In this week’s public policy bulletin we take a look at last month’s inflation rates as recorded by the CSO as well as the latest IMF forecasts for the Irish economy. In addition, we report on a new appointment to the Financial Services and Pensions Ombudsman Council as well as the latest GDP estimates for the UK in February from the Office for National Statistics. Inflation dips to 7.7 percent in March – CSO   The annual rate of inflation eased to 7.7 percent in March from 8.5 percent in February according to the latest Consumer Price Index released this week by the Central Statistics Office (CSO). Marking the lowest rate of inflation recorded in 11 months, prices have nonetheless been rising on an annual basis since April 2021, with annual inflation of 5 percent or more recorded in each month since October 2021. The most significant increases in the year were seen in electricity (+62.7 percent) and gas (+85.9 percent) costs, along with higher mortgage interest repayments (+35.3 percent). You can read the full index here. Latest IMF forecast predicts slowed growth for Irish economy According to the latest Fiscal Monitor Report from the International Monetary Fund (IMF), Ireland's economy is predicted to slow both this year and next in the face of ongoing inflationary pressures. While the economy will continue to expand, growth in our GDP will slow from 12 percent in 2022 to 5.6 percent this year, and then further to 4 percent in 2024. This trend is tipped to continue in future years, with a wider forecast by the IMF predicting GDP growth of just 3 percent in 2028. While these estimates still place Ireland ahead of the Euro zone as a whole, the report starkly notes how the global economy is ‘entering a perilous phase’ amid inflation which has proved to be ‘much stickier’ than originally anticipated. New appointment to Financial Services and Pensions Ombudsman Council The Minister for Finance, Michael McGrath, this week announced the appointment of Peter Rossiter to the Financial Services and Pensions Ombudsman Council for a five-year term. Peter Rossiter is a Chartered Accountant and former Chief Risk Officer with extensive banking experience in the OECD and emerging markets. The functions of the Council include determining the financial services industry levy, keeping under review the efficiency and effectiveness of the Ombudsman and advising the Minister for Finance. Legislation requires that the Council shall consist of not less than 5 and not more than 7 members (including the chairperson) as the Minster decides. UK economy shows no signs of growth in February The UK economy recorded no growth in GDP in February of this year according to official figures released this week by the Office for National Statistics (ONS). Civil service strikes and low energy consumption offset growth in areas such as construction - which grew by only 2.4 percent. Meanwhile, services production fell by 0.1 percent in the month, following growth of 0.7 percent in January of this year. The largest contributor to negative growth in the services industry was education, which fell 1.7 percent in a month where teacher strikes took place. February’s stagnation follows the economic growth of 0.4 percent seen in January of this year. You can review the full statistical release here.

In this week’s public policy bulletin we take a look at the upcoming visit to Ireland of US President Joe Biden. We also examine the March unemployment rate statistics from the CSO as well as the latest UN trade and development figures for Ireland. In addition, we report on the response issued this week by the NI Department for the Economy to the recent findings of the independent review into Invest NI. President Biden to visit Ireland next week to mark 25th anniversary of Good Friday Agreement This week the White House has confirmed that US President Joe Biden will arrive on the island of Ireland next Tuesday 11 April, in a visit which will include trips to Dublin, Louth and Mayo. In a statement confirming the trip, the White House confirmed that Mr Biden will first travel to Belfast to mark the "tremendous progress" made since the signing of the Good Friday Agreement 25 years ago. According to the plans, after spending the 11th and 12th of April in Belfast, Mr Biden will then travel to the Republic to attend official engagements in Dublin, Louth and Mayo where he will deliver an address “to celebrate the deep, historic ties that link our countries and people”. Unemployment rate remains unchanged at 4.3 percent in March – CSO The Central Statistics Office (CSO) this week issued its latest Monthly Unemployment Estimate for March 2023 in which it found that the country's unemployment rate remained unchanged at 4.3 percent from February of this year. This is down from the 5 percent rate of unemployment recorded a year before in March 2022. According to the results, the seasonally adjusted number of persons unemployed was 117,200 in March 2023 - marking a decrease of 14,400 in the seasonally adjusted number of persons unemployed in March 2022. In a note accompanying the statistical release, the CSO noted how the methodology for the Monthly Unemployment Estimates involves forecasting the number of persons who are unemployed using the trend in the recipient Live Register series. Given that the Department of Social Protection is providing Working Age Income supports to qualifying persons arriving in Ireland from Ukraine under the Temporary Protection Directive (which is included on the live register), this has impacted the numbers of unemployed reported in the estimates. Ireland ranked the sixth largest exporter of financial services in the world According to the latest United Nations trade and development figures, Ireland is now the sixth largest exporter of financial services in the world and hosts the 19th largest international banking sector globally. Moreover, in a report issued this week by the Federation of International Banks in Ireland (FIBI), the number of international banks and investment firms operating in the State continues to grow, with 17 of the world's top 20 global banks now located here. In a survey of its members, FIBI (the representative body for international banking and investment firms in Ireland) found that 80 percent of member firms expect business activity in their Irish operations to increase in 2023 with Irish employment in these firms jumping 16 percent to over 14,200 between 2019 and 2022. Northern Ireland’s Department for the Economy issues response to independent review of Invest NI The Department for the Economy (DfE) this week issued a formal response to the findings of the independent review of Invest NI which called for “profound change” to be implemented in the economic agency. Confirming that the Department “accepts, in principle, all recommendations emanating from the review”, the statement outlined how DfE recognises that fundamental change will be required to ensure that Invest NI “is strategically aligned with our 10x policy objectives.” It is now DfE’s stated ambition to work with Invest NI and other key stakeholders “to develop and implement solutions which comprehensively address each recommendation within the report” by way of a new Action Plan to be published by summer 2023. You can read the full departmental response to the review’s findings here.