In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s new policy paper Achieving our Climate Goals which featured on RTÉ News. Also covered in Irish news is a new project for SMEs to implement effective sustainability measures, the Government’s call for SDG Champions, ESRI’s finding on active travel schemes, and details of flood supports for businesses in Northern Ireland. You can also read about European developments, including the first EU-wide voluntary framework for the certification of high-quality carbon removals, and a report showing that the largest global companies are providing more detail and breadth in their sustainability reporting. The technical updates, along with the usual resources, articles, and upcoming events are also covered. IRELAND Chartered Accountants Ireland publishes policy paper on climate goals Chartered Accountants Ireland has published a position paper Achieving Our Climate Goals, putting forward recommendations for accelerating Ireland’s transition to a net-zero nature-positive economy and society. This transition requires significant societal change in which Businesses will play a key role. However, they can only deliver with the right policy framework. Achieving Our Climate Goals, with is part of our Next Financial Year series of position papers, groups our recommendations under three headings: communication and awareness-raising; training and education; and targeted financial supports.   Addressing the climate challenge calls for a whole-of-government approach. We encourage the Government to consider these proposals and lead on this critical issue. RTÉ news clip. Non-Executive Directors attend event on 'net zero'    An Post hosted the first Chapter Zero Ireland event of 2024 in their new Headquarters at the Exo Building in Dublin Port. Chartered Accountants Ireland were delighted to support the event which attended by non-executive directors of Irish medium and large sized companies, PLC’s and State Bodies. Members of Chartered Accountants Ireland who are non-executive directors can apply for free membership of Chapter Zero Ireland using this link. 2024 Basic Income Support for Sustainability scheme opens for applications The Department of Agriculture, Food and the Marine has opened the application process for the 2024 Basic Income Support for Sustainability (BISS), Complementary Redistributive Income Support for Sustainability (CRISS), Eco-Schemes and the other related schemes. The BISS is designed to provide a direct income support to Irish farmers to underpin their continued sustainability and viability. The closing date for BISS applications in 2024 is Wednesday 15 May 2024. Farmers and advisors are urged to avail of the early opening of the application process rather than waiting until nearer the closing date. New project for SMEs to implement effective sustainability measures Business owners and advisers have reportedly been invited to take part in a new €1.6 million international Target Circular project to help SMEs implement effective sustainability measures. The project is a collaboration between institutions in Ireland, Finland, Norway, Iceland and Sweden, and is led by the Hincks Centre of Entrepreneurship Excellence, with the support of Circular Bioeconomy Cluster Southwest, at MTU. It builds on recent research into how businesses can use a more scientific approach to decision-making. Report sees Ireland rank 8/14 of EU countries on UN SDGs A report from Social Justice Ireland (SJI) has shown that Ireland ranks 8th out of 14 comparable EU countries in this year’s Sustainable Progress Index. The report, Measuring Progress: Sustainable Progress Index 2024, ranks 14 comparable EU countries based on their delivery of the UN’s Sustainable Development Goals (SDGs) and ranks countries in the categories of economy, society and environment. Ireland is ranked 9th out of the 14 countries on the economy ranking, 7th on the social index, and is towards the bottom of the ranking on the environment, highlighting the major challenges Ireland face in meeting the environmental goals set out in Agenda 2030.  Call for organisations and groups to be Sustainable Development Goal Champions The Department of the Environment, Climate and Communications is now seeking Expressions of Interest for participants in the 2024–25 Sustainable Development Goal (SDG) Champions Programme. The programme aims to help raise awareness of the importance of the SDGs as the cornerstone of a fair, prosperous and sustainable future for all. Applications will be accepted in written or video format up to 5pm on Monday, 1 April 2024, and further information on the SDG Champions Programme, and how to apply, can be found on the department's website. ESRI research finds that active travel schemes have more positive effects than people expect New research from the ESRI has found that the impact of active travel schemes is often more positive than people expect. The study, undertaken by the ESRI’s Behavioural Research Unit, reviewed international evidence on the effects of infrastructure changes designed to promote cycling and walking, including the impact on communities and public opinion. Knock-on effects on local food and retail businesses tend to be positive or neutral, while such schemes can also reduce traffic congestion. NORTHERN IRELAND Flood support programme for businesses in Northern Ireland The Department of the Economy has made available details of a flood support programme for businesses affected by recent flooding, as well as two hardship schemes to provide support for businesses and some other non-domestic premises that were impacted by the flooding but were not eligible for the previous £7,500 payment or the Enhanced Flood Support Scheme. The Enhanced Flood Support Scheme will provide further support to businesses that were directly flooded following the severe weather in late October and early November. It will be delivered by district councils and is in addition to the £7,500 grants and rates relief that has been provided to date to affected businesses. Net zero target forms part of Minister’s vision for Northern Ireland economy Northern Ireland's Minister for the Economy, Conor Murphy, has highlighted carbon emissions reduction in a statement last week setting out his vision for the future of the Northern Ireland economy. Speaking in the Assembly, the Minister set out four key priorities as part of a new Economic Mission, which included creating good jobs, promoting regional balance, improving productivity and reducing the region’s carbon emissions. The Minister commented: “Reaching Net Zero by 2050 is a legal requirement and a moral obligation to the wellbeing of future generations. Done right, the transition can also generate prosperity for all.”  The statement comes as farmers in Northern Ireland acknowledge that climate change is having a local impact, with more frequent heavy rainfall events, increasing numbers of storms and more erratic weather patterns. EUROPE The European Commission has welcomed provisional agreement between the European Parliament and the Council on the first EU-wide voluntary framework for the certification of high-quality carbon removals.  This new framework will certify carbon removals and carbon farming to ensure that they are transparent and trusted, preventing greenwashing and creating new business opportunities. Once the European Parliament and Council have formally approved the agreement, the new legislation will be published in the Official Journal of the Union and enter into force.   A European Environment Agency (EEA) briefing has found that recycling, repair, re-use or reducing material consumption through circular business models can provide important additional reductions in greenhouse gas emissions helping to boost Europe’s climate change mitigation efforts.   The European Commission has announced it is investing over €233 million in 12 new Strategic Projects across Europe, including in Ireland, under theLIFE programme to support the implementation of the EU's environmental and climate ambitions under the European Green Deal.   