NewEra collaborated with the Department of the Environment, Climate and Communications, with input from the Department of Public Expenditure and Reform. NewERA is a business unit within the NTMA which provides financial and commercial advice to Government Ministers and departments in relation to State-owned companies across a range of sectors. The Minister for the Environment, Climate and Communications will now write to relevant shareholding Ministers to ensure that their respective shareholder letters of expectation are updated to include the commitments covered by the Framework. NewEra will report biannually to the Minister for the Environment, Climate and Communications on the implementation of the Framework.  

  A political agreement on a proposal for a Council Regulation to address high energy prices has been agreed by EU energy ministers at an extraordinary energy summit on 30 September. The regulation, which will apply from 1 December 2022 to 31 March 2023, introduces common measures to reduce electricity demand and to collect and redistribute the energy sector's surplus revenues to final customers. An infographic explains the measures, which are: Reducing electricity use Capping revenues of electricity producers Securing a solidarity contribution from fossil fuel businesses. According to the infographic: “The new rules will also allow member states to temporarily extend regulated electricity prices to small to medium businesses. This is also allowed for households and microenterprises.” The Irish Government reportedly expects that it can raise at least €1-2 billion from the measures.

  In this week’s sustainability/ESG bulletin, read about Chartered Accountants Ireland planting trees, an event from Chartered Accountants Worldwide, a new Climate Action Framework for Irish commercial semi-States, European Council measures to be introduced to reduce electricity demand and collect and redistribute revenues to customers, new funding for environment and social initiatives in Northern Ireland, and the European Commission’s call on Ireland and 10 other countries to fully transpose the Directive on Single-Use Plastics.  Chartered Accountants Ireland plants Native irish trees 6 Oct was National Tree Day for the Tree Council of Ireland. In recognition of this, Chartered Accountants Ireland has planted a native Irish tree in the name of each speaker at our 2022 Sustainability Conference. Read more. Chartered Accountants ‘Difference Makers’ Chartered Accountants Worldwide is holding a free ‘Difference Makers Discuss’ global event on October 13, 8-9 am BST. Sustainability: Connecting the Dots will focus on the vital role that Chartered Accountants play in driving positive change on sustainability. Speakers from Australia, South Africa and Singapore include Conservation Capital’s Operations Director Frances Carter FCA, SustainableDNA co-founder Belinda Carreira FCA, and Shian Goh, the Group Finance Director of Goodpack IBC (Singapore) Pte Ltd. The host is Chartered Accountants Ireland Sustainability Officer Susan Rossney. At the webinar Chartered Accountants Worldwide will launch a Sustainability Hub. This is a new, global resource dedicated to helping finance and business professionals rise to the challenge of creating a more sustainable future for us all. It will also launch the Sustainability Roadmap for Chartered Accountants, a newly published guide which provides signposts to Chartered Accountants for understanding sustainability and its impact on their work. New Climate Action Framework for Irish commercial semi-States The Irish Government has approved a new Climate Action Framework for the commercial semi-State sector (‘the Framework’) which aims to help the sector play a lead role in Ireland’s transition to a carbon neutral economy and society. Read more. European Council emergency regulation on energy prices explained A political agreement on a proposal for a Council Regulation to address high energy prices has been agreed by EU energy ministers at an extraordinary energy summit on 30 September. Read more. Call for evidence from businesses in UK’s Review of Net Zero The UK’s Department for Business, Energy & Industrial Strategy (BEIS) has commissioned an Independent Review of the government’s approach to the delivery of its net zero target. As part of the review the government has announced a broad call for evidence. This is to give businesses, along with other organisations and the general public, a chance to share their views on the whole economy transition and maximising net zero growth opportunities and more. The consultation will close at 11:45pm on Thursday 27 October 2022. New funding for environment and social initiatives in Northern