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

The much-anticipated Chartered Accountants Ireland Annual Dinner takes place tonight (Friday), at the Convention Centre Dublin. How does the largest professional accountancy body on the island of Ireland, intent on building a more sustainable Institute and profession, put together an event for over 700 people and embrace sustainability? Institute Sustainability Officer Susan Rossney takes a closer look. The venue The Convention Centre Dublin (CCD) is the world’s first carbon-neutral constructed convention centre. It is also one of Europe’s most environmentally friendly venues. Members can learn more about its waste-management, eco produce, heating, cooling and lighting on its website. It is one of only three venues in Ireland to hold the ISO 20121 accreditation in Event Sustainability Management Systems, which it secured in 2021. The accreditation was awarded by SGS, the awarding body in Ireland on behalf of ISO, an independent, non-governmental international organisation with a membership of 165 national standards bodies. ISO counts all actions, from relying on tap water instead of plastic bottles to encouraging use of public transport. The CCD also holds Quality Standard ISO 9001 and Environmental Standard ISO 14001, as well as British Security Standard BS7499. Each client of the CCD has the option to make a positive impact on the environment by investing in projects run by the Irish initiative Grown Forest. Chartered Accountants Ireland availed of this option when booking the Annual Dinner, by investing in biodiversity projects, which includes the planting of 40 native Irish woodland trees within its woodland borders. Our speakers Sonya Lennon Multi-award-winning entrepreneur and designer Sonya Lennon is dedicated to the value of gender equity in Ireland. With a master’s degree in business equity, diversity and inclusion, Lennon’s high-profile advocacy work includes campaigning for gender pay gap legislation and childcare reform. Founder of social enterprises WorkEqual and LIFT Ireland, Lennon’s focus on social sustainability is also matched by her focus on environmental sustainability. “Climate change is a consideration with everything” she announced in June 2023, going to say that Lennon Courtney is “entering a new phase as a company, one with sustainability at the forefront in all its forms.” Johnny Sexton Following a sensational rugby career, Johnny Sexton recently took up the role of Chief of Staff for the Ardagh Group, the sustainable packaging company. In interviews Sexton has emphasised wellbeing in the workplace, mental resilience, and the ability to switch off and to stay motivated for the 'always on' generation, in both sport and business. He is also an investor in plastics-free drinks company, DASH, a certified B-Corporation that prioritises reducing food waste. MC Dearbhail McDonald MC for the evening is journalist, author and broadcaster, Dearbhail McDonald. Alongside her achievements in journalism and media – including several awards for her contribution to public affairs journalism – Dearbhail also cofounded the Equality Expert Group (EEG), a collective of experts drawn from a variety of fields, public and private, seeking to support equality and diversity in Irish social, economic and cultural life. Dearbhail’s 2019 documentary ‘Fertility Shock’, RTÉ, addressed the future of work, diverse workforces and the impact of fertility trends on economic growth. Members will also have seen Dearbhail in this week’s documentary ‘The Last Priests and Nuns in Ireland’, which examined the role of nuns in Ireland to see how they have shaped Irish lives, including her own, for better or for worse. Find out more about sustainability at Chartered Accountants Ireland in this two-minute video with Sustainability Officer, Susan Rossney.

