A landmark UN Agreement was reached on 19 December 2022 to protect biodiversity and create a shared future for all life on Earth. It is being called the 'Paris Agreement' of nature, likening it to similar agreement in 2015 which changed the world's direction on managing climate change. Biodiversity is the variety of life on earth. It includes all the different types of living things and habitats. It is often referred to as the ‘web of life’. Our societies and economies depend on it. It is rapidly rising up the corporate agenda as more and more companies understand the need to protect it. Here are some of the numbers for biodiversity now: 4 The number of goals included under the new landmark UN Agreement to protect biodiversity (i.e. the web of life on earth). 23 The number of targets under the new Agreement. 30 percent The percentage of Earth’s land and water that 195 nations have now agreed to protect and restore by 2030, making it the ‘30x30 goal’. $44 trillion The amount generated by industries dependant on nature, according to the World Economic Forum. $13 trillion/15 percent Amount generated by industries highly dependent on nature, and the percentage of global GDP this represents. $37 trillion/37 percent Amount generated by industries moderately dependent on nature and the percentage of global GDP this represents. 50 percent The agreed percentage reduction by 2030 of risk from pesticides. 50 percent The agreed percentage reduction by 2030 of nutrients lost to the environment. 50 percent The agreed percentage reduction by 2030 of new invasive species introduced and established. 30 The age of the Global Environmental Facility, which will now create a new Global Biodiversity Framework Fund through which rich nations will pay poor nations to support replacing biodiversity. $30 billion The amount rich countries have pledged to pay per year to poor countries to support biodiversity. $200 billion The amount of finance to be mobilised per year for biodiversity from all sources, domestic, international – both public and private. $500 billion The amount of subsidies harmful to biodiversity that will be eliminated per year by 2030. $700 billion The estimated annual financing gap that exists for the protection of natural systems. 8 billion The number of humans on the planet now, more than double since 1970. 69 percent The decline in animal population during that time. 75 percent The percentage of land fundamentally altered during that time. 66 percent The percentage of oceans negatively affected during that time. 80 percent The percentage of lost wetlands during that time – these act as both habitats and ‘sinks’ to store carbon and stop it doing harm. $3 trillion The combined asset value of a group of investors which launched a campaign to pressure the companies they own to do more to fight the decline in biodiversity. $650 million The amount investors have committed to two so-called natural capital funds backed by HSBC Asset Management. Zero The pricing of natural assets by Wall Street for the past 150 years, according to David Craig, co-Chair of the Taskforce for Nature-Related Financial Disclosures (TFND). Some announcements made during the Biodiversity COP The International Sustainability Standards Board (ISSB) announced it would define ‘sustainability’ as ‘inextricably’ linked to nature in its standards.   MSCI, the world’s largest ESG rating company, announced it would launch metrics for biodiversity similar to their environment, social and governance criteria.   A group of institutional investors announced the formation of a new global engagement initiative to mobilise investors to drive urgent action on the nature-related risks and dependencies in the companies they own. Nature Action 100 will identify the private sector actions that need to be undertaken to protect and restore nature and will seek to catalyse these actions via investor-company engagements.   A new Global Biodiversity Framework Fund will be established under the Global Environment Facility and will be open to financing from all sources to protect the most vulnerable countries and the most biodiverse. A recap on COP15 COP stands for ‘Conference of the Parties’. It refers to the meetings by signatories to United Nations conventions. The most famous COP is the ‘Climate COP’. This is the annual the summit attended by the countries that signed the United Nations Framework Convention on Climate Change (UNFCCC). The most recent ‘Climate COP’ was COP27, hosted in November 2022 in Egypt. ‘Biodiversity COPs’ are meetings of the signatories to the United Nations Convention on Biological Diversity. The fifteenth such meeting took place from 7-19 December 2022 in Montreal, Canada, hence the name ‘COP15’. At COP15 governments from around the world came together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. The catastrophic loss of nature has not received the same media attention as climate change, but it is equally critical and must be resolved. It is impossible to effectively tackle either climate change or biodiversity loss without tackling both at the same time. A quick look at biodiversity Biodiversity is the variety of life on earth. It includes humans, animals, plants and all the other lifeforms which interact and depend on each other to survive. Everything depends on nature, including business. Biodiversity on Earth is under enormous risk, mostly due to human activity. The loss of biodiversity must be halted and reversed so humanity can survive and thrive. What is the agreement called? The agreement made at COP15 is called the Montreal-Kumning Global Biodiversity Framework (or the ‘Montreal-Kumning Agreement’ for short), after the cities in which it took place.   