Ireland The Strategic Strand of the Environment Fund has been opened for applications to not-for-profit organisations and councils to deliver projects that deliver key environmental outcomes across Northern Ireland. The maximum amount of Government funding available under the competition will normally be 85 percent of eligible project costs. Closing date for applications is noon on 8 November. Belfast City Council has launched the Social Economy Incentive Fund which is open to online applications from Belfast-based social enterprises and co-operatives. The maximum amount that can be awarded to an organisation is £10,000. Organisations must apply online by 5pm on 20 October, and shortlisted organisations will be invited to pitch on 11 November to a judging panel comprising local social enterprise stakeholders. European Commission calls on Ireland to fully transpose Single-Use Plastics Directive The European Commission has announced it is taking legal steps against 11 Member States, including Ireland, calling on them to step up the implementation of the Single-Use Plastics Directive (Directive 2019/904). The Directive aims to prevent and reduce the impact on the environment and human health of certain plastic products that are used for a very short time. It also promotes the transition to a circular economy. Although the Directive was transposed into Irish law in July 2021, Ireland has still not communicated all the measures necessary to ensure the full transposition. Ireland now has two months to respond and take the necessary measures, or the Commission may decide to refer the cases to the Court of Justice of the European Union. Did you know? Ireland will hold its first Children and Young People’s Assembly on Biodiversity Loss in October. It will bring together 35 randomly selected members aged 7-17 from across Ireland to explore, discuss and create recommendations on how to protect and restore biodiversity in Ireland. Award-winning social enterprise, Change by Degrees, which delivers strategic sustainability advice, employee engagement & specialised sustainability communications has set up a ‘Climate Club’ to help professionals become sustainability leaders. Topics that will be covered by Climate Club will include understanding Net Zero targets, how to develop a Sustainability Strategy, upcoming EU & UK Sustainability Legislation, and more. Here is link to their 30-minute Net Zero for Business webinar on 29 September. Upcoming events Natural Capital Summit - A Practical Guide to Disclosure and Reporting, 13 October, Register Practical Guide to Disclosure and Reporting European Business & Nature Summit (Link), 18-19 Oct Sustainable Finance Ireland, Ireland Climate Finance Week, 17-21 Oct CDP Ireland Network in-person event: How to Achieve Net-Zero Emissions, 20 October 11.30am – 12.30pm (As part of Climate Finance Week) Ecosystems Knowledge Network, Natural Capital Finance & Investment Conference, 19 Oct (London) 20 Oct (Edinburgh)  Accountancy Europe, Sustainability Tax Systems, 25 Oct 9-11 GMT (10-12 CEST) 2022 United Nations Climate Change Conference, more commonly referred to as ‘COP27’, Sharm El Sheikh, 6 - 18 November 2022. ‘Biodiversity’ COP15 Part 2, 7-19 December  You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  In this week’s sustainability/ESG bulletin, read about the climate and environmental aspects of Ireland’s Budget 2023, a new grant for Irish businesses to switch to renewable energy, a proposed EC ban on products made with forced labour, biodiversity and the EU’s calls for Ireland to halt peat cutting, and the UK Government’s independent review of its Net Zero Strategy, as well as articles and upcoming events.  Budget 2023 - climate and environmental impact Budget 2023 was announced on 27 September, with Minster for Finance, Pashcal Donohoe T.D., describing climate change as the one of the key challenges of our times. Read about the climate and environmental impacts of Budget 2023 here. Energy Update A Temporary Business Energy Support Scheme has been announced in Budget 2023 to assist businesses with their energy cost over the winter months. The Scheme will be open to businesses that carry on a Case I trade, are tax compliant and have experienced a significant increase (more than 50 percent) in their natural gas and electricity costs. Read more from our Tax Team here. New grant for businesses to switch to renewable energy Businesses looking to switch to renewable energy and reduce their energy bills can now apply to the Sustainable Energy Authority of Ireland (SEAI) for a grant for solar photovoltaic (pv) modules. The Non-Domestic Microgen Scheme (NDMS) provides financial assistance of up to €2,400 to help businesses