Provisional political agreement has been reached between the European Parliament and the Council on the revised Ambient Air Quality Directive. Once adopted, the new law will set 2030 EU air quality standards aligned more closely with the WHO global air quality guidelines. Once the deal has been adopted by Parliament and Council, the new law will be published in the EU Official Journal and enter into force 20 days later. EU countries will then have two years to apply the new rules.   GLOBAL Report shows more detail being provided in sustainability reporting A report has been published by the International Federation of Accountants (IFAC) with AICPA & CIMA that shows the largest global companies are providing more detail and breadth in their sustainability reporting, and also are obtaining a greater scope of assurance on those disclosures.  The report, The State of Play: Sustainability Disclosure and Assurance 2019-2022, Trends and Analysis, finds that progress is being made but highlights the need for companies worldwide to move toward a global system of sustainability disclosure requirements. OECD publishes policy paper on climate adaptation by local governments A policy paper, Climate adaptation: Why local governments cannot do it alone, has been published by the Organisation for Economic Co-operation and Development (OECD), providing an overview and a discussion of the roles and responsibilities for climate adaptation across levels of government. The paper argues that co-operation across levels of government is needed to strengthen adaptation at the local level. Did you know? The International Ethics Standards Board for Accountants (IESBA) are hosting a series of global webinars on the proposed International Ethics Standards for Sustainability Assurance and Reporting. This Code of Ethics will be applicable by all sustainability assurance providers, regardless of professional backgrounds, as well as professional accountants involved in sustainability reporting, whether in business or in public practice. The first webinar took place on 22nd February 2024, with a further two scheduled for 27 February and 5 March. Technical Roundup (From our colleagues in Professional Accounting) EFRAG, the European Financial Reporting Advisory Group has released the first set of technical explanations to assist stakeholders in the implementation of the ESRS. Last year, EFRAG launched its ESRS Q&A platform to collect and answer technical questions. The platform is a useful resource for CSRD reporters and will be updated with further responses in future.   Sustainability Diplomas Chartered Accountants Ireland has launched two new Diplomas in Sustainability in March 2024: Diploma in Sustainability Reporting Diploma in Auditing and Assuring Sustainability Reporting. Here is a link to the YouTube recording of the recent information session on the new Diplomas.  ARTICLES SMEs need significant Govt support to meet climate goals, says Chartered Accountants Ireland (RTÉ) Global carbon markets value hit record $949 bln last year - LSEG (Reuters) The uninsurable world: what climate change is costing homeowners (Financial Times) World needs 'trillions' for climate action, says COP28 president (RTÉ) TV Series - An Optimist's Guide to the Planet “A show about solutions and the people and the people behind them"   A series about people across the globe who are helping drive humanity toward a brighter, more sustainable future, with Nikolaj Coster-Waldau (aka Game of Throne’s Jaime Lannister). ( Watch trailer) UPCOMING EVENTS   A4S Sustainability In Action Webinar: Management Information An interactive webinar focusing on techniques to help finance professionals develop and integrate information needed to respond to social and environmental risks and opportunities into core management information processes. 27 February, 08:00 ISFCOE Unpacking COP28 and looking forward to COP 29: How Transition Finance Underpins our Net Zero and Nature Positive Future Convening leaders from the public and private sectors for a series of high-level dialogues, this event will reflect on recent COP28 outcomes while looking forward to COP29 in Baku in mid-November (and October’s Biodiversity COP16). Discussions will delve into the financial solutions, products and architecture required to support the meeting of net zero and nature positive targets, while maintaining social and economic balance. 27 February, 09:15 – 16:15   NESC, Making Nature Visible: What Can Natural Capital Accounting Do For Us? Following the publication by the National Economic and Social Council (NESC) of Natural Capital Accounting: A Guide for Action, this in-person event will discuss the potential of natural capital accounting in Ireland. 12 March, 08:30 - 13:30 GMT, In-person, Dublin Royal Convention Centre   InvestNI, Supply Chain Conference 2024 Invest Northern Ireland is hosting a free event to help businesses navigate current supply challenges and future-proof their supply chains. Panel discussions and case studies will showcase industry learnings and knowledge on the themes of sustainability, digitisation and supply chain improvements.Industry experts will also outline the steps you can take to stay ahead of the curve in your industry. 12 March 2024, 9:30am - 16:15, Venue: City Hotel, Armagh   A4S Sustainability In Action Webinar: Capitals Accounting An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts. 28 March, 08:00   Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 18 April, 08:30 – 13.00   National Sustainability Summit 2024 Dates: May 28-29 Locations: RDS Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next: Wednesday, 28 February, 14:00-15.30 Teams If you would like to attend, please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

In this week’s Sustainability/ESG bulletin, read about a new €21 million grant scheme to boost Ireland’s EV charging infrastructure. Also covered is a public consultation on Ireland’s Draft National Energy and Climate Plan, a report into Ireland's progress on UN SDG goals, a call for ‘all-island’ approach on energy and climate, and an International Energy Agency pledge to strengthen energy security and accelerate clean transitions. You can also read about European developments and the usual resources, articles, and upcoming events. IRELAND €21 million grant scheme to boost EV charging infrastructure The Minster for Transport, Eamon Ryan T.D. has announced the launch of a new €21m scheme to accelerate the development of high-powered Electric Vehicle (EV) charging infrastructure across Ireland’s road network. The scheme targets publicly available facilities within 3km driving distance of the motorway/dual-carriageway network, such as service area operators, hotels, and retail outlets. Future schemes, which will be rolled out over the coming year, will continue to target other parts of the road network as well as recharging at destinations and in neighbourhoods. Further information is outlined in the scheme brochure which is available on EV Scheme, and all submissions are to be made via eTenders before noon on 10 April 2024. Consultation on Ireland’s Draft National Energy and Climate Plan A public consultation has been launched on an updated draft of Ireland’s National Energy and Climate Plan (NECP). The NECP, which covers 2021 to 2030, focuses on the actions Ireland is taking to meet its EU 2030 targets for greenhouse gas emission reductions, renewable energy, energy efficiency and electricity interconnection, as mandated by EU Regulations and Directives. The aim of this consultation is to engage stakeholders and gather valuable feedback that will inform and shape a final version of the NECP. The closing date for submissions is 5.30pm, on 7 March. Report into Ireland's progress on UN goal to eliminate poverty The latest report on Ireland’s progress against the United Nations Sustainable Development Goals (UN SDGs) has published, with data on 13 indicators for Ireland, divided over four chapters: Poverty, Housing, Environment, and Financial Support. The publication, which was developed by the Central Statistics Office (CSO) in collaboration with the Department of Social Protection, shows an increase in a number of key indicators in Goal 1, such as financial support, but also in consistent poverty and ‘at risk of poverty’. Slight drop in number of new electric cars licensed in Ireland Figures from the Central Statistics Office (CSO) show a 1 percent drop in the number of electric cars licensed for the first time: 14 percent in January 2024, compared with 15 percent in January 2023. There was no change to the number of diesel cars licensed and a 37 percent increase in the number of used cars licensed. Migratory species at risk of extinction One in five migratory species is at risk of extinction, according to a new report by the United Nations. The news comes as the Government-backed national platform, Business for Biodiversity Ireland platform, calls on Irish businesses of every size and sector to come together to accelerate action for nature by signing up to their members’ hub.  