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s Climate and Environmental Finance Report, new funding available for Irish social enterprises, and Ireland’s next National Stakeholder Forum for the UN Sustainable Development Goals. Also covered is the publication of Northern Ireland’s Energy Strategy e-bulletin, UK’s new 2023 Green Finance Strategy, EU grant funding of €100 million available to small-scale innovative energy projects, and EU agreement on stronger legislation to accelerate the rollout of renewable energy. Launch of Ireland’s Climate and Environmental Finance Report 2021 The Department of Foreign Affairs has launched its annual report describing the levels, channels and focus of funding provided by the Irish Government to support climate action and environmental protection in developing countries. The Climate and Environmental Finance Report 2021 finds that Ireland provided €99.6 million in climate finance in 2021, an increase of 12.8 percent in Ireland’s climate finance as compared to 2020. Approximately 96 percent of the funding contributed to initiatives that specifically support climate resilience and activities that contribute to both mitigating the causes of climate change and adapting to its impacts. New funding for Irish social enterprises Minister for Rural and Community Development, Heather Humphreys, T.D., has announced investment of €2.3 million to support social enterprises nationwide. €1.4 million will support 19 organisations under the Scaling-up Fund for Social Enterprises initiative, with a further €890,000 to be provided to social enterprises via Rethink Ireland and Community Finance Ireland. Also confirmed was the launch of the new Social Finance Hybrid Pilot Scheme for Social Enterprise to be co-funded by the Department of Rural and Community Development in conjunction with Community Finance Ireland and Rethink Ireland.  Some 20 social enterprises will now be able access the scheme for a hybrid package of financial and non-financial supports. Registration opens for Ireland’s April SDG National Stakeholder Forum Registration is now open for the next meeting of Ireland’s National Stakeholder Forum. The meeting will focus on Ireland’s 2023 Voluntary National Review (VNR), the progress report reviewing the country’s progress towards achieving the UN Sustainable Development Goals. The purpose of the meeting is to allow for feedback and input on the VNR, and on Ireland’s progress in implementing the Goals. The messages developed as part of this meeting will be incorporated into the final version of the VNR being presented to the United Nations in July. The forum will take place on Tuesday 25 April, online and in the Aviva Stadium, Dublin from 10.00am – 4.15pm. Register here. Event to highlight opportunities and challenges of low carbon economy The Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will highlight the opportunities and challenges presented by digital transformation and the transition to a low carbon economy. The next event - Building Better Business in the Midlands -  is open to businesses based in Laois, Longford, Offaly and Westmeath. The event will include panel discussions on opportunities and challenges presented by digital transformation and the transition to a low carbon economy, expert information on the range of government supports available to businesses and an opportunity to network and connect with other businesses who have taken steps on the digital and green journeys. For more information and to register, visit Building Better Business in the Midlands - Register. Northern Ireland’s Energy Strategy e-bulletin The twenty-first edition of the Energy Strategy e-bulletin has been published by the Northern Ireland Department for the Economy. The bulletin, which aims to keep stakeholders informed about progress on the new Energy Strategy for Northern Ireland, covers the report on the region’s 2022 Energy Strategy Action Plan and highlights work to take place in 2023 through the recently published 2023 Action Plan. UK Government publishes 2023 Green Finance Strategy The UK Government has published its 2023 Green Finance Strategy, updating its earlier 2019 strategy intended to mitigate climate-related risk and damage while increasing the amount of capital available to finance “net zero and environmental objectives”. The strategy – ‘Mobilising Green Investment: 2023 Green Finance Strategy’, aims to strengthen the UK’s position at the forefront of the rapidly growing global green finance market and drive private investment to deliver the UK’s energy security, net zero and environmental objectives. Also published as part of the strategy was a consultation paper on the scope of a future regulatory regime for Environmental, Social, and Governance (ESG) ratings providers. EU Commission offers €100 million for innovative small-scale clean tech projects The European Commission has launched a third call for small-scale projects under the Innovation Fund, one of the world's largest funding programmes for the deployment of innovative low-carbon technologies. The new call will make €100 million in grant funding available to small-scale projects with a capital expenditure between €2.5 and €7.5 million in the areas of renewable energy, decarbonisation of energy-intensive industries, energy storage, and carbon capture, use and storage. The call is financed by revenues from the auctioning of emission allowances from the EU’s Emissions Trading System (EU ETS), and is implemented by the European Climate, Infrastructure and Environment Executive Agency (CINEA). European Parliament and Council reach provisional agreement to reinforce EU Renewable Energy Directive Provisional agreement has been reached between the European Parliament and the Council to reinforce the EU Renewable Energy Directive. The agreement raises the EU's binding renewable target for 2030 to a minimum of 42.5 percent, up from the current 32 percent target, and almost doubling the existing share of renewable energy in the EU. Negotiators also agreed that the EU would aim to reach 45 percent of renewables by 2030. An aim of the new law is easier and faster  permitting procedures, as well as the recognition of renewable energy as an overriding public interest, while preserving a high level of environmental protection. As a key energy-consuming sector, industry is included for the first time in the Directive. On formal adoption of the provisional agreement by the European Parliament and the Council, the new legislation will be