Introduction The agri-food industry operates in a rapidly changing and dynamic business environment, where farmers and food producers, from multinational to artisan, are continually required to innovate and adapt. Events such as the COVID-19 pandemic and the war in Ukraine have increased complexity, disrupting food-supply chains and threatening food security. These circumstances have an impact on food production processes and consequently require a focus on sustainability. Sustainability is a key challenge facing all business sectors, not least the agriculture and food production industries. At a national and international level there is a huge focus on developing a sustainable food supply for a growing worldwide population. The United Nations (UN) forecasts a 34% increase in world population by 2050 and that an increase of 70% in food production will be required. Despite this, the UN reports that 30% of all food produced globally is lost or wasted. Greenhouse gases (GHG) emissions globally have increased by more than 60% between 1990 and 2022. The impact on climate change has been well documented, including increases in the frequency of flooding, droughts and wildfires. Such climate-change effects have serious consequences on food production and necessitate collaboration between all sectors of society to address the challenges presented. In Ireland, the economic importance of agriculture is clear. According to the Department of Agriculture, Food and the Marine, the agri-food sector accounted for 9% (€18.78 billion) of total exports in 2022 and 6.5% of total employment or 164,900 jobs, mostly in rural areas. Farms and farmers also provide valuable sources of environmental assets (e.g. hedgerows, wetlands and woodlands) and contribute to preserving natural habitats and biodiversity. However, from an environmental sustainability perspective there is much debate about the high level of GHG emissions generated by the Irish agricultural industry and how this issue needs to be addressed. In this article, I do not debate the extent to which the agricultural industry contributes to Ireland’s GHG emissions problem, but rather focus on acknowledging that farmers and food producers need to be included in determining a solution.  I also believe that the accounting profession has a key role to play in assisting farm enterprises, and small and micro agri-food businesses, to create more sustainable enterprises and to contribute to a sustainable food supply.  Environmental sustainability in agriculture Environmental sustainability is at the forefront of national and international policy development in agriculture and food production. This is primarily driven by the UN Sustainable Development Goals, as several of them relate to agriculture and food production.  At EU level, the European Green Deal, through its “Farm to Fork Strategy”, has set out plans on how to improve sustainability and the environmental impact of the agri-food industry. These are being incorporated into reform of the common agricultural (CAP).  At a national level, the Climate Action and Low Carbon Development (Amendment) Act 2021 introduced a framework of sectoral GHG emissions (‘carbon’) budgets, to be subsequently developed and proposed by the Climate Change Advisory Council (CCAC). In July 2022 (after much debate) the sectoral emissions ceiling for agriculture was set at a level requiring an ambitious 25% reduction by 2030. Stakeholders acknowledge the fundamental challenge that environmental sustainability presents for the industry. They also acknowledge the key role that the industry must play in addressing the national environmental sustainability challenge. A financial perspective on sustainability in agriculture Sustainability in agriculture is multidimensional and is broadly comprised of three main pillars:  environmental sustainability,  social sustainability, and economic sustainability. Environmental sustainability refers to how agriculture and food production processes impact our environment, and is the most widely discussed pillar of sustainability, the contribution of the industry to GHG emissions attracting significant debate.  Social sustainability in agriculture relates to farming communities, and the many challenges they face, and how the industry’s sustainability affects wider society.  Economic sustainability is generally viewed as economic viability, i.e. whether a farming system can survive financially in the long term in a changing economic context. It is perhaps to the economic sustainability of agriculture that the role and contribution of accountants is most relevant.  The National Farm Survey (NFS) is conducted annually by Teagasc, the Agriculture and Food Development Authority. Highlighting the economic vulnerability of many farm enterprises in Ireland, the 2022 report classes 43% of Irish farms as economically ‘viable’, 32% as ‘sustainable’, and 25% as ‘vulnerable’. At the root of this economic vulnerability is rising inflation and increases in the cost of farm inputs (e.g. fuel, fertiliser and feed), reducing the profit margins of food producers.  The challenge for farm and food production enterprises is to balance economic with environmental and social sustainability. A phrase used in the industry is “it’s hard to be green when in the red”. The NFS statistics reveal a situation of economic vulnerability for many farm enterprises. Therefore, financial viability may understandably be their top priority, with environmental and social sustainability of secondary importance.  