In this week’s public policy bulletin, we take a look at Ireland’s performance in terms of the gender gap and overall business competitiveness. We also review data on the ongoing drop in wholesale electricity prices as well as Ireland’s overall costliness in terms of household expenses compared to the rest of the EU. In addition, we report on the Bank of England’s interest rate hike in the face of stagnant inflation.   Ireland no longer in top 10 countries making most progress toward closing gender gap In its latest Global Gender Gap Report published this week, the World Economic Forum found that Ireland had slipped two places from ninth to eleventh in the ranking of nations making most progress toward closing the gender gap. Defining the ‘gender gap’ as the overall disparity between men and women across economic, social, health and political dimensions, Ireland’s gap has nonetheless narrowed by 79.2 percent in recent years. While Ireland ranked joint first in the educational attainment category, weaker ratings were given for the State’s performance in terms of political empowerment and economic participation. Iceland remains the most gender-equal country, followed by Norway, Finland, New Zealand and Sweden. Ireland ranked second in the 2023 IMD World Competitive Rankings In its 2023 World Competitiveness Report, the International Institute of Management Development (IMD) has ranked Ireland second in the world in terms of its ability to create and maintain a competitive business environment. According to the report, Ireland’s top ranking in terms of economic performance and significant improvements in government efficiency and business efficiency have contributed to the State’s rise from eleventh to second place in the overall rankings over the past twelve months. However, the economy ranked less well when it came to infrastructure, landing in nineteenth place. Wholesale electricity prices continue to fall but general household expenses remain 46 percent higher in Ireland than rest of EU Wholesale electricity prices have continued to decrease according to the CSO with prices falling by 16.2 percent in May of this year compared to the month before. Electricity prices are now 26.6 percent lower than those recorded in May 2022. However, data released this week by Eurostat on household consumption show that Irish prices were 146 percent of the EU average in 2022, higher than any other country in the bloc. The statistics show that Ireland had the highest prices in the EU for alcohol and tobacco, at more than double the union's average. Meanwhile, the State’s food and non-alcoholic beverage prices were found to be almost 15.4 percent higher than the EU average. You can read the full statistical release here. UK inflation rate remains stagnant as Bank of England raises interest rates The rate of inflation in the UK has remained stagnant at 8.7 percent despite widespread expectations of a fall. According to data released this week by the Office for National Statistics (ONS), rising prices for air travel, recreational goods and services as well as second-hand cars kept the inflation rate higher than expected. Meanwhile, in its continued pursuit to meet its stated 2 percent inflation target, the Bank of England this week raised interest rates by half a percentage point to a headline rate of 5 percent. In making the announcement, the Bank highlighted the possibility of further rate hikes in the future by stating that “if there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required”.  

  In this week’s Sustainability/ESG bulletin, read about Ireland’s climate projections and its rating as an attractive country for renewable energy investments. Also covered is the increased participation of women in senior roles in Ireland, the launch of Northern Ireland’s first ever consultation on Carbon Budgets at a time of rising emissions across almost all sectors in the region, updates from the European Commission, as well as the usual round-up of articles, podcasts and events. Met Éireann releases first climate projections from the TRANSLATE initiative Met Eireann, the Irish Meteorological Service, has this week released climate projections from a new climate resource for Ireland. Projects include a likelihood of drier summers, an increasing number of heatwaves, and wetter winters. The resource, TRANSLATE: One Climate Resource for Ireland, aims to standardise future climate projections and develop climate services that meet the information needs of decision makers. Data from TRANSLATE will be used to communicate climate science data/information for products such as indices, risk assessments, and uncertainty estimates, and provide information needed to build resilience to climate change across all locations, sectors and services. Ireland’s holds position in global renewable energy development attractiveness The latest edition of the EY Renewable Energy Country Attractiveness Index shows that Ireland has retained its 2022 position as the 13th most attractive country in the world for renewable energy investments. The index ranks the world’s top 40 markets on the attractiveness of their investment in renewable energy and deployment opportunities. Ireland’s Offshore Wind Auctions and increasing use of Corporate Power Purchase Agreements (CPPAs) have reportedly contributed to the position in the ranking. Also, this