Chartered Accountants Ireland was pleased to see the publication of the Programme for Government by the incoming administration this week. The Programme contains a number of commitments on key priorities for our members, that we hope will come to fruition, including:   On SMEs: the programme’s commitment to address the regulatory and cost burdens facing SMEs is welcome, in particular its pledge to establish a dedicated Small Business Unit in the Department of Enterprise and commitment to rigorously apply the’ SME test’ to all new legislation that risks further increasing business costs, prior to enactment.   On childcare: commitments to progressively reduce the cost of childcare to €200 per month per child are positive. Moreover, pledges to provide capital investment to build state-owned childcare facilities to create additional capacity will be welcomed by parents who are struggling to find a place for their child in local childcare facilities. If successfully implemented, these measures could leave working parents better off and free up vital working capacity in the economy.  On climate: the continued commitment to accelerating Ireland’s progress towards achieving the 17 Sustainable Development Goals (SDGs) is welcome. It is encouraging to see, in particular, a focus on the  further development of the sustainable finance sector, renewable energy, upskilling and training, and the provision of supports for industry – including supports for small businesses – to decarbonise and embrace a circular economy.     The Institute looks forward to working with the new Government to ensure these important commitments are delivered over the course of the 34th Dáil term and to continue to amplify the voice of our members on the policy issues of importance to them.      

  In this week’s Sustainability/ESG Bulletin read about sustainability in the new Programme for Government, planned Government climate and environmental spending 2025, and Responsible Business resources issued by DETE. Also covered is a survey showing a growth in confidence in sustainability governance, a ‘ticking clock’ for investors to invest in resilience, and the publication of the World Economic Forum’s Global Risks Report 2025, as well as the usual articles and upcoming events.   Ireland news Sustainability in the Programme for Government The Institute welcomes the continued commitment in Ireland’s published draft Programme for Government to accelerate Ireland’s progress towards achieving the 17 Sustainable Development Goals (SDGs). While much needs to be done, the focus on further development of the sustainable finance sector, renewable energy, upskilling and training, and the provision of supports for industry – including supports for small businesses – to decarbonise and embrace a circular economy, are welcome, as is the commitment to the continued use of carbon tax revenues to fund social welfare measures, among others.   Planned Government climate and environmental spending for 2025 A report published by the Department of Public Expenditure, NDP Delivery & Reform (DPENDR) on planned climate and environmental spending in 2025 has found that nearly €7 billion of expenditure allocated will have a “probable favourable impact” on climate and environmental criteria. This includes funding for activities targeting emissions-reductions (e.g. retrofitting, investment in public transport, implementing flood-risk-management programmes, biodiversity/ecosystem-protection programmes and more). The report found, however, that just over €2 billion of planned expenditure will have a “probable unfavourable impact” reportedly representing an increase of 40%  in 2025 on 2024 figures. This includes funding on measures such as fossil fuel subsidies or other potentially harmful supports, as well as emissions-intensive activities in transport, agriculture and industry.   CSO – Ireland 2024: The Year in Numbers Almost half (46%) of all new private cars licensed up to November 2024 were electric, plug-in hybrid, or hybrid, according to figures from the CSO’s Ireland 2024: The Year in Numbers. The figures also reveal that more than 4,000 Business Energy Rating (BER) audits were published in the first nine months of 2024 for non-domestic or commercial buildings, of which the most energy-efficient building types were found to be in schools and colleges. Separately, the Sustainable Energy Authority of Ireland (SEAI)’s end of year review shows a record year of progress for SEAI in 2024, with almost €616 million invested in projects across homes, communities, businesses, and public sector organisations. This 13% increase on 2023 activity included over 3,500 businesses being approved for more than €62 million in grant support, as well as the launch of a new, rapid approval Business Energy Upgrade Scheme.    DETE resources on Responsible Business initiatives: Environment Presentations from the Department of Enterprise, Trade and Employment (DETE) on responsible business and the environment held on 6 November 2024 are now available on the Department’s website. These include: Creating a Nature Positive Economy for Ireland – Lucy Gaffney, Executive Director, Business for Biodiversity Ireland Emissions Trading and Carbon Border Adjustment Mechanism by Dr Maria Martin Climate Change Programme, EPA Ecodesign for Sustainable Products Regulation, Aisling McCarthy, Climate Programmes Unit, DETE OECD Guidelines for Multinational Enterprises on Responsible Business Conduct   Northern Ireland/UK news Confidence grows in sustainability governance An annual survey of directors and executives from around the world conducted by INSEAD Business School (the non-profit business school with locations in Europe, Asia, the Middle East and North America) has found that confidence in sustainability governance had grown significantly year-on-year. In an article published last week, ICAEW Insights examined whether a sustainability committee might be a useful addition to the board.   “The clock is ticking” for investors, says CISL The Cambridge Institute for Sustainability Leadership (CISL) has published a guide for investors to build climate resilience within their portfolios and invest in systemic resilience through engagement with the broader ecosystem. Commenting on the publication, titled Investing in Tomorrow: A Guide to Building Climate-Resilient Investment Portfolios, Director at the Centre for Sustainable Finance, Dr Nina Seega said “The clock is ticking — investors face a critical choice: act now to safeguard portfolios and invest in resilience, or risk the future of both their assets and the global ecosystem. As climate risks intensify, this guide offers a clear path to build resilience and drive systemic change for a sustainable, adaptive future.”   World news Global Risks Report 2025 publishes The World Economic Forum has published its Global Risks Report 2025, listing ‘State-based armed conflict’ as the top risk likely to present a material crisis on a global scale in 2025. ‘Extreme weather events’, ‘Geoeconomic confrontation’, ‘Misinformation and disinformation’ and ‘Societal polarization’ remain top short-term risks, with ‘Economic downturn’ climbing up from tenth place in 2024 to sixth place this year.   