However, despite the uncertainty of economic conditions in the short term, the long-term focus on environmentally sustainable food production and its positive social impact should not be forgotten. When a holistic perspective is brought to the concept of sustainability, we realise that the pillars of economic, environmental and social sustainability are intertwined and cannot be simply viewed in isolation.  While there are many scientific solutions (e.g. soil and grassland management, fertiliser use, changes to feed additives, alternative energy sources, shorter animal-to-slaughter periods, etc.) proposed to farmers on how to reduce GHG emissions, there appears to be little known about, or consideration of, the financial impact of such changes to farm practices.  The onus of identifying the changes required to farm practices to reduce GHG emissions on farms is placed on individual farmers, and farm advisory services are available to assist in this regard. However, many of the scientific solutions to reduce on-farm emissions require investment and involve a cost to farmers when making the transition. There appears to be little focus from the advisory services on assisting farmers to assess the economic cost or benefit for them when implementing such changes to farm practices.  Though many farmers want to adapt their work practices to contribute to a reduction in GHG emissions, many experience a knowledge gap regarding the financial impact on their livelihoods. This is an area where improvement in advisory services is required. Bringing a focused financial perspective to sustainability, accountants can contribute to bridging this knowledge gap. I contend that the accounting profession must collaborate with stakeholders in the agriculture industry and lead the way in helping to create sustainable farm and food production enterprises.  A financial management perspective acknowledges that economic sustainability cannot be sacrificed, and is crucial for the survival of farming and food production. Rather, work practices need to change to meet the ‘triple-bottom-line’ agenda of economic, environmental, social sustainability. Farmers and food producers need to be supported and advised to achieve this more complex and yet balanced objective. The role of the accountancy profession It is paramount that farmers and food producers are educated about what sustainability means and the financial implications for their business. Accountants are one of the primary sources of trusted advice for small business owners, including farmers. Therefore, the accounting profession has the potential, and an existing platform, to lead on how farmers and food producers can improve their sustainability, in the broadest sense.  Accountants are unique in having a wide range of knowledge about sustainable work practices from dealing with a varied client base across multiple industries. They can share this with farmers and small agri-business owners.  Accountants could assist farmers and food producers by: identifying the business opportunities for farmers presented by the sustainability transition; conducting cost–benefit analyses of implementing environmental sustainability initiatives (e.g. alternative energy sources); calculating the payback or return on investments that reduce the GHG emissions of enterprises;  helping business owners to avail of financial supports available to meet the cost of sustainability initiatives; advising farmers on how to develop sustainable work practices in a cost-efficient manner; sharing knowledge gained from SMEs and larger companies (e.g. on how to conduct sustainability audits).  Resources are available to support accountants to work with clients in this regard. For example, Chartered Accountants Ireland provide online resources in its Sustainability Centre, where free-to-access publications such as Sustainability for Small Businesses – A Guide provide practical insights. Conclusion There are many ways the accountancy profession can contribute to assisting farmers and food producers meet sustainability targets. These insights are not only important for food and agricultural businesses but are equally relevant and transferrable to how the accounting profession could rise to the challenge of assisting businesses in other sectors of the economy meet the increasing demand to strive for improved sustainability.  Dr Michael Hayden, FCA, is an Assistant Professor of Accounting at Maynooth University  

Monday at COP28 was both Finance Day and Gender Equality Day, with discussions on financing gender-responsive just transition and climate action. As Razan Khalifa Al Mubarak, UN Climate Change High-Level Champion said, “Climate change is not gender neutral. Women make up the majority of the world’s poor and despite and maybe because of this women and girls are at the forefront of climate action.” Some highlights: The Gender-Responsive Just Transitions & Climate Action Partnership was unveiled and endorsed by 60 countries contained a three-year package of measures to address the disproportionate impact of climate-related job loss on women.   A report titled "Feminist Climate Justice: A Framework for Action", was launched by UN Women. The report identified the climate crisis as threatening progress on gender equality and human rights, and hindering the achievement of the Sustainable Development Goals. The report describes how to achieve feminist climate justice and provides practical guidance on what countries need to do to transition to low-emission climate-resilient economies that, while recognizing the leadership of women, girls, and gender-diverse people in driving the change that is so urgently needed.   Hillary Clinton said in an interview that the absence of women in climate talks is a major worry (The Independent) Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre. 