COP15 was originally supposed to take place in Kumning in China but was delayed due to COVID-19. In the end it was co-hosted by Montreal and Kumning. What is in the Agreement? The ‘Montreal-Kumning Agreement’ contains global goals and targets to protect and restore nature for current and future generations. It aims to accelerate ambitious policies around the world and mobilise financing for biodiversity from all sources. It is seen as significant because it is seen by some as being as important for nature as the Paris Agreement’s 1.5°C goal was for climate. It also acknowledges the role of indigenous and local communities in achieving any nature-related goals. What’s next? Before the next COP in Saudi Arabia in 2024, all countries will have to prepare updated National Biodiversity Strategies and Action Plans as well as National Biodiversity Finance Strategies. What they said “At an institutional level, the train has left the station in any case because financial institutions are increasingly aware that nature risk is sitting on their balance sheets.” Tony Goldner, Executive Director of the Taskforce on Nature-Related Financial Disclosures describing how a number of countries and financial firms are already moving toward mandatory disclosure with greater ambition than the final text suggests, where it says that countries should “encourage and enable” businesses to monitor, assess and disclose how they affect and are affected by biodiversity without making this process mandatory. “The agreement reached at COP15 is a landmark deal to protect nature, restore ecosystems and keep our planet liveable. This is about our very survival: humanity has no future on a dead planet.” Frans Timmermans, Executive Vice-President for the European Green Deal Articles Why is Wall Street so hot for biodiversity right now? (Bloomberg) Cop15: Five key developments as significant biodiversity agreement reached: “Ultimately, major businesses will be expected to outline how they are contributing to a nature-positive world.” (Irish Times)   Find more on biodiversity and what it means for accountants at the Chartered Accountants Ireland Sustainability Centre resources page on Accounting for Nature.   

In this week’s public policy bulletin we take a look at the latest economic forecasts for Ireland from both the OECD and the ESRI. We also examine the latest economic output statistics from the Northern Ireland Statistics and Research Agency, and the final economic report for Northern Ireland for 2022 from Danske Bank. In addition, we review the latest on pay transparency measures agreed this week between the European Council and European Parliament. OECD publishes 2022 Economic Survey of Ireland The OECD has this week published its latest ‘Economic Survey of Ireland’ in which it analysed the State’s structural policies and their potential to improve the economy’s long-term performance and people’s overall living standards. Noting how the economy weathered the worst of the Covid-19 pandemic and is “coping well” with the economic repercussions from the Russian invasion of Ukraine, the report commends the Government for reacting “forcefully to shield households and businesses from both shocks”. However, the report notes that Irish fiscal policy “is facing a number of pressures in the short run and on its longer-term sustainability” with high inflation putting pressure on Government to increase spending and the recent multilateral agreement on corporate tax likely to “reduce the buoyancy of tax receipts”. Moreover, on housing policy, the report notes that while the Government’s Housing for All strategy is ambitious, its “near-term effects might be limited” due to high construction costs, labour shortages and complex regulations.    ESRI forecasts reduced economic growth for 2023 In its final Quarterly Economic Commentary for 2022, the ESRI forecasts that the Irish economy is set to grow “at a significantly reduced pace” in the near term due to recessionary risks facing the State’s main trading partners, persistent cost of living pressures and increases in monetary policy interest rates. Anticipating that inflation will average 7.1 percent in 2023, the ESRI estimates that economic growth will likely contract from 8.4 percent in 2022 to 2.2. percent in 2023. Moreover, in assessing the potential prospect of a global economic downturn next year, the report states that the impact of any such downturn in Ireland will largely depend on how the ICT and pharmaceutical sectors are affected as these have been “the main engine of growth” in Irish trade to date. Northern Ireland Economic Output Statistics published as Danske Bank forecasts recession The Northern Ireland Statistics and Research Agency (NISRA) has this week published its latest statistics on Northern Ireland economic output. According to the data, output in the services sector increased by 0.1 percent in real terms