Over the longer-term (10 years) the top four risks identified are: Extreme Weather Events, Biodiversity loss and ecosystem collapse, Critical change to Earth systems, and Natural resource shortages.   The report, which presents the findings of the Global Risks Perception Survey 2024- 2025 (GRPS), captures insights from over 900 experts worldwide and provides six in-depth analyses of selected risk themes. Did you know… …you can now ‘bulk return’ bottles and cans in Ireland through the Deposit-Return Scheme? Newcastle Services Station in Dublin has Ireland’s first Bulk Feed Recycling Machine which lets users recycle hundreds of containers in seconds - no more feeding them one by one. (TikTok) Articles IOB appoint Diarmuid Murphy as Director of Sustainability and International Markets (Business Plus) Insuring against climate change: An interview with Brian O’Neill, Head of Communications, Sponsorship, Sustainability at Aviva Ireland (Business & Finance) High Court rules An Bord Pleanála must prioritise climate law in wind farm case likely to affect all public bodies (Irish Independent) A4S unveils guide on making business case for nature (ICAEW) Greenwashing and sustainability assurance: a review and call for future research (Journal of Accounting Literature Events TEKenable Ltd and the EU Commission, CSRD Data Readiness Training This training session, organised in collaboration with TEKenable Ltd and the EU Commission offers insights on best practices, tools to improve your sustainability efforts, CSRD compliance, and more. Virtual, 24 January 2025, 13:00 - 14:30 CET Business in the Community Northern Ireland From Awareness to Action: Building Disability Inclusive Workplaces First of a new series of monthly online sessions aiming to support businesses in creating more diverse and inclusive workplaces Tuesday 28 January, 10:00 – 10:45am. Chartered Accountants Worldwide, Difference Makers Discuss: Resilience in the Chartered Accountant Accountancy profession Virtual, 30 January, 18.00 GMT Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Job details)   Sustainability Centre 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 tax measures for electrical vehicles now in effect from Budget 2025, detailed climate projections and new funding for adult financial literacy projects in Ireland. Also covered is the entering into application of new EU rules to improve gender balance in corporate boards, a new OECD paper on how public budgeting can support climate goals, the departure of US firms from the Net-Zero Banking Alliance, as well as technical updates, articles, podcasts and upcoming events.   Ireland news EV tax measures from Budget 2025 now in effect   The following tax measures pertaining to Battery Electric Vehicles (BEVs) announced in Budget 2025 took effect from Wednesday 1 January 2025: BIK Exemption for Installation of BEV home charger: From 1 January 2025, a benefit-in-kind (BIK) exemption will apply to the installation of a battery electric vehicle (BEV) home charger by an employer at a director’s or an employee’s private residence. This means that a director or employee will not pay BIK on the installation of a home charger, which is required for work purposes and aims to support the rollout of BEVs in the commercial fleet. VRT Rate Change for Commercial Battery Electric Vehicles (BEVs): Finance Act 2024 amended the weight ratio requirement from 130% to 125% for commercial electric vehicles in order to qualify for the €200 category C VRT rate. This amendment comes into effect from 1 January 2025.   Climate Projections for Ireland: Key Findings and Implications Scientists based at the Irish Centre for High-End Computing (ICHEC) in the University of Galway have warned that Ireland’s future weather will be even warmer and wetter than previously predicted. Commenting, the report’s lead author, Paul Nolan, said that it is imperative that planners and policymakers are adequately informed about future climate change so they can implement appropriate mitigation and adaptation measures: “This research will inform national policy and further our understanding of the impacts of climate change at a local scale”.   New funding for adult financial literacy projects in Ireland The Competition and Consumer Protection Commission (CCPC) is to contribute €250,000 towards adult financial literacy projects in 2025 supporting adults with the skills needed to build financial literacy and access financial services. Latest figures from the Programme for International Assessment for Adult Competencies (PIAAC) published by the OECD show that one in four adults in Ireland struggle with everyday maths. The funding announcement by the CCPC follows the publication in April 2024 by the Department of Finance of a mapping report into the development of a Financial Literacy Strategy.   Export phase of Small-scale Renewal Electricity Support Scheme The terms and conditions of the export phase of the Small-scale Renewable Electricity Support Scheme (SRESS) have been published. They have been designed with the aim of providing a simpler route to market for community and small-scale projects, and to align more closely to the experience and capacity of this sector. Commenting, Eamon Ryan, Minister for the Environment, Climate and Communications described the approval of the SRESS terms and conditions as “an important milestone for communities, SMEs [Small and Medium Sized Enterprises], farmers and others to maximise their participation in the energy transition.” The scheme is due to open for applications on 27 January 2025.   Northern Ireland news Business in the Community Northern Ireland (BITCI), in partnership with Diversity Mark, has announced a new series of monthly online sessions aiming to support businesses in creating more diverse and inclusive workplaces. The first session, ‘From Awareness to Action: Building Disability Inclusive Workplaces’ will take place on Tuesday 28 January, 10:00 – 10:45am.   Europe news New EU rules to improve Gender Balance in corporate boards enter into application New EU rules to improve Gender Balance in corporate boards have entered into application. The Gender Balance on Corporate Boards Directive, which entered into application at the end of 2024, aims for a more balanced gender representation on the boards of listed companies across all EU Member States. The Directive sets a target for EU large listed companies of 40% of the underrepresented sex among their non-executive directors and 33% among all directors. The deadline for the transposition by Member States was 28 December 2024, and companies must meet the targets by 30 June 2026.   World news OECD publishes paper on how public budgeting can support climate goals The OECD has published a paper on how public budgeting can support climate goals. The paper, Beyond green tagging, discusses new instruments to better link budgets and results, the challenges involved in linking budget and emissions, and the steps needed to overcome them.   