IRELAND AND NORTHERN IRELAND Report calls for ‘all-island’ approach on energy and climate The Confederation of British Industry (CBI) Northern Ireland and business membership organisation Ibec have jointly published a report calling for an ‘all-island’ approach to energy security and climate challenges. The report is titled ‘Shared Energy Futures Report’, and its key recommendations include embracing new opportunities for All-island collaboration and policy alignment on energy and climate action, providing greater regulatory and policy certainty for investors in the green transition, and cooperating to address skills gaps, supply chain constraints, and shared transition challenges. EUROPE The Internal Market and Environment committees adopted their position on the rules on how firms can validate their environmental marketing claims (Read more) EU co-legislators have reached provisional agreement on a revamp of EU economic governance, making it clearer, investment friendly, more tailored to each country’s situation, and more flexible (Read more) The Transport Committee is pushing for “greener” trucks and buses, with MEPs saying that zero-emission trucks and buses could be longer and heavier to reduce the number of trips they make and to help the climate transition (Read more) Accountancy Europe has published its February 2024 Sustainability Newsletter (Read it here) GLOBAL International Energy Agency pledges to strengthen energy security Energy and climate ministers representing close to 50 countries have pledged to strengthen energy security and accelerate clean transitions to keep 1.5 °C target alive. The major gathering of high-level energy decision makers at the meeting the International Energy Agency (IEA) was co-chaired by France and Ireland. In addition to discussing membership talks with India and the launch of a critical minerals security programme, IEA ministers recognised the significant focus on energy in the outcomes of COP28 and directed the IEA to take a leading role in ensuring their implementation. OECD publishes policy paper on climate adaptation by local governments A policy paper, Climate adaptation: Why local governments cannot do it alone, has been published by the Organisation for Economic Co-operation and Development (OECD), providing an overview and a discussion of the roles and responsibilities for climate adaptation across levels of government. The paper argues that co-operation across levels of government is needed to strengthen adaptation at the local level. Did you know? $2.4 trillion in funds will reportedly be needed each year by 2030 to keep global climate goals “within reach”. RESOURCES  Sustainability Diplomas Chartered Accountants Ireland is launching two new Diplomas in Sustainability in March 2024: a Diploma in Sustainability Reporting and a Diploma in Auditing and Assuring Sustainability Reporting. Watch back: Chartered Accountants Ireland, CSRD – Building Finance & IT partnerships Click here to find links to our webinar on how Finance and IT Teams can partner to deliver sustainability reporting programmes compliant with the Corporate Sustainability Reporting Directive ('CSRD') requirements, with speakers David Codd and Paul Power. Carbon accounting – a software guide Chartered Accountants Australia and New Zealand (CAANZ) has published a Carbon Accounting Software Guide which explores the two predominant tracking methods of tracking and reporting on carbon emissions - Spend Tracking and Activity Tracking. ARTICLES Carbon Brief explores how a new government in Northern Ireland might approach tackling climate change (Carbon Brief) Over a third of electricity was produced by wind power last month (RTÉ News) Surge in borrowing to buy electric cars, while green loans for home improvements also up (Irish Independent) Investors Wrestle With the ‘Scope 3 Conundrum’ (Bloomberg Green) How ESG is shaking up accountants’ careers (ICEAW) UPCOMING EVENTS   Chapter Zero Ireland Chapter Zero Ireland - a focus on transport journeys and biodiversity The next Chapter Zero Ireland event will be hosted by An Post on 21 February at their Exo Building Headquarters in the Dublin Docklands. The event will present a unique opportunity to gain insights on An Post’s transport journey and how, as a non agri-food business, they are making progress in biodiversity. The session will also feature breakout sessions to allow delegates to share their own perspectives on how boards are thinking about biodiversity. Chartered Accountants Ireland are very proud to be a partner of Chapter Zero Ireland, a community of non-executive directors committed to leading crucial boardroom discussions on the impacts of climate change. Non-executive directors can apply for free membership of Chapter Zero Ireland using this link. Accountancy Europe Supporting SMEs with sustainability information Environmental, Social and Governance (ESG) data requests that SMEs are getting from financial institutions and large value chain partners, voluntary initiatives such as the planned non-listed SME standard for sustainability reporting, the OECD’s work and industry-led initiatives, and SMEs’ support requirements for their sustainable transition 21 February, 17:00 - 19:00 Brussels time A4S Sustainability In Action Webinar: Management Information An interactive webinar focusing on techniques to help finance professionals develop and integrate information needed to respond to social and environmental risks and opportunities into core management information processes. 27 February, 08:00 ISFCOE Unpacking COP28 and looking forward to COP 29: How Transition Finance Underpins our Net Zero and Nature Positive Future Convening leaders from the public and private sectors for a series of high-level dialogues, this event will reflect on recent COP28 outcomes while looking forward to COP29 in Baku in mid-November (and October’s Biodiversity COP16). Discussions will delve into the financial solutions, products and architecture required to support the meeting of net zero and nature positive targets, while maintaining social and economic balance. 27 February, 09:15 – 16:15   NESC, Making Nature Visible: What Can Natural Capital Accounting Do For Us? Following the publication by the National Economic and Social Council (NESC) of Natural Capital Accounting: A Guide for Action, this in-person event will discuss the potential of natural capital accounting in Ireland. 12 March, 08:30 - 13:30 GMT, In-person, Dublin Royal Convention Centre   InvestNI, Supply Chain Conference 2024 Invest Northern Ireland is hosting a free event to help businesses navigate current supply challenges and future-proof their supply chains. Panel discussions and case studies will showcase industry learnings and knowledge on the themes of sustainability, digitisation and supply chain improvements.Industry experts will also outline the steps you can take to stay ahead of the curve in your industry. 12 March 2024, 9:30am - 16:15, Venue: City Hotel, Armagh   A4S Sustainability In Action Webinar: Capitals Accounting An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts. 28 March, 08:00   Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 18 April, 08:30 – 13.00   National Sustainability Summit 2024 Dates: May 28-29 Locations: RDS Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next: Wednesday, 28 February, 14:00-15.30 Teams If you would like to attend, please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