over the third quarter of 2022 and increased by 0.4 percent over the year. Production sector output increased by 0.5 per cent over the third quarter of 2022 and by 1.9 per cent over the year. By contrast, retail output in NI saw a quarterly decrease of 1.7 per cent in Quarter 3 2022 and a decrease of 5.3 per cent over the year. When comparing current output with the pre-Coronavirus pandemic levels seen in Quarter 4 2019, Northern Ireland production output is 5.6 percent above its pre-pandemic level and Northern Ireland service output is 4.8 percent above its pre-pandemic level. In contrast, Northern Ireland Retail output remains 6.2 percent below the pre-pandemic level seen in Quarter 4 2019. Alongside the publication of these statistics however came the latest quarterly report from Danske Bank in which it suggested that Northern Ireland “is likely to experience a recession” in 2023 due to high inflation, low consumer confidence and tighter monetary policy. As a result of this anticipated downturn, the bank estimates that unemployment in Northern Ireland will likely increase from 2.9 percent in 2022 to an average of 3.9 percent in 2023. European Council and EU Parliament reach agreement on pay transparency measures According to the agreement reached by European Parliament and EU countries’ negotiators on Thursday, EU companies will be required to disclose information that makes it easier to compare salaries for those working for the same employer. Welcoming the agreement, the EU Commission voiced its support for the measures which it maintains will provide for more transparency and effective enforcement of the equal pay principle between women and men as well as improve access to justice for victims of pay discrimination. Originally proposed by the Commission in March 2021, this week’s agreement marked the end to the fifth round of negotiations to agree a common text on the proposal, with some of the key measures agreed including:   a requirement of employers to provide information about the initial pay level for a role or its range in the job vacancy notice or before the job interview, and an entitlement for employees to request information from their employer on their individual pay level and on the average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value Following this week’s agreement, EU member states ambassadors will have to endorse the agreement which will be followed by the usual adoption process in the Council and European Parliament.

  In this week’s bulletin we bring you news about the Temporary Business Energy Support Scheme, the public consultation on the National Risk Assessment 2023, and a report showing the efficiencies of aligned renewable energy targets for Ireland and Northern Ireland. Also covered is the launch of an investor coalition at the Biodiversity COP in Montreal and the reaching of an agreement on the EU’s Carbon Border Adjustment Mechanism (CBAM), as well as articles, resources and events. TBESS - Using the Climate Toolkit 4 Business Chartered Accountants Ireland acknowledges that Revenue has clarified its guidance regarding completion of a carbon footprint exercise by applicants to the Temporary Business Energy Subsidy Scheme (TBESS) regarding the requirement for applicants to either complete a carbon footprint exercise using the Government’s Climate Toolkit for Business, or demonstrate that they are taking steps to reduce energy use and environmental impact. However, the Institute recommends that business use this toolkit as an opportunity to manage their costs and their carbon emissions. Read more Public consultation – National Risk Assessment 2023 The Irish Government has launched a public consultation on the National Risk Assessment outlining proposed risks facing Ireland in the short, medium, and long term. Stakeholders are asked to assess whether the draft risks identified accurately represent the major risks facing the country, or if any should be added or removed. The risks are categorised under the headings economic, geopolitical, social, environmental and technological. The public consultation will be open until Friday 17 February 2023. Report shows efficiencies in aligned renewable energy targets for Ireland and Northern Ireland New research from the ESRI shows that aligned renewable energy targets for Ireland and Northern Ireland support a more efficient electricity dispatch system and lower costs around the island. The report - All-island coordination of energy infrastructure and renewable energy supports – found that the North-South interconnector, a 400kV transmission line which will run between the two jurisdictions, will facilitate greater energy transmission between the two jurisdictions, reducing the requirement to invest in storage. The interconnector would also reduce the number of network upgrades needed. Investor coalition launched at ‘Biodiversity COP’ At the ‘Biodiversity COP’ this week a group of institutional investors announced the formation of a new global engagement initiative to mobilise investors to drive urgent action on the nature-related risks and dependencies in the companies they own. Nature Action 100 will identify the private sector actions that need to be undertaken to protect and restore nature and will seek to catalyse these actions via investor-company