Net-Zero Banking Alliance loses firms Several major Wall Street banks, including Bank of America, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley and Wells Fargo have left the Net-Zero Banking Alliance – a group dedicated to helping lenders reduce their carbon footprints. More US banks are expected to follow their lead, in a development reportedly reflecting growing anti-ESG sentiment in the US.   LA fires damage and economic loss potential A preliminary estimate of the financial impact of the damage and economic loss caused by the Los Angeles wildfires of $52 billion is likely to make it one of the costliest natural disasters in US history.  Burned homes and losses in tourism are among the major long-lasting costs resulting from the fires, which are thought to be the result of high winds, lack of rain and climate change. Technical Updates (From our colleagues in Professional Accounting) EFRAG has added further non-authoritative technical explanations to its compilation of explanations that are intended to assist stakeholders in the implementation of the European Sustainability Reporting Standards (ESRSs).  EFRAG has also published an addendum to EFRAG IG 3 ‘ESRS Datapoints’, which is part of EFRAG's non-authoritative implementation guidance on the European Sustainability Reporting Standards (ESRSs)   EFRAG has announced that it has delivered its technical advice on the Voluntary SME (“VSME”) standard to the European Commission. EFRAG has also released some educational videos on the VSME standard.   The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other.     The FRC, in its role as the Secretariat to the UK Sustainability Disclosure Technical Advisory Committee, has published the Committee’s final recommendations to the Secretary of State for Business and Trade, recommending endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK.   Chartered Accountants Ireland has issued Technical Alert 04/2024 Sample CSRD Limited Assurance Report. This is in addition to Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive, issued in June 2024.   The Institute has revised the CPD Regulations with effect from 1 January 2025. CPD Regulation 4.6 now specifically mentions 'sustainability assurance' as a subject area in which a member who is working in practice should undertake CPD if that member is involved in work of this nature.  Read more here   Accountancy Europe has published a new webpage of FAQs: fundamentals to assurance on sustainability reporting  The International Federation of Accountants (IFAC) and the We Mean Business Coalition (WMBC), together with the Global Accounting Alliance (GAA), have published a report titled ‘Building Trust in Sustainability Reporting and Preparing for Assurance: Governance and Controls for Sustainability Information’.   Accounting for Sustainability (A4S) is preparing a series focused on nature to assist accountants and finance professionals in shaping a nature-positive economy that supports long-term value creation. The first guide in the series, The Business Case for Nature, explains why nature is vital to business and offers clear steps and practical tips for developing the business case for your organization. Articles Irish listed firms must ‘take action’ to meet new EU gender targets (Business Post) The antidote to doom is doing (FT-SustainableViews)   Podcasts Bloomberg’s Akshat Rathi talks to science fiction writer Kim Stanley Robinson, author of the seminal 2020 novel Ministry for the Future which is set in the year 2025 (Bloomberg) Events SEAI, Introduction to Energy Management Training The Sustainable Energy Authority of Ireland (SEAI) is running a free online workshop on the basics of implementing energy management within your business. Virtual, Thursday, 16 January, 2-4pm Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Job details)   Sustainability Centre 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 ESRI report on collective climate action, Ireland’s commitments to improve the sustainability of ICT procurement, and a report on Ireland’s recycling rates. Also covered is the 2027 cap on ETS2, responses to the EU-Mercosur trade deal, news from Europe on SME sustainability reporting, as well as a podcast, a new resource for finance professionals on building the business case for nature, articles, and updates to the Chartered Accountants Ireland Sustainability Centre.   Ireland news ESRI report finds cooperation in collective climate action key The ESRI has published a research bulletin, How to Encourage Collective Climate Action, including a review of 272 studies on how people behave in collective action problems specifically concerned with climate change. Some of these challenges are ‘multi-level coordination’ (i.e. that local action is needed to achieve national or international goals), uncertainty about which actions will be effective, the fact that consequences of today’s decisions will be most strongly felt by future generations, and the need to overcome psychological biases (e.g., status quo bias – a preference for things to stay as they are, even if the alternative is better).  The bulletin recommends showcasing success stories to inspire action, and using multiple, smaller-scale initiatives instead of one large strategy to help foster cooperation by aligning goals with local identities and benefits. Ireland joins international partnership aimed at promoting sustainable ICT procurement practices Ireland has entered into a voluntary agreement to co-operate with other bodies, internationally, to improve the sustainability of ICT procurement. The initiative – the Circular and Fair ICT Pact (CFIT) – is an international procurement-led partnership with a remit to accelerate circularity, fairness, and sustainability in the ICT sector. Joining the CFIT Pact fulfils a commitment in Buying Greener: Green Public Procurement Strategy and Action Plan 2024-2027, which aims drive the implementation of green and circular procurement practices across the public sector. Ireland shows no improvement in recycling rates in 10 years The Environmental Protection Agency (EPA) has published the Circular Economy and Waste Statistics Highlights Report 2022, which states that Ireland generated 15.7 million tonnes of waste in 2022. Although a decrease on 2021 figures, this still shows a growth of over 20% in the last decade, with construction activities accounting for half of all waste generated. Ireland is now almost certain to miss EU municipal and packaging recycling targets for 2025. Europe news The EU-Mercosur trade The EU-Mercosur trade deal has been signed by the EU and four Mercosur countries — Argentina, Brazil, Paraguay and Uruguay – following 25 years of negotiations. While the annex to the trade and sustainable development chapter of the deal commits parties to “prevent further deforestation and enhance efforts to stabilise or increase forest cover from 2030”, trade experts and environmental experts disagree, citing deforestation risks, among other negative impacts. Cap adopted for 2027 Emissions Trading System for buildings, road transport and small industry (ETS2) The EU Commission has adopted a decision establishing the EU-wide quantity of allowances issued under Emissions Trading System for buildings, road transport and small