published in the Official Journal of the Union and will enter into force. Chartered Accountants Ireland workshop on the National Climate Action Plan: What Accountants need to know The latest iteration of the Climate Action Plan was published in December 2023 and garnered significant attention. What are its implications for the business sector? This Masterclass will provide an overview of the background, context and key elements of CAP23. Dr. Diarmuid Torney, Associate Professor in the School of Law and Government at Dublin City University and co-director of the DCU Centre for Climate and Society, and Dr. Aideen O'Dochartaigh, FCA, expert in sustainability accounting and ESG disclosure, and Assistant Professor in Accounting at DCU Business School will discuss how businesses can play their part in contributing to the achievement of Ireland’s legally binding greenhouse gas reduction targets. Find out more and register. District Societies to mark Earth Day 2023 The Chartered Accountants Ireland District Societies are getting together to mark Earth Day 2023 on Saturday 22 April. Each society is organising a clean-up in their area. It's a great opportunity for members to meet up, bring their families and friends and make a positive impact in their communities. Keep an eye out for messages from your own society to find out how to get involved. Find your district society here. Articles In-depth Q&A: The UK’s ‘green day’ avalanche of climate and energy announcements (Carbon Brief) New cars sold in EU must be zero-emission from 2035 (BBC News) Cost of installing solar panels to drop by €1,000 under planned VAT cut (Irish Times) UK government expected to offer energy companies windfall tax relief (Financial Times) Private jet use is soaring in Europe. The number of flights increased 64% last year, leading to an almost-doubling of CO2 emissions. Most popular route? Paris to London. (Bloomberg Green) Only 5% of FTSE 100 companies have ‘credible’ climate transition plans, says EY (Financial Times) Upcoming Events   SAICA Sustainability reporting: Navigating the Sustainability Reporting Standards – Webcast  With the International Sustainability Standards Board's (ISSB) first Sustainability Disclosure Standards (IFRS S1 and IFRS S 2) expected to be become effective from January 2024, SAICA is pleased to host Dr Ndidi Nnoli-Edozien, the ISSB Board member to provide an update on the key discussions made by the ISSB on the upcoming IFRS S1 and IFRS S2 to be published by the end of June this year.  17 April Chartered Accountants Worldwide, Greenwashing Webinar -  Hosted by Daniel Thomas, Chief UK Business Correspondent for the Financial Times Experts, experts include Tsuyoshi (Yoshi) Domoto, ESG & Sustainability Consultant, GLIN Impact Capital; Aisling McCaffrey ACA, Director – Sustainability, Financial Services Advisory Grant Thornton Ireland; Elena Margineanu, Ph.D. Lecturer at the Free International University of Moldova; Michael Izza, CEO of ICAEW, Chairman, Chartered Accountants Worldwide; and Kate Robertson, Co-Founder, One Young World. 18 April @ 5:00 pm - 6:00 pm BST ICAS special summit on sustainability reporting (London) The ICAS sustainability summit will be an opportunity for those closest to developing and implementing UK, European and International sustainability reporting disclosure standards to discuss how we meet the information needs of users and stakeholders. In person, in London, speakers include Andrew Death, Deputy Director at the UK Government’s Department of Business and Trade, Judy Kuszewski, Chair of the Global Sustainability Standards Board, Indy Singh Hothi CA, ICAS President, and Mark Vaessen, President of Accountancy Europe. 26 April DETE, Building Better Businesses  Midlands Park Hotel, Portlaoise Free event hosted by the Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will focus on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy. 27 April –  from 8.30 am to 1.30 pm. Irish Environmental Network, National Biodiversity Week 2023 May 19-28th Business Post, ESG Summit, Croke Park, Dublin May 30   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 26 April, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

  In this week’s Sustainability/ESG bulletin, read about Northern Ireland’s 2023 Energy Strategy Action Plans, new guides to tackling plastic waste, and employer equality training sessions now open for registration. Also covered is the EU Green Claims Directive outlining potential penalties for companies found to be ‘greenwashing’ and a new EU regulation on alternative fuels infrastructure, as well as the usual articles and events. Northern Ireland publishes 2023 Energy Strategy Action Plan The Department for the Economy for Northern Ireland has published its Energy Strategy Action Plan 2023 - Path to Net Zero Energy to deliver the region’s Energy Strategy Programme. The transition to a net zero carbon energy system is key to Northern Ireland achieving the net-zero emissions 2050 target, as set out in the Climate Change Act (Northern Ireland) 2022. This action plan focuses on five key pillars: placing consumers at the heart of the energy future; growing the green economy; doing more with less (energy efficiency); replacing fossil fuels with renewable energy; and creating a flexible, resilient & integrated energy system. New Northern Ireland guides to tackling plastic waste Keep Northern Ireland Beautiful has created a guide to encourage local businesses and event organisers to reduce their dependence on single-use plastics. Showcasing two case studies from Northern Ireland, the Plastic Free Events Guide highlights sustainable alternatives that minimise unnecessary waste and pollution, and includes 10 steps to help organisations go plastic-free. Businesses can also find 5 easy steps to tackle plastic in the workplace in Keep Northern Ireland Beautiful’ s Toolkit to tackle plastic. The toolkit includes templates and articles to help business be ready for future legislation on the banning/reduction of single-use plastics. To date NI businesses have reportedly saved over £25.7 million in cost savings and reduced CO2 emissions by more than 352 tonnes through Invest Northern Ireland's free Resource Matching Service. Working with over 2,000 businesses ranging from steelworks manufacturers to bee-keepers, this service helps businesses find alternative solutions for their wasted resources by finding another company that wants them. Northern Ireland employer equality training sessions open for registration Equality training sessions from the Equality Commission for Northern Ireland’s Employer Training Programme are now open for registration. The webinars focus on a number of equality issues, laws, and best practices for employers, including disability reasonable adjustment duty in the recruitment and selection process, promoting age equality and others. The online events are free and last between 60 - 90 minutes. European