week, the Government approved the Terms and Conditions for the first offshore RESS auction, ORESS 1, with final auction results now confirmed and available on the EirGrid website. At least three offshore auctions are currently planned this decade. Irish businesses spent €8.6 billion on energy in 2021 Figures released by the Central Statistics Office (CSO) this week have revealed that the cost of energy purchases by enterprises in 2021 was €8.6 billion, of which 56 percent was paid for by firms in the services sector. The survey, using data from approximately  5,000 enterprises, showed that purchases of electricity and natural gas accounted for 62 percent of total energy costs incurred by enterprises in 2021, and the use of renewable energy purchased directly by enterprises increased by 59 percent between 2012 and 2021. The release was compiled during the COVID-19 pandemic, which impacted on the 2020 and 2021 data. Read more. Increase in proportion of women in senior roles The first annual report of the Women in Finance Charter published this week and found that female representation on executive committees in Ireland has increased from 32 to 35 percent since 2022. The Charter is a collaboration between industry and Government under the Ireland for Finance strategy. Established in 2022, it seeks to improve female representation in financial services firms operating in Ireland and is open to all financial services firms operating in Ireland. Northern Ireland launches first ever consultation on Carbon Budgets Northern Ireland’s first ever consultation on Carbon Budgets has been launched by the Department of Agriculture, Environment and Rural Affairs (DAERA). The 16-week consultation will run from 21 June to 11 October and seeks feedback on the proposed first three carbon budgets for 2023-2027, 2028-2032 and 2033-2037, as well on the interim targets that should be set for 2030 and 2040 for reductions in greenhouse gases. DAERA is also seeking views through the consultation on the recommendations of the UK Climate Change Committee (CCC) on the Path to Net Zero for Northern Ireland, and is keen to hear from individuals, businesses, communities, and other organisations from across the region. The consultation was launched the day after DAERA’s publication of a statistical bulletin on greenhouse gas emissions for Northern Ireland for the period between 1990 and 2021 which also shows that between 2020 and 2021 emissions increased in all sectors in the region, with the exception of waste management and public. The largest increases were in the transport, agriculture and energy supply sectors, respectively. Plastic packaging tax – monthly update from HMRC (From our colleagues in Tax) HMRC has begun sending a monthly email containing updates on the plastic packaging tax (“PPT”). This month’s email is available to read. HMRC has also sent an email with key reminders on the PPT. European Commission consults on Carbon Border Adjustment Mechanism The European Commission has published a call for feedback on the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its transitional implementation. To give time for businesses to prepare, during the phase, from 1 October 2023 until the end of 2025, traders will only have to report on the emissions embedded in their imports subject to the mechanism without paying any financial adjustment. Sustainable finance for SMEs and Green EU Trademarks on the rise (from our friends in Accountancy Europe) The European Commission has published a new sustainable finance package in which it states it will ask EFRAG to prioritise work on what it describes as “a voluntary standard for non-listed SMEs, which may use it to standardise the sustainability information they wish to report, and which can make it easier for them to participate in the transition to a sustainable economy.” It also emphasises the need to reinforce SMEs’ access to and opportunities in transition finance.   The EU’s Intellectual Property Office (EUIPO) has published its latest Green EU Trade Marks report, showing that SMEs account for 10 percent of environmentally friendly EU Trade Marks (EUTMs) and filed more green EUTMs than large companies between 2015 and 2021. The report argues this demonstrates the growing commitment of SMEs towards sustainable practices and their role in introducing eco-friendly goods and services into the EU Single Market.   Accountancy Europe support tools for SMEs’ sustainable transition include a paper on SME sustainability risk management and a 3-step sustainability checklist, with more to come. IFRS Foundation publishes educational material on effects of climate matters on SMEs’ Accounting Standard The International Federation for Reporting Standards (IFRS) has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. The material was developed in response to feedback suggesting that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. Glossary update The Chartered Accountants Ireland sustainability glossary has been updated to include the Carbon Border Adjustment Mechanism (CBAM), Carbon capture, utilisation and storage (CCUS), double materiality, and more.   