industries (ETS2) in 2027. The ETS2 is a new emissions trading system created as part of the 2023 revisions of the ETS Directive. It is separate from the existing EU ETS and will cover and address the CO2 emissions from fuel combustion in buildings, roadtransport and additional sectors (mainly small industries not covered by the existing EU ETS). This cap will amount to 1,036,288,784 allowances for 2027 and aims to contribute to the EU achieving its 2030 climate targets. Sustainability reporting for SMEs - update The European Financial Reporting Advisory Group (EFRAG) has delivered the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) to the European Commission. Based on market acceptance, the VSME has been designed to provide a standardised set of information in order to support ESG reporting for SMEs and boost access to finance. In 2025 EFRAG will issue support guides and educational material, among other initiatives. Accountancy Europe’s Sustainability update – December Covered in the recently published Accountancy Europe’s December Sustainability update are the EU Taxonomy FAQs on the usability of the  EU sustainable finance frameworks; updates on the Green Claims Directive; approval of ESG rating activities regulation; updates on the Deforestation Regulation, and ESMA’s proposal to phase in ESRS digital tagging requirements. World news The International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with the Global Accounting Alliance (GAA) have published Building Trust in Sustainability Reporting and Preparing for Assurance: Governance and Controls for Sustainability Information. The guide aims to provide a roadmap for organising and enhancing governance and control systems, and outlines steps to align sustainability and financial reporting in terms of quality, timing, and connectivity, and addresses challenges in sustainability reporting. The new guidance can be applied to the adoption of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) and jurisdictional requirements, including the European Sustainability Reporting Standards (ESRS). Articles In this blog post, Fergus Sharkey, Head of Business at the Sustainable Energy Authority of Ireland (SEAI), discusses the new suite of business energy grants available to SMEs to reduce costs, cut carbon emissions, and remain competitive (SEAI) Goldman Sachs’ Exit from the Climate Alliance: What’s Behind the Move? (Climate Action for Associations) Biodiversity hit to economies estimated at up to $25tn a year in landmark report (Financial Times) Paris to Replace Parking Spaces With Trees (Bloomberg) Podcast The financial case for sustainability: In this episode of Behind the Numbers from ICEAW, Philippa Lamb is joined by Richard Spencer, ICAEW Director of Sustainability and others  to discuss the challenge for accountants in ensuring that the quality of non-financial information matches that of financial information. New resource – The Business Case for Nature A4S (Accounting for Sustainability) has published The Business Case for Nature,  a guide explaining why nature is vital to business and offering clear steps and practical tips for developing the business case for organisations. The guide is part of the ‘A4S’s nature guidance series’, currently being created to give finance teams the practical guidance and tools to understand their nature-related impacts and dependencies, and to take steps to integrate nature-related risks and opportunities into business strategy and decision-making processes. Sustainability Centre Our Sustainability Centre has been updated to include links to sustainability webinars run by Chartered Accountants Ireland on the topic of sustainability.

  In this week’s Sustainability/ESG bulletin read about warnings from the Climate Change Advisory Council and the Irish Fiscal Advisory Council, the SEAI’s new Business Energy Upgrade Scheme, guides to sustainable gifting, and news on Northern Ireland’s carbon budgets, biofuel consultation and energy developments, as well as the UK Citizen’s Assembly’s call for trade policy to combat climate crisis. Also covered is the €340-€477bn decarbonisation investment gap identified for the EU, the Commission’s 2024 ‘SMEs, resource efficiency and green markets’ survey, news from the latest UN COP, and a report into product-level carbon intensity metrics.   Ireland news Global Chartered Accountancy institutes lead the way towards net-zero Chartered Accountants Ireland has participated in a study mapping the collective efforts of global Chartered Accountancy institutes in leading the way towards net zero and demonstrating the profession’s leadership in advancing sustainability. Read more here. CACC calls for transformational opportunity to achieve a sustainable society The Climate Change Advisory Council (CCAC) has issued a press release warning of “profound costs to the Irish economy and to … people” if Ireland does not reduce its emissions. In its final proposed Carbon Budget 3 (2031-2035) and provisional Carbon Budget 4 (2036-2040), CACC calls for strong political leadership to make the necessary investment, taxation and policy decisions to help Ireland capitalise on the “transformational opportunity that a climate neutral society presents”. An annual reduction of at least 6.3% on average year on year to 2040 is needed in order for Ireland to remain within the carbon budget, CACC warns, while the Sustainable Energy Authority of Ireland (SEAI) reportedly finds that emissions from the transport sector would need to be reduced by 35% in 2025 alone for that sector to stay within its existing 2025 carbon budget. Irish Fiscal Advisory Council advises spending rule Government “will stick to” The most recent report from the Irish Fiscal Advisory Council (Ifac) is calling for Ireland to set a more strategic course in budget policy, and a sustainable spending rule that “it will stick to”, and a realistic plan for dealing with the State’s health, housing and climate challenges. Commenting, Ifac chairman Seamus Coffey advised the incoming government to put in place ‘guardrails’ in the form of a rule to ensure against ramping up ongoing commitments as each budget day approaches: “A rule and some realistic plans would help to tackle infrastructure deficits, ageing pressures and climate needs, while also protecting growth and limiting future job losses.” SEAI launches new Business Energy Upgrade Scheme The Sustainable Energy Authority of Ireland (SEAI) has launched a new Business Energy Upgrade Scheme. The scheme, funded by the Climate Action Fund, offers up to €120,000 for a range of common building upgrade measures including pumps, solar thermal, automatic controls, heat pumps, ventilation, and wall insulation. The scheme is open to all businesses and small public bodies who are upgrading a building they own or occupy. Applications can be made online. BITIC publishes guide to sustainable gifting Business in the Community Ireland (BITCI) has published its Corporate Gift Guide 2024, with advice for choosing presents and a list of business and charities offering sustainable gift ideas. According to BITCI, corporate gifting is an opportunity for a company to put its sustainability