  Sustainability (often described as environment, social, governance or ‘ESG’ by finance professionals) is a fast-developing area. Chartered Accountants Ireland’s Sustainability Officer Susan Rossney looks at key trends for 2024, and speaks to thought leaders on what to expect in the year ahead. Elections 2024 will be a year of elections. More than 60 countries representing half the world’s population - 4 billion people - will go to the polls. Voters are expected to turn out in Ireland, the US and, potentially, the UK and for elections to the European Parliament. In the words of former UK cabinet minister for Energy, Chris Skidmore: "the climate crisis that we face is too important to politicise or to ignore." That being said, the elections are predicted to involve much political debate around ESG and environmentally-focused investing. They are also taking place against a backdrop of ‘simmering geopolitical tensions’ – including mistrust in elections. This is according to the World Economic Forum’s 2024 global risk report, which puts extreme weather events, misinformation and disinformation, and societal polarization as the 3 risks most likely to present a material crisis on a global scale in 2024. Policies In early 2024, Ireland can expect a public consultation on its Climate Action Plan 2024, the fourth such plan since 2019. Circular economy measures will also come into effect. For example, under the Deposit Return Scheme starting February 2024, plastic bottles and aluminium /steel cans can be returned to retail outlets in exchange for a small deposit. Expect to see a public consultation in 2024 on the National (Climate) Adaptation Framework also, as Ireland records record-breaking weather extremes in 2023 (and see more on weather below). 2024 will also see the development of an Irish national centre for electric vehicle (EV) skills to train people to repair and maintain electric cars, bikes, scooters, trucks, buses, vans and heavy goods vehicles. (Global expectations for passenger EV sales predicts an increase of 21 percent in 2024 to 16.7 million EVs, with 70 percent of those being fully electric.) In the UK, a consultation is pending on the design of a UK Carbon Border Adjustment Mechanism (CBAM), a mechanism to be introduced in 2027. The EU already has a CBAM, which entered its transitional phase on 1 October 2023. A consultation is also open on a UK emissions trading scheme (ETS) markets policy. ‘Transition finance’ moving centre-stage Transition finance is expected to increase in prominence in 2024. The term broadly refers to financing private investments to help economies and societies transition from reliance on fossil fuels. Examples of transition finance activities include green and sustainability-linked bonds and loans, but grants also come under the definition. FCA and founder of Tactive, Gordon Naughton, is looking forward to seeing the EU start approving sizeable grant funding to large-scale sustainability projects that will have a meaningful impact on Ireland’s emissions, such as the recent EU approval of Germany’s €902 million grant to Northvolt for a battery factory. “This is a seminal moment for the EU and represents a sizeable shift in policy” Gordon says, further commenting: “previously, grant funding within the EU was mostly focused on R&D funding and steered away from capacity building due to WTO rules. Witnessing the success of the US Inflation Reduction Act, the EU is now embracing green capacity building grants which is good for competitiveness and the planet.” Preparing for the CSRD … With effect from financial year beginning on or after 1 January 2024, some of the largest companies in Ireland will begin reporting under the Corporate Sustainability Reporting Directive ('CSRD'), and as a result, the European Sustainability Reporting Standards (‘ESRS’). The CSRD must be transposed into national law by EU Member States, including Ireland, by July 2024. “The reporting of sustainability matters under the CSRD represents the dawn of a new era in corporate reporting for entities” says Mike O’Halloran, Technical Manager with Chartered Accountants Ireland, highlighting the important role that the CSRD will play in ensuring that the climate goals of the European Union are met. “The Directive is a key component in the EU’s goal of transforming itself into a modern, resource-efficient and competitive economy, with the aim of being climate neutral by 2050. In 2024 we expect to see companies becoming more familiar with the requirements of the Directive and of the European Sustainability Reporting Standards, and the goals of both to combat ‘greenwashing’ and false, misleading or unsubstantiated claims.” While finance teams in larger organisations are assessing what new measures and information will be required, SMEs will also experience a ‘trickle-down’ effect from the CSRD. SMEs in the supply chains of in-scope entities can expect more queries from their in-scope partners. These may include questions about the SME’s environmental, social and governance (ESG) profile and plans. Speaking from the UK, Chartered Accountants and Director of Blue Crane Consulting, Rosie Dunscome says that 2024 will be a critical year for accountants to get their heads around in-coming corporate sustainability reporting regulation: “The UK government is set to make its endorsement decision on IFRS S1 and S2 by July 2024, and voluntary frameworks that look likely to shape future regulation were also launched in the latter part of 2023 in the form of the Taskforce for Nature-related Financial Disclosures recommendations and the Transition Plan Taskforce Disclosure Framework. These should all appear on an accountant’s radar in 2024.”   …and the CSDDD Provisional agreement has also been reached on the Corporate Sustainability Due Diligence Directive (CSDDD). This aims to foster sustainable and responsible corporate behaviour throughout global value chains. It applies to EU and non-EU companies with a turnover over €150 million and smaller companies in certain sectors. Outside the EU, other countries are implementing national legislation with similar aims, from New Zealand’s proposed modern slavery reporting legislation and Mexico’s new forced labour import prohibition. Greater scrutiny on sustainability claims Following initiatives to address greenwashing by, among others, IOSCO, the Financial Conduct Authority (FCA) and the EU in 2023, the US Securities and Exchange Commission is expected to announce its long-awaited proposed corporate disclosure rules for enhanced climate disclosures during the first half of 2024. Overall, companies can expect greater scrutiny on all sustainability-related information they produce. Carbon markets in the news One item expected to be in news this year is the voluntary carbon markets (VCMs). Talks at the global climate summit COP28 in Dubai in December failed to agree on new rules which would allow the launch of a centralised system, run by the UN, allowing for countries and companies to begin offsetting their carbon emissions and trading those offsets. It is expected that negotiations will continue through 2024 and at COP29 in Baku, Azerbaijan. Litigation              Climate and environmental issues are likely to come before the courts once again in 2024. In Ireland a new division of the High Court has been established that is dedicated to Planning and Environmental cases. Globally, there are reportedly more than 2,300 pending or decided climate cases. These range from small island states taking a case to the UN maritime court to seek protection for the world’s oceans against climate change, to young people taking 32 countries to court over climate inaction. A growing number of countries are considering introducing laws to make ecocide a crime: a new standalone crime of ecocide is being proposed in the Scottish parliament in a consultation which will run until February 9 202, and a test case of France’s new ecocide law is currently in the courts.  Jobs and skills The rise in reporting and disclosure requirements is likely to have an impact on finance professionals looking to upskill themselves and their staff, and/or to hire new team members. The lack of skills and education was a recurring theme in 2023, with the National Skills Bulletin 2023 reporting that the skills mix of Ireland’s workforce will need to evolve as industries in Ireland address issues such as sustainable sourcing, circular lifecycles, energy efficiency, and waste minimization. ‘Climate Action and Sustainable Development’ is one of the new subjects being considered as part of an open consultation on draft specifications for six Leaving Certificate Subjects to be introduced in schools in 2025. "With new sustainability regulations, as well as nature moving up the agenda for businesses and governments, accountants will need to learn the language of sustainability and how to apply this in their organisation’s context." says Sarah Reay, Climate Change Manager with ICAEW. "Capacity building across all organisation is likely to be a big focus in 2024". The International Federation of Accountants (IFAC) has also called on the accountancy profession to help build capacity and advance on education. Outside of accounting and finance, a growth in jobs in areas like renewable energy will require upskilling of workforces with 36.2 million people working in clean energy in 2023 (6 million more than 2019). Demand for more employees in this field is likely to rise, with global upskilling is required to meet it. Greater focus on assurance It is also possible that 2024 will see a growing demand for ‘real data’ like geospatial data and satellite imagery to prove companies are, e.g. sourcing cocoa from non-deforestation-prone regions. In Europe, with the introduction of the CSRD, there will be a mandatory requirement for the assurance of sustainability reporting.  “Initially there will be ‘limited assurance’ required, although ‘reasonable assurance’ is expected to be introduced at some stage in the future”, explains Dee Moran, Professional Accountancy Lead with Chartered Accountants Ireland. ‘In-scope companies will need to undertake an assessment of their readiness for assurance and have the appropriate processes and controls in place to ensure they are in a position to comply with the new regulatory obligations. We predict that this will be a  significant challenge for companies needing to comply in 2024 as they carry out these assessments, so companies should begin this sooner rather than later to ensure they are compliant.” More renewable energy 2024 is set to be a critical year in renewable energy in Ireland. Calls on the Government to remove bottlenecks and push through projects have been made to ensure the scale-up of offshore wind, which is needed for Ireland to achieve its climate goals. Marie Joyce, Chief Operations Officer & Chief Financial Officer of NTR plc thinks that 2024 will bring an ever-increasing focus and understanding of the benefits of clean energy (wind, solar, battery storage) for us all:  “The benefits of clean power are significant, not just in reducing national CO2 emissions, but also in reducing air pollution. These assets also present a great opportunity to deliver a positive impact on Nature.” One of those benefits is cost. The costs of global renewable power generation continued to decrease through 2022, despite rising materials and equipment costs. According to the International Renewable Energy Agency (IRENA), in 2022 solar PV cost 29 percent less than the cheapest fossil fuel-fired solution. Nature, biodiversity and business According to the World Resource Institute over half of global GDP – $44 trillion – relies on nature, but only 17 percent of total investment in nature comes from the private sector. We can expect to hear more from World Resources Institute (WRI) in 2024, as it researches how business can finance investment in Nature-based Solutions (NBS). Beginning in 2024, the Taskforce on Nature-related Financial Disclosures (TNFD) will track voluntary market adoption of its recommendations through an annual status update report. Adapting to record-breaking climate events All indicators point to the relentless rise in global temperatures to continue in 2024 with experts forecasting “Every year for the rest of your life will end up being one of the hottest in the record.” The changing climate will also continue to bring record-breaking droughts, wildfires, floods and heavy rain. In addition to the human cost of these events, the European Environmental Agency (EEA) predicts that weather- and climate-related extremes will see economic losses of assets increase as severe weather- and climate-related extreme events intensify further. (These events caused €52.3 billion of economic losses of assets in 2022.) Historically low levels of water in the Panama Canal, the Mississippi and the Rhine had ramifications for the movement of goods in 2023, and similar impacts are expected in 2024. At the other extreme, flooding in Ireland caused enough damage for the Government to introduce an Emergency Business Flooding Schemes for small businesses. It is likely that insurance prices in Europe will also rise, according to the chief executive of Lloyd’s of London, as extreme weather changes the way insurers thought about climate risks. The need for more resilience in supply chains is coming to the fore as companies grapple with understanding how different scenarios will affect their business. Overall, a busy year ahead.   Keep up to date with on sustainability with information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre at Chartered Accountants Ireland

Childcare reform key to greater female participation in workforce: two-thirds of members pay up to €2,000/ month for childcare Workers need certainty in tax system to reflect hybrid working norms and bring an end to pandemic experimentation period.    5 January 2024 – Stronger government action to improve childcare costs and availability would boost capacity in the workforce, according to a new policy paper published today by Chartered Accountants Ireland. The Next Financial Year: Building Capacity is the first of several policy papers that the Institute will publish this year on priority areas identified by Institute members which would support the economy.  The Institute is the largest and longest-established professional accountancy body on the island of Ireland.  It has 33,000 members, two-thirds of whom work in business. Published as an open letter to policymakers and legislators, the policy paper sets out recommendations on how Government can build capacity in the economy by: Enabling greater female participation in the workforce through targeted childcare reforms  Easing cost pressures for developers & landlords to stimulate housing supply  Giving certainty to workers on place of work & commuter costs in the tax system  Building digital capabilities & resilience for businesses to succeed  Childcare reform can unlock economic contribution of female professionals Institute members identified the steep cost and lack of availability of childcare as the biggest challenge facing working parents in the profession today, with two thirds of members currently paying up to €2,000 per month in childcare costs, and 16%, mostly female members, having to reduce their working hours to care for a child. Chartered Accountants Ireland highlights solutions available to Government to increase female labour market participation such as: Increased funding, capital investment and grant support to the sector to better match the cost of providing childcare services, to meet surging demand for places & to encourage providers to grow. Reform of National Childcare Subsidies (NCS) to encourage childminders to register with Tusla, giving parents of up to 80,000 children easier access to subsidised childcare. Sinead Donovan, President of Chartered Accountants Ireland, said: “For too long, policymakers have framed childcare policy as a social issue, not an economic one. Our evidence shows that affordable, quality childcare drives more sustainable, inclusive economic growth and competitiveness. Government’s ambition to tackle the provision of childcare is welcome for businesses in today’s tight labour market. Paving the way for greater female participation in the workforce should be a priority for policymakers in 2024.”  