Chartered Accountants Ireland has today outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents up to €4,500 a year better off and free up vital working capacity in the economy. Last month, the Institute published data underscoring the challenge that the costs and availability of childcare is presenting to businesses and working parents.  Today, its paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare.  Currently places for children with unregistered childminders do not attract the same National Childcare Scheme (NCS) funding for parents as creche places, which are highly limited and often difficult to secure. This means a mother-of-two on an average annual wage of €45,000, and paying €24,000 per year for childcare, is left with just €235 per week after paying taxes and childcare fees – an amount which makes returning to the workforce a difficult economic proposition. Expediting the Government’s plans to enable parents who use childminders that are not registered with Tusla to access the NCS would give parents of up to 80,000 children easier access to subsidised childcare. Commenting, Tax & Public Policy Lead, Chartered Accountants Ireland, Cróna Clohisey said  “We know what the challenges are for providers and parents and we welcome the upcoming increases to NCS subsidies. But as a mother of two young children, I’ve seen first-hand the difficulties in securing creche places, the scramble to find a childminder, and the quest to make full-time employment viable for parents. The policy tools to address these are already largely in place, so it is time to move to solutions mode. “Implementation and awareness are the two major hurdles that need to be overcome, and bolder interventions are now required if effective change is to be achieved in the childcare space. That is where we are now focusing our attention in our proposals to the Government.”  Chartered Accountants Ireland is calling on the Government to: Expedite plans to enable parents who use childminders that are not registered with Tusla, to access the National Childcare Scheme, giving parents of up to 80,000 children easier access to subsidised childcare. Streamline Core Funding. The introduction of Core Funding represented a new and different way of providing funding to the sector, but it could be greatly streamlined by: Increase funding, capital investment and grant support to the sector to more adequately reflect the true cost of providing childcare services. Importantly, these funding levels should not be static but regularly reviewed and updated in line with economic and inflationary changes. Increase awareness: engagement across the Institute’s membership has pointed to a lack of awareness of supports already in place. The Institute is calling on the government to launch an improved campaign of awareness to working parents that is integrated into and promoted by the public health system. Commenting, President of Chartered Accountants Ireland, Sinead Donovan said  “Allowing childcare challenges to persist constricts labour market capacity, narrows the tax base through lower labour market participation, and maintains the gender pay gap by making it more difficult for parents, proven to be predominantly women, to return to the workforce full time. This is a generational issue, it’s hitting men and women in different but equally real ways. “Currently, Chartered Accountants Ireland members are being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. Issues such as childcare can only truly be solved through a whole-of-government strategy, which is why a single, strong voice for the profession will be crucial in the years to come.” ENDS  Notes to editors Chartered Accountants Ireland’s paper, Supporting Working Parents – The case for better childcare policy, will be published on the Chartered Accountants website on Tuesday 13 February. Chartered Accountants Ireland members are currently being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. An online vote closes at 1pm on Wednesday 14 February with a final, in-person opportunity to vote at the Chartered Accountants Ireland SGM on Wednesday 21 February. More information on the proposal and how to vote is available on the Chartered Accountants Ireland website.

Chartered Accountants Ireland has outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents financially better off and free up vital working capacity in the economy. Our paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare. 

  In this week’s Sustainability/ESG bulletin, we invite readers to take our survey on climate action where we want to to understand your knowledge of supports available for businesses.  You can also read about our recent webinar on collaboration between finance and IT teams to create effective sustainability reporting programmes, and two new diplomas from Chartered Accountants Ireland on Sustainability Reporting and Sustainability Assurance. Also covered is Ireland’s Business for Biodiversity members hub, Irish business and human rights, more investment in safe walking and cycling in Ireland, Invest NI's Grow Green programme, European developments, a software guide to carbon accounting, and the usual resources, articles, and upcoming events. IRELAND Chartered Accountants Ireland – The Climate Survey Chartered Accountants Ireland is running a short survey to understand our members’ knowledge of the Irish Government climate targets and the supports available for businesses to help achieve them.  Link to survey Watch back: Chartered Accountants Ireland, CSRD – Building Finance & IT partnerships Click here to find links to our webinar from 7 February 2024 on how Finance and IT Teams can partner to deliver sustainability reporting programmes compliant with the Corporate Sustainability Reporting Directive ('CSRD') requirements. Speakers David Codd and Paul Power discuss how to establish effective collaboration between the finance and IT teams, what pitfalls to avoid and how to build a strong partnership to deliver an effective sustainability reporting programme. Call for Irish businesses to sign up to Business for Biodiversity members’ hub The Business for Biodiversity Ireland platform is calling on Irish businesses of every size and sector to come together to accelerate action for nature by signing up to their members’ hub. The Government-backed national platform's membership function – free until 31 March 2024 – includes an easy-to-follow roadmap which aims to demystify the multitude of biodiversity frameworks, guidance documents and tools for businesses facing new rules on reporting their impacts on nature. Irish business and human rights Trinity Business School’s Centre for Social Innovation has published its latest Irish business and human rights benchmark report into the 50 largest companies in Ireland. The report finds that voluntary action is not driving uptake, with corporate uptake of the UN Guiding Principles for Business and Human Rights (UNGPs) “remaining a work in progress”, with 52 percent of companies assessed scoring 30 percent or less. The Government’s National Action Plan on Business and Human Rights is currently being drafted. Separately, the Irish Human Rights and Equality Commission has told the UN that Ireland is violating the economic, social and cultural (ESC) rights of “entire sections” of Irish society. In its report submitted recently to the UN Committee on Economic, Social and Cultural Rights as part of Ireland’s fourth periodic review, the Commission raised particular concerns over housing and homelessness crises, extreme poverty, income and wealth inequalities and the climate. Ireland to be referred to CJEU on water plans The European Commission has decided to refer Ireland and five other countries to the Court of Justice of the European Union (CJEU) for failure to finalise the revision of their water plans. In a separate decision, the European Commission has called on Ireland to comply with the Urban Wastewater Directive. Ireland has two months to respond and address the shortcomings raised by the Commission, failing which the Commission may decide to issue a reasoned opinion.  €1 billion investment by Government since 2020 to prioritise safe walking and cycling The Government has announced investment of €290m in funding to local authorities across Ireland to support the rollout of walking and cycling infrastructure in 2024. This brings to over €1bn the Government’s total investment for active travel infrastructure since 2020. This investment has seen more than 600km of cycling, walking and wheeling infrastructure delivered since 2020 under the NTA Active Travel Programme. The full list of Active Travel projects receiving funding can be found here. NORTHERN IRELAND Ambition To Grow | Go Green programme Invest NI is looking to support ambitious, innovative businesses in the Green Economy offering a product or tradeable service that can create new employment opportunities and grow sales outside Northern Ireland. Through its Ambition to Grow | Go Green programme, it is calling for applications from Northern Ireland businesses that have a focus on sustainable activities. Details of funding levels and eligibility criteria can be found here.  EUROPE  The European Commission has recommended that the EU reduce greenhouse gas emissions by 90 percent by 2040, compared to 1990 levels. This is an interim target to be achieved by 2040, a ‘steppingstone’ between its 2030 emissions reduction target of 55 percent and its overall goal of ‘climate neutrality’ goal by 2050. By 2022 the bloc had reduced emissions by 32.5 percent compared to 1990. Following a legislative proposal made by the next Commission after the summer’s EU election, the European Parliament and EU members will need to reach agreement before any 2040 target can become enshrined in law.   The European Commission this week adopted an Industrial Carbon Management Strategy which presents a framework of the actions necessary to establish a Single Market for CO2. Industrial carbon management involves the use of a range of technologies to capture, store, transport and use CO2 emissions from industrial facilities, as well as to remove CO2 from the atmosphere.   The European Parliament and the Council have reached provisional political agreement on the Net-Zero Industry Act (NZIA). The Act is part of the Green Deal Industrial Plan, which sets out how the EU will scale up manufacturing capacity for the net-zero technologies and products required to meet EU's ambitious climate targets. Today's agreement is now subject to the formal approval of both EU co-legislators, and once adopted, will enter into force after its publication in the Official Journal of the EU.    The European Parliament and the Council have also reached provisional political agreement on proposed common rules to promote the repair of goods for consumers. Once adopted, the new rules will introduce a new ‘right to repair' for consumers, both within and beyond the legal guarantee, which will make it easier and more cost-effective for them to repair products instead of simply replacing them with new ones. Separately, the European Parliament published an infographic showing facts and figures on E-waste in the EU. GLOBAL Carbon accounting – a software guide Chartered Accountants Australia and New Zealand (CAANZ) has published a Carbon Accounting Software Guide which explores the two predominant tracking methods of tracking and reporting on carbon emissions - Spend Tracking and Activity Tracking. The article describes the pros and cons of each approach, and how to embrace carbon accounting. Did you know? Chartered Accountants Ireland is launching two new Diplomas in Sustainability in March 2024: a Diploma in Sustainability Reporting and a Diploma in Auditing and Assuring Sustainability Reporting.  Join us for a virtual open day, including a Q&A, where you can find out more from lead tutor Dr Louise Gorman, Trinity College Dublin. Date: Wednesday 14 February Time: 12.00pm – 1.00pm Register your place now: Webinar Registration - Zoom Resources  Entrepreneurship for All Platform A training platform initiative developed by the European Union is now offering three levels of expertise (Beginner, Intermediate, or Advanced), centred around the four pillars of Entrepreneurial Competences; Financial Literacy for Entrepreneurs; Sustainability Competences for Entrepreneurs; and Digital Competences for Entrepreneurs. Find out more here. EENergy Grant Aid Now Open The EEN has launched supports for SMEs in their efforts to improve their energy efficiency including for their buildings, processes and production lines. Find out more here. Articles  “Wake-up call”: Big firms’ flakiness on human rights puts them in Brussels’s firing line (The Currency (Subscriber Only)) The Corporate Sustainability Reporting Directive: Getting to grips with double materiality (Accountancy Ireland) Upcoming Events   Accountancy Europe Supporting SMEs with sustainability information  Environmental, Social and Governance (ESG) data requests that SMEs are getting from financial institutions and large value chain partners, voluntary initiatives such as the planned non-listed SME standard for sustainability reporting, the OECD’s work and industry-led initiatives, and SMEs’ support requirements for their sustainable transition  21 February, 17:00 - 19:00 Brussels time  A4S Sustainability In Action Webinar: Management Information  An interactive webinar focusing on techniques to help finance professionals develop and integrate information needed to respond to social and environmental risks and opportunities into core management information processes.  27 February, 08:00    A4S Sustainability In Action Webinar: Capitals Accounting  An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts.  28 March, 08:00 GMT  Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI)  Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape.  18 April, 08:30 – 13.00  National Sustainability Summit 2024  Dates: May 28-29  Locations: RDS    Network for Chartered Accountants working on ESG projects  Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?  Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.  When: Wednesday, 28 February, 14:00-15.30  Where: Teams  If you would like to attend, please email sustainability@charteredaccountants.ie  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

Our webinar on 7 February 2024 covered how Finance and IT Teams can partner to deliver sustainability reporting programmes compliant with the Corporate Sustainability Reporting Directive ('CSRD') requirements. Speakers David Codd and Paul Power, described how to establish effective collaboration between the finance and IT teams, what pitfalls to avoid and how to build a strong partnership to deliver an effective sustainability reporting programme. ***Watch back here *** Links to resources mentioned in the webinar:   Question and Answers Factsheet from Chartered Accountants on the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards.   Webinar: CSRD and SMEs in value chains,  Chartered Accountants Ireland at Climate Finance Week Ireland 2023.   Webinar: Further your knowledge about the European Sustainability Reporting Standards, 8 June 2023 Dee Moran, Chartered Accountants Ireland, and Orla Carolan, Director in Grant Thornton demonstrate how to navigate the content and disclosures included in the first set of ESRSs. Watch Webinar   Webinar: Further your knowledge about the Corporate Sustainability Reporting Directive (CSRD), 23 May 2023 Dee Moran interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations.   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  In this week’s Sustainability/ESG bulletin, read about the new Desposit Return Scheme, new funding available for sustainable disruptive technologies, the survey for signatories to the Women in Finance Charter, the report from the Platform on Sustainable Finance, ESG policies in credit unions, Renewable Energy and Net Zero in Northern Ireland, the ECB stepping up its climate work and the new EU law against greenwashing as well as technical roundups, resources, articles, and upcoming events. IRELAND Deposit Return Scheme launches in Ireland   The Deposit Return Scheme is now launched across Ireland, meaning that anyone buying a plastic bottle, or an aluminium or steel can with the Re-turn logo will pay a small refundable deposit, which can be returned in full when they bring it back to participating shops and supermarkets. Full details of how the scheme works is on this video (4 min).  