values into practice, inspire employees, build a positive brand image, and contribute to a better world. Irish minister delivers keynote at Coalition for Capacity on Climate Action The President of the Eurogroup and Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, T.D., has delivered a keynote speech at the inaugural Symposium of the World Bank’s Coalition for Capacity on Climate Action (C3A). Launched in 2023, the C3A seeks to bridge the gap between science and policy in addressing climate and nature-related economic and financial challenges. It engages with Ministries of Finance, among others, to support informed policy debates on ways to achieve shared prosperity on a liveable planet. In his address, Minister Donohoe stated that “a liveable climate is our collective goal, whether we like it or not”, and that “[t]o succeed, [climate] policy must be effective, legitimate and global”. Calls for participation in development of standards in support of Accessibility Act The National Standards Authority of Ireland (NSAI) is inviting interested parties to get involved in the development of new standards and the revision of existing standards, in support of the European Accessibility Act (EAA). The EAA seeks to harmonise accessibility requirements for certain products and services within the EU, by eliminating and preventing barriers to the free movement of products and services in scope of the EAA. NSAI is calling for interested parties to participate in national technical committees, to represent the national position during the development of these standards. Read more on the European Accessibility Act (EAA) from Chartered Accountants Ireland. ISIF trebles its target allocation, committing a further €100m, to female-led investment funds The Irish Strategic Investment Fund (ISIF) has announced a further €100m funding to its initiative to invest in female-led private equity and venture capital funds. The initiative, which was launched in 2022, exceeded its original commitment of €50m by €10m. Through the initiative, ISIF is seeking to demonstrate its commitment to addressing gender inequality and promoting greater diversity at senior levels – both within ISIF and in the companies and funds in which it invests. Ireland's UN SDGs - Goal 4 Quality Education 2024 The Central Statistics Office (CSO) has published Ireland's UN SDGs indicators data for Goal 4 Quality Education 2024. The release is one of a series monitoring and reporting on how Ireland is progressing towards meeting its targets under the 17 UN Sustainable Development Goals (SDGs). This report on Goal 4 has 12 indicators which are organised under ‘Childhood Education’, ‘Adult Education’ and ‘Education Infrastructure’.  Among the findings was that 64% of adults aged 25-34 participated in lifelong learning in 2022, compared with 35% of people aged 55-69. Northern Ireland/UK news Northern Ireland approves carbon budget legislation The Northern Ireland Assembly has approved legislation setting Northern Ireland’s first three carbon budgets and a new 2040 target to reduce emissions. The approval delivers further on key statutory requirements of the Climate Change Act (Northern Ireland) 2022. Commenting DAERA Minister Andrew Muir stated: “There is already a statutory target for 2030. However, setting the carbon budgets and the 2040 target will provide all sectors with a clear focus and driver to step up action to address climate change.” Separately, Carbon Intensity Indicators published by the Statistics and Analytical Services Branch in the Department of Agriculture, Environment and Rural Affairs (DAERA) has found that Gross Value Added (GVA) has grown substantially since 1998, despite a decline in greenhouse gas emissions. The ratio of total greenhouse gas emissions to GVA in the region decreased 70% from 1998 to 2022. Call for evidence on use of biofuels Northern Ireland’s Economy Minister Conor Murphy has launched a Call for Evidence to explore the potential use of biofuels as an alternative to home heating oil and fossil-based LPG. Industry research and analysis indicates biofuels are the most likely renewable heat alternative for homes and businesses that cannot be heated by heat pumps, the gas grid or heating networks. The Call for Evidence is available at Citizen Space and will remain open until 4 March 2025. Separately the Executive has endorsed Minister Murphy’s proposal to ban onshore oil and gas exploration and production in the north. Commenting, Minister Murphy stated: “Reaching our net zero target by 2050 is both a legal requirement and a moral obligation which is why decarbonisation is central to my economic plans.” There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020. Northern Ireland energy developments A report detailing the percentage of electricity consumption generated from renewable sources in Northern Ireland shows that for the year ending September 2024, 44.5% of total metered electricity consumption in Northern Ireland was generated from metered renewable sources (81.9% of which was generated from wind). This is a decrease of 2.9 percentage points on the previous 12 months. The full report is available on the DfE website. Separately, Economy Minister Conor Murphy has launched a ‘Save Energy, Save Money’ information campaign which aims to lower energy bills through energy efficiency. The campaign, which will run until March 2025, aims to help consumers save money on their bills through energy efficiency advice and information whilst also increasing public understanding about the transition to net zero in Northern Ireland. UK Citizens’ Assembly calls for trade policy to combat climate crisis The world’s first Citizens’ Assembly on Trade and Climate has issued a call for the UK Government to use trade policy as a tool to combat the climate crisis. The Assembly, convened by the Trade Justice Movement, Queen Mary University of London, and MutualGain, agreed 15 specific and detailed recommendations for the UK government which can be found in its Policy Brief: Assembly Findings and Recommendations. The recommendations are grouped under ‘Tariffs, quotas & trade agreements’, ‘subsidies’, ‘procurement’ and ‘standards’. Europe news EU decarbonisation investment gap - €340-€477bn A study by European policy advisory company Climate Strategy and Partners has found that the EU faces an annual investment gap of between €340-€477bn to decarbonise its highest emitting sectors by 2050. The report was based on data from the 2024 ‘Draghi Report’ on European competitiveness, and outlines ways the EU can close the investment gap. These include eliminating waste and inefficiencies in the delivery of EU funds, not reinventing the wheel, removing bottlenecks and channelling grants to where they are most needed. 