engagements. The ‘Biodiversity COP’ is the United Nations Convention on Biological Diversity (‘COP 15’); it is taking place from 7-19 December in Montreal, Canada. Governments from around the world have come together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. Agreement reached on EU’s Carbon Border Adjustment Mechanism (CBAM) Political agreement has been reached between the EU Parliament and Council on the Carbon Border Adjustment Mechanism (CBAM), the tool created by the EU to put a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU. The CBAM aims to prevent ‘carbon leakage’, which occurs when companies based in the EU move carbon-intensive production abroad to countries with less stringent climate policies, or when EU products get replaced by more carbon-intensive imports. The goal is to make the carbon price of imports equivalent to the carbon price of domestic production, thereby ensuring that the EU’s climate objectives are not undermined. On clarification of final technical details of the mechanism and finalisation of the text, the European Parliament and the Council will have to formally adopt the new Regulation before it can enter into force. Report publishes into climate change adaptation in Europe Advancing towards climate resilience in Europe, a European Environment Agency (EEA) report published this week, shows that EU Member States recognise the importance of adapting to impacts of climate change. (Adaptation refers to how we adapt our society and economy in response to climate change, by changing our processes, practices, and structures to reduce damage or benefit from opportunities.) The report, which assesses the state of national adaptation actions in 2021, show that many of the measures reported by Member States involve increasing capacity. It also shows that while adaptation is being increasingly financed, several issues remain, including how to measure adaptation finance. Only a few Member States have dedicated national adaptation funds for financing the implementation of national adaptation plans.  Articles Sustainability: driving investment in Ireland - Stephen Prendiville looks at how sustainability efforts to date are contributing to Ireland’s attractiveness to investors (Accountancy Ireland) Your gender pay gap reporting checklist (Accountancy Ireland) Ireland’s biggest companies are increasingly prioritising environmental, social and governance (ESG) issues, recognising it as a key performance indicator, a new study has indicated (Irish Times) New wind farm plan aims to transform Shannon estuary and create 50,000 jobs - It is expected that offshore wind farms in the region could meet Ireland’s entire electricity demand (Business Post) Cop15 Q&A: Why this biodiversity summit should matter to everyone (Irish Times) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Events The Leinster Society kicks of the new year with a free Expert Series webinar on 11 January, from 12.30pm - 1.30pm on energy saving for your household. A representative from the Sustainable Energy Authority of Ireland (SEAI) will give advice and tips, and answer your questions on how to make your household more energy efficient and sustainable. Register here You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  Chartered Accountants Ireland acknowledges that Revenue has clarified its guidance regarding completion of a carbon footprint exercise by applicants to the Temporary Business Energy Subsidy Scheme (TBESS). The clarification by Revenue was made on 5 December, and states that there is no legal requirement for applicants to either complete a carbon footprint exercise or demonstrate that they are taking steps to reduce energy use and environmental impact.   Businesses are asked to ‘acknowledge a request’ to take steps to understand and reduce their energy use by completing the Government’s Climate Toolkit for Business, although there is no legal requirement to do so, and not doing so will have no impact on a business’ eligibility for the scheme.   Chartered Accountants Ireland also recommends that business use this toolkit as an opportunity to manage costs and manage their carbon emissions. Commenting, Chartered Accoutants Ireland's Sustainability Officer Susan Rossney said that businesses are struggling with competing priorities, and that the Government's toolkit could help: "We know that transformation is inevitable and it is possible for business to surivive and thrive in this environment. But businesses are struggling with competing priorities. They want to 'do the right thing' and reduce emissions, but have to balance pressures of work and year-end deadlines. While not obligatory to use, the Government's toolkit can help with this." The toolkit is easy to use, and requests information that is readily available in invoices from providers of energy, waste and water.  "It is not necessary for businesses to have all the data to hand in order to successfully complete a carbon footprint; for example, an estimate of vehicle fuels used for business travel is permitted if this is not readily available".  Businesses can also make use of the resources available on Chartered Accountants Ireland Sustainability Centre, where you can find a short video with tips on how to use the Government's Climate Toolkit for Business.   

