In this week’s Sustainability/ESG bulletin, read about two public consultations now open: one on the Corporate Sustainability Reporting Directive and the other on sustainability-related consumer-rights legislation. Also covered is Ireland’s plans to report on its progress against the UN Sustainable Development Goals; a new funding rate allocation model for social enterprises; and how IAASA has for the first time raised climate change and sustainability matters in its Compendium of Financial Reporting Decisions. We also feature the usual articles, podcasts and upcoming events.   Corporate Sustainability Reporting Directive –  DETE consultation (From our colleagues in Professional Accountancy) Following on from its webinar on the Corporate Sustainability Reporting Directive (CSRD) it held last week, the Department of Enterprise, Trade and Employment (DETE) has this week issued a public consultation seeking the views of interested parties on the Member State options in the Directive. The speakers’ PowerPoint slides from DETE’s webinar are now available, and the consultation is open until 5pm on Thursday 9 March 2023. Irish Government opens consultation on consumer-rights Directive The Department of Enterprise, Trade and Employment and the Department of Environment, Climate and Communications have opened a consultation on a proposed EU Directive aimed at improving sustainable consumption. The Directive aims to ensure consumers have better information on the durability and reparability of certain products and to protect consumers against unfair commercial practices that prevent sustainable purchases. These practices include greenwashing (misleading environmental claims), early obsolescence (premature failures of goods) and the use of unreliable and non-transparent sustainability labels and information tools. The consultation is open until close of business on Friday, 17 February 2023. Ireland’s plans to report on progress against the UN Sustainable Development Goals The Department of Environment, Climate and Communications has announced that Ireland will present its second Voluntary National Review (VNR) of the UN Sustainable Development Goals (SDGs) to the UN High-Level Political Forum on Sustainable Development in July 2023. The report will review Ireland’s progress towards achieving the UN’s ‘Agenda 2030’, and the 17 Sustainable Development Goals, including the commitment to Leave No One Behind. Individuals and businesses can contribute to Ireland’s VNR by attending (online or in-person) the next SDG National Stakeholder Forum meeting in April 2023 or by submitting ideas as part of the online consultation for the 2023 VNR. Read more. Revised funding for Ireland’s social enterprises A new funding rate allocation model has been announced for the  Community Services Programme (CSP), an initiative designed to support social enterprises, community-based businesses, and organisations that provide local services and create employment opportunities for disadvantaged people. Up to 400 community organisations are likely to receive additional funding under the new model. In a further enhancement of the programme, organisations may draw down a full contribution based on 37.5 hours per week per worker, rather than 39 hours, as was previously the case. A new call for applications under the CSP is set to be announced. IAASA raises climate change and sustainability matters in Compendium of Financial Reporting Decisions From our colleagues in Professional Accountancy IAASA has published its latest Compendium of Financial Reporting Decisions. This compendium is published with the aim of assisting preparers to prepare high-quality financial reports. In the compendium, IAASA has published decisions relating to accounting treatments applied by three companies in their 2021 annual reports. While also addressing accounting treatments applied under various accounting standards, the publication raises, for the first time, some financial reporting decisions relating to climate change and sustainability matters. Nature and biodiversity finance – risk and opportunities for Ireland The International Sustainable Finance Centre of Excellence (ISFCOE) has released a scoping study into the burgeoning biodiversity agenda in line with Action 8 of Ireland’s Sustainable Finance Roadmap. Nature and biodiversity finance: Risks and opportunities for Ireland outlines how the biodiversity finance agenda is undergoing a global surge, one which is being driven by the risks and opportunities facing financial systems as a result of economic dependency on the natural world. Companies are recognising biodiversity risks but are not turning commitments into action; therefore, opportunities exist at a macro level to reverse the damage to biodiversity in recent years through policy reform and regulation, and for the private sector to provide nature positive customer solutions. More news from ISFCOE. New suite of green lease clauses for commercial leases A new suite of green lease clauses for use in commercial leases in Ireland has been published by The Chancery Lane Project (TCLP), a collaborative initiative of international legal and industry professionals whose vision is a world where every contract enables solutions to climate change. The clauses are named after children in recognition of how actions to combat the climate crisis will benefit future generations. The clauses are called Odhran’s Clause, Emily and Tom’s Clause and Amélie and Lauri’s Clause. Extension for the Temporary Business Energy Support Scheme From our colleagues in Tax Revenue has announced that claims under the Temporary Business Energy Support Scheme (TBESS) for the September 2022 claim period can be made by eligible businesses after the 31 January deadline. Read more. Ireland referred to CJEU for failure on biodiversity and water commitments Ireland is among six Member States being referred to the Court of Justice of the European Union (CJEU) for failure to prevent and manage invasive alien plant and animal species, one of the five major causes of biodiversity loss in Europe and worldwide, representing an estimated damage of €12 billion per year to the European economy. The Commission has also decided to refer Ireland to the CJEU for failing to correctly transpose into national law the Water Framework Directive (Directive 2000/60/EC) which protects waters from pollution. Separately, it has called on Ireland and 13 other Member States to respect their reduction commitments under Directive 2016/2284 on the reduction of national emissions of certain atmospheric pollutants, which is among the key factors negatively affecting human health. Articles How the UK’s push to reach net-zero could deliver key health benefits (Carbon Brief) Class action litigation risk rises on ESG claims (Bloomberg) UK accounting watchdog tightens scrutiny of ESG in company audits (Reuters) NTMA to sell €3bn of green bonds in early test of debt markets (Irish Times) Net zero: Next moves for CEOs (McKinsey & Co) – also available as a podcast CB Launches New Financed Emissions and Sustainable Finance Indicators to Track Climate Risk (ESG Today) Irish showdown shapes crucial EU climate goals legislation (The Irish Times)   Webinar recordings Scaling up the Circular Economy webinar (ClearStream Solutions/SustHub) How to save energy and be more sustainable at home (Chartered Accountants Ireland Leinster Society with SEAI - click here for password)   Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. This is a sustainable business learning and implementation programme designed specifically for senior finance professionals. The Academy includes live, flexible and interactive sessions designed to upskill participants by developing technical knowledge and leadership skills. Participants typically include VPs Finance, Investor Relations Directors, Divisional CFOs, Controllers, Treasurers, Internal Audit Directors and Heads of External Reporting. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, includingprogramme outline, eligibility and fees are on the A4S website or by email.   Events Practical Steps for Reducing Energy Consumption webinar – Northern Ireland (Invest NI) 13 February, 10:30 to 11:30am Resource Matching Workshop – Northern Ireland(Invest NI) 22 February, 09:00 – 13:00 National Sustainability Summit (Premier Publishing) 23 February 23 09:00 - 16:00 Demystifying Sustainability & ESG Reporting Webinar (Clearstream Solutions) 24 February 24, 12:00 – 13:00 Return on Sustainability Investment Webinar (Clearstream Solutions) 31 March 12:00 – 13:00 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. 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 February, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. 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 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 ECB interest rate hike together with economic statistics for the Eurozone from Eurostat. We also examine the latest on the Government’s Ukraine Credit Guarantee Scheme as well as the CSO’s unemployment rate statistics for January. In Northern Ireland, we take a look at current enrolments in the Essential Skills programme, and in Europe we outline details of the EU Commission’s new approach to enforcing GDPR compliance across the bloc. ECB raises interest rates again The European Central Bank has again hiked its interest rates – this time by half a percentage point, raising its headline lending rate to 3 percent. Moreover, the ECB signalled its intention to raise interest rates by a further 0.5 percent next month.  In a press release issued by the bank, the Governing Council outlined its view that “keeping interest rates at restrictive levels will over time reduce inflation by dampening demand and will also guard against the risk of a persistent upward shift in inflation expectations”. The bank confirmed its intention to “stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to its 2% medium-term target”. You can read the full press release here. Eurozone economy avoids contraction as a result of Ireland’s strong performance According to Eurostat, the official statistical office of the EU, the Eurozone avoided recession last year largely thanks to a better-than-expected economic performance from Ireland. Despite growth contracting in Germany (Europe’s largest economy) by 0.2 percent, the Eurozone’s overall growth figure for last year rose to 3.5 percent – outpacing both the US and China. Without Ireland, the eurozone economy would have contracted by approximately 0.1 percent. You can read the full statistical release here. BOI announced as first official lender in Ukraine Credit Guarantee Scheme Bank of Ireland have been announced as the first official lender to the market for the Ukraine Credit Guarantee Scheme. Launched as part of the government’s strategy to assist businesses effected by the crisis in Ukraine, the Ukraine Credit Guarantee Scheme will facilitate up to €1.2 billion in lending to eligible businesses. Some of the key features of the new scheme include: no personal guarantee or collateral required for loans up to €250,000 loans of up to €1 million, for terms of up to 6 years reduced interest rates (vs standard market rates) available until 31 December 2024 and includes famers, fishers and small mid-caps The scheme is open to SMEs, primary producers and small mid-caps (defined as businesses with up to 499 employees). In order to qualify for the scheme, the borrower will have to declare that costs have increased by a minimum of 10 percent on their 2020 figures and that the loan is being sought specifically as a result of difficulties being experienced due to the Ukraine crisis. Further information on the scheme can be found om the Department of Enterprise, Trade and Employment website. Unemployment rate for January 2023 was 4.4 percent – CSO The latest statistical release from the CSO on unemployment in Ireland recorded a rate of 4.4 percent in January 2023, a drop from the rate of 4.9 percent seen in January 2022. Breaking down this figure in more detail, the seasonally adjusted number of persons unemployed totalled 118,300 in January 2023 – with 58,700 of these comprising unemployed males and 59,600 comprising unemployed females. The report also recorded an increase in youth unemployment (persons aged 15-24) which rose to 10.4 percent, a 0.2 percent rise since December of last year. The full statistical release can be found here. Enrolments in ‘Essential Skills’ courses up after several years of decline – NI Department of the Economy Enrolments in essential skills courses, funded by the Department of the Economy NI, have increased in 2021/22 following a number of years of declining registrations. Established as part of the Department’s strategy to improve adult literacy, numeracy and ICT skills, essential skills courses are delivered by accredited tutors working in Further Education (FE) Colleges, private training providers and community organisations. According to a bulletin issued by the Department this week, the previous decline in enrolments arose for a variety of reasons, including a dip in the 16-19-year-old population (the main age group taking essential skills courses), improvements in GCSE grades, as well as Covid-19 related grading arrangements/restrictions. Figures show that while the number of enrolments fell each year from 30,430 in 2017/18 to 23,825 in 2020/21, an increase of 0.5 percent was recorded in 2021/22 bringing new enrolments up to 23,932. European Commission steps up reporting requirements for data protection regulators Following a complaint from the Irish Council of Civil Liberties (ICCL) to the European Ombudsman, the EU Commission has this week committed to monitoring the progress of every large-scale GDPR case that arises across Member States. According to the Commission, it will now measure how long each procedural step in a case is taking by requesting regular reports (every 2 months) on what steps the relevant data protection authorities are taking to progress the case. While the results of the reviews will be strictly confidential, the specific kinds of data received will be published by the Commission.