Funding of €6.8 million announced for sustainable disruptive technology  Funding of €6.8 million has been announced for a project under Call 6 of the Disruptive Technologies Innovation Fund (DTIF) in Ireland. The €500 million fund was established under the National Development Plan (NDP) in 2018, and is managed by the Department of Enterprise, Trade and Employment with administrative support from Enterprise Ireland. This brings to €371 million the amount that has been awarded to projects across six DTIF Calls. All projects under Call 6 are expected to demonstrate a positive contribution to the sustainability targets in the Climate Action Plan.   Sustainable infrastructure investment manager fund closes  The leading listed private equity and sustainable infrastructure investment manager Foresight Group has announced the second close of the AIB Foresight SME Impact Fund. This Fund provides investments of €2-€5 million to companies across Ireland and Northern Ireland, and provides operational guidance, support on implementing sustainable best practices and creating high-quality, local jobs across Ireland. The Ireland Strategic Investment Fund (ISIF) made a commitment of €25 million to the Fund and has so far committed over €600 million as part of its €1 billion climate investment programme.  EPA publishes 2023 highlights  The Environmental Protection Agency (EPA) has published EPA Highlights 2023, showcasing its work in addressing environmental challenges across Ireland. Highlights include a recorded drop in Ireland’s greenhouse gas emissions in 2022, but a projected shortfall of 21 percent in overall emissions reduction by 2023. Upcoming events for 2024 noted in the publication include the Reporting of annual EU Emissions Trading System results in April, and September’s Circular Economy Conference.  Women in Finance Charter survey open  The ESRI, the data partner for Ireland’s Women in Finance Charter, has announced it is now collecting, analysing, and reporting on data from signatories to the Women in Finance Charter. Data from this survey will feed into the Women in Finance Chater 2024 report. Firms that signed the Charter committed to achieving greater gender balance across their organisations, setting targets appropriate to the company, and formulating an action plan to achieve these targets. The closing date for the survey is 2 February.  Sustainable finance report shows positive impact  A new report published by the Platform on Sustainable Finance, an advisory body to the European Commission, shows that the EU sustainable finance framework is being picked up by different market actors as an effective toolkit to navigate the transition to net zero, and has already had a positive impact on the ground. The Platform on Sustainable Finance will present the report “A Compendium of Market Practices” during a webinar on Tuesday 6 February, 13:00 – 14:20 (Brussels time).  Credit Unions and ESG policy  An amendment to the Credit Union Act 1997 (1997 Act) will see environmental social and governance (ESG) policy for the first time being included as a policy for the boards of credit unions in Ireland to approve, review and update. The new Act amends section 55 of the 1997 Act where the board has obligations to approve review and update plans policies and procedures at least every three years, instead of annually. The amending Act – the Credit Union (Amendment) Act 2023 (2023 Act) - was signed into law in December 2023 but has not yet been commenced.   NORTHERN IRELAND Renewable Energy and Net Zero in Northern Ireland    A Northern Ireland Affairs Committee inquiry into Renewable Energy and Net Zero in Northern Ireland was held this month into barriers to renewable energy across the region. Recent figures have shown that Northern Ireland is not on track to meet this target, as renewable energy expansion has stalled in the last year. MPs were reportedly concerned that the sector will fail to meet its legally-binding target of 80 percent of energy consumption from renewable sources by 2030, and there were calls for reform to legislation and support for renewable energy development.   2024 Responsible Business Awards in Northern Ireland open for entries  Entries are now being accepted for the Responsible Business Awards in Northern Ireland 2024. The Awards showcase transformational stories of businesses taking real action to build thriving communities and innovate to tackle pressing social issues and to repair and rebuild our planet. The 2024 Awards are open for entries until 26 April.  EUROPE EU Sustainable Investment Summit  Speakers from across the world gathered in Brussels on 24 January to take part in EU Sustainable Investment Summit, the European Commission’s flagship annual event on sustainable investment.  The summit discusses the delivery of the green transition in the European Union and beyond. This is the fourth such summit, which began in 2021 following the launch of the European Green Deal – which sets the objective for Europe to become the first climate-neutral continent by 2050 – and the European Green Deal Investment Plan, which aims to unlock the investments and finance needed to achieve this goal.  ECB steps up climate focus   The European Central Bank (ECB) has decided to expand its work on climate change, identifying three focus areas that will guide its activities in 2024 and 2025: implications of green transition, physical impact of climate change, and nature-related risks for the economy and financial system. The work planned for these focus areas will complement the ECB’s current climate-related actions in its ongoing tasks, including monetary policy and banking supervision. A comprehensive overview of the planned work programme for 2024 and 2025 is available in the Annex and more information can be found on the ECB’s website.  New EU law against greenwashing  MEPs have adopted a new law banning greenwashing and misleading product information. Under the new Greenwashing Directive, generic environmental claims (such as “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco”) and other misleading product information will be banned, and only sustainability labels based on approved certification schemes or established by public authorities will be allowed. It will ban claims that a product has a “neutral, reduced or positive impact on the environment because of emissions offsetting schemes”, and it will make producers and consumers focus more on the durability of goods.   The Directive is meant to work together with the Green Claims Directive, currently being discussed at committee stage in Parliament, and which will be more specific and elaborate the conditions for using environmental claims in greater detail. The Greenwashing Directive now needs to receive final approval from the Council and be published in the Official Journal after which Member States will have 24 months to transpose it into national law.  Technical Roundup   (More from our colleagues in  Professional Accounting)  EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024.   The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April.  The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year.  The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability.  Resources  Accounting 4 Sustainability (A4S) Academy opens  The A4S Academy is now open for applications. The 18-month online learning and implementation programme is for senior finance leaders to embed sustainability.  It equips finance teams with the skills needed for their businesses to succeed in the face of environmental and social risks and opportunities.   Energy audit  The Sustainable Energy Authority of Ireland (SEAI) is promoting a voucher of €2000 for eligible businesses to seek a professional energy audit. The eligibility criteria, along with a more comprehensive overview of the scheme, are available on the SEAI website.  Opportunities and approaches for Sustainable Public Procurement  A new resource on Sustainable Public Procurement is available online for practitioners and policy makers. The guide describes opportunities and approaches for Sustainable Public Procurement and is intended to be of use to procurement practitioners and budget-holders in the public sector, as well as to policy developers interested in how public procurement can be used strategically to address key sustainability policy objectives.  