Podcast Richard Curtis, writer of British comedies like Love Actually, Mr. Bean and Blackadder talks to Bloomberg Zero about Make My Money Matter, an initiative to make retirement funds and banks greener (35 mins) Articles Europe is 2.3 degrees hotter than before industrial revolution, climate report finds (The Journal) Much of the time growth strategies and green strategies don’t have to be so different -  You can make your business more sustainable, with an applied focus (Irish Independent) Where are leading Irish companies on decarbonising and embracing sustainability? (Irish Times) In the loop: tech and innovation in the circular economy - From manufacturers to consumers, tech is coming around to the ideals of the reuse and regeneration of existing materials and products (Business Post)   Upcoming events The UN Global Compact is organising a series of activities around the world for International SME Day on 27 June.  Small Business, Big Impact is a live regional in-practice exchange session to learn directly from SMEs on how they are integrating sustainability into their business strategy and operations. Speakers include Jess Fleischer, CEO, Son of a Tailor (Denmark) and Hanna Kalliomäki, Chief Sustainability Officer, Paptic (Finland). 27 June 2023, 14:30 (Dublin time). Register Here CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

Institute President Sinéad Donovan and Tax and Public Policy Lead Cróna Clohisey represented Chartered Accountants Ireland at the National Economic Dialogue (NED) 2023 last week. The NED provides a forum for public consultation and debate ahead of Budget 2024 and this year’s theme was The economy in 2030: enabling a sustainable future for all. The discussion centred on the need to move the focus of economic dialogue towards more medium-term issues, with much debate around whether to spend or save the projected economic surplus. The need to accelerate housing supply, protect living standards and continue to invest in public services, all against the back-drop of managing inflation, formed part of many of the contributions. Institute representatives emphasised to Ministers the importance of addressing capacity building within the economy, particularly in housing and set out suggestions around using the tax system to boost supply. Documents and speeches from the NED can be found on gov.ie.

  In this week’s Sustainability/ESG bulletin, read how the EU Commission has launched a public consultation following publication of their amendments to the mandatory European Sustainability Reporting Standards (ESRSs). Also covered is the launch of an inaugural All-Ireland Sustainability Awards, the new package of sustainable finance measures from the European Commission, developments in Europe around the circular economy, resources for SMEs to drive sustainability and business growth, as well as the usual round-up of articles, podcasts and events. Public Consultation - European Sustainability Reporting Standards (ESRSs) The EU Commission has published their amendments to the mandatory European Sustainability Reporting Standards (ESRSs) and draft delegated Act that will be used to adopt them into law. The standards cover environmental, social and governance matters which many Irish based companies will have to report on as a result coming within the scope of the Corporate Sustainability Reporting Directive. The Commission has now launched a 4-week call for public feedback until 7 July.  Find out more from our colleagues in Professional Accounting here. In other news of sustainability reporting, The World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards. All-Ireland Sustainability Awards 2023 launches The inaugural All-Ireland Sustainability Awards 2023 launched this week, with the aim of showcasing and celebrating Northern Ireland and Ireland’s best examples of sustainability among businesses and organisations. There are 14 award categories, ranging from Social Sustainability, Diversity & Inclusion Initiative of the Year; Green Marketing / Stakeholder engagement initiative of the Year; Net-Zero Initiative of the Year; Waste, Resource Management & Circular Economy Initiative of the Year; Consultant / Consultancy of the Year; Young Changemaker of the Year; to Biodiversity Initiative of the Year; and Overall Winner of the Year 2023. The awards are free to enter, and the deadline for entries is 1pm on Tuesday 15 August 2023. A network for young leaders – net zero, clean growth and sustainability, diversity & inclusion A new professional network, Leaders 2050, has launched for future leaders in all sectors who have an interest in net zero, clean growth and sustainability, with a focus on diversity and inclusion. The network is facilitated by KPMG Ireland with a mission to equip the next generation of young leaders with the skills, networks and purpose needed to drive towards a more sustainable future. Following the launch, KPMG will be running a series of events and publishing thought leadership for members, with the first in-person event taking place next month. The network is open to young professionals across every sector who have an interest in driving the ESG agenda. To sign up to receive Leaders 2050 Ireland newsletter, event invitations and subscribe to our mailing list, please see link here. Commission puts forward new package of sustainable finance measures The European Commission has put forward a package of measures to build on and strengthen the foundations of the EU sustainable finance framework. The aim of the package is to ensure the framework works for companies wishing  to