Following on from its webinar on the Corporate Sustainability Reporting Directive (CSRD) it held last week, the Department of Enterprise, Trade and Employment (DETE) has this week issued a public consultation seeking the views of interested parties on the member state options in the CSRD. More details can be found here and you can access the consultation here. Even though it is not consulting on direct effect/mandatory provisions, comments and questions on all aspects of the CSRD are invited to facilitate DETE’s work in the transposition of the CSRD. The consultation is open until 5pm on Thursday 9 March 2023. For reader’s information, the CSRD is a European directive requiring certain companies to disclose information on sustainability-related information. The directive aims to modernise and strengthen the rules about the type of social and environmental information that companies will have to report. The CSRD envisages the adoption of European Sustainability Reporting Standards which seek to ensure that investors and other stakeholders have access to the information they need to assess investment risks arising from climate change and other sustainability issues. They seek to create a culture of transparency about the impact of companies on people and the environment. The CSRD was approved by the European Parliament and the EU Council in late 2022 and was published in the EU Official Journal on 16 December. Following this publication, EU member states have 18 months to transpose the directive into their own national laws. Finally, readers may also be interested in accessing the speakers’ PowerPoint slides from the DETE webinar to get further information on the various presentations made. There was a presentation from DETE, PWC and EFRAG on the CSRD and a presentation by DETE on a Proposal for a Directive on Corporate Sustainability Due Diligence.

In this week’s public policy bulletin, we take a look at the ESRI’s analysis of the potential introduction of a universal basic income in Ireland. We also review the findings of the latest Consumer Sentiment Index from the Irish League of Credit Unions. In addition, we examine the CSO’s report on the number of homes built in 2022 as well as the latest Northern Ireland business demography statistics and launch of the new Northern Ireland Skills Council. ESRI estimate introduction of universal basic income would cost €50 billion per year In its opening remarks to a meeting of the Oireachtas budgetary and oversight committee this week, the ESRI forecasted that the introduction of a universal basic income (UBI) in Ireland could cost up to €50 billion per year to sustain. Commenting on the report of the Commission on Taxation and Welfare (which did not favour the introduction of a UBI) the ESRI noted that while “a UBI would avoid situations where people choose not to work in order to retain means-tested benefits”, its implementation “is likely to be very expensive, even if other existing benefits (such as unemployment benefits) are no longer required”. Moreover, the ESRI pointed out, “the net impacts of a UBI on labour supply are unclear”. Read the full statement to the committee here. Consumer sentiment at 7-month high – Irish League of Credit Unions Irish consumer sentiment rose strongly in January as a softening in oil prices, strong domestic economic data and a seasonal switch-off from business and political news encouraged a less negative view of the financial circumstances of Irish households, according to the latest Consumer Sentiment Index from the Irish League of Credit Unions. Registering a score of 55.2 on the Index (up from 48.7 In December 2022) the improved consumer sentiment mirrors gains in similar confidence measures taken in the US that likely reflected falling fuel costs as well as Germany where fiscal supports may also have played a role. In contrast, UK consumer confidence weakened in January reflecting growing negativity about the economy and concerns about the health of the public finances.  CSO confirms 29,815 new homes built in 2022 In its latest statistical release, the CSO has confirmed that 29,851 new homes were built in Ireland last year, an increase of 45.2 percent from 2021 and 41.3 percent up from 2019, pre-pandemic. The number of apartments completed in 2022 was 9,166, up 78.7 percent from 2021. According to the figures, all regions of the country saw a yearly increase in completion of more than 20 percent, at least while the Dublin region saw a 65.1 percent yearly increase. Interestingly, the release also shows that the average new dwelling size is continuing to gradually fall year on year. The average new dwelling size for 2022 is three-quarters of what it was in 2016 with the CSO identifying the decrease as being “driven by both an increase in the proportion of completed dwellings being apartments and a decrease in the size of single and scheme dwellings”. Northern Ireland business demography statistics 2021 released The latest Northern Ireland Business Demography statistics for 2021 were released this week by the Northern Ireland Statistics and Research Agency (NISRA). According to the statistics, there were 6,655 business births in Northern Ireland during 2021, an increase of 17.4 percent on the previous year. Meanwhile, there were 5,200 business deaths in Northern Ireland in 2021, an increase of 24.6 percent on the previous year. Notably however, Northern Ireland’s business death rate in 2021 (8.0 percent) remained lower than the other three UK regions. Scotland and Wales saw their highest business death rates since the series began in 2005 while business death rates in England are at their highest since 2017. Department of the Economy announces establishment of Northern Ireland Skills Council The Department of the Economy has launched a call for applicants to the Northern Ireland Skills Council – a new advisory body designed to provide strategic advice to ministers of the Northern Ireland Executive on issues relating to the development and implementation of skills policy in the region. While the new Council will primarily focus on skills strategy, it will also consider the broader context of the importance of skills in meeting the objectives of the Programme for Government and the economic vision for Northern Ireland. The Department has formally launched a public appointments competition for a chair and eight members of the Council with the specification seeking candidates “with a track record of working across a broad network of stakeholders and applying evidence-based analysis to inspire transformative change”. Closing date for applications is 12pm, Thursday 9 February with details on how to apply available at the Department of the Economy website.