In this week’s bulletin we bring you news of the ‘green and digital economy’ as set out in Ireland’s white paper on enterprise, the launch of Ireland’s ‘SDG Champions’ programme, renewable energy use in Northern Ireland, the Biodiversity COP in Montreal, Canada, and the launch of the Chartered Accountants Ireland Ethnicity Network Group. Also find links to useful articles, sustainability jobs and events.   Chartered Accountants Ireland launches initiative to support ethnic minorities in accountancy profession  Chartered Accountants Ireland has today launched an Ethnicity Network Group to develop a more inclusive profession by helping organisations to foster a culture of equity, inclusion and belonging for employees from minority ethnic groups. The Ethnicity Network Group will include a programme of events; the provision of training and resources for organisations; and the development of a mentoring programme to support members and students from Traveller, Black, Asian and other Minority Ethnic groups.    ‘Green and digital economy’ set out in enterprise policy   The Irish Government’s ‘White Paper on Enterprise’ launched this week and points to the increased urgency to decarbonise industry. The first of the policy’s seven priority enterprise policy objectives – ‘Integrating decarbonisation and net zero commitments’ – includes a target to reduce emissions from industry by 35 percent by 2030, with a 45 reduction in emissions expected in the commercial built environment by 2030. Speaking at the launch, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, T.D., said that “decarbonisation requires all business to take action and invest in change. Government will be there to help businesses reduce their reliance on fossil fuels and improve their energy efficiency in the coming years through a range of initiatives, including knowledge transfer, grants and loans.”   Also announced this week was a funding agreement with the European Investment Fund (EIF) for a €500 million “Growth and Sustainability Loan Scheme”. This scheme will make competitively priced loans of between €25,000 and €3 million available to SMEs for terms of up to ten years, with loans of up to €500,000 available unsecured. The scheme will target a minimum of 30% of the lending volume towards Environmental Sustainability purposes with the aim of encouraging SMEs to take positive actions in support of the climate change agenda.  Ireland launches ‘SDG Champions’ programme   The Department of the Environment, Climate and Communications (DECC) has launched its 2023 SDG Champions Programme. DECC is seeking applications from all organisations and groups to find 20 advocates for the UN Sustainable Development Goals (SDGs), to raise public awareness of the SDGs as ‘SDG Champions’. Applications will be accepted until Friday, 20 January 2023. Find out more about the SDGs from the Chartered Accountants Ireland Sustainability Hub.   Renewable electricity consumption -  Northern Ireland   A total of 49.3 percent of total electricity consumed in Northern Ireland between October 2021 and September 2022 was generated from renewable sources located. The ‘Electricity Consumption and Renewable Generation in Northern Ireland: Year ending September 2022’, published this week, details the percentage of electricity consumption in Northern Ireland generated from renewable sources and includes information on the type of renewable generation. The highest percentage recorded  - and the monthly proportion on record for the region – was recorded in February 2022, when 76.5 percent of electricity consumption was generated from renewable sources.   The Biodiversity COP  The ‘Biodiversity COP’  is taking place from 7-19 December in Montreal, Canada. Governments from around the world have come together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. This COP comes quickly after the international summit on the climate crisis – ‘COP27’ – in Egypt, at which the architects of the Paris Agreement reiterated that the climate crisis and nature loss are intrinsically linked: “There is no pathway to limiting global warming to 1.5 degrees without taking action on protecting and restoring nature”. Find out more about accountants and accounting for nature on the Chartered Accountants Ireland Sustainability Hub.   Articles  The stakes could not be higher at Cop15, where countries must map way to save biodiversity on Earth (Irish Times)  Carbon accounting: what it is and why your company should start doing it (World Economic Forum)  COP27  - Impact and implications (Accountancy Ireland)   Jobs  Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants.   Upcoming events  A4S Summit, bringing together leaders in finance for discussion, insight and action to explore the trends shaping our world and the practical actions that can be taken to build a resilient, sustainable economy,  13-15 December  Biodiversity COP15 Part 2, 7-22 December 