Commission’s new ‘greenwashing’ Directive The European Commission has proposed common criteria against greenwashing and misleading environmental claims. The ‘Green Claims Directive’ aims to ensure that environmental labels and claims are credible and trustworthy, so as to allow consumers to make better informed purchasing decisions. It also aims to boost the competitiveness of businesses who are striving to increase the environmental sustainability of their products and activities. A 2020 study conducted by the Commission reportedly found that 53 percent of green claims give vague, misleading or unfounded information, 40 percent of claims have no supporting evidence, half of all green labels offer weak or non-existent verification and that there are 230 sustainability labels and 100 green energy labels in the EU, with vastly different levels of transparency. Under the new Directive, companies making “misleading or unsubstantiated explicit environmental” claims or using non-compliant environmental labelling schemes could face “effective, proportionate and dissuasive” penalties, which could amount to at least 4 percent of their total annual turnover. Following the ordinary legislative procedure, the Green Claims Directive proposal will now be subject to the approval of the European Parliament and the Council. New EU regulation on alternative fuels infrastructure The European Parliament and the Council have reached political agreement on a new regulation to ensure sufficient and user-friendly alternative fuels infrastructure for road, shipping and aviation. The new Regulation for the deployment of alternative fuels infrastructure (AFIR) sets mandatory deployment targets for electric recharging and hydrogen refuelling infrastructure for the road sector, for shore-side electricity supply in maritime and inland waterway ports, and for electricity supply to stationary aircraft.  On formal adoption of this political agreement the new rules will be published in the Official Journal of the European Union and enter into force after a transitional period of 6 months. District Societies to mark Earth Day 2023 The Chartered Accountants Ireland District Societies are getting together to mark Earth Day 2023 on Saturday 22 April. Each society is organising a clean-up in their area. It's a great opportunity for members to meet up, bring their families and friends and make a positive impact in their communities. Keep an eye out for messages from your own society to find out how to get involved. Find your district society here. Articles EU approves law to end sales of new CO2-emitting cars by 2035 (RTÉ News) Don't lose sight of climate-related risks, Central Bank warns (RTÉ News) Firms face fines under EU anti-greenwashing law over false claims (Irish Independent) Poor air quality having a detrimental impact on health and deaths in Ireland, report finds (Irish Times) Central Bank reduces financed emissions to 2.3m tonnes in 2022(Irish Times) The Fiduciary Duty of Directors to Manage Climate Risk (Climate Law Blog - Columbia.edu) UK spring budget 2023: Key climate and energy announcements (Carbon Brief) ‘Beginning of a new era’: Pacific islanders hail UN vote on climate justice (The Guardian) Upcoming Events   Clearstream Solutions and sustHub webinar - The Business Case for Sustainability 31 March @ 12:00 – 13:00 Chartered Accountants Ireland’s online Audit Conference (ROI/NI). This year’s theme is: "Staying Ahead of the Curve" and is suitable for audit professionals at all levels. Includes a current update and future development on sustainability auditing. SAICA Sustainability reporting: Navigating the Sustainability Reporting Standards – Webcast  With the International Sustainability Standards Board's (ISSB) first Sustainability Disclosure Standards (IFRS S1 and IFRS S 2) expected to be become effective from January 2024, SAICA is pleased to host Dr Ndidi Nnoli-Edozien, the ISSB Board member to provide an update on the key discussions made by the ISSB on the upcoming IFRS S1 and IFRS S2 to be published by the end of June this year.  17 April Chartered Accountants Worldwide, Greenwashing Webinar -  Hosted by Daniel Thomas, Chief UK Business Correspondent for the Financial Times Experts, experts include Tsuyoshi (Yoshi) Domoto, ESG & Sustainability Consultant, GLIN Impact Capital; Aisling McCaffrey ACA, Director – Sustainability, Financial Services Advisory Grant Thornton Ireland; Elena Margineanu, Ph.D. Lecturer at the Free International University of Moldova; Michael Izza, CEO of ICAEW, Chairman, Chartered Accountants Worldwide; and Kate Robertson, Co-Founder, One Young World. 18 April @ 5:00 pm - 6:00 pm BST ICAS special summit on sustainability reporting (London) The ICAS sustainability summit will be an opportunity for those closest to developing and implementing UK, European and International sustainability reporting disclosure standards to discuss how we meet the information needs of users and stakeholders. In person, in London, speakers include Andrew Death, Deputy Director at the UK Government’s Department of Business and Trade, Judy Kuszewski, Chair of the Global Sustainability Standards Board, Indy Singh Hothi CA, ICAS President, and Mark Vaessen, President of Accountancy Europe. Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 26 April, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

In this week’s public policy bulletin we take a look at the latest inflation forecast from the CSO as well as a report from the Irish Fiscal Advisory Council proposing the establishment of a State pension fund. In addition, we examine a report from the ECB linking increased inflation primarily to rising profit margins across the Euro zone as well as the latest on the passage of the Work Life Balance Bill through the Houses of the Oireachtas. Inflation rate dropped to 7 per cent in March – CSO This week the CSO released its latest Flash Estimate for the Harmonised Index of Consumer Prices in which it reported that prices in Ireland were estimated to have risen by 7 percent in the 12 months to March 2023. This however marks a reduction from the 8.1 percent rate recorded in February and marks the slowest annual rate of inflation since March 2022. Food prices are estimated to have increased by 1.1 percent in the last month and increased by 13.5 percent overall in the last 12 months. Meanwhile, energy prices are estimated to have decreased by 0.9 percent in the month and increased by 11.7 percent overall in the 12 months to March 2023. Irish Fiscal Advisory Council (IFAC) recommends set up of State pension fund In a report published this week, IFAC has recommended the establishment of a State pension fund to support the provision of the State pension. Warning that “the funding of the State Pension will come under increasing pressure in the coming decade as the population ages”, the report suggests raising PRSI rates by 3.5 percent over their current level as