"Finance is the great enabler of climate action" This was the message of UN Climate Change Executive Secretary Simon Stiell in a speech at a Green Climate Fund event today “Scaling up Access and Impact”.  And it is a key message of this year’s COP, at which a record number of financial executives are attending. Many may be drawn to what Nikita Singhal, co-head of sustainable investment & ESG at Lazard Asset Management, describes as possibly “the greatest alpha-generation or investment-return” in a long time. Singhal  was speaking at the Bloomberg Business Forum at COP28, and was one of several investors who see opportunities for investment returns in action on the twin crises of climate change and biodiversity destruction. “Let's be clear,” said another such investor, Prudential Plc Chair Shriti Vadera, who reminded the Forum “The private sector only does things that are commercial and create a commercial return: they are to preserve the capital of their customers, savers, pensioners and depositors.” Highlights Chair of the IFRS Foundation Trustees, Erkki Liikanen addressed COP28 and reflected on progress since the IFRS Foundation announced the decision to establish the International Sustainability Standards Board at COP26 in 2021.   Export credit agencies, supporting a combined estimated US$120 billion in global trade in 2022, have formed a net-zero alliance. The UN-convened Net-Zero Export Credit Agencies Alliance will be the first net-zero finance alliance comprising public finance institutions. “Public finance has been the missing piece in the net-zero financial landscape,” said Inger Andersen, Executive Director of UNEP. “Export Credit Agencies are in a strong position to deliver more sustainable global trade and to complement the work already being undertaken by the private finance sector”.   Climate Trace the non-profit project has released data “of unprecedented granularity” that shows how countries have been dramatically under-reporting their greenhouse gas emissions;   An 18-month collaboration between leading climate researchers across more than 20 nations has produced a report titled 10 New Insights in Climate Science 2023/2024. The report aims to help inform policy implementation at COP28 and beyond. It warns that humans will increasingly be unable to live in and move from/to places where climate risks continue to rise, and also warns of compound risks which will amplify the climate crisis and increase in uncertainty. Podcast Tripling renewables is one of the goals under discussion at COP28. Find out where more investments are needed and why decarbonizing energy is easier than you think. (Zero)  

Like previous global climate summits, days 1 and 2 of this COP saw global leaders, including Taoiseach Leo Varadkar, delivering speeches to the summit. As Environment and Science Editor Kevin O’Sullivan , writes in the COP28 special edition of the Irish Times Sunday ‘The game of “down or out” will surface repeatedly [at this year’s climate summit]. Should the world “phase out” what’s known as “unabated” oil and gas — that’s when fossil fuels are burned without technologies to capture their greenhouse gases — or should they just be “phased down”?’ Saturday Coinciding with Leaders Days was the newly launched two-day long Business & Philanthropy Climate Forum (BPCF). This multi-stakeholder-engagement platform is the first dedicated platform for the private sector and philanthropy to be included in the COP process. It convened over 1,300 global business leaders and philanthropists, and saw discussions on topics including carbon pricing, renewables, green economy programmes, commitments on nature, the role of media in climate change and AI’s impact on climate change. At the BPCF, three organizations – Green Climate Fund, Allied Climate Partners, and Allianz Global Investors – came together to mobilise $5 billion in collective philanthropic, public and private funding to unlock long-term capital of $20 billion to advance climate and nature action. Initiatives announced included  the new Climate Solutions investment platform, announced by Rishi Kapoor, co-CEO of Investcorp, which targets circa $750 million of growth capital investments to help scale companies that provide products, services and technologies to support decarbonization and address the impacts of climate change globally. Separately a pact, sponsored by COP28 President Sultan Al Jaber, was signed up to by 50 oil and gas companies. The Oil and Gas Decarbonization Charter commits signatories to cutting greenhouse gas emissions from their operations and slashing methane releases to near-zero by the end of the decade. The charter is reportedly one of COP28’s benchmark achievements for Al Jaber, himself the head of one of the world’s largest oil producers (ADNOC). Signatories to the charter represent nearly 40 percent of global oil production, and for 31 of those companies it was their first time making such a commitment to reach net-zero methane. Of the 50 companies that signed up, 60 percent of them were National Oil Companies, the largest-ever number to commit to a decarbonization initiative. The Charter was launched alongside another key initiative, the Global Decarbonization Accelerator (GDA). This initiative is focused on three key pillars: rapidly scaling the energy system of tomorrow decarbonizing the energy system of today and targeting methane and other non-CO2 greenhouse gases. The Charter has attracted criticism, including from UN Secretary-General António Guterres, however, because none of the companies have agreed to reduce oil and gas production, and that the Charter “says nothing about eliminating emissions from fossil fuel consumption”. Also, while signatories will have to submit a plan to meet the targets by 2025, the targets themselves are not binding. Defending the pact, Al Jaber