In this week’s public policy bulletin, we examine the latest wage growth statistics from November together with the latest from Government on its revised enterprise policy and progress in relation to the National Digital Strategy. We also take a look at the launch of a review into late payments made to small businesses in the UK as well as a series of new proposals from the European Commission aimed at harmonising corporate insolvency rules across the EU. Slowdown in wage growth seen in November   According to a new report jointly developed by economists from the Central Bank and recruitment site Indeed.com, wage growth slowed across economies in Europe during November – with this slowdown being most acutely felt in Ireland, Italy and the Netherlands.  The Indeed Wage Tracker measures growth in wages and salaries advertised on Indeed job postings across eight advanced economies, made up of six euro-area countries, the UK and the US. While in 2022 growth in posted wages in job ads on Indeed accelerated sharply as labour markets continued their recoveries from the pandemic, November data suggests that this period of accelerated wage growth “could be coming to an end”. As set out in the report, wages rates across the six-euro area countries tracked fell from an annual rate of 5.2 percent in October to 5.1 percent in November, the first decline in 19 months. Enterprise policy direction to 2030 announced This week the Government approved a ‘White Paper on Enterprise’ effectively setting out the State’s policy direction on enterprise to the end of the decade. Framing it as “a plan of adaption rather than a major departure” from current Government policy in the area, the paper sets out a range of ambitious objectives as part of the strategy. Included amongst these objectives is a 20 percent increase in IDA client expenditure by 2024, a target of 2.5 percent average annual growth in Irish-owned enterprise productivity by 2024 as well as an overall spend of 2.5 percent of Gross National Income on research and development by the year 2030.   Progress report on National Digital Strategy This week the Government issued a progress report on its National Digital Strategy, ‘Harnessing Digital – The Digital Ireland Framework’. Launched in February of this year, the aim of the strategy is “to drive and enable the digital transition across the Irish economy and society” across four key dimensions – enterprise, infrastructure, skills and public services. Outlining the progress that has been made across each of these dimensions since the strategy’s launch, the report highlights how Ireland retained its strong position of 5th out of the EU27 in the EU’s 2022 Digital Economy and Society Index. Some of the milestones highlighted by the report include: the launch of an €85 million Digital Transition Fund to support companies at all stages of their digital journey; a new digital training scheme for SMEs, ‘You’re the Business’, in partnership with Google; and the publication of a revised Statement on the Role of Data Centres in Ireland’s Enterprise Strategy in July The report makes particular mention of the importance of accelerating Ireland’s digital development in view of the “economic headwinds” currently facing Irish businesses and households together with the recent job losses seen in the technology sector. UK Business Secretary launches review into tackling late payments to small businesses UK Business Secretary Grant Shapps this week announced an in-depth review into payment practices to small businesses aimed at reducing late payment of invoices by larger companies which has led to significant cash flow problems in the sector and an estimated £23.4 billion in current outstanding invoices owing to the UK’s 5.5 million small businesses.   The Payment and Cash Flow Review will consider the progress made in specific sectors of the economy in combatting late payment and will also include an in-depth examination of current payment reporting regulations and the Prompt Payment Code. Also within the scope of the review is the role of technology-enabled accountancy platforms in tackling late payments and promoting a better understanding of prompt payment measures within the small business community. EU Commission issues new proposals on corporate insolvency as part of Capital Markets Union initiative The European Commission this week put forward a series of proposals designed to further develop the EU’s Capital Markets Union initiative and break down barriers between the bloc’s financial markets. Amongst a suite of new proposals, the Commission is aiming to harmonise certain corporate insolvency rules across the EU with a view to making these more efficient and helping to promote cross-border investment. As part of the suggested changes, the Commission has proposed a simplified regime for microenterprises across the EU to lower the costs of winding them down and to enable the companies' owners to be discharged from debt, granting them a fresh start as entrepreneurs. Moreover, the Commission’s proposals also include measures to introduce ‘creditors' committees’ as part of the insolvency process to ensure a fair distribution of the recovered value amongst creditors as well as specific new rules designed to preserve the insolvency estate (i.e. avoiding actions by debtors that would reduce the value that creditors can get).