well as setting aside windfall corporation tax receipts to support the new fund. According to the report, if PRSI rates were raised by 3.5 percent now, so-called baby boomers would pay more towards their pensions while they’re still working rather than loading younger workers with even higher rates of PRSI in the future. You can read the full report here. Rising profit margins driving up inflation more than rising wages – ECB In a report issued this week, the European Central Bank (ECB) has contended that profits contributed more than half of the domestic price pressures in the euro area in the fourth quarter of 2022, while wages contributed less than half. According to the report, profits made up around a third of the GDP deflator from 1999-2022 but rose to two thirds of the GDP deflator by the close of 2022. The report goes on to contend that “high input prices (for example for energy) also made it easier for firms to increase their profit margins, because they make it harder to tell whether higher prices are caused by higher costs or higher margins”. A copy of the full report can be accessed here. Work Life Balance Bill passes all stages of the Oireachtas This week the Work Life Balance Bill formally passed all stages of the Oireachtas and will now be sent to the President to be signed into law. The Bill provides for the introduction of new rights for employees to support a better balance of family life, work life and caring responsibilities. The Bill also seeks to support those who are victims of domestic violence through the introduction of a statutory paid leave entitlement of five days. Amongst the new provisions being introduced under the Bill include: 5 days unpaid leave for medical care purposes for parents of children under 12, and carers 5 days paid leave for victims of domestic violence The right to request flexible working for parents and carers The right to request remote working for all employees 2 years entitlement to take time off work for breastfeeding breaks

  In this week’s Sustainability/ESG bulletin, read about climate technology opportunities, the latest report from the Intergovernmental Panel on Climate Change (IPCC), the introduction of incentivised waste collection charges in the commercial sector, and government approval for the General Scheme of legislation addressing energy sector windfall gains. Also covered is the reduction in grants available for private EV purchase, a consultation on a proposed extension to the UK’s Climate Change Agreement scheme, and EU proposals on a hydrogen bank and on the right to repair and tackling greenwashing. Climate-aligned solutions – the climate tech opportunity In an interview this week with Institute Sustainability Officer, Susan Rossney, Aideen O’Hora discussed climate innovation, the role of accountants and finance professionals, and the range of Irish climate tech companies that demonstrate the potential for Ireland as a global leader in climate technology. Examples of climate technology are in all sectors, focusing on both mitigation (reducing emissions) and adapting to the effects of climate change. A co-founder of consultancy company SustainabilityWorks, Aideen is a climate innovation advocate and one of the co-authors of a recent report with PWC on The Irish Climate Tech Opportunity 2023 Watch the recording here (15 mins)  “Everything, everywhere, all at once” - the IPCC global climate change report The United Nations Intergovernmental Panel on Climate Change (‘IPCC’) has published its latest report urging governments and policy makers to act decisively to ensure a liveable future for humanity. The Climate Change 2023: Synthesis Report represents the most up-to-date consensus among the world’s scientists about climate change, its impacts, and actions to take. The report finds that with current levels of greenhouse gas emissions, commitments made by countries to decarbonise are unlikely to prevent global temperatures increasing by more than 1.5°C, or even 2°C. Going above these thresholds will result in catastrophic  impacts of climate change. The report states that there is a wide range of feasible and effective options available to countries to reduce emissions. It proposes “climate resilient development,” involving integrating measures to adapt to climate change with actions to reduce or avoid greenhouse gas emissions in ways that provide wider benefits. Speaking about the report, Laura Burke, Director General of Ireland’s Environmental Protection Agency (EPA), described the IPCC findings as “clear, stark and challenging”, and reinforcing the urgent need for action to reduce greenhouse gas emissions while adapting to the current and future impacts of climate change. Minister for the Environment, Climate and Communications, Eamon Ryan TD, stated that climate change is causing widespread and increasingly irreversible losses and damages, leaving us with “a rapidly closing window of opportunity to maintain a liveable future for all”.  UN Secretary-General António Guterres described IPCC’s report as a “how-to guide to defuse the climate time-bomb” and declared that climate action is needed on all fronts: “everything, everywhere, all at once” (a reference to this year’s Best Film Academy Award winner). IPCC is the UN body tasked with undertaking scientific knowledge about human-caused changes to our climate. To do this, it conducts periodic reviews of all relevant scientific publications, enlisting thousands of scientists and experts. The IPCC reports represent the most up-to-date consensus among the world's scientists about climate change, its impacts, and what to do about it. IPCC reports aim to inform governments about the state of knowledge on climate change, including possible response options and the natural, economic, and social impacts and risks. Incentivised waste collection charges for the commercial sector New legislation signed this week will introduce incentivised charging for waste collection in the commercial sector. The Waste Management (Collection Permit) (Amendment) (No. 2) Regulations 2023 will bring the commercial sector in line with the residential sector, for which incentivised pricing has been in place since 2017. Measures under the new legislation include the requirement on all waste collection companies to provide a residual, mixed dry recyclable and bio-waste bin to all their commercial customers, and that all commercial customers are placed onto a price plan that ensures that the cost to the customer for mixed dry recyclable or bio-waste is less than the cost of disposal for municipal waste. The introduction of this measure should not result in higher waste collection charges for commercial customers, and collection of recyclable waste and bio-waste must occur at least fortnightly. The legislation will come into effect on 1 July 2023. Government approval for General Scheme of legislation addressing energy sector windfall gains Minister for