Micro-qualifications for sustainability training  Green Further Education and Training micro-qualifications are now available to employees who want to contribute to sustainability in the workplace.  Created by industry for industry, the programmes provide short, stackable accredited qualifications tailored to fit employees’ schedules at little or no cost to employers. Programmes are delivered nationwide by the Education and Training Board network under the Skills to Advance initiative and are funded by SOLAS.   Articles  Businesses called to embrace corporate social justice (RTÉ)  Ireland can reduce impact of extreme climate events by transforming economy, experts suggest (Irish Times)  Warrior accountants: leading the green revolution? (Financial Times)  Upcoming Events   Platform on Sustainable Finance,  Launch of report “A Compendium of Market Practices”  Webinar, 6 February, 13:00 – 14:20 (Brussels time).  Chartered Accountants Ireland, CSRD – Building Finance & IT partnerships   Webinar on how Finance and IT Teams can partner to deliver sustainability reporting programmes compliant with the Corporate Sustainability Reporting Directive ('CSRD') requirements. Wednesday, Zoom, 7 February 2024 12:00 – 12.45  Sustainable Energy Authority of Ireland (SEAI) Energy Management: Creating an Energy Action Plan    Free online workshop next week teaching the basics of implementing energy management within your business.   8 February, 14:00-16:00.   Accountancy Europe Supporting SMEs with sustainability information  Environmental, Social and Governance (ESG) data requests that SMEs are getting from financial institutions and large value chain partners, voluntary initiatives such as the planned non-listed SME standard for sustainability reporting, the OECD’s work and industry-led initiatives, and SMEs’ support requirements for their sustainable transition  21 February, 17:00 - 19:00 Brussels time  A4S Sustainability In Action Webinar: Management Information  An interactive webinar focusing on techniques to help finance professionals develop and integrate information needed to respond to social and environmental risks and opportunities into core management information processes.  27 February, 08:00    A4S Sustainability In Action Webinar: Capitals Accounting  An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts.  28 March, 08:00 GMT  Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI)  Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape.  18 April, 08:30 – 13.00  National Sustainability Summit 2024  Dates: May 28-29  Locations: RDS    Network for Chartered Accountants working on ESG projects  Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?  Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.  When: Wednesday, 28 February, 14:00-15.30  Where: Teams  If you would like to attend, please email sustainability@charteredaccountants.ie  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  In this week’s Sustainability/ESG bulletin, read about a consultation on Ireland’s National Adaptation Framework, Ireland’s fourth National Biodiversity Action Plan and a report on Ireland’s approach to natural capital accounting. Also covered are funds for climate action in Ireland and Northern Ireland, the declining cost of pollution in Europe and tax updates, technical roundups, newsletters, articles, podcasts and upcoming events.   Consultation on Ireland’s National Adaptation Framework A public consultation on the National Adaptation Framework under Ireland’s Climate Action and Low Carbon Development Act 2015-2021 is open until 19 February to gather feedback from relevant stakeholders and members of the public on the draft National Adaptation Framework. The framework specifies the national strategy for the application of adaptation measures in different sectors and by local authorities to reduce the vulnerability of the State to the negative effects of climate change and to avail of any positive effects that may occur. Accounting for nature Ireland’s fourth National Biodiversity Action Plan (NBAP) has launched, the first such plan to be backed by legislation. The plan, ‘Actions For Nature’ addresses key recommendations from the Citizen’s Assembly on Biodiversity Loss and includes actions such as expanding National Parks, tackling invasive species, strengthening efforts on wildlife crime and working with communities. It sets out how to reverse the decline in biodiversity in Ireland, which poses serious threats to societal wellbeing and economic development. Separately, the National Economic and Social Council (NESC) has published a report to inform Ireland’s approach to natural capital accounting. The report, Natural Capital Accounting: A Guide for Action, recommends three areas of action that can be taken to help develop natural capital accounting and to help embed it into the wider policy making system: capacity building; putting a spotlight on ecosystems services; and further integrating natural capital accounting into policy decisions. EPA publishes Ireland’s Climate Change Assessment (ICCA) The Environmental Protection Agency (EPA) has published Ireland’s Climate Change Assessment, the first comprehensive and authoritative assessment of the state of knowledge of climate change in Ireland. It aims to identify opportunities that may arise from the planned transition to a climate neutral, biodiversity-rich, environmentally sustainable and climate resilient economy and society. The report finds that Ireland needs to be resilient to ongoing and future climate change impacts, and that implementation of climate adaptation measures is currently too slow and fragmented. It also finds that immediate and sustained transformative mitigation and adaptation actions are likely to yield substantial benefits for health, wellbeing and biodiversity in Ireland while reducing vulnerability to the adverse impacts of climate change. Community Climate Action ‘mega fund’ launches A €27 million fund for Community Climate Action has been launched for local organisations working to build low carbon communities. The ‘mega fund’ comprises both the national Climate Action Fund allocation of €24 million and an allocation of €3 million provided by the Government’s Shared Island Fund to support cross-border and all-island community climate action initiatives. The climate funding programme, which will be administered by local authorities, will be flexible enough to provide lesser amounts as needed to smaller and medium sized local action programmes. Energy in Ireland Report Ireland’s energy demands are increasing, and emissions are not reducing fast enough, according to the annual Energy in Ireland report published by the Sustainable Energy Authority of Ireland (SEAI) in December 2023. According to the report, Ireland imported 81.6 percent of its energy in 2022, and 85.8 percent of energy came from fossil fuels. While energy emissions in 2022 were found to be the lowest of any year in the last quarter century (not counting 2020 which was strongly impacted by COVID 19), the pace of emission reductions is not sufficient to meet our national climate obligations. Multi-million-pound package for UK businesses to cut their emissions The UK government has announced a multi-million-pound package to help businesses cut their emissions and energy bills. The funding – which amounts to over £190 million – comprises £6 million for winners of the Local Industrial Decarbonisation Plan competition and £185 million under a new phase of the Industrial Energy Transformation Fund, to be made available later this month. Speaking about the announcement Head of Green Economy Development at Invest Northern Ireland, Rachel Sankannawar said it will “bolster our efforts to unlock the economic possibilities of a low carbon future for Northern Ireland… enhance our competitiveness globally …[and] support us to boost our productivity and contribute to reducing our emissions.” More information on how to apply to the next phase of the Industrial Energy Transformation Fund is available here. Decline in cost of pollution from European industry Updated analysis by the European Environment Agency (EEA) shows that while air pollution from large European industry continues to cause significant damage to the environment, climate and people’s health, the cost of air pollution has declined by about a third during the past