In this week’s public policy bulletin, we take a look at the latest economic update from the Parliamentary Budget Office as well as examining recent trends in the private rental sector as reported to the Joint Oireachtas Committee on Housing by the RTB this week. In addition, we review the Quarter 2 earnings and labour cost statistics from the CSO as well as assessing current levels of consumer confidence in Northern Ireland as set Danske Bank’s latest Consumer Confidence Index. Parliamentary Budget Office issued economic update post-Budget This week the Parliamentary Budget Office (PBO) issued its latest economic update providing an overview of recent economic trends seen in the Irish economy following the introduction of Budget 2023. Noting how inflation is currently at record levels with wages and retail sales falling in real terms (i.e. by adjusting for inflation), these factors “will act as a drag on the economy in 2023” despite the overall economic growth seen in 2022. Indeed, while noting that the economy is currently performing well, the PBO signalled that “clouds are on the horizon” as inflation, which was initially driven by high energy prices but now has spilled over to other items, continues to grow unabated. According to the report, 76 percent of the items in the CPI basket are now experiencing more than 2 percent inflation.  Joint Oireachtas Committee on Housing examines recent trends in the private rental sector with Residential Tenancies Board   On Tuesday members of the Joint Oireachtas Committee on Housing met with representatives from the Residential Tenancies Board (RTB) to discuss the findings of the RTB’s 2022 rental survey. While the results of the survey are yet to be published, RTB chairperson Tom Dunne nonetheless shared some interesting preliminary results arising from the survey. The 2022 results show that most small landlords (94 percent) are part time landlords that do not manage properties as their primary occupation with a quarter of small landlords surveyed stating that they are either likely or very likely to sell their rental properties in the next five years. In addition, the survey also found that many property owners, tenants, and agents alike found the regulatory framework and changing legislation around rental properties increasingly difficult to navigate and understand. Central Statistics Office issues Quarter 2 earnings and labour costs The Central Statistics Office (CSO) this week issued its Earnings and Labour Costs results in respect of quarters 2 and 3 2022. Preliminary estimates for Q3 2022 show average weekly earnings in the Republic were €864.32, an increase of 3.2 percent compared with €837.61 in Q3 2021. Meanwhile, average weekly earnings rose by 12.4 percent over three years from €769.14 in Q3 2019 (pre-COVID-19) to €864.32 in Q3 2022. Average hourly other labour costs increased by 60.7 percent across all economic sectors to €4.13 from €2.57 in Q3 2021. A significant factor in this increase was the ending of the Employment Wage Subsidy Scheme (EWSS) on 31 May 2022, explained Louise Egan, Statistician in the CSO’s Earnings Analysis Division.   According to the results, the sectors with the highest average hourly total labour costs were the Information & Communication sector (€49.51 per hour) followed by the Education sector (€43.24 per hour). Notably, the sectors with the highest job vacancy rate in Q3 2022 were Professional, Scientific & Technical Activities (3.8 percent), followed by the Financial, Insurance & Real Estate Activities (2.8 percent). Consumer confidence decreases in Northern Ireland According to a report issued this week by Danske Bank, consumer confidence in Northern Ireland decreased again in the third quarter of 2022 as higher prices continued to squeeze household finances. Over half of respondents (56 percent) believed their finances had deteriorated over the last year with 63 percent of respondents expecting their financial position to worsen over the next year reflecting a dampened optimism amongst consumers. In terms of the factors influencing these sentiments, 47 percent of those surveyed identified the overall impact of higher prices on their household incomes as being the most influential. By contrast, 13 percent of people pointed to global risks (such as the ongoing war in Ukraine) as impacting their sentiment while 11 percent of respondents highlighted concerns around post-Brexit trading arrangements as having the most bearing.

On 28 November the Ulster Society hosted a webinar addressing the issue of sustainability, how businesses are shaping a sustainability strategy, delivering operational change and meeting their reporting obligations. This webinar provided an overview of the challenge, and some first-hand case studies of businesses who are taking significant steps on the sustainability journey. Speakers included Keith Scott, NI Water; Derarca Dennis, EY Ireland; Shane O'Reilly, KPMG Sustainable Futures; David Smith, Kilwaughter Minerals Limited. A recording of this webinar is available to view, for free and on-demand, HERE A copy of Shane's slides is available to view HERE A copy of David's slides is available to view HERE A copy of Keith's slides is available to view HERE A copy of Derarca's slides is available to view HERE