the Environment, Climate and Communications, Eamon Ryan, has announced government approval of the General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023, the legislation to implement the temporary solidarity contribution and the cap on market revenues to address windfall gains in the energy sector. The proceeds to be raised is currently estimated as between €280-€600 million and will be used to support electricity customers in mitigating the impact of high electricity prices. The draft General Scheme can be found here. Reduction in grants for private EVs Zero Emission Vehicles Ireland (ZEVI), an office within the Department of Transport, has confirmed that the maximum private vehicle car grant will be set at €3,500 for applications from July 1, 2023, down from the current maximum of €5,000. Vehicle incentives for business will remain the same with the Sustainable Energy Authority of Ireland (SEAI) continuing to administer commercially bought EVs and large panel vans grants at current levels. The small public service vehicles (SPSV) grant for taxi and hackney drivers administered by the NTA was renewed in February, while the Alternatively Fuelled Heavy Duty Vehicle Purchase Grant Scheme, managed by Transport Infrastructure Ireland, has also remained unchanged. Government investment strategy for electric vehicles will begin to rebalance towards supporting EV charging infrastructure to bring Ireland in line with European nations such as Norway, Germany and France which have similar policies. Climate Change Agreements: consultation on extension and future scheme (2023) The UK’s Department for Energy Security and Net Zero (DESNZ) has launched a consultation on proposals for an extension to the current Climate Change Agreement scheme, and on further proposals resulting from an earlier consultation. The consultation seeks views on an extension to the current scheme, adding a reporting period between 1 January 2024 to 31 December 2024. This will result in another certification period ending on 31 March 2027, providing further reductions in the Climate Change Levy for participants. The consultation closes at 11.45pm on Wednesday 10 May 2023. Developments in Europe The European Commission has published its Net-Zero Industry Act, a proposal aimed at boosting Europe’s green industry. The Act is a key part of the European Green Deal Industrial Plan, EU’s response to the US massive green subsidies package under the Inflation Reduction Act. The Commission also released a proposal for a Critical Raw Materials Act, which aims to ensure a secure and sustainable supply of raw materials needed for green transition technologies like wind turbines and electric vehicle batteries, along with a proposal for a European Hydrogen Bank, to boost renewable hydrogen production and imports. It further adopted a new proposal on common rules promoting the repair of goods, with which it aims to reduce waste, tackle greenwashing and protect consumers. FCA outlines where improvements are needed in ESG benchmarks From our colleagues in Professional Accounting Correspondence in September 2022 from the Financial Conduct Authority (FCA) to benchmark administrators in the UK highlighted the risk of poor disclosures for ESG benchmarks. The FCA said that high quality ESG benchmarks are important to support trust in the market for ESG products and the transition to a net zero economy. The FCA has completed a preliminary review on ESG benchmarks which found that the overall quality of ESG-related disclosures made by benchmark administrators was poor and it has sent a further letter to administrators outlining the issues identified. These include not enough detail on the ESG factors considered in benchmark methodologies and not fully implementing ESG disclosure requirements.  You can read the follow-on correspondence which details the issues here. The FCA has also indicated that it supports regulation of ESG ratings and is  working closely with Government on this. Podcasts Professor Hannah Daly, Specialist in Sustainable Energy in UCC, and Eamon Stack, Policy Officer with  the Irish Electric Vehicle Owners Association, discuss the government decision to cut the private electric vehicle grant from July (Radio 1) What the SVB Collapse Means for Climate Tech - What happens when a "climate bank" goes under? (Zero from Bloomberg Green) Articles Weakened EU greenwashing rules under attack - Environmental guidelines watered down from draft proposals after heavy business lobbying (Financial Times) How a tax break meant to curb climate change could make it worse - Green hydrogen (Washington Post) A tractor than runs on manure  (Bloomberg) Greta Thunberg, 600 others get court nod to sue Swedish state for "insufficient climate policy" (RTÉ News) Q&A: How the EU wants to race to net-zero with ‘Green Deal Industrial Plan’ (Carbon Brief) Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, including programme outline, eligibility and fees are on the A4S website or by email. Upcoming Events   Invest Northern Ireland/Keep NI Beautiful - Interested in becoming more climate smart in your home, business, local community? Wondering where to start? Invest Northern Ireland will be hosting a free webinar in partnership with Keep NI Beautiful to describe what changes we can make as individuals, groups, and organisations to make a significant impact, 28 March 10:00 – 11:15 Clearstream Solutions and sustHub webinar - The Business Case for Sustainability 31 March, 12:00 – 13:00 Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 26 April, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

In this week’s public policy bulletin we take a look at the interest rate hikes announced this week by both the US Federal Reserve and Bank of England. We also examine the findings of the latest Wholesale Price Index from the CSO as well as a new initiative from the Government to increase SME access to public procurement opportunities. In addition, we review the Northern Ireland economic output statistics for Quarter 4 2022.   US Federal Reserve and Bank of England both announce further interest rate hikes This week the US Federal Reserve announced that its benchmark interest rate would rise another quarter of a percentage point to a range of 4.75 per cent to 5 per cent – its ninth consecutive rate rise and the highest rate since 2007. In a statement accompanying the announcement, the Federal Reserve noted how recent developments in the banking sector “are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation”. Meanwhile, the Bank of England raised interest rates by a further quarter of a percentage point on Thursday bringing its headline rate to 4.25 per cent. Wholesale electricity prices fall while food prices rise in year to February 2023 In its latest Wholesale Price Index for February 2023, the CSO has reported that wholesale electricity prices decreased by 1.8 per cent since January 2023 and were 9.2 per cent lower in February 2023 when compared with February 2022. However, in the same period, producer prices for food products rose by 6.2 per cent meaning that producer prices for products sold on the domestic market are now 10.6 per cent higher than they were in February 2022.  