invest in a sustainability transition and to make the framework easier to use, thereby continuing to contribute effectively to the European Green Deal objectives. The package adds additional activities to the EU Taxonomy and proposes new rules for Environmental, Social and Governance (ESG) rating providers, which will increase transparency on the market for sustainable investments. Europe and the Circular Economy This week saw several developments related to the circular economy in Europe: The EU parliament approved new rules to make batteries sustainable. The new rules, which will come into force once the European Council has formally endorsed the text, is particularly relevant to the 30 million electric vehicles (EVs) anticipated to be on EU roads by 2030. Speaking about the development, Rapporteur Achille Variati said: “For the first time we have circular economy legislation that covers the entire product life cycle — an approach that is good for both the environment and the economy.” The European Environment Agency (EEA) has published twobriefings that show how efficiency gains in production have reduced some environmental impacts, but are unlikely in of themselves to bring Europe’s consumption to a sustainable level. In another briefing -‘The benefits to biodiversity of a strong circular economy’ – the EEA explores how the circular economy can reduce and, in some cases, reverse the impacts of production and consumption on biodiversity, at a time when biodiversity loss and decline of ecosystems are occurring in Europe and globally due to unsustainable patterns of production and consumption. The EEA also announced a new web product produced to help prepare the public for the effects of climate change. ‘‘Extreme summer weather in a changing climate: is Europe prepared?’ aims to provide up-to-date information and data to raise awareness among decision makers and the public of the urgent need to address climate change and to support ongoing government efforts in putting in place climate mitigation measures and building societal preparedness. With it, users can explore interactive maps and charts information on heatwaves, floods, droughts and wildfires, and the rise of climate-sensitive diseases like dengue fever. Resources The UN Global Compact is inviting SMEs to join Small Business, Big Impact: A Six-Step Journey to Drive Sustainability and Business Growth. Designed specifically for SMEs, the resources comprise five short, on-demand courses, one day of virtual live peer exchange sessions, and a toolkit to help SMEs take action. It’s available in multiple languages and time zones (English, Spanish, French, Portuguese, and Arabic). Registration is open and free of charge to all SMEs. The UN Global Compact is a voluntary initiative based on CEO commitments to implement the universal sustainability principles and take steps to support the UN Sustainability Development Goals. Chartered Accountants Ireland joined the compact in 2021. Watch back On 8 June the Ulster Society hosted a webinar in partnership with British Business Bank addressing the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation by Julia Groves covered the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how the British Business Bank is involved. A recording of this webinar is available to view here.   Podcast With Ireland set to fail emissions targets again, Dr Tara Shine explains what businesses can do (4 mins) (Radio 1) Articles Nature and biodiversity ascend the ESG agenda –three new reporting requirements pushing nature and biodiversity up the ESG agenda (Accountancy Ireland) Nature-restoration law narrowly survives in European Parliament (Irish Times) The financial sector needs to take a leadership role in addressing climate change, the Deputy Governor of the Central Bank said (Business Post) How green are your pension funds? (ICAEW) Investors pull back support for green and social measures amid US political pressure (Financial Times)   Upcoming events   The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

On 8 June the Ulster Society hosted a webinar in partnership with British Business Bank addressing the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation by Julia Groves covered the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how the British Business Bank is involved. A recording of this webinar is available to view HERE A pdf copy of Julia's slides is available HERE  

Three new reporting requirements are pushing nature and biodiversity up the ESG agenda. Orla Delargy explains why Environmental, Social and Governance (ESG) topics are currently top of mind in business and finance. Climate change has dominated under the ‘E’ of ESG, but nature and biodiversity are catching up. Three developments have helped drive the momentum: the Taskforce on Nature-related Financial Disclosures, the EU’s Corporate Sustainability Reporting Directive and the new Global Biodiversity Framework. Taskforce on Nature-related Financial Disclosures    The latest Taskforce on Climate-related Financial Disclosures (TCFD) status report found that over 3,800 organisations support the TCFD and are working towards TCFD-aligned reporting. The question is whether the newer Taskforce on Nature-related Financial Disclosures (TNFD) will follow the same path, and whether nature-related disclosures will become mandatory in certain jurisdictions.  