On housing, the policy paper identifies specific measures to ease cost pressures for developers and landlords to stimulate supply, including: A deferral of PAYE and VAT payments for developers and builders on salary, material, and other costs incurred during construction, to be payable as the units are sold. This would reduce development costs, ease cash-flow concerns and make investment more appealing.  Further encouraging private landlords to remain or move into the Irish market through the taxation system. Allowing Local Property Tax as a deduction against rental income and allowing non-resident landlords to collect rents directly from tenants, rather than through Revenue or a collection agent, could provide such an incentive. In the workplace, giving certainty to workers on how their place of work and commuter costs are to be treated in the tax system would put Ireland’s employment environment on a more progressive footing, and bring to an end the pandemic experimentation period. Measures proposed include:   Introducing a more flexible version of the TaxSaver Commuter Ticket Scheme, to offer tax relief on season tickets to commuters who only use public transport 2-3 days a week, reflecting new norms around hybrid working, while promoting public transport use.  Rules to establish a normal place of work, fundamental to the tax treatment of employee travel and subsistence reimbursements, should be updated to reflect the changed circumstances that hybrid working has created.  Digital skills are essential to meet current and future workforce needs. Building digital capabilities & resilience for businesses to succeed requires Government to do more to meet its target of 80% of adults having at least basic digital skills by 2030. The Institute recommends that the digital transformation of education and training focuses on schools, equipping children with the skills needed for the jobs of the future, underpinned by the Digital Strategy for Schools to 2027. Dr Brian Keegan, Director of Public Policy for Chartered Accountants Ireland, said: “In Building Capacity, Chartered Accountants Ireland has put forward practical recommendations to help our economy thrive. Our members have once again provided vital insights into the major societal and economic challenges that both businesses and employees are facing. Our recommendations reflect their experiences and realities.  “We welcome Government engagement with many of our policy proposals in the last year, but more needs to be done. Building capacity in our economy does not stop at the bricks and mortar of much-needed housing supply. It must include targeted measures that actively facilitate women who want to work, and reflect the reality of a more dispersed, and digital-first workplace if businesses are to succeed long-term. It is within Government’s gift to put in place measures to increase economic capacity across the board, and futureproof jobs for generations to come.” ENDS

    In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s round-up of COP28. Also covered is the Irish Fiscal Advisory Council’s view on how climate change costs can be managed, how 'Climate Action and Sustainable Development' may be included in proposals to redevelop Leaving Certificate subjects, a report on nature-related risks and opportunities for Ireland’s financial sector, UK green hydrogen projects, more time granted to Northern Ireland businesses to consider implications of EU Battery Regulation, as well as European developments, a new publication by IFAC, and technical roundups, newsletters, articles, podcasts and upcoming events. COP28 - the global climate summit The United Nations’ annual climate summit – COP28 – concluded in the early hours of 13 December in Dubai. Chartered Accountants Ireland has compiled useful resources about the summit on our COP28 page, including our daily updates and weekly round-ups. Climate change costs ‘can be managed’ says Irish Fiscal Advisory Council Climate change will have large impacts on public finances, but these costs can be managed, according to the most recent report by Ireland's budgetary watchdog, the Irish Fiscal Advisory Council. In the section ‘Ireland’s green transition can be managed’, the report states that while the costs of the green transition appear high, taxes could be replaced, spending may be manageable and climate-related spending supports could be managed. However, it concedes that how exactly this will be managed needs to be thought through carefully, and that big decisions are needed on Ireland’s climate transition. Sustainability included in proposals to redevelop Leaving Certificate subjects ‘Climate Action and Sustainable Development’ is one of the new subjects being considered as part of an open consultation launched this week on draft specifications for six Leaving Certificate Subjects. Part of the Senior Cycle Redevelopment, the first tranche of new and revised Leaving Certificate subjects will be introduced in schools in 2025. The consultation will run until Friday 23 February 2024 and be accessed via the NCCA’s website. New division of the High Court dedicated to Planning and Environmental cases A new division of the High Court dedicated to Planning and Environmental cases has been established in Ireland, it was announced this week. The new Division will replace and expand the scope of the Commercial, Planning and Environmental List of the High Court. Its scope encompasses proceedings related to planning, transport, water, climate, natural heritage, built heritage, waste, mineral exploration, the marine, agriculture and pollution. Speaking about the announcement, Minister for Justice Helen McEntee, TD  said “Dealing with such cases in an effective and efficient manner is key to enabling the State’s delivery of housing and infrastructure, while also protecting the environment.” Environmental Indicators Ireland 2023 A report published by the Central Statistics Office (CSO) this week shows that Ireland’s emissions of greenhouse gases with global warming potential were higher in 2021 than the European average (12.3 tonnes in Ireland versus 7.8 tonnes in the EU27). The report – Environmental indicators Ireland 2023 – covered 70 indicators across 10 themes, including environmental economy, air, greenhouse gases and climate change, water, land use, energy, transport, waste and biodiversity. It shows that while 39 percent of electricity generation in 2022 was from renewable sources, fossil fuels received subsidies of €2.9 billion in 2021. The highest average annual temperature in Ireland over the 1961-2022 period occurred in 2022. The Nature of Finance – new report launches A new report was launched this week to raise awareness of how the financial sector both impacts on – and depends on – nature.  The Nature of Finance, the first independent assessment of nature-related risks and opportunities for Ireland’s financial sector, hopes to spur further detailed research and proposes a Nature Finance Roadmap for Ireland. Written by KPMG Sustainable Futures and commissioned by the International Sustainable Finance Centre of Excellence (ISFCOE) with support from Skillnet Ireland, the report quotes comments from the European Central Bank on how nature “[is] existential for the economy and the financial system, as our economy cannot survive without nature.” Northern Ireland businesses given more time to consider implications of EU Battery Regulation The EU Batteries Regulation will apply in Northern Ireland from 18 February 2024 and will gradually introduce new rules to strengthen sustainability of batteries and waste batteries, protect the environment and human health and increase recycling. The deadline for completing a survey on how the new EU Batteries Regulations will impact on Northern Ireland traders has been extended by DAERA until Friday 19 January 2024. Businesses manufacturing, importing or selling batteries, either on their own, or incorporated in products, are encouraged to give their feedback as well as register for an information session on the issue. DAERA will report the findings back to UK Government so that it is fully aware of potential implications for Northern Ireland businesses, and consider the next steps. 11 green hydrogen projects announced for UK UK’s Department for Energy Security and Net Zero has announced backing for 11 major projects to produce green hydrogen. Unlike blue hydrogen, which is formed using fossil fuels and capturing the carbon emissions, green hydrogen is made by using renewable energy to split water – helping provide cleaner fuel for energy intensive industries and transport. Confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply. In return for this government support, the successful projects will invest over £400 million in the next three years, generating jobs in local communities across the UK and delivering 125MW of new hydrogen for businesses. Provisional agreement on reform of the EU’s electricity market design Provisional agreement has been reached by the European Parliament and Council on the reform of the EU's electricity market design, revising several pieces of EU legislation. The announcement comes a week after provisional agreement was reached by the European Parliament and Council on updated EU rules to decarbonise the gas market and create a hydrogen market. Under the agreement, consumers will get a wider choice of contracts, clearer information before signing contracts, and thereby the option to lock in secure, long-term prices to avoid excessive risks and volatility. They will also be able to play active role in the energy system, as ‘prosumers’ participating in energy sharing and able to invest in wind or solar parks and sell excess rooftop solar electricity to neighbours (not just to their supplier). Following formal adoption of the agreement by both the European Parliament and the Council, the new legislation will be published in the Official Journal of the Union and enter into force. Corporate due diligence rules agreed to safeguard human rights and environment Provisional agreement has been reached on the Corporate Sustainability Due Diligence Directive (CSDDD).  