Some of the most notable changes in producer prices for food products over the 12 months to February 2023 include dairy (+23.8 per cent), fish (+18.2 per cent), fruit & vegetables (+18.2 per cent) and grain (+12.2 per cent). Government launch new initiative to support greater SME participation in public procurement opportunities Cabinet have this week approved a new government initiative aimed at supporting SME participation in public procurement. The initiative will act as an update to previous guidance, which introduced a number of measures aimed at assisting SMEs to access public procurement opportunities. The new provisions include: an increase to the threshold at which all contracts for goods and services must be advertised on eTenders from €25,000 to €50,000 (ex VAT) an increase to the threshold at which all contracts for works must be advertised on eTenders from €50,000 to €200,000 (ex VAT) enhanced measures that public bodies should take to promote transparency, including a requirement to publish contract award information for all procurements over €25,000 specific measures that public bodies should take to promote SME participation, including the use of proportionate financial capacity and insurance requirements Latest Northern Ireland economic output statistics This week saw the publication of the latest economic output statistics by the Northern Ireland Statistics and Research Agency (NISRA). According to the publication, output in the services sector increased by 1 per cent in real terms over the fourth quarter of 2022 and by 1.8 per cent over the year putting NI service output at a record high. Meanwhile, production sector output decreased by 0.6 per cent over the fourth quarter of 2022 and by 1 per cent over the year. Retail output saw an increase of 2.2 per cent in Quarter 4 2022 but a decrease of 2.3 per cent over the year. When comparing current output with the pre-Coronavirus pandemic levels seen in Quarter 4 2019, NI production output is 4.5 per cent above its pre-pandemic level and NI service output is 6.2 per cent above its pre-pandemic level. In contrast, NI retail output remains 4.5 per cent below its pre-pandemic level seen in Quarter 4 2019.

  In this week’s Sustainability/ESG bulletin, read about sustainability in the 2023 Action Plan approved to deliver the Ireland for Finance Strategy. Also covered is the launch of a set of statutory guidelines to assist local authorities in preparing climate action plans, the €2.1 million funding announced for research into innovative climate solutions, a stakeholder survey on sustainability and offsetting in Northern Ireland and the proposed reform of EU’s electricity market design, as well as articles, podcasts, and events.  Sustainability and Ireland’s Action Plan - updated Finance Strategy ‘Revising and updating the Government’s Sustainable Finance Roadmap’, and developing ‘an updated sustainable finance value proposition’ are among the 12 key deliverables of the first Action Plan for delivering the Ireland for Finance Strategy. The 2023 Action plan, which received Cabinet approval last week, follows an update to the Ireland for Finance strategy in 2022, which sets out the key measures that the public and private stakeholders will take this year to support the further development of the international financial services sector in Ireland. Local authority climate action plans See also news from our colleagues in Professional Accounting [link] The Minister for the Environment, Climate and Communications Eamon Ryan, T.D., has launched a set of statutory guidelines to assist local authorities in preparing local authority climate action plans.  Under the Climate Action and Low Carbon Development (Amendment) Act 2021, each local authority in Ireland must prepare a local authority climate action plan for its respective administrative area. The plans are to enable them to address, in an integrated way, the mitigation of greenhouse gas emissions and climate change adaptation and strengthen the alignment between national climate policy and the delivery of effective local climate action. Once adopted, each plan will be valid for five years. €2.1 million announced for research into innovative climate solutions Funding of €2.1 million has been announced for six new research teams who are developing innovative solutions to climate action challenges. The research teams will compete as part of the Sustainable Development Goals (SDG) Challenge. Run in partnership between Science Foundation Ireland (SFI) and Irish Aid, the focus of the SDG Challenge is the development of innovative solutions relating to challenges associated with climate, biodiversity and the environment, with a specific objective of addressing challenges in countries where Irish Aid works.  The challenge will see teams competing for an overall prize of €1 million as they tackle climate action issues on life below water and life on land. Northern Ireland stakeholder survey on sustainability and offsetting Belfast City Council is conducting a stakeholder survey on sustainability and the level of interest in offsetting. The survey is to evaluate the opportunity for a local offsetting scheme in Northern Ireland. (While not reducing GHG emissions, offsetting is a commonly used means of compensating for GHG emissions and delivering progress towards Net Zero targets and ambitions.) The survey includes 24 questions and will take approximately five minutes to complete. There will be two short online briefings about the project at 10am on Wednesday 22 March and 10am on Thursday 23 March, and the survey will close on Friday 14 April 2023. Read more Proposed reform of EU’s electricity market design The European Commission has proposed to reform the EU’s electricity market design to “boost renewables, better protect consumers and enhance industrial competitiveness”.  Part of the Green Deal Industrial Plan and in line with the European Green Deal and the REPowerEU Plan, the proposed reform foresees revisions to several pieces of EU legislation and aims to decrease the impact of fossil fuels on consumer electricity bills, boost “open and fair competition” in the European wholesale energy markets, and ensure a sustainable and independent energy supply to the EU through building a renewables-based energy system. The proposals will have to be discussed and agreed by the European Parliament and the Council before entering into force.     