Like the TCFD framework, the TNFD proposes disclosures across four pillars: Governance – the organisation’s governance around nature-related dependencies, impacts, risks and opportunities; Strategy – the actual and potential impacts of nature-related risks and opportunities for the organisation’s businesses, strategy and financial planning where such information is material; Risk & impact management – how the organisation identifies, assesses and manages nature-related dependencies, impacts, risks and opportunities; and Metrics & targets – the metrics and targets used to assess and manage relevant nature-related dependencies, impacts, risks and opportunities where such information is material. Relatively few organisations have started incorporating biodiversity into their broader ESG governance and strategy. However, over 200 organisations are piloting the TNFD guidance and there is a public consultation currently open, with the first full version of the framework expected in September 2023.  Corporate Sustainability Reporting Directive  Where the TNFD is a global, voluntary framework, the Corporate Sustainability Reporting Directive (CSRD) is EU-specific and mandatory. The CSRD significantly expands the existing rules on non-financial reporting, with close to 50,000 companies across Europe likely to be affected in the coming years.  The CSRD disclosure requirements on biodiversity go much further than the previous reporting directive, requesting information on biodiversity metrics, policies and targets. Again, organisations are asked to identify and assess material impacts, risks and opportunities that relate to biodiversity, and the TNFD is explicitly referenced.  Crucially, organisations are asked to disclose whether they have a transition plan in line with the new Global Biodiversity Framework, agreed during the UN conference in Montreal in December 2022. Global Biodiversity Framework  The overarching vision of the Global Biodiversity Framework (GBF) is no net loss of biodiversity by 2030, net gain from 2030 and full recovery by 2050. The GBF sets out a plan for the next decade, with four long-term goals and 23 targets, spanning a wide range of topics including spatial planning, nature restoration, invasive alien species, agriculture and climate change. Although almost all the targets are relevant to the private sector, Target 15 stands out. It asks countries to take measures to ensure that organisations assess and disclose their risks, dependencies and impacts on biodiversity. The question is how national governments will interpret this and what measures they will take.  How organisations can use the frameworks Organisations will be encouraged to see the degree of alignment and overlap between emerging frameworks such as the TNFD, CSRD and GBF. The challenge is to get familiar with these frameworks and, crucially, get started now.  As many of the frameworks discussed above are still in development, it is tempting to adopt a ‘wait-and-see’ approach. However, organisations can progress training and capacity building now. This is a new topic for many people but getting informed is the prerequisite for taking the right actions. Orla Delargy is an Associate Director with KPMG

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s involvement in the business-led Green Pearse Street campaign, and how a sustainable future will be the focus for the 2023 National Economic Dialogue. Also covered is ISIF’s commitment to Just Climate's $1.5 billion fundraising to addresses the Net Zero challenge at scale, how Ireland is at risk of not meeting EU waste targets, and the increase in Northern Ireland’s use of renewable energy, as well as the usual useful resources, podcasts, articles and events. Chartered Accountants Ireland and business-led Green Pearse Street campaign  Chartered Accountants Ireland is a founding member of a new group, Green Pearse Street, which launched last week. Green Pearse Street comprises a diverse group of local businesses and organisations on and near Pearse Street, one of Dublin’s longest streets, stretching from Ringsend to College Green. The aim of the new campaign is to ‘green’ the street, improve the air quality, create a health and biodiversity corridor, and more social space for people. The campaign launch, covered by Independent.ie, Dublin Live and others, coincides with EU Green Week, the EU's annual event to showcase the bloc's climate projects and policies, which run from Saturday 3 June and Sunday 11 June. ‘A sustainable future’ the focus for 2023 National Economic Dialogue The discussions at the 2023 National Economic Dialogue are to focus around the theme of ‘enabling a sustainable future’ for all for the economy in 2030, it has been announced this week. A breakout session of the event - “Charting a sustainable path towards achieving our National climate action objectives”- is to be chaired by Minister for the Environment, Climate and Communications and Minister for Transport, Eamon Ryan T.D. The National Economic Dialogue, which will take place on 12 June, is the principal institutional forum for public consultation and discussion on the Budget. Hosted jointly by the Department of Finance and the Department of Public Expenditure and Reform, it provides a deliberative forum for stakeholders to participate in an open and inclusive exchange on the