decade. Analysis published shows that just a small fraction of the most polluting facilities — many of them coal power plants — causes half of the total damage. The EU energy sector accounted for the vast majority — about 80 percent — of the total decrease, achieved mainly by adopting best available techniques (BAT) and shifting to renewables and less polluting fuels largely as result of EU action. Sustainability a business imperative at Davos Sustainability as a business imperative was reportedly among the themes as this year’s World Economic Forum meeting, which took place from 15-19 January in the Swiss mountain resort of Davos. Business leaders and politicians, along with key figures from academia and the not-for-profit sector, attended the meeting, which was titled “Rebuilding Trust”. The event focused on the four themes of security and cooperation, jobs and growth, AI, and climate and nature. Tax News (From our colleagues in the Tax Team) The European Commission has published the default values for determining embedded emissions during the Carbon Border Adjustment Mechanism (CBAM) transitional period (which runs to the end of 2025). These values will be revised regularly from the first reporting period (Q4 2023). CBAM is the EU’s key tool for combatting carbon leakage and is a central part of the Fit for 55 Agenda.  Revenue has updated the Tax and Duty Manual which provides guidance on the income tax exemption of certain profits from the microgeneration of electricity by an individual their main residence.  Following the extension to 31 December 2025 of the scheme for accelerated capital allowances for energy-efficient equipment, as provided for in section 285A TCA 1997, Revenue has updated the relevant Tax and Duty Manual.   Technical Round-Up (From our colleagues in Professional Accounting on 19 January and 5 January ) IFRS and GRI have published a summary of interoperability considerations for greenhouse gas (GHG) emissions. IFAC has published “A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance”. ISSB has issued its December 2023 update and podcast and has published amendments to the SASB Standards (intended to enhance their international applicability). EFRAG has issued a call to SMEs for participants to test forthcoming exposure drafts on voluntary sustainability reporting standards for non-listed SMEs and ESRS for listed SMEs. published three draft Implementation Guidance documents, open for public comment until 2 February announced, with the Taskforce on Nature-related Financial Disclosures (TNFD), a cooperation agreement and shared commitment to enhance corporate transparency related to biodiversity and ecosystems. On 22 December 2023, the ESRS Delegated Act and Annexes were published in the EU Official Journal (see EFRAG’s page)   Sustainability Newsletter (from our friends in Accountancy Europe) European Parliament and Council stroke deal on CSDDD European Commission provides additional guidance on EU Taxonomy Disclosures European Council reaches position on ESG ratings proposal European Securities and Markets Authority’s consults on draft guidelines on enforcement of sustainability information International Ethics Standards Board for Accountants (IESBA) exposure draft on International Ethics Standards for Sustainability reporting and assurance International Organization of Securities Commissions (IOSCO) IOSCO lays out its strategic priorities at COP28   Articles ESG and sustainability – what’s the difference?(Briefly from Accountancy Ireland) Your IT team’s vital role in sustainability reporting (Briefly from Accountancy Ireland) Listen In this podcast, Sinead Kelly, Tax Director at PwC helps demystify ESG and describes upcoming policy changes. Upcoming Events UN Global Compact Network UK Collecting Scope 3 Data Webinar Series 2024 The UN Global Compact Network UK are hosting an interactive four-part webinar series in 2024 to support businesses to efficiently collect Scope 3 emissions data from across their value chain. This series will explore how companies can collect Scope 3 data using a variety of tools, surveys, and software and will feature case studies and insight from businesses on good practice in this area.   Chartered Accountants Ireland CSRD – Building Finance & IT partnerships Finance professionals are working hard to understand the implications of the CSRD, and to implement the necessary reporting for their businesses. But their colleagues in IT also have a vital part to play. This webinar will examine how to establish effective collaboration between the Finance and IT teams, what pitfalls to avoid and how to build a strong partnership to deliver an effective sustainability reporting programme Wednesday, Zoom, 7 February 2024 12:00 – 12.45 Accountancy Europe Supporting SMEs with sustainability information Small and medium-sized enterprises (SMEs) report that their larger value chain partners and finance providers are increasingly asking them for sustainability data to fulfil regulatory requirements. The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) leave most SMEs out of their scope, but their indirect impact in small businesses – which often operate with limited know-how and resources – is still significant. 21 February 2024 (17:00 - 19:00) Brussels time   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next: Wednesday, 21 February, 14:00-15:30 Online via Teams If you would like to attend, please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

In the complex landscape of corporate decision-making, understanding the differences between ESG and sustainability is crucial, writes Dan Byrne Corporate decision-making today involves a lot of talk about the environment, social and governance (ESG) and sustainability – precisely, how your company will fit into both movements. No one wants to discover they don’t know the difference between the two in the middle of a board meeting. While the two ideas share a lot of overlapping principles, they are different. It is essential to understand these difference because, once you sit down with colleagues to oversee core strategic decisions, you must have robust knowledge about the relevant topics. The difference between ESG and sustainability Sustainability is a principle dictating that, while we must look after the needs of our current society, it cannot be to the detriment of future generations. The concept of sustainability is so broad that it inevitably means different things in different boardrooms. The common thread in most organisations is that sustainability principles guide stakeholder expectations and, as a result, company strategy. ESG isn’t a principle; it’s a framework for measuring specific impacts and risks. It is a tool that can help investors and stakeholders to understand where their money is going. Why the confusion? There is a lot of overlap between ESG and sustainability, so organisations often file them under the same heading. In practice, companies embracing ESG will often commit to not harming the planet (environment), its people (social) or themselves (governance). While this should always be approached with the understanding that ESG is an investment metric and tool for analysing risk, it can be easy to generalise to the point that ESG is instead viewed as a sustainability metric or simply another name for sustainability itself. This is particularly true when companies focus on the “E” part of ESG. It’s popular across multiple industries and wins the backing of key stakeholder groups. An organisation’s focus on the environment creates a natural overlap with sustainability activities. Avoiding confusion in the future If you are in a board meeting and find yourself hovering around both topics, be sure not to hint that they’re the same with these tips: Remember that ESG is a collection of metrics; sustainability is a principle; If you’re talking about ESG, you will likely end up talking about numbers, quantities, reporting and investment opportunities. If you’re talking about sustainability, it’s expected more in the context of organisational goals, culture and policies; and Sustainability, in many respects, is the end goal. ESG is a pathway and a framework that will allow you to get there. Dan Byrne is a writer with the Corporate Governance Institute