  In this week’s Sustainability/ESG bulletin, read about the Department of Enterprise, Trade and Employment’s webinar on the Corporate Sustainability Reporting Directive this week. Also covered are new resources for managing waste in Ireland and Northern Ireland, the Irish Climate Tech Opportunity, reform of the EU’s electricity market design, a new European Environmental Agency report on recycling, EU actions on food security and eco-system resilience, a new free resource to help business with biodiversity data, and the launch of a global Coalition of Trade Ministers on Climate, as well as articles, podcasts and events. Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive Over 500 stakeholders, including members of the EU Commission, the European Financial Reporting Advisory Group (EFRAG), Chartered Accountants Ireland and officials from the Department of Enterprise, Trade and Employment (DETE) attended a webinar this week on the Corporate Sustainability Reporting Directive (CSRD). Presentations covered topics from the overall goal of the Directive, the Sustainability Reporting Standards, how businesses can prepare, and the transposition process. DETE is leading the transposition of the Directive and will shortly launch a public consultation on Member State options contained within the Directive. New waste-related resources in Ireland and Northern Ireland My Waste, Ireland’s official guide to waste, has produced a range of free materials on waste-segregation to make it as easy as possible for Irish businesses to segregate their waste. By implementing simple practices and actions, businesses can achieve better waste management, more effective recycling and even prevent waste being created in the first instance. Visit www.mywaste.ie/business/ for more. In Northern Ireland, consumers will also be able to recycle their plastic and canned drink containers more easily through a new Deposit Return Scheme. The Scheme, which is set to be introduced in 2025, will incentivise people to recycle their drinks bottles and cans and redeem a small refundable deposit. DAERA is also introducing an Extended Producer Responsibility Scheme for packaging, which will mean packaging producers and manufactures will cover the costs of recycling and disposing of their packaging from 2024. This aims to drive higher collection and recycling rates of packaging, as it covers drinks containers not included in the Deposit Return Scheme, such as glass, cartons, or high-density polyethylene (HDPE) plastic, which is used for most fresh milk packaging. The Irish Climate Tech Opportunity SustainabilityWorks and PwC have published a report into ‘The Irish ClimateTech Opportunity 2023’. The report showcases 36 of Ireland’s innovative Climate Tech entrepreneurs whose solutions will help make net zero a reality. Climate Tech is defined as technologies aimed at reducing greenhouse gas emissions or addressing the impact of climate change. Climate Tech companies are distributed across all industries, including energy, the built environment, food, agriculture and land use (FALU) and transport. Reform of EU’s electricity market design The European Commission has opened a public consultation on the reform of the European Union's electricity market design. The goal of the reform is to protect businesses and households from excessive price volatility, increase their resilience, and support their access to secure energy from clean sources. The consultation focuses on the four main areas of making electricity bills less dependent on short-term fossil fuel prices, and boosting the deployment of renewables; improving market functioning to ensure security of supply, and fully utilise alternatives to gas; enhancing consumer protection and empowerment; and improving market transparency, surveillance and integrity. The consultation will run until 13 February. New report identifies market barriers to recycling – and how to overcome them A European Environment Agency (EEA) assessment published this week has found that out of the eight most common recyclable products, only three -  aluminium, paper and glass -  have well-functioning secondary markets. The report, titled Investigating Europe′s secondary raw material markets', found that lack of standardisation and competition with new materials are among the market barriers for the five other most common recyclables, such as wood, plastics, biowaste and textiles. Options to overcome these barriers, identified in the report, include incentives to include recyclability into product design, strengthening recycling targets, increasing recycled content in new products, establishing technical standards for recycled materials and using taxes to level price competition with primary raw materials. Improving markets for recycled raw materials is key to delivering a circular economy in the EU, reducing the need to extract natural resources and avoiding the associated environmental impacts. Food security and eco-system resilience The European Commission is aiming to boost action on pollinators to tackle the serious decline in wild pollinating insects in Europe. This week it proposed a revised EU Pollinators Initiative to better restore and protect species and habitats, mitigate the impact of pesticides use and enhance pollinator habitats in urban areas. Among its priorities, the Commission and Member States aim to help citizens and business to act, for example by raising public awareness and supporting citizen science. Free resources to help business help business with biodiversity data The World Wildlife Fund (WWF) has launched a new tool to help companies and financial institutions identify and take action on biodiversity-related risks across their operations, value chains and investments. The tool – called the Biodiversity Risk Filter (BRF) - provides businesses with access to a single, free-to-use platform that brings together over 50 biodiversity-relevant data sets. The WWF is running a free webinar on 31 January to explain the BRF in greater detail. Launch of Coalition of Trade Ministers on Climate The first Ministerial-level global forum dedicated to trade and climate and sustainable development issues launched last week.  The Coalition of Trade Ministers on Climate aims to build partnerships between trade and climate communities to identify the ways in which trade policy can contribute to addressing climate change. Members include more than 50 ministers from 27 jurisdictions, and membership is open to all interested countries.  The four co-leads are Ecuador, the EU, Kenya, and New Zealand.  