competing economic and social priorities facing the government. Representatives from Chartered Accountants Ireland will participate in the event. Ireland Strategic Investment Fund addresses the Net Zero challenge at scale The National Treasury Management Agency (NTMA) has reported that Just Climate, an investment business created by former US Vice President Al Gore’s Generation Investment Management, has announced the closing of its inaugural $1.5 billion fund, ‘Climate Assets Fund I’. The Ireland Strategic Investment Fund (ISIF) was a member of the fund’s founding investor group, which also include Microsoft Climate Innovation Fund and Harvard Management Company. The Fund, which exceeded its $1 billion target, will be part of Just Climate’s industrial climate solutions focus and will pursue investments which have the potential to deliver ‘transformational climate impact’ across some of the highest-emitting, hard-to-abate industries. Commenting, Paul Saunders, head of climate for ISIF, reportedly explained that “[t]he extent and urgency of the climate challenge require ISIF and other major investors to work together to drive innovation in climate action. We believe this initiative is a major step forward in sustainable investing and increasing the capital available to target high-impact areas in the shift to a low-carbon economy.” Ireland at risk of not meeting EU waste targets Ireland is one of 18 Member States identified in a report published this week by the European Commission as being at risk of not meeting the 2025 preparing for re-use and recycling targets for municipal and all packaging waste and the 2035 landfilling target. In the report the Commission presented recommendations to the Member States, building on continuous financial and technical support provided for improving performance on waste management, and covering a broad range of actions from reducing non-recyclable waste to increasing reuse, improving governance, deploying economic instruments and awareness-raising. The factsheet for Ireland states that while Ireland is on track to meet the 2025 recycling target for all packaging waste and is likely to meet the 2035 target for landfilling of municipal waste, it is at risk of missing the 2025 target for reuse and recycling of municipal waste. Increase in Northern Ireland’s use of Renewable Energy The percentage of total electricity consumption in Northern Ireland generated from renewable sources (48.5 percent) has increased by 4.6 percentage points in the 12-month period April 2022 to March 2023 compared to the previous year. This is according to a report, published this week by the Department for the Economy, which aids reporting on performance against the commitments in the Northern Ireland Energy Strategy ‘Path to Net Zero Energy’ and the Climate Change Act target which is to “ensure that at least 80% of electricity consumption is from renewable sources by 2030.” The full report is available on the Electricity Consumption and Renewable Generation Statistics page on the Department’s website.  World Environment Day Monday 5 June was World Environment Day, the United Nations day which celebrates environmental action and the power of governments, businesses and individuals to create a more sustainable world. Led by the United Nations Environment Programme (UNEP) and held annually since 1973, this year’s World Environment Day focussed on global solutions to combat plastic pollution.             Resources Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards. In the second of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton demonstrated how to navigate the content and disclosures included in the first set of ESRSs, what undertakings should do to prepare for implementation, and how to understand more about the requirements of the CSRD. Watch the recording here.  The Sustainable Energy Authority of Ireland (SEAI) hosted a Business Briefing on 'Reduce Your Use' in May. The topics explored included the Climate Toolkit for Business, the benefits of an Energy Audit, Electric Vehicle supports and more. Watch the recording. Podcast ‘Green skills for all’ Five Degrees of Change, the Business Post's energy and environment podcast sponsored by PwC, interviewed Andrew Brownlee, chief executive of Solar, the Irish state agency responsible for further education and training (Listen) Articles Global greenhouse gas emissions at 'all-time high' (Irish Times) What exactly counts as a carbon credit? (Bloomberg) Singapore launches carbon exchange despite market’s greenwashing scandals (Financial Times) Green accountancy guide to aid 'investor-grade' greenhouse gas reporting (GreenBiz) ESG an “immense” market for mid-tier accounting firms to tap into (AccountancyAge) Upcoming Events   The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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 public policy bulletin, we take a look at the latest economic forecasts from both the Central Bank and OECD. In addition, we review a report on the increasing use of AI by Irish workers as well as new rules on the regulation of cryptocurrency marketing in the UK. We also examine the latest statistics on business birth and death rates in Northern Ireland over the past decade. Global financial system remains vulnerable to disorderly market adjustments after a decade of elevated risk-taking – Central Bank