and other sectors to install solar PV panels to generate electricity on site. BEIS commissions independent review of Net Zero The Business, Energy and Industrial Strategy (BEIS) Secretary of State has commissioned an independent review of the UK Government’s approach to delivering its net zero target. Reporting by the end of 2022, the review will ensure that delivering the net zero target does not place ‘undue burdens’ on businesses or consumers. EU, Ireland and biodiversity The EU Commission is calling on Ireland to take action to halt the continued cutting of peat in Special Areas of Conservation (SACs), designated to conserve raised bogs and blanket bogs under the Habitats Directive (Directive 1992/43/EEC). Their protection and restoration assist Ireland in meeting its climate change goals not only in keeping the peat in the ground, but also by avoiding the very high carbon and other air pollution emissions which are caused when peat is burnt as a fuel. Ireland has two months to respond and take necessary measures or the Commission may decide to refer Ireland to the Court of Justice of the European Union. Director General of the Environmental Protection Agency (EPA) Laura Burke reportedly described peatland restoration was a win-win for Ireland due to the many unique species on peatlands that can be protected. Ms Burke made the comments at the first meeting of Ireland’s Citizens' Assembly on Biodiversity Loss, which took place between 24 and 25 September in Dublin. The citizen’s assembly is the first such anywhere in the world focusing specifically on biodiversity loss. It is made up of 99 randomly selected Irish citizens who participate in the assembly's six-month programme of work. You can find out more on accountants and biodiversity in the Chartered Accountants Ireland Sustainability Hub. EC proposes banning products made with forced labour The European Commission has proposed to ban products made with forced labour on the EU market. The regulation is proposed to apply the ban to all products, including their components, all economic operators, economic sectors, stages of production or steps of value chains. Commenting, Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “This proposal will make a real difference in tackling modern-day slavery, which affects millions of people around the globe.” You can read more about how accountants can join the fight against modern slavery on the Chartered Accountants Ireland Sustainability Hub.  Articles How to stop expensive heat leaking out your walls, windows and roof (Irish Times) Total funding for nature and biodiversity increased to more than €90m (Irish Times) Budget 2023 and Climate (Irish Independent) EU countries to back energy windfall levies, lock horns over gas price cap (RTE) Upcoming events Practical online workshop to help businesses understand and measure their carbon footprint (Carbon Footprinting – The Essentials) 5 October, 09.30-12.00pm. European Business & Nature Summit, 18-19 Oct The Business Case for Social and Circular (Register) 18 October, 12.00-1.00:  free, interactive webinar, experts Claire Downey, Chris MM Gordon and Kate van der Merwe discussing the social and circular economies, and how these alternative economic models are sources of innovation for mainstream business. Ireland Climate Finance Week, 17-21 Oct Ecosystems Knowledge Network, Natural Capital Finance & Investment Conference, 19 Oct (London) 20 Oct (Edinburgh)  Accountancy Europe, Sustainability Tax Systems, 25 Oct 9-11 GMT (10-12 CEST) You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  Budget 2023 was announced on 27 September, with Minster for Finance, Pashcal Donohoe T.D., describing climate change as the one of the key challenges of our times, the effects of which are becoming more frequent and more destructive. Commenting, Minister Donohoe stated that “[p]rotecting our environment is the responsibility of us all and Government is acting to reduce emissions and support newer cleaner technologies, particularly in energy and transport”, before committing to continuing the additional funding needed for measures, such as retrofitting and more sustainable modes of travel. Minister Donohoe announced that there would be an increase of just over two cent VAT inclusive per litre of petrol and diesel. This is caused by the increase in the rate per tonne of carbon dioxide emitted for petrol and diesel from €41 to €48.50 from 12 October. However, this increase is to be ‘offset’ with a reduction to zero of the National Oil Reserves Agency (NORA) levy in recognition of the sharp cost of living challenges currently being faced by society. The price at the pump will not go up as a result of taxes or levies, so the measure is unlikely to have much impact in reducing the use of petrol and diesel by consumers.  