argued that oil and gas will remain part of the energy system for decades to come even as fossil fuels are phased out, and they must be made clean as possible. In a widely supported initiatives, over 110 governments also pledged to triple the world's renewable energy capacity by 2030, as a route to cut the share of fossil fuels in the world's energy production. Also announced on Saturday was a collaboration by the International Energy Agency, Environmental Defense Fund, the UN Environment Programme, the International Methane Emission Observatory and RMI, with support from Bloomberg Philanthropies. Data from the program — including surveillance by the MethaneSAT satellite set to launch next year — is meant to supply governments, and the public and others with information about emissions that can be used to hold companies accountable. Sunday – Health Day Health has become a major focus of the climate summit: extreme weather has been linked to the spread of disease – including spikes in infectious diseases, like cholera and malaria, due to floods caused by climate change – but also cardiovascular-related deaths due to unusually high temperatures (reportedly expected to nearly triple in the US by mid-century as climate change raises the frequency of very hot days), pollution and even fears about ancient outbreaks coming back to life from thawing Siberian permafrost (which also poses risks of release billions of tonnes of the extremely potent greenhouse gas methane into the atmosphere). Sunday was Health Day at COP28 with 123 countries backing the ‘COP28 UAE Declaration on Climate and Health’. This declaration aims “to place health at the heart of climate action and accelerate the development of climate-resilient, sustainable and equitable health systems”. Included in set of finance commitments on climate and health were commitments of $300 million commitment by the Global Fund to prepare health systems, and £54 million from the UK government. New initiatives were also announced to meet climate and biodiversity goals. $1.7 billion in nature conservation finance was unveiled, alongside a pledge by host country, the UAE, to contribute $100 of new finance for nature-climate projects. Other national and regional investment plans and partnerships were announced, focusing on nature-climate action to deliver on the Paris Agreement and the recently adopted Kunming-Montreal Global Biodiversity Framework. These included: $250 million new funding under the Ocean Resilience Climate Alliance (ORCA); three forest finance packages, and the Nature Finance Hub, a new initiative committing to mobilize $1 billion from development partners, with the intention of mobilizing a further $2 billion in additional private finance capital by 2030 into nature-focused climate projects. Addressing nature-loss can reportedly save $104 billion in adaptation costs and has the potential to provide upwards of 30 percent of the CO2 mitigation (i.e. reduction) action needed by 2030. As approximately 50 percent of global GDP is directly or indirectly dependent on nature and other ecosystem services, the conservation and restoration of natural ecosystems supports economic prosperity, with the potential to create nearly 395 billion more jobs and to protect 1 billion people whose livelihoods are directly dependent on nature.  Articles Hopeful signs emerging in the serious business of climate talks (Irish Times) UAE COP28 guest list led by bankers, lobbyists — and housekeeping (Financial Times)  

Climate finance was expected to be a major agenda item for this COP, so it comes as no surprise to find it dominating coverage of this summit so far. Often described as the ‘master key’ needed to unlock climate action, climate finance is a central focus area of the COP presidency’s plan of action to deliver on the pillars of the Paris Agreement. These four focus areas are: fast-tracking the energy transition fixing climate finance putting nature, people, lives and livelihoods at the heart of climate action underpinning everything with full inclusivity. In his opening speech UN Climate Change Executive Secretary Simon Stiell laid out a vision for the next two years and what is expected of countries, i.e. “every single commitment – on finance, adaptation, and mitigation – has to be in line with a 1.5 degree world”. UK’s King Charles III used his opening speech  to appeal to countries to unlock more capital for the energy transition and UN Chief Antonio Gutérres warned that "Earth’s vital signs are failing", before urging a faster transition to renewable energy. A new Loss and Damage Fund was established on the first day of COP (30 November) which will aim to keep up with the rising costs caused by extreme weather and slow-onset disasters such as sea level rise, ocean acidification and melting glaciers. The cost of loss and damage is estimated to be over $400bn annually. The initial funding for the Loss and Damage fund is close to US$429m, with $245m coming from the EU, including $100m pledged by Germany, which was matched by a pledge of $100 million from the UAE and $75 million from the UK. UAE President Mohammed bin Zayed Al Nahyan subsequently announced a $30bn fund for "global climate solutions" to be put into a climate finance vehicle called Alterra. The US has pledged $17.5 million, and Japan $10 million. Agriculture and food also dominated discussions. COP28 President Sultan Al Jaber announced a new major declaration on the future of food which some 134 countries have signed up to, including major food producers and consumers. The first of three high-level events focusing on the global stocktake also got underway today, focusing first on adaptation. Delegates are expected to discuss how the stocktake’s outcome can bolster efforts for countries and communities to better adapt to the impacts of climate change.