12-month delay in EU deforestation rules Companies will have one more year to adapt to new EU rules to prevent deforestation which will ban the sale of products sourced from deforested land. The delay in the coming into force of the EUDR is in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024. The deforestation regulation adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Already in force since 29 June 2023, its provisions were to be applied by companies from 30 December 2024. SMEs, resource efficiency and green markets The European Commission has published its 2024 SMEs, resource efficiency and green markets. The report aims to contribute to the Commission’s efforts to help SMEs become greener and foster their long-term competitiveness. Findings include that 93% of EU SMEs are implementing at least one resource-efficiency measure such as saving energy, minimising waste, and recycling, and that renewable energy use is on the rise. Challenges reported by SMEs include complex administrative or legal procedures (35% of SMEs) and high costs (28% of SMEs), identified as major barriers to implementing resource-efficiency measures. World News Consultation on reporting on financial activities emissions The Partnership for Carbon Accounting Financials (PCAF) is calling on signatories, industry experts, and all relevant parties to participate in a public consultation on its newly developed methods for measuring and reporting the greenhouse gas (GHG) emissions associated with financial activities. This consultation will run 28 February 2025. The COP combatting desertification, land degradation and drought The sixteenth session of the Conference of the Parties on the United Nations Convention to Combat Desertification (UNCCD) has taken place in Riyadh, Saudi Arabia, from 2 to 13 December. Confusingly also called ‘COP16’, like the Biodiversity COP in late October this year, the UNCCD COP aims to raise global ambition and accelerate action on land and drought resilience. According to the Business for Land (B4L) Initiative, launched at the 2024 World Economic Forum, up to 40% of the world’s land is already degraded, threatening key economic sectors. Separately, read Susan Rossney’s article in Accountancy Ireland this month on the uneasy agreement read at COP29 to pledge $300 billion in climate funding to developing countries. Product-level carbon intensity metrics The OECD has published a report Towards more accurate, timely, and granular product-level carbon intensity metrics: challenges and potential solutions. Prepared under the auspices of the Inclusive Forum on Carbon Mitigation Approaches (IFCMA), this report presents an overview of the main approaches to, and challenges faced when calculating product-level carbon intensity metrics – including those applicable to collecting and verifying information along the supply chain. It provides insights on how to minimise duplication among various initiatives, minimise compliance and reporting costs for firms, and avoid possible disruptions to trade. Articles Italy plans mandatory insurance for climate risks (Bloomberg) Sustainability reporting: why standards matter (ICAEW) The professional services sector needs to develop a moral climate compass (Business Post) Ireland can be a net exporter of green electricity to Europe but only if we act now (Irish Times) Accountancy Europe and IFAC Reunite to Discuss the Future of Sustainability Assurance Engagements (IFAC) Why companies need to put profitability at the centre of transition planning (SustainableViews) Law to cut emissions in NI approved by assembly (BBC News) Podcast Speakers dissect COP29, what it means for businesses and why private sector voices should be in the room. Sustainable Views: Why businesses should be at COP  Did you know? The much-anticipated Chartered Accountants Ireland Annual Dinner will once again be held in the Convention Centre Dublin (CCD). The world’s first carbon-neutral constructed convention centre, and one of Europe’s most environmentally friendly venues, the CCD is one of only three venues in Ireland to hold the ISO 20121 accreditation in Event Sustainability Management Systems. It also holds Quality Standard ISO 9001 and Environmental Standard ISO 14001, as well as British Security Standard BS7499. The Annual Dinner will take place at the on Friday, January 24, 2025.  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

Chartered Accountants Ireland has today circulated the Institute's Key Policy Priorities, based on member engagement, as discussions commence on the formation of the next Government. Focused on supporting small business and improving childcare provision for working parents, we will continue to amplify our members' voices as the negotiating process continues.

Chartered Accountants Ireland is warning that family-owned businesses in Northern Ireland, including those in the agricultural sector, will be the biggest losers from the recent tax changes announced in the Autumn Budget. Impacted family businesses are now facing a triple whammy of mounting employment costs, higher Capital Gains Tax on sale or succession, and an unexpected Inheritance Tax bill when passing businesses on to the next generation. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee said: “Northern Ireland family-owned businesses are the heartbeat of our economy with around 80% of businesses here either family owned or managed. Many of these businesses, particularly those who employ minimum wage workers, will face a stark increase in their wage bill from April 2025 as a result of the changes to Employer’s National Insurance Contributions and the National Minimum Wage. For example, a business with 50 part-time staff aged 18-20 working around 15 hours per week will have to find an additional £65,000 from April 2025 just to pay wages. This will particularly impact businesses reliant on part time staff such as in the retail and care sectors but especially for already struggling hospitality businesses.” Reflecting further on what’s still to come for Northern Ireland family-owned businesses, Janette commented: “From 30 October 2024 the rates of Capital Gains Tax have already increased from 10% to 18% and 18% to 24% ahead of a stepped reduction in the benefit of a key Capital Gains Tax relief, Business Asset Disposal Relief, commencing from April 2025. Then, from April 2026 the benefit of two key Inheritance Tax reliefs is being reduced by 50% for businesses (including farms) worth more than £1 million. This means that further down the tracks the same family business owners are facing a significantly higher tax bill when the time comes for the next generation to take over. Those who are approaching retirement will now pay more Capital Gains Tax either when they sell the business or pass it on to their successors whilst still alive. On a death transfer, the Budget’s Inheritance Tax changes from April 2026 mean that whomever inherits the business will be hit with an extra 20% Inheritance Tax bill on any value over £1 million. Figures suggest that an estimated 33% of farmers in Northern Ireland will be affected. Many family-owned businesses and farms here started out small 20 or 30 years ago and through sheer hard work, sacrifice, and determination have grown in size. It would not be unusual for those businesses to now be worth several million pounds. For a business or farm worth £2million, these changes will add as much as £200,000 onto the family Inheritance Tax bill. The reality is that many will be forced to sell the business or farm to pay this new bill.”