  In this week’s bulletin we bring you news that the Temporary Business Energy Support Scheme is now available for registration. Also read about how 200 businesses are taking part in a free trial of fully electrical commercial vehicles, new funding is available to address employment, economic, social and environmental impacts in the Midlands, the proposal for a Constitutional referendum to protect biodiversity, new circular economy measures, and the usual articles, podcast and event recommendations. Available now: Temporary Business Energy Support Scheme The Temporary Business Energy Support Scheme, which will assist eligible businesses with their electricity or natural gas (energy) costs during the winter months, is now open for registration. Under Revenue’s guidelines, businesses wishing to avail of the scheme must tick a box declaring that they have completed a carbon footprint exercise and are taking steps to reduce energy use and environmental impact. In our short Ask the Expert interview with Joe Borza, CEO and founder of Irish company Energy Elephant, you can discover how to measure your carbon footprint, reduce emissions and make better energy decisions. Read more from our colleagues in the Tax Team. 200 businesses to take part in trial of fully electrical commercial vehicles 200 businesses nationwide are to take part in a trial of fully electrical commercial vehicles (EV) to see how they can save their business money and emissions. Participating businesses will have the use of a free EV for three months, along with the option to install an EV charger. The Commercial Fleet Trial, launched this week by Department of Transport and the Sustainable Energy Authority of Ireland (SEAI), will be co-ordinated by Zero Emissions Vehicles Ireland (Zevi), a one stop shop for information on grants, initiatives, and information to support the public, industry, and businesses in making the switch to zero emission vehicles. In a further announcement this week, Iarnród Éireann is to order 90 new battery-electric train carriages for delivery in 2026 to facilitate the expansion of the existing DART service. Funding to address employment, economic, social and environmental impacts EU funding of close to €169 million has been secured to support the Midlands region, it was announced this week. The funding aims to address the address employment, economic, social and environmental impacts that come with the transition from peat production and electricity generation from peat. It will target the generation of new green jobs, enterprise stimulus, an increase in sustainable tourism, restoration of damaged peatlands and alleviation of the economic impacts of the transition to climate neutrality. East Galway, Kildare, Laois, Longford, north Tipperary, Offaly, Roscommon and Westmeath will all benefit from the fund, which will come from the EU's Just Transition Fund. Constitutional referendum proposed to protect biodiversity A Citizens Assembly on Biodiversity Loss has voted to change Ireland’s Constitution with a view to protecting biodiversity. The proposed constitutional referendum would recognise nature as a holder of legal rights, comparable to companies or people. The Assembly on Diversity Loss, the first such assembly held anywhere in the world, took place across several months in 2022 and concluded on 27 November. The work of the Citizens Assembly will continue into January 2030 when there will be final votes on sectoral recommendations on biodiversity loss. (Find out more about biodiversity and business.) Ireland’s circular economy measures – funding and deposit return scheme Funding of €1.5 million was announced this week for Circuléire, the national platform for circular manufacturing. The funding aims to foster and enhance circular economy knowledge, capacity building and implementation by Irish industry, and will be available from 2023. The announcement comes amid news of the launch of a  Deposit Return Scheme (DRS), which aims to encourage people to recycle their drink containers by refunding them money when they return any returned plastic bottles or cans. All producers and retailers are legally obliged to register with Re-turn, which will operate the scheme, and registration is now open.  The scheme itself with go live in February 2024.  (Find out more about the circular economy) Support among young people for taxes on emitting-activities, ESRI research finds EPA-funded research of youth in Ireland aged 16-24 has found that young people judge environmental action to be urgent, that they are willing to change their lifestyles and that they want stronger pro-climate policies. Many support bans and taxes on activities that cause harmful emissions. The study, which focused on knowledge and beliefs about climate change mitigation (reducing harmful greenhouse gas emissions) was conducted by the ESRI in March 2022 and is the first of its kind in Ireland. Resources Webinar: How can the accounting profession be an agent of change? (ICEAW Climate Summit – registration required) Podcast: The Director General of the EPA, Laura Burke, speaks to Daniel Murray (5 Degrees of Change) Recording and slides from 'The Sustainability Journey: Responsibilities, Strategy and Reporting' webinar (Link)    Articles Brian Keegan's article notes that the cash flow benefit of the Temporary Business Energy Support Scheme far outweighs any terms and conditions. One particular item to watch for is that any monies received are not tax-free. (Irish Examiner). New ‘green VAT’ rates would raise more tax, reduce emissions, researchers claim (Irish Times) Get ready for a net zero business backlash (Irish Times) Australia’s banks likely to reduce lending to regions and sectors at risk of climate change impacts, regulator says (Guardian) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Upcoming events Introduction to Sustainability Reporting....the basics Seán O'Reilly (NI CPD Blitz), 8 December A4S Summit, bringing together leaders in finance for discussion, insight and action to explore the trends shaping our world and the practical actions that can be taken to build a resilient, sustainable economy, 13-15 December Biodiversity COP15 Part 2, 7-19 December You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.