In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s coverage of COP28. Also covered are CSO figures on environmental subsidies, sustainability in ISME’s ‘Shop Local’ campaign, Ireland’s progress towards EU recycling targets, a Net Zero Accelerator Program announced for Northern Ireland, and a consultation on the UK Climate Change Agreements scheme. Also covered are sustainability developments in Europe, a new report into the role of the CFO and finance function in the climate transition, and the usual articles, podcasts, videos and upcoming events.   COP28 - the global climate summit   The United Nations’ annual climate change conference, COP28, began on Thursday 30 November in Dubai. Chartered Accountants Ireland has compiled useful resources about it on our COP28 page. We will publish a daily update and weekly round-up from the global summit.  White Paper on Enterprise Update Report: H1 2023  The Department of Enterprise, Trade and Employment has issued the first update report for the White Paper on Enterprise detailing progress made on the implementation of the White Paper during the first six months of 2023. This White Paper was published in December 2022, and set out Ireland’s medium- to long-term industrial strategy, with the vision for Irish-based enterprise to succeed and deliver rewarding jobs and livelihoods by increasing their sustainability, innovation, and productivity. Among other things, carbon abatement has now been integrated into the Oversight and Performance Delivery Agreements of Enterprise Ireland and IDA Ireland; work is underway on the development of a national strategy for offshore wind, with stakeholder groups established and a broad outline agreed; and efforts towards a more circular economy have progressed, including through the launch of the Food Waste Charter 2.0 under the EPA.  Environmental Subsidies and Similar Transfers 2022 – CSO   Figures published by the Central Statistics Office (CSO) in Ireland indicate that Environmental Subsidies and Similar Transfers figures for 2022 were €1.6 billion, an increase of €105 million, or 7 percent, when compared with 2021. Climate-related subsidies reached their highest value in current prices since 2000 at €396 million in 2022, up 6 percent on 2021. The increase in environmental subsidies in 2022 was mainly due to increases in funding for energy efficiency retrofitting schemes and wastewater infrastructure, which outweighed decreases in support for production of energy from renewable sources and protection of biodiversity. Commenting, Clare O'Hara, Statistician in the CSO’s Environment and Climate Division, said that capital transfers such as investment grants made up 56 percent of environmental transfers paid in 2022, while current transfers were 43 percent of the total and tax abatements, such as Vehicle Registration Tax relief on electric vehicles, accounted for the remainder.   Sustainability and ISME’s ‘Shop Local’ Campaign    The Irish SME association, ISME, has created two online portals to launch its 2023 Shop Local campaign, one for consumers and one for businesses. The campaign aims to, among other things, support the local community, reduce carbon emissions and transport costs, and promote goods and services that are sustainable and traceable. Businesses can access a directory of B2B products and services via the portal, such as corporate gifts, legal and financial services, IT and marketing, transport, training and more.  Report finds Ireland off track to meet key EU recycling targets  A report published this week by the Environmental Protection Agency (EPA) has found that Ireland’s waste generation levels are continuing to rise. Figures in the Circular Economy and Waste Statistics Highlights Report 2021 also indicate that Ireland is failing to make sufficient inroads towards key EU recycling targets that apply from 2025 onwards. To address this, the report state that Ireland must improve waste prevention, roll-out a brown bin service for organic waste to all customers, improve waste segregation by businesses and householders, reduce reliance on vulnerable export markets for waste, and fully implement Ireland’s Circular Economy Plan.   Net Zero Accelerator Programme announced for Northern Ireland   Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) has announced it will partner with Digital Catapult Northern Ireland to support the launch of their Tenfold NetZero Accelerator Programme. The programme aims to help in the delivery of greenhouse gas (GHG) emissions reductions locally as required under the Climate Change (Northern Ireland) 2022 Act, and so contribute to the UK Government’s target of zero carbon emissions by 2050. The programme, the first of its kind in the UK, will offer local business the opportunity to access the UK’s technology community to assist on their journey, and is a one-year pilot open to business in all sectors for which DAERA has policy responsibilities. Digital Catapult is now seeking to recruit up to six industry partners with whom they will work to scope and define a specific business challenge they face in reducing GHG emissions.   Support measures for Northern Ireland businesses impacted by floods  Several support measures have been announced to help businesses in Northern Ireland impacted by recent flooding. The support measures include rates relief for flooded business premises and one-off grant payments of £7,500 for affected businesses to assist with the immediate response, clean-up costs, and to make properties more resilient to future floods. It is estimated that up to 200 businesses will be eligible for the grants, which will be administered by the local council areas affected.  £60 million joint funding for research into food sustainability and climate change  £60 million in joint funding for the Co-Centres programme has been announced this week to bring academics, industry and policymakers across the Irish government, UK government and Northern Ireland Executive closer together, to work on food sustainability and tackling climate change. The programme is funded over six years, with up to €40 million from Science Foundation Ireland (SFI), up to £17 million from Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) and up to £12 million through UK Research and Innovation (UKRI), and is co-funded by industry. The two new Co-Centres will formally commence activities on 1 January 2024, and will be funded to 2030.  UK launches consultation on new Climate Change Agreements scheme  The UK’s Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on proposals for a new six-year Climate Change Agreements scheme, to begin in 2025. The voluntary Climate Change Agreement (CCA) scheme, established in 2001, serves the dual purpose of making energy and carbon savings through energy efficiency targets while also helping maintain competitiveness by reducing energy costs in eligible industrial sectors. It does this by providing a significant discount to participating businesses on the Climate Change Levy (CCL) paid. The new scheme would add three new target periods running from 2025 to 2030, resulting in three certification periods running to 31 March 2033, as well as providing further reductions in the Climate Change Levy for eligible participants. Closing date for responses to the consultation is Wednesday 14 February 2024.   Sustainability Development in Europe   The European Commission has announced an Action Plan to make sure electricity grids will operate more efficiently and will be rolled out further and faster. Electricity consumption in the EU is expected to increase by around 60 percent between now and 2030, and interconnected and stable energy networks are key to enabling the green transition. The Action Plan aims to address the main challenges in expanding, digitalising and better using EU electricity transmission and distribution grids.   Separately, the EU and Greenland have also signed a strategic partnership on sustainable raw materials value chains. 25 of the 34 critical raw materials identified by the Commission as strategically important for Europe's industry and the green transition can be found in Greenland. The signature of the Memorandum of Understanding will contribute to the development of sustainable projects along the raw materials value chains, and to the deployment of infrastructure required to develop them.  The role of the CFO and finance function in the climate transition  Businesses are integral to the successful transition to a low carbon economy and society. However, a report published this week has found that nearly half of businesses surveyed have no carbon emissions plan, and of those, 70 percent have no intention of developing one. The report, The role of the CFO and finance function in the climate transition: driving value and sustainability, is the result of research by Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC) and PwC and is based on a survey of 1,000 senior finance professionals around the world. Speaking about the report, IFAC’s President Asmaa Resmouk said: “The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs. This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders.”   In case you missed it   At Climate Finance Week Ireland 2023 Chartered Accountants Ireland’s event ‘You’re in Scope because They’re in Scope’ demonstrated the impact of the Corporate Sustainability Reporting Directive (CSRD) on value chains in Ireland, regardless of whether companies – such as SMEs – are directly in scope of the new Directive. Watch back here  Articles  Ageism in the workplace is proving costly for business (Irish Times)  Global tangle of climate disclosure rules risks causing ‘reporting fatigue’ (Financial Times)  Ireland ranked 12th most attractive market for green investors (Irish Times)  Accountants must redouble net zero efforts, A4S warns (ICAEW)  Climate risk analysis must be part of the audit process (Accountancy Age)  We have to balance outrage with optimism, says UN’s former climate chief (The Guardian)  Resources  5 reasons why sustainability matters for SMEs: The sustainable transition is a collective effort and a matter for society as a whole. SMEs, as the backbone of Europe’s economy, also have a key role to play. The transition poses challenges, but also offers opportunities. This paper details 5 reasons for why SMEs should not wait to start transitioning to more sustainable business models. Written in collaboration with Ecopreneur.eu – the European Sustainable Business Federation, and supported by the European Association of Co-operative Banks (EACB).  Watch   Climate correspondent George Lee’s summary of progress at COP28 for RTÉ1 (RTÉ Player)   Listen   An inspirating and energising interview with climate diplomat Christiana Figueres (On Being)  Upcoming Events   Accounting for Sustainability (A4S) at COP28  A4S, which aims to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy, will bring the voice of the finance and accounting community to COP28 through a series of in-person and virtual events. Their first event is on 5 December. Find out more here.  Innovate UK's showcase for climate tech event in Northern Ireland  Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero.  In person: 6 December, Various Locations (See event listings)  DETE, Building Better Businesses   During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation.   In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.   Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face  Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. The Sustainability Reporting Update will be given by Catherine Duggan, Head of Sustainability, Financial Services Advisory, Grant Thornton and Dr Louise Gorman, Trinity College Dublin. Get up to date with the latest developments in sustainability reporting, including reporting standards internationally, and insights into developing and implementing necessary reporting systems. Emerging assurance considerations will also be considered along with the future evolution of the sustainability reporting landscape.  In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin.  Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face  Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin.  In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin.  Accountancy Europe, ESRS Webinar   Co-hosted by Accountancy Europe and EFRAG, this event aims to assist stakeholders in the implementation of ESRS under CSRD.  Webinar: 12 December, 10:00 - 12:00 (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.  3rd or 4th Wednesday of every month  Next: 24 January 2023   In person: Time and location tbc  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. 

Today saw leaders from over 160 countries attend the opening of the 28th Conference of Parties, ‘COP’ in Dubai. The United Nation’s COP, or ‘Conference of the Parties’, is the most significant event on the global climate calendar. Attended by the 197 countries that signed the United Nations' Framework Convention on Climate Change (UNFCCC), the summit aims to monitor the world’s action to combat dangerous climate change. While the conference can come in for criticism as ‘talking shops’, previous COPs have led to momentous agreements. The most significant of those was the Paris Agreement in 2015.  This Agreement challenged the world to keep dangerous global warming to a level of 1.5° above pre-industrial levels. In 2021, at the Glasgow COP, the International Sustainability Standards Boards was announced. Under the auspices of the International Federation of Reporting Standards this board is now creating global standards for the reporting of comparable sustainability information by companies. 2021 also saw the formation of the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy. Last year, at COP27 in Egypt, a new loss and damage fund was set up for those countries most severely impacted by the effects of climate change (floods, drought, desertification, and land loss due to rising sea-levels). This year’s COP – COP28 – will take place over two weeks from 30 November. It begins with two days of talks among global leaders, followed by negotiations between representatives from over 190 countries.  It is the year of the ‘global stocktake’, required under the Paris Agreement to assess progress made since 2015 and show what needs to be done to address gaps by 2030. And the need for an effective COP has never been greater.  2023 saw record temperature rises, a worsening of extreme weather events and unprecedented global emissions. However, the hosting of COP in Dubia this year has led to controversy. Dubia’s economy is heavily dependent on the exploitation of fossil fuels. The President of this COP, Sultan Al Jaber, is also chief executive of Abu Dhabi National Oil Company (ADNOC), the world’s 12th largest oil company by production. Reports have emerged of fossil fuel companies and lobbyists planning to use the event to agree side deals about increasing fossil fuel production. This COP is also taking place against the backdrop of both the Israel-Gaza conflict and the ongoing invasion of Ukraine. What to expect at COP this year COPs generally open with a ceremonial meeting, followed by a leaders’ summit.  This year the opening address will be given by King Charles in place of Pope Francis, who can no longer attend due to illness. Following this, will be days of world leaders speaking about either their experiences of climate change and/or their planned or intended actions. The world’s biggest emitters, the US and China, will be represented by their climate envoys: the US by John Kerry and China by Xie Zhenhua. Ireland is also sending a large delegation, including Taoiseach Leo Varadkar, Tánaiste Micheál Martin, and Minister for the Environment, Climate and Communications, Eamon Ryan. Following the leaders’ summit, two weeks of negotiations will begin, culminating in the signing of the final agreement on how the world will collectively tackle the climate crisis. Each day of negotiations has a theme, including one day devoted to finance. New promises, pledges, coalitions, and projects are announced at those days. (Events Schedule for this year’s COP.) At this year’s COP, a strong focus will be on food production in a world where hunger levels have risen back up to 2005 level. Also discussed will be the management of methane emissions – an extremely polluting greenhouse gas - and a phasing down of the use of fossil fuels. Climate finance will feature, according to Minister Ryan, who is quoted as saying that “Radical reform of the global financial system will be needed if we are to provide the necessary climate finance for mitigation, adaptation, capacity building and loss and damage”. Chartered Accountants Ireland will keep members informed of all relevant updates from COP. There will be a daily update on the Sustainability News page, and a weekly round-up as part of the Sustainability Bulletin in Chartered Accountants Ireland’s weekly enews to members. Members will also find useful resources on climate – including Climate Essentials for Accountants - in the Sustainability Centre Resource page.