After a frenetic three-week campaign, General Election 2024 has essentially left us where we began – with a likely Government led by Fianna Fáil and Fine Gael albeit this time without the Greens.  The precise makeup of the final coalition is as yet unclear. However, given that the outgoing coalition’s collective seat take will likely not leave them far off the 88 seats needed to command a Dáil majority, it is safe to say that whoever gets the nod to make up the numbers won’t have the same bargaining power to influence policy as some previous smaller coalition partners may have had.  Against this backdrop, it’s safe to assume that the next Programme for Government will largely, if not entirely, be dictated by the policy priorities set out by Fianna Fáil and Fine Gael in their general election manifestos. So, what might this mean for small businesses?  Addressing the cost of doing business  In their respective pre-election pledges, both parties were keen to highlight their awareness of the rising costs of doing business. In Fianna Fáil’s case, they pledged to address this by establishing a new “Cost of Business Advisory Forum” to conduct a review of all current business costs and taxes.  According to the party’s manifesto, “this forum will be consulted before introducing new legislation or policies that affect small businesses.”  Likewise, in its manifesto, Fine Gael took a similar tack by reasserting its commitment to apply what it calls the “SME test” to any new legislation coming down the track – a test that would essentially require all departments to first assess the impact on small businesses of any new measures being proposed prior to enactment.  So, with both parties essentially singing from the same hymn sheet on the issue, it is likely that we will see the announcement of some sort of new initiative designed to limit the amount of new regulations that could further add to the cost burdens of small businesses.   Employers’ PRSI   Again on the issue of reducing business costs, both parties also made specific commitments to reduce the Employers’ PRSI burden where lower earning workers are employed.  While Fine Gael favoured a temporary, three-year PRSI rebate based on the number of lower-earning workers on a company’s payroll, Fianna Fáil pledged an outright reduction to the lower rate of employers PRSI by 1.5 percent.  The logic behind the latter proposal (we know this because the Institute’s pre-election manifesto originally proposed it) is to mitigate the concurrent 1.5 percent uptick in payroll costs due to hit many employers in late 2025 through the introduction of pensions auto-enrolment.  So again, with both parties essentially aligned here, it’s fair to say that a reduction or rebate of the lower rate of Employers’ PRSI in some format will also likely feature in the next Programme for Government.   VAT on hospitality  The issue of VAT on hospitality was a notably contentious issue in the run up to Budget 2024 with the Government ultimately refusing to reinstate the reduced nine percent rate despite extensive lobbying from the sector.  However, the way in which each party subsequently approached the issue in their election manifestos is perhaps telling of a policy fissure between the two.  Fine Gael clearly favours a reduction, albeit to a midway rate of 11 percent while Fianna Fáil is notably silent on the issue in its manifesto, instead placing its focus on maintaining VAT on gas and electricity bills at nine percent for the next five years.  How this difference in approach will ultimately play out in the final Programme for Government is as yet unclear. However, Fine Gael’s pledge to implement a reduction will no doubt have created an expectation from the hospitality sector that some sort of action will be taken on reducing the rate.  Energy supports  High energy costs continue to be an issue for many small businesses and the manifestos of both Fianna Fáil and Fine Gael have again sought to tackle this through further one-off grant schemes.  In Fianna Fáil’s case, the party has pledged to introduce a successor to the Increased Cost of Business/Power Up grant schemes to help hospitality and retail businesses deal with higher energy bills.  Likewise, Fine Gael has promised a new energy cost grant scheme, “to help businesses lower their energy costs, enabling them to operate more sustainably.” Given that the two parties appear to be broadly aligned on the issue, a new round of temporary energy support grants seems likely.  However, what is less clear is how the announcement of these relatively piecemeal measures will be received by businesses, particularly given the slow uptake of previous such schemes over the past two years. Stephen Lowry is Head of Public Policy at Chartered Accountants Ireland

  In this week’s Sustainability/ESG bulletin read about the final agreement at the global climate conference COP29, socially responsible public procurement, decarbonisation of commercial buildings, the Government response to business flooding, and an All-Ireland Climate Action Pilot Programme for SMEs. Also covered are consultations on the UK ETS, moves to streamline overlapping EU sustainability regulations, reports into CSDDD implementation, and the risk and return of impact investing funds, and more.     Ireland news   Institute responds to IASB exposure draft on climate-related risks in the financial statements" Chartered Accountants Ireland’s Professional Accounting Team has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. COP29 – the Baku Finance Goal Chartered Accountants Ireland covered the global climate summit ‘COP29’, which concluded in the early hours of Sunday morning, 24 November in Baku, Azerbaijan. The gavel descended on the fourth longest COP on record agreement on ‘The Baku Finance Goal’, a new finance target for tackling climate change. Read our COP29 coverage.    Socially Responsible Public Procurement The Department of Rural and Community Development has published research identifying future trends of social enterprise development, inclusive and ethical supply chains, and an overall shift towards socially-conscious business models. The publication, Buy social' and Socially Responsible Public Procurement Research Paper, benchmarked 10 countries across the UK, Europe and North America and delved into the concept of ‘Socially Responsible Public Procurement’ (SRPP), which aims to achieve positive social outcomes in public procurement contracts. Decarbonisation of Commercial Buildings Roadmap - update The Climate Action and Energy Policy Unit of the Department of Enterprise, Trade and Employment has published an update on its work on decarbonising the commercial built environment. In a presentation to the Retail Forum Green Transition Working Group, the Unit provided a status update to the Decarbonisation of Commercial Buildings Roadmap, which is in final draft form and awaiting sign off by the incoming Government, after which it be published. New Climate Action Roadmap published by DHLGH The Department of Housing, Local Government & Heritage has published a Climate Action Roadmap detailing how it aims to meet its 2030 carbon and energy efficiency targets and implement the requirements of the Climate Action Mandate 2024. Corporate and Business Support, and the Local Government Audit Service are among the 10 divisions through which the Department will carry out its work to meet the requirements of the mandate.  