In his speech, Minister for Public Expenditure and Reform, Michael McGrath T.D. described the need “to reduce our dependence on energy imports, particularly from Russia, by becoming more efficient in how we use energy and especially by accelerating the shift to renewable energy, in line with our existing climate goals”, before announcing the provision of €850 million in capital investment to the Department of the Environment, Climate and Communications in 2023. Positive climate and environmental measures in Budget 2023 include: €337 million to go towards grants for energy efficiency, to fund over 37,000 home energy upgrades including households in, or at risk of, energy poverty through the Warmer Homes Scheme, described by the Minister as “the highest funding ever committed to energy efficiency.” funding to be provided to support the introduction of a new low-cost loan scheme for residential retrofit extra funding and resources to be provided to the National Parks and Wildlife Service and the Marine Area Regulatory Authority (MARA) an increase of €0.8 billion in core capital expenditure funding for 2023, with a particular focus on climate action, alongside housing and health. This includes capital allocation to the Department of Transport for investment towards Active Travel, Greenways and the roads network, as well as the continued delivery of Transport’s ongoing Megaprojects MetroLink, DART+ Programme and BusConnects. This investment, along with the reductions announced in passenger fares, and the continued roll out of electric vehicle grants, aims to assist Ireland in meeting its ambitious climate targets. an extra €150 million in capital allocation to the Department of the Environment, Climate and Communications in 2023 to provide a response to the challenges presented in reducing carbon emissions, improving energy efficiency and facilitating the achievement of national goals set under the Programme for Government and the Climate Action Plan. funding to be invested through Skillnet Ireland to support business through upskilling in emerging technologies and expansion of programmes to include sustainable finance, green tech and responding to climate change €87 million in 2023 to retrofit at least 2,400 social homes to a Building Energy Rating of B2, in line with commitments in the Climate Action Plan funding for 4,800 additional apprenticeship places and 4,000 registrations to deliver on the Housing for All and Climate Action plans and for over 2,000 Skillnet places in sustainable finance, green tech and climate change The Department of Public Expenditure and Reform is currently working with the OECD to update Ireland’s Public Spending Code framework to ensure that it is robust in the face of changing priorities and to ensure that it takes appropriate account of the climate and environmental impact of investment decisions.   Carbon Tax Speaking about Carbon Tax, Minister McGrath stated that “[a]s set out in the Programme for Government, every additional euro raised in carbon tax will be returned to the people of Ireland through energy efficiency upgrades, social protection schemes to protect the most vulnerable and measures to incentivise farming in a more environmentally friendly way.” In 2023, the total Carbon Tax revenue available for investment will be €623 million. Almost half of this is to be invested in improving the energy efficiency of homes. It will allow for investment to support over 37,000 home energy upgrades, including bringing over 13,800 homes to a Building Energy Rating (BER) of B2, and 6,000 free upgrades to the homes of those in, or at risk of, energy poverty. 35 percent of the total Carbon Tax revenues expected to be raised will be spent on social protection measures this year to ensure that increases in the carbon tax are progressive. The total cost of these interventions is projected to be €57 million in 2023. The table below details the allocation of the increased carbon tax revenues in 2023: Table 15: Allocation of Carbon Tax Expenditures in 2023   € m - 2023 Department € m – 2022 1. Total Investment in Residential & Community Energy Efficiency (Cumulative funding from Carbon Tax increases from 2020 to 2023 inclusive) 291 DECC 202 2. Total Targeted Social Protection Interventions (Cumulative funding from Carbon Tax increases from 2020 to 2023 inclusive) 218 DSP 174 3. Incentivising farming in a greener and more sustainable way (Cumulative funding from Carbon Tax increases from 2020 to 2023 inclusive) 81 DAFM 3 4. Continuation of 2020 Carbon Tax Investment Programmes in Other Departments 33 Various 33 Total Expenditure 623   412