In its latest Financial Stability Review published this week, the Central Bank has outlined how risks to the global economy remain elevated - stemming from high inflation, a tightening of financial conditions and overall geopolitical fragmentation. Following what it labels as “a decade of elevated risk taking”, the bank forecasts that the global financial system will remain vulnerable to “disorderly market adjustments” and overall market volatility such as was evidenced by the recent turbulence in the global banking system. While domestically the bank forecasts that persistent inflation and higher interest rates could lead to slower growth, it does however acknowledge that households and businesses have largely proved resilient to inflationary shocks so far, owing in part to the significant reduction in private indebtedness over the past decade. OECD forecasts lowest annual rate of GDP growth since the global financial crisis Global GDP growth in 2023 is projected to be 2.7 percent, the lowest annual rate since the global financial crisis, with the exception of the 2020 pandemic period. In its latest Economic Outlook issued this week, the OECD notes that while the global economy is showing signs of improvement, the upturn remains weak amid significant downside risks. Lower energy prices are helping to bring down headline inflation and ease strains on household budgets, and the earlier-than-expected reopening of China (defined as a move away from lockdowns) has provided a boost to global activity. However, core inflation is proving persistent and the impact of higher interest rates is increasingly being felt across world economies. In the euro area, the OECD expects the ECB to keep raising rates in the face of still high core inflation, with a peak seen in the third quarter. It forecasts that the ECB will likely then leave its main rate at 4.25 percent through to the end of 2024. One in five Irish workers currently use AI in their jobs – report According to a new study conducted by Microsoft Ireland, 1 in 5 Irish workers (21 percent) reported using Artificial Intelligence (AI) tools in their job, while of those who do not use AI (67 percent), almost 1 in 4 say they would be interested in doing so. Moreover, while 82 percent of business leaders globally anticipate that employees will need new skills in the AI era, in Ireland skills availability has been identified as the most important obstacle to the adoption of AI. This, the report points out, is despite  data showing that the share of AI talent in Ireland grew by more than 500 percent between 2016 and 2022. You can download the full report here. UK’s Financial Conduct Authority introduces new rules to regulate the marketing of cryptoassets A package of new measures was announced this week by the UK’s Financial Conduct Authority (FCA) aimed at strengthening regulations around the marketing of cryptoassets to retail consumers. Under the new rules, British consumers buying cryptoassets will get a 24-hour "cooling-off" period for the first time from 8 October this year. In addition, the suite of new measures will also include a ban on ‘refer a friend’ bonuses as well as a requirement on those marketing cryptoassets to highlight clear risk warnings and ensure that adverts are clear, fair and not misleading.  The FCA has also launched a consultation on additional guidance setting out expectations of firms advertising cryptoassets to UK consumers. Those wishing to have their say will have until 10 August to respond. Business birth rate in NI has risen over the last decade but continues to lag behind UK Ulster University’s Economic Policy Centre (UUEPC) has this week published new research assessing business births and deaths in Northern Ireland over a decade, and the implications for productivity in region. According to the findings, the number of business births in NI rose by 45 percent between 2010 and 2021 (the highest in over a decade), compared to a 55 percent rise in the rest of the UK. By contrast, while the number of business deaths in NI during the same period decreased, the rest of the UK saw a 10 percent increase in the number of business deaths. UUEPC’s analysis suggests that business churn in NI (measured as the business birth rate plus the death rate) has risen from 16.6 percent in 2010 to 18.3 percent in 2021 whereas the UK has a higher churn rate at 23.5 percent in 2021. The report suggests that the combination of a lower business birth rate and a lower business death rate indicates that NI’s economy is less dynamic than other regions of the UK. The largest number of business births and deaths annually was recorded in the construction sector while the lowest has been largely in the education sector.

The European Financial Reporting Advisory Group (EFRAG) has released a series of 20 educational videos on the first set of draft European Sustainability Reporting Standards (ESRSs). These videos provide some useful guidance in the form of short "glimpses" and longer "educational sessions" which will help viewers gain an understanding of the requirements as set out in the ESRSs. The ESRSs , which were subject to public consultation in 2022 set out the sustainability reporting requirements which will be phased in over time for different kinds of companies, with the first reporters doing so for years commencing on or after 1 January 2024.