Government response to flooding for businesses The Minister for Enterprise, Trade and Employment, Peter Burke, T.D., has confirmed that his department will seek government approval to reopen the Emergency Humanitarian Flooding Scheme. The scheme has previously been opened to provide support for businesses who had been unable to secure flood insurance and were impacted by flood water as a result of severe weather events. All-Ireland Climate Action Pilot Programme for SMEs launched Business in the Community Ireland (BITCI) has launched its insights report on an All Ireland Climate Action Pilot Programme for Small and Medium sized Enterprises (SMEs). BICTI developed the pilot programme in response to a strategic review of SMEs in Ireland in late 2023 to explore how BITCI could support the decarbonisation transition of SMEs. The research shows how SMEs are already being impacted by climate change, that engaging suppliers meaningfully is crucial in successfully decarbonising supply chains, and that expanding national engagement and exploring international collaborations will also be key in developing future programmes.   Northern Ireland/UK news The consultation on adraft environmental principles policy statement (EPPS), issued by the Department of Agriculture, Environment and Rural Affairs (DAERA), is closing shortly on Monday, 9 December. The statement sets out how five internationally recognised environmental principles should be interpreted and proportionately applied to policy making. When fully in force, all Northern Ireland government departments and United Kingdom government ministers making policy for NI will have a statutory duty to have due regard to the statement. The consultation close on Monday, 9 December. The UK Environment Agency has launched a consultation on the updated charges proposed for United Kingdom Emissions Trading Scheme (UK ETS) customers, as well as customers of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), and charges for the UK’s Kyoto Protocol national registry (the national registry). The consultation also sets out charge proposals for areas of UK ETS expansion. The consultation will close on Friday 24 January 2025, and further details can be found on the Environment Agency website.   The Offshore Wind Growth Partnership (OWGP) is supporting businesses looking to enter or grow within the offshore wind supply chain through the Wind Expert Support Toolkit (WEST). Applications will close at 5pm on Friday 24 January 2025 and details of the WEST programme and how to apply are here.   Europe news The European Commission has reportedly announced plans to streamline overlapping sustainability regulations into a single, cohesive framework, or ‘omnibus regulation’. The aim is to reduce the regulatory burden on companies while maintaining the EU’s leadership in sustainability. Certain sustainability legislation, including the  Corporate Sustainability Reporting Directive, the EU taxonomy and the Corporate Sustainability Due Diligence Directive may be amended into a single omnibus regulation. The EU executive is still to make a final decision on the issue.   World News The World Benchmarking Alliance has published a briefing titled How to ensure inclusive and impactful CSDDD implementation, with recommendations for governments, civil society and businesses on how to “engage constructively” with CSDDD implementation. Recommendation for business include preparing proactively for compliance and engaging transparently with government and stakeholders; recommendations for investors include integrating CSDDD compliance into investment criteria and stewardship and demanding transparent reporting from investee companies.   The fifth and ostensibly final round of talks on securing a legally binding and universal plastic treaty failed to deliver consensus this week Busan, South Korea. Commenting at the outset for the talks, Intergovernmental Negotiating Committee chair Luis Vayas Valdivieso, said: “Without significant intervention, the amount of plastic entering the environment annually by 2040 is expected to nearly double compared to 2022.”The OECD calculates that the introduction of strict policies targeting the full plastics lifecycle would result in a global GDP contraction of 0.5 per cent in 2040 but that the costs of inaction are likely to be far higher   A report into impact investing has found that impact funds tend to be less exposed to market risk than traditional venture capital and private equity funds. The report, The Risk and Return of Impact Investing Funds, published by Journal of Financial Economics, reportedly used a data set of 94 private markets impact funds covering cash flows from 1999 to 2021 to address a lack of publicly available impact fund cash flow data.   Spain’s government has reportedly approved a new “paid climate leave” entitlement of up to four days to allow workers take time off if unable to travel to their place of work in the event of official warnings of extreme weather conditions. The measure was agreed a month after floods in Valencia — estimated to cost the country 0.2 per cent of GDP this quarter — killed more than 200 people.    A report on the economic cost of extreme weather commissioned by the International Chamber of Commerce has found that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade. A 2023 report by S&P Global, Quantifying the financial costs of climate change physical risks for companies, had previously shown that the financial impacts of climate change on major companies nearly doubled from the 2050s to the 2090s, and that by the 2050s, the costs of the physical hazards of climate change could equal an average of 3.3% (up to 28%) a year of the value of major companies’ real assets. Commenting on the 2024 reporting findings, ICC secretary-general John Denton described ‘a real and tangible cost to delaying the action needed to stem climate change’ and that ‘from a business perspective, the urgency of coordinated and collective action to accelerate emissions reductions and build resilience to changing weather patterns cannot be overstated’.   Technical update Our Professional Accounting team have a published their Technical Roundup, with updates on the EU Taxonomy,  KPMG’s Survey of Sustainability Reporting, a recent EFRAG webinar on ESRS for Non-EU Groups, updates from IFRS and ISSB and a link to the Accountancy Europe November 2024 Sustainability Update.   Did you know? Entries are now open for the Business & Finance ESG Awards which celebrating businesses and individuals actively striving to address and progress ESG issues in their organisation. Articles Businesses need to improve reporting sustainability matters, ACCA says (AccountancyToday) Strengthening ESG strategies ahead of 2025 reporting deadlines (Accountancy Ireland – Briefly)   Upcoming Events   MEANZ Business Webinar: Net Zero and Decarbonising your business Mid and East Antrim Borough Council is inviting businesses to the latest webinar in the MEANZ Business Net Zero Insights Series. You will hear about what Net Zero 'MEANZ' for businesses and get practical tips from expert speakers on how you can decarbonise to reduce overheads, save costs and get competitive advantage. Speakers at the event will be James Dunlop, Senior Manager, Carbon Trust, and Mark McEvoy, Sales Director, Camden Group. Virtual, Thursday 5 December, 11.00 – 12.00            You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.