The proposal aims to foster sustainable and responsible corporate behaviour throughout global value chains. The Directive applies to EU and non-EU companies with a turnover over €150 million and smaller companies in certain sectors. Penalties include naming and shaming and fines of up to no less than 5 percent of net worldwide turnover. Following formal approval by the co-legislators, the Directive will enter into force 20 days after publication in the Official Journal, with Member States having two years to transpose the provisions of the Directive into national law. Integrated Internal Control Needed to Build Trust in Sustainability Reporting, says IFAC The International Federation of Accountants (IFAC) has published a report on how organizations can combine sustainability reporting with their existing internal control and governance frameworks. “The professional accountant’s skillset is instrumental in bringing about a step change in the quality of sustainability reporting through applying new reporting standards and integrated internal controls,” said Kevin Dancey, IFAC CEO. “Integrated internal control can put sustainability information on par with financial information, enhance its assurance readiness, and set the foundation for transitioning to a more sustainable business model.” Technical Round-Up (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) have been providing updates on their activities at COP28. These include planned future cooperation with the International Organization for Standardisation towards effective communication about sustainability-related risks and opportunities; details of the growing number of organisations and jurisdictions who have committed to advancing the adoption or use of the ISSB’s climate-related reporting at a global level; an announcement that Emmanuel Faber will continue as ISSB chair until the end of 2027; and details of the progress made in advancing global sustainability disclosures since the ISSB was announced at COP26. The Board has also provided details of some new and updated resources coming into effect on 1 January 2024. These are intended to help companies apply the ISSB Standards IFRS S1 and IFRS S2. The IFRS Foundation has launched the IFRS Sustainability Knowledge Hub which seeks to support users of the ISSB standards. This is intended to help auditors, investors, regulators and stakeholders as they begin their reporting journey under the ISSB standards. IFAC has announced plans to revise the International Education Standards to bring greater focus to sustainability reporting and assurance, given the evolving role of accountants in the area of sustainability.   Newsletters (From our friends in Accountancy Europe) Includes: MEPs’ vote on draft report on ESG ratings proposal The delay to EFRAG’s work ISSB’s announcements at COP28 IOSCO’s overview of initiatives to address greenwashing IFAC’s sustainability checklist for small businesses From Accountancy Ireland (December 2023) “We need the tools to solve climate change and we need them quickly” - Mike Hanrahan, FCA and Chair of Sustain.Life (Accountancy Ireland) The CSRD: a new frontier in corporate reporting - Daniel O’Donovan, partner, KPMG - (Accountancy Ireland) Articles How accountants can guide SMEs towards sustainable funding (Accountancy Age) PwC UK imposes restrictions on business-class travel (Financial Times) COP28: learning a new language for business (ICAEW) Ireland has the resources and policy to set a shining example to others of national climate action (The Irish Times) Gender pay gap at the Central Bank falls to 3.9%, report shows (The Irish Times) Gender pay gaps have widened this year at nearly half of firms, tally of early annual returns shows The Irish Independent Resources The global SME Climate Hub has free resources for climate action to support SMEs' journey towards a net zero future. In recent weeks, the SME Climate Hub has expanded its tools to facilitate small business climate action. It has launched Action Guides to provide businesses with simple steps for building a climate action plan, and leaned into sector-specific guidance with its first set of Action Courses, which offer video guidance for emissions reductions. Additional industry-tailored resources are to launch next year. Podcast Marie Donnelly, Chair of the Climate Advisory Council, reacts to the latest developments at COP28 where a deal has been reached. (RTÉ Clip • 10 mins) 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. Collecting Scope 3 Data: Supplier Engagement: 1 February, 10:00-11:30 GMT Collecting Scope 3 Data: Upstream Emissions, 8 February, 10:00-11:30 GMT Collecting Scope 3 Data: Downstream Emissions, 15 February, 10:00-11:30 GMT Collecting Scope 3 Data: Employee Engagement, 22 February, 10:00-11:30 GMT 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: Thursday, 25th January 2024  In person: Time and location tbc (but will be on Pearse Street, Dublin 2) 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.