97% of parents surveyed by Chartered Accountants Ireland report that their career or working pattern has been impacted by childcare responsibilities. The findings show that 16% reduced their working hours, one quarter (27%) requested to work flexible hours, and one in five (19%) are currently considering adjusting their working hours. The survey, which gathered responses from chartered accountants in the Republic of Ireland has shed light on the significant challenges facing parents seeking childcare in Ireland. It highlights the crucial issues of cost barriers and their impact on career progression, while calling for increased childcare support. Chartered Accountants Ireland represents over 32,000 professional accountants, two thirds of whom work in business. When asked what they saw as the main barriers to securing appropriate childcare in Ireland, members highlighted both cost and capacity as being the biggest issues facing working parents. The financial burden is clear, with one third of members paying up to €1,000 a month per child on childcare, and one third paying between €1,000 and €2,000 per month. Commenting Cróna Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said “The significant cost burden is one element of the problem, but even accessing places in childcare facilities in the first instance is a big barrier. As most of us know, this process begins long before a child is even born. Members are clear that both cost and the lack of available spaces need to be addressed by Government in order to better support working parents.”  This month’s Budget announcement provided for an increase in the national childcare subsidy (NCS) from €1.40 to €2.14 as well as extending the NCS to certain childminders, but the Institute argues that while this will help with the cost of childcare, it will not address capacity constraints within the market. Clohisey continued “A longer-term strategy for tackling ongoing capacity issues in the sector is critical – quite simply more places need to be made available but that can only happen with appropriate funding so that staff are adequately paid and therefore attracted and retained. We have an economy at full employment, and our members are overwhelmingly reporting childcare as a barrier to their full participation in the market. “While a government commitment was made to address supply issues through core funding, this funding must go beyond just keeping the sector from collapse. We are asking government to recognise that childcare provision is part of the critical infrastructure necessary for a functioning economy. The crisis needs to be addressed with a long-term strategy with children at the forefront, that adequately funds the sector, increases capacity, and supports working parents.”  

The International Auditing and Assurance Standards Board (IAASB) has issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. This proposed standard will now undergo a consultation period running until 1 December 2023 and stakeholders are encouraged to respond and share their feedback to the proposed standard. ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. It is intended to work with various sustainability reporting frameworks (including the European Sustainability Reporting Standards and the IFRS Sustainability Disclosure Standards). The standard is drafted as a profession agnostic standard and should be suitable for use by accountant and non-accountant assurance practitioners. With the sustainability reporting requirements for certain entities set to increase over the coming years, a standalone sustainability standard is seen as a key piece of the framework to help ensure that users of sustainability information can place greater trust in the information they are consuming on an entities Environmental, Social and Governance impacts. In launching the consultation, IAASB Chair Tom Seidenstein commented “Our proposed ISSA 5000 is a crucial step in enhancing confidence and trust in sustainability reporting. This proposal directly responds to the International Organization of Securities Commissions recommendations and complements the work of other standard setters, including the International Ethics Standards Board for Accountants,”. The comment period remains open until 1 December and the IAASB are seeking a broad range of views on the standard to gather the views and insights needed to finalise it.