Sustainability/ESG