Civil society, business, international organisations and climate and finance communities will participate in the Coalition's work, which aims to foster global action to promote trade policies that can help address climate change through local and global initiatives. Technical Roundup From our colleagues in Professional Accountancy The Chairperson of the European Banking Authority recently gave a speech on Financing transition to sustainability? What is the role of banking regulation? He said that the financial sector has an important role to play, both in terms of financing the transition to sustainability and for managing financial risks stemming from ESG factors. There was some discussion on the EBA roadmap which was adopted in December 2022 and that EBA are going to continue working to embed ESG considerations into their risk analysis and stress testing. Professional Accountancy Education Europe (PAEE), which is a collaboration between European accountancy bodies striving to provide a high-quality education framework at international level have issued some Q&As which explain why it is vital to further develop sustainability awareness among accountancy and auditing professionals. The International Sustainability Standards Board (ISSB) have issued their January 2023 update and podcast. This discusses recent developments including the rollout and adoption of Sustainability Standards S1 and S2. Articles IAASB Begins Work on Global Standards for ESG Assurance (ESG Investor) Athlone bus service going fully electric (RTE News) Electrical emissions reach highest level in over five years (Business Post) Global Low-Carbon Energy Technology Investment Surges Past $1 Trillion for the First Time (Bloomberg) Podcasts High-Octane Capitalism Meets Climate Change: Chamath Palihapitiya says in Episode 24 of Zero: “There is going to be trillions of dollars of value that will be redistributed over the next decade or two.” Events Launch Event – Biodiversity Risk Filter – World Wildlife Fund Jan 31, 2023 13:30, Dublin/London time This webinar introduces the Biodiversity Risk Filter tool - part of the WWF Risk Filter Suite -This project enables corporates and financial institutions to better understand and manage biodiversity-related risks and contribute to the development of nature-positive business models Resource Matching Workshop – Northern Ireland Hosted by Invest Northern Ireland's Resource Matching Service, a free in-person workshop from 9am–1pm on 22 February will allow businesses across Northern Ireland to find new, sustainable solutions to their waste resources and material needs, saving money and supporting Northern Ireland's green circular economy. (Find out more here.) Practical Steps for Reducing Energy Consumption webinar – Northern Ireland On Monday 13 February 2023 Invest NI will be hosting a free, online webinar specifically for NI businesses on Practical Steps for Reducing Energy Consumption. 10:30 to 11:30am 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. 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 February, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. 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 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 Government’s Spring legislative programme as well as the newly released ‘Report on Banking’ from the Oireachtas Committee on finance. In addition, we examine a report from the ESRI on migrant wage gaps as well as the latest labour market statistics for Northern Ireland. We also outline details of the EU Commission’s new ‘Talent Booster Programme’, due to take effect this year. Government launches its Spring 2023 legislative programme This week saw the Government launch its Spring legislative programme in which the policy priorities of Cabinet for the coming Dail term were set out. Listing 38 bills in total, issues which have been earmarked for “priority publication” include provisions for the introduction of an Automatic Enrolment Retirement Savings System aimed at ensuring future generations do not face an income cliff edge at retirement age. In addition, the Planning & Development Bill and the Land Value Sharing and Urban Development Zones Bill have also been tabled as part of the Government’s ‘housing for all’ strategy. The full legislative programme is available here. Oireachtas committee ‘Report on Banking 2022’ released The Joint Committee on Finance, Public Expenditure and Reform this week released its ‘Report on Banking 2022’ in which it examined a range of issues in the banking sector including the withdrawal of Ulster Bank and KBC from the Irish market, the tracking mortgage scandal and banking remuneration policy. Noting how public trust in the sector remained “extremely low”, the all-party committee report outlined how the removal of the cap on pay and bonuses is inappropriate and that such a policy change could be "damaging to public confidence in the regulation of the sector” and would “not address longstanding customer issues." ESRI report finds ‘significant migrant wage gap’ New ESRI research funded by the Department of Children, Equality, Disability, Integration and Youth has found that while non-Irish nationals as a whole earned 22 percent less per hour than Irish nationals, East European workers earned, on average, 40 percent less than Irish workers in the period 2011-2018. The report notes that while part of this wage gap can be explained by differences in social and demographic characteristics (e.g., education level, type of job etc), even after these differences are accounted for, East Europeans still earn 20.5 per cent less than Irish nationals.  Moreover, the report found that non-Irish women experience a double earnings penalty. Non-Irish women earn 11 per cent less than non-Irish men, who in turn earn 18 per cent less than Irish men. This means non-Irish women earn 30 per cent less than Irish men. Latest Northern Ireland labour market statistics released The Northern Ireland Statistics and Research Agency this week released its latest batch of labour market statistics for the region. According to the results, the number of employees receiving pay through HMRC PAYE in NI in December 2022 was 783,800, a 0.2 percent increase over the month and a 2.0 percent increase over the year. When considering employees by age, the 25-34 age group is the only group yet to return to pre-COVID levels, remaining 0.4 percent below March 2020 numbers. The statistics also showed that in December 2022, the seasonally adjusted number of people on the claimant count was 36,900 (3.9 percent of the workforce) – marking the fourth consecutive monthly increase in the claimant count. EU Commission launches new ‘Talent Booster Mechanism’ In the face of sharp declines in working age populations and a growing skills gap across the bloc, this week the EU Commission launched a new initiative aimed at addressing these issues. The ‘Talent Booster Mechanism’ will aim to help pilot regions in a talent development trap develop, monitor and implement regional strategies to become more talent attractive and identify projects most cost effective to address the situation. It will also help regions at risk of falling in a talent development trap design strategies to adapt to demographic transition and identify reforms to address the situation. According to the Commission, currently 82 regions in 16 Member States are severely affected by inefficiencies in their labour markets, declines in their working age populations and a lack of university graduates. 

  In this week’s Sustainability/ESG bulletin, find out about Ireland’s ambitious EV charging strategy, and how you can register for the Department of Enterprise, Trade and Employment’s webinar on the Corporate Sustainability Reporting Directive next week. Also read about how wind energy displaced over €2 billion worth of both fossil gas and carbon credits in the wholesale market on the island of Ireland, Chartered Accountants Ireland’s new network for members working on ESG projects, and articles, jobs and events. Ambitious strategy announced to improve Ireland’s electric vehicle charging infrastructure Minister for the Environment, Climate and Communications and Minister for Transport Eamon Ryan T.D., has announced a €100 million strategy to improve Ireland’s electric vehicle (EV) charging infrastructure and ensure the continued uptake of EVs. The Electric Vehicles Charging Infrastructure Strategy 2022 – 2025 aims to ensure charging points are placed at 60km intervals along motorways, with charging systems also serving homes and apartment blocks and neighbourhoods. Currently, the majority of EV charging (c.80 percent) is done at home, and access to and installation of home charging infrastructure is relatively well established. The focus of this Strategy is the provision of publicly funded charging infrastructure for electric cars and light-duty vehicles, the demand for is anticipated to grow as EV uptake increases. Under its Climate Action Plans, the Government plans for nearly one-third of all private cars in the State to be EVs by 2030. There are currently only 73,500 EVs on State roads, although sales of EVs reportedly rose by 81 percent in 2022. Under the new strategy, charging stations will also be set up at leisure and tourist locations like sports clubs, parks, visitor attractions and hotels – so-called ‘destination charging’. The first practical roll-out of the strategy is the new €15 million Shared Island Sports Club Scheme, which will open on 30 January and will help sports clubs install electric vehicle charge points in local communities across the island of Ireland. This week also saw the UK government publishing its Electric vehicle smart charging action plan setting out the steps that government and the UK Office of Gas and Electricity Markets (Ofgem) will take to deliver energy flexibility from electric vehicle (EV) charging, providing affordable, green power. Registration available: Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive Registration is now open for a webinar by the Department of Enterprise, Trade and Employment (DETE) on Thursday 26 January (10am-12pm) to explain the new Corporate Sustainability Reporting Directive (CSRD). The Directive and accompanying mandatory reporting standards will apply to large companies whether listed or not, and to listed SMEs. Companies will have to report on their impact on the ESG matters and human rights, based on common standards, and the information companies provide will be audited.  Wind energy displaces over €2 billion on the island of Ireland Wind generation in Ireland and Northern Ireland displaced a total of €2,570 million worth of both fossil gas and carbon credits in the wholesale market, reducing the island’s CO2 emissions and its reliance on fossil fuels. This is according to analysis conducted by energy consultants, which found ‘avoided costs’ for fossil gas of €1,650 million and £410, and of €340 million and £90 for carbon credits in the respective jurisdictions due to the wind energy’s contribution. In a single day (8 March) a total avoided cost of €43 million resulted from a combination of high winds and extreme fossil gas prices. One-third of all electricity in Ireland was reportedly generated from wind in 2022. Net Zero Technology Centre 2023 Open Innovation Programme The Net Zero Technology Centre (NZTC) has launched its 2023 Open Innovation Programme aimed at developing and deploying data and digital technologies that will reduce offshore emissions, accelerate clean energy production, and enable delivery of the UK’s net zero ambitions. Businesses around the world can apply for up to £500,000 funding from NZTC, with the potential of additional match funding from industry to support their technology development and deployment projects. The projects must support the transition towards net zero with an obligation of trialling and deploying technology within the UK continental shelf.  UK Energy Bills Discount Scheme announced from 1 April 2023 The UK  government has announced a new energy scheme for businesses, charities, and the public sector, ahead of the current scheme ending in March 2023. The new Energy Bills Discount Scheme (EBDS) will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024. The EBDS will run for 12 months from 1 April 2023 to 31 March 2024.   Network for Chartered Accountants working in ESG 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, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to attend please email sustainability@charteredaccountants.ie Articles How Eco-Friendly Is That Product? Four Ways to Spot Greenwashing (Bloomberg) Young scientists and sustainability (RTE News) Global action saved the ozone layer, so why not the climate? (RTE News) Most businesses believe rivals are greenwashing, new study finds (Irish Times) Companies parachute accountants in to fix flawed ESG data (Financial Times) Events Scaling up the Circular Economy Webinar - Jan 27, 2023 12:00 PM Circular at scale requires new thinking, new strategies, new tactics, new propositions. Business models and customer-supplier relationships need be reimagined. This webinar will focus on developing your ‘circular mindset at scale’ with input from circular champions who are embracing the circular economy at scale. The webinar is ideal for those, across leadership and boards, trying to figure out how to create value in their business through circular thinking. Ensure you design a secure circular value chain to future proof your organization. Jan 27, 2023 12:00 PM (Register here) Resource Matching Workshop – Northern Ireland Hosted by Invest Northern Ireland's Resource Matching Service, a free in-person workshop from 9am–1pm on 22 February will allow businesses across Northern Ireland to find new, sustainable solutions to their waste resources and material needs, saving money and supporting Northern Ireland's green circular economy.  Attendees will be asked provide information on what waste resources they have which could be sent to a new home for use instead of being disposed of - or what resources they want which others may have spare, saving costs on buying new. Resources can be anything from pallets and timber, steel offcuts to cardboard, vegetable mulch, used furniture, plastic containers. (Find out more here.) 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. Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. 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 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 launch of Enterprise Ireland’s 2022 annual report as well as the latest unemployment statistics for December released by the CSO. In addition, we examine the findings of the independent review into Invest NI released this week as well as details on the UK’s new Energy Bills Discount Scheme. We also take a look at the World Economic Forum’s latest Global Risks Report together with the findings of the European Parliament’s recent Eurobarometer survey. Enterprise Ireland reports creation of approximately 20,000 jobs with client companies during 2022 In its annual report for 2022 released this week, Enterprise Ireland reported the creation of 19,660 new jobs via its client companies during 2022. According to the report, client firms of Enterprise Ireland employed 218,178 people in the Irish economy overall during 2022, with over two thirds of these roles based outside Dublin. Taking account of jobs lost during the year, the net increase in employment created was 10,841 or 5 percent. The agency’s report also noted there were 161 early-stage company approvals or start-ups with funding in 2022. Drop in unemployment rate recorded in December – CSO The Central Statistics Office (CSO) recorded a drop in the rate of unemployment seen in Ireland to 4.3 percent in December 2022. In its latest Monthly Unemployment Estimates published this week, the CSO noted how this figure was down from 4.4 percent in November 2022, and significantly down from the rate of 5.1 percent seen in December 2021. The seasonally adjusted number of persons unemployed was 114,500 in December 2022 compared with 117,000 in November 2022. Moreover, according to the estimates, there was a decrease of 18,600 in the seasonally adjusted number of persons unemployed in December 2022 when compared with a year earlier. Independent review of Invest NI finds that “profound change” is needed An independent review into the efficiency and effectiveness of Invest NI, Northern Ireland's economic development agency, has found that “profound change” is needed that will require both reform and repurposing of the organisation as a whole, if it is to perform as intended. Finding that the agency is having limited impact on productivity, with considerable room for improvement in leadership, structure, operation, control and public accountability, the independent review has called for stronger governance and oversight of the body by the Department of the Economy. Launch of new Energy Bills Discount Scheme The UK government has announced a new Energy Bills Discount Scheme (EBDS) from April 2023 to April 2024 for eligible non-domestic consumers in Great Britain and Northern Ireland. The current Energy Bill Relief Scheme provides a discount on wholesale gas and electricity prices for all non-domestic consumers. This includes public sector organisations, voluntary sector organisations and businesses. With this current scheme due to come to an end in March of this year, the new scheme will come into effect from 1 April 2023 and run for 12 months, with a cap set at £5.5 billion based on estimated volumes. Worsening cost of living crisis identified as number one global risk by World Economic Forum as Europeans expect additional state supports In its latest Global Risks Report, The World Economic Forum (WEF) has identified “growing debt distress” and “a continued cost of living crisis” as the top threats to geo-economic security in the next two years. Precipitated by the global pandemic and ongoing war in Europe, a combination of energy, inflation, food and security crises have consequently created “follow-on risks” including the risk of recession across a number of economies, according to the report. Meanwhile, the European Parliament’s latest Eurobarometer survey indicates that the rising cost of living is the most pressing concern for 93 percent of Europeans with citizens surveyed highlighting a clear expectation for the EU to provide additional support measures to combat the crisis.

  In this week’s Sustainability/ESG bulletin, read about a webinar on the Corporate Sustainability Reporting Directive, NTMA’s sale of a new green bond, and updates to the TBESS and Cycle to Work schemes. Also covered is a public consultation on draft Circular Economy Strategy for Northern Ireland, the ‘polycrisis’ list from the World Economic Forum’s Global Risks Report 2023, Chartered Accountants Ireland’s new network for Chartered Accountants working in ESG, and articles, podcast and jobs. Save the date: Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive The Department of Enterprise, Trade and Employment (DETE) will hold a webinar on Thursday 26 January (10am-12pm) to explain the new Corporate Sustainability Reporting Directive (CSRD). The Directive and accompanying mandatory reporting standards will apply to large companies whether listed or not, and to listed SMEs. Companies will have to report on their impact on the environment, social and governance matters and human rights, based on common standards, and the information companies provide will be audited. Registration will be open soon, but in the meantime save the date, and email any other questions to csrd@enterprise.gov.ie.  NTMA raises €3.5 billion from the sale of a new 20-year green bond (From our Public Policy team) The National Treasury Management Agency (NTMA) has raised €3.5 billion through the syndicated sale of a new 20-year Irish Sovereign Green Bond (ISGB), maturing in October 2043. The funds were raised at a yield of 3.106 percent and generated a total order book of €35 billion from just under 300 investors. An increasingly popular form of sustainable finance, green bonds are a type of fixed income instrument the proceeds from which must be used for environmental and sustainable development projects. This is Ireland's second sovereign green bond, following the inaugural issue in October 2018. Updates on the TBESS and the Cycle to Work Schemes (From our Tax team) Revenue has updated the guidelines on the Temporary Business Energy Support Scheme (TBESS) with additional information following queries received by businesses wishing to avail of the scheme. A summary of the changes is outlined in the “What’s new” page at the beginning of the guidelines. Revenue has also updated the Tax and Duty Manual regarding the Cycle to Work Scheme to reflect the Finance Act 2022 amendments. The guidance now includes a definition of cargo bike for the purposes of availing of the higher exemption limit of €3,000, together with updated examples. Broader scorecard planned for National Competitiveness and Productivity Council (NCPC) Changes to the competitiveness indicators typically used by the for National Competitiveness and Productivity Council (NCPC) have been announced, following a review of potential additional benchmark data sources. Changes include the inclusion of sustainability and equality indicators. The NCPC Scorecard benchmarks the competitiveness of Ireland’s business sector against international peer countries. The change was reportedly prompted by ‘[g]lobal transformations, such as the twin digital and green transitions and the shift towards sustainability and equality’. In its bulletin, NCPC Secretariat announced that “it [was] timely to consider newly available indicators, including those on sustainability, skills, innovation and well-being, and to refresh the selection of comparator countries, in measuring Ireland’s performance against key competitors and the world’s best performers.”   Public consultation on draft Circular Economy Strategy for Northern Ireland The Department for the Economy in Northern Ireland has launched a public consultation on the draft Circular Economy Strategy for Northern Ireland. This draft strategy sets out a vision that by 2050, Northern Ireland will have an innovative, inclusive and competitive economy where business, people and planet flourish, with responsible production and consumption at its core. It will be a key enabler of Northern Ireland’s 10X Economic Vision for a decade of innovation. The overarching target of the Circular Economy strategy is to halve Northern Ireland’s annual material footprint per person to eight tonnes by 2050. The public consultation is open for 10 weeks until 20 March.   Find out more about the circular economy in the Resources section of Chartered Accountants Ireland’s Sustainability Centre. €169 million for a just climate transition in Ireland €169 million from the Just Transition Fund (JTF) will be invested in Ireland following the approval of its Territorial Just Transition Plan (TJTP).  The Fund will invest in economic diversification and job creation in green sectors, particularly in approximately 500 local micro, small and medium-sized businesses. The TJTP also allows for financing under InvestEU (a programme which supports sustainable investment, innovation and job creation in Europe) and the Public Sector Loan Facility for Just Transition, a new tool that combines €1.5 billion of Commission grants with €10 billion loans from the European Investment Bank to mobilise billions of public investment to meet the development needs of just transition territories. ‘The age of the Polycrisis’: the World Economic Forum’s Global Risk Report The World Economic Forum’s Global Risks Report published this week, and identified ‘natural disasters and extreme weather events’ and ‘failure to mitigate climate change’ in top 5 risks in both the near-term (2 years) and long-term (10 years). The report, which tracks global risks perceptions among risk experts and world leaders in business, government, and civil society, examines risks across five categories: economic, environmental, geopolitical, societal, and technological. While ‘cost of living crisis’ is the number one risk in the short term, in the long term climate-related risks occupied each one of the top five risks places, and included failure to adapt to – as well as mitigate – climate change, biodiversity loss and large scale involuntary migration with natural disasters and extreme weather events. Of these, large scale involuntary migration was the only newly identified risk. A new term emerging the year is ‘polycrisis’, where risks are more interdependent and reciprocally damaging than ever. Commenting, Saadia Zahidi, Managing Director, World Economic Forum warned that “Climate and human development must be at the core of concerns of global leaders, even as they battle current crises. Cooperation is the only way forward.” Network for Chartered Accountants working in ESG 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, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to attend please email sustainability@charteredaccountants.ie Articles Batteries, hydrogen and storage: Flexibility is new frontier of zero-carbon electricity (Irish Times) Q&A: The EU Corporate Sustainability Reporting Directive: To Whom Does It Apply and What Should EU and Non-EU Companies Consider? (Skadden.com) Abu Dhabi oil chief appointed president of COP28 climate summit (Financial Times) Podcasts Welcome to the age of the polycrisis: the Global Risk Report 2023 (World Economic Forum) 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. Certificate in Sustainability Strategy, Risk and Reporting Find out more about Chartered Accountant Ireland's 8-week Certificate in Sustainability Strategy, Risk and Reporting programme designed to provide accountants with a strong foundation in sustainability and ESG issues and how they are relevant to their business, organisation, practice, and clients. Understand key reporting frameworks, tools, and metrics, and be equipped to address the sustainability opportunities and challenges already faced. You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.