Ask the Expert Interview – Climate Technology Opportunities Aideen O’Hara, Co-Founder of SustainabilityWorks, climate innovation advocate and lead co-author of a recent report with PWC on The Irish Climate Tech Opportunity 2023, will join Institute’s Sustainability Officer Susan Rossney on Thursday, 23 March for a lunchtime Q&A to discuss climate innovation and the range of Irish climate tech companies that demonstrate the potential for Ireland as a global leader in climate technology. Register free here.  Podcasts Interview with Oisín Coughlan, Chief Executive of Friends of the Earth about Ireland’s Climate Policy goals (Listen Back) (7 mins) Articles EU green deal efforts at risk of ‘being compromised’ (Irish Times) Transforming the worst performing dwellings into energy-efficient homes could lift people out of energy poverty (Irish Independent) Global floods and droughts worsening with warming, study suggests (Irish Examiner) UK pension funds threaten to vote against BP and Shell directors over climate targets (Financial Times) UK Labels Nuclear Power ‘Green’ to Attract Climate-Friendly Capital (Bloomberg Green) Are we 50 years away from gender pay equality? (Briefly, from Accountancy Ireland) UN deputy chief warns of faltering progress towards SDGs (UN News) Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, including programme outline, eligibility and fees are on the A4S website or by email. Upcoming Events   Trinity College Dublin is running free Climate Action & Sustainability webinars on Wednesdays 1-2pm. Join 12 leading academics in Trinity College Dublin as they speak about technologies and solutions that will help deliver our goals in the areas of Climate Action and Sustainability. Coming up: Is the Circular Economy a Route to Sustainability? As Clear as Plastic? Wednesday 22nd March from 1pm - 2pm Trinity's Green Week (🌍👉http://bit.ly/3JeD8K4) turns 21 this month! It runs from 20-24 March and it's a week to celebrate, learn, explore, network, solve and have fun http://bit.ly/3JeD8K4 Social Enterprise NI is running a range of events for social enterprises or people interested in social entrepreneurship starting on 21 March. Events include ‘eBay for Change’ ‘Social Entrepreneurs Ireland’, ‘Social Enterprise NI: Dragons Den Event’ and ‘Maximise your CRM’.  Find out more. Leinster Society Sustainable Fashion: Workwear Essentials  - Wednesday 22 March | 12:30pm – 1:30pm - with personal stylist Orla Sheridan to discuss how to be more sustainable in our everyday fashion choices, both at home and in the workplace. She will discuss the "30 wear rule" and talk us through some key wardrobe essentials for the office. Natural Capital Investment Conference 2023 22 March, London Invest Northern Ireland/Keep NI Beautiful - Interested in becoming more climate smart in your home, business, local community? Wondering where to start? Invest Northern Ireland will be hosting a free webinar in partnership with Keep NI Beautiful to describe what changes we can make as individuals, groups, and organisations to make a significant impact 28 March 10:00 – 11:15 Clearstream Solutions and sustHub webinar - The Business Case for Sustainability 31 March, 12:00 – 13:00 Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 22 March, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

In this week’s public policy bulletin we take a look at the latest statistics on the growth in house prices from the CSO. We also report on this week’s meeting of the Irish Financial Stability Group following the collapse of Silicon Valley Bank. In addition, we review unemployment rates across the OECD as well as the latest batch of Northern Ireland Labour Market Statistics. 6.1 per cent growth in house prices in 12 months to January 2023 The CSO this week released its latest Residential Property Price Index (RPPI) in which it found that residential property prices across Ireland rose by an average of 6.1 per cent in the 12 months to January 2023. This figure is however down from the 7.7 per cent rate recorded in the year to December 2022, and from the high values of 15.1 per cent seen in the 12 months to February and March 2022. Nonetheless, according to the RPPI, residential property prices in Dublin saw an increase of 4.3 per cent in the period to January 2023, while property prices outside of Dublin were up an average of 7.4 per cent in the same period. The median price of a dwelling purchased in the 12 months to January 2023 was €305,000. Irish Financial Stability Group (FSG) meets to assess impact of Silicon Valley Bank collapse Following the announcement of the failure of Silicon Valley Bank (SVB), a US technology focused lender, the Irish Financial Stability Group (FSG) met on Monday, 13 March, to assess the situation and any impacts on the Irish financial system. The FSG consists of senior officials from the Department of Finance, NTMA and the Central Bank of Ireland, and is chaired by the Secretary General of the Department of Finance. Given that SVB had a significant number of Irish businesses among its clients, the Irish FSG has established a sub-group to co-ordinate enhanced monitoring and reporting on the domestic impacts arising from the failure of the bank. In a statement commenting on the meeting, Minister for Finance Michael McGrath stressed that while “it is important to highlight the limited direct impact on the Irish financial system of the failure of Silicon Valley Bank, the retail banks operating in Ireland have no exposure” to SVB. Unemployment rate across OECD hits record low The OECD unemployment rate remained at 4.9 percent in January 2023, the seventh consecutive month at this record low since the organisation’s report on unemployment rates began. The unemployment rate was stable in 12 of 38 OECD countries, but close to its record low in only 7 countries, including Canada, France, Germany, and the United States. The number of unemployed persons declined to 33.2 million, remaining close to the record low reached in July 2022. Relative to men, the unemployment rate for women was higher in 18 OECD countries, with the largest gender gaps recorded in Colombia, Costa Rica, Greece, Spain and Turkey. By contrast, 16 OECD countries recorded a lower unemployment rate for women than for men. You can read the full report here. Northern Ireland Labour Market statistics The Northern Ireland Statistics and Research Agency this week released its latest batch of labour market statistics for the region. According to the release, the number of employees receiving pay through HMRC PAYE in NI in February 2023 was 787,200, a 0.4 per cent increase over the month and a 2.2 per cent increase over the year. Moreover, HMRC PAYE data indicated that NI employees had a median monthly pay of £2,047 in February 2023, an increase of £10 (0.5 per cent) over the month and an increase of £134 (7.0 per cent) over the year. Meanwhile, the claimant count rate remained constant for the tenth consecutive month with the seasonally adjusted number of people on the count standing at 35,600, a decrease of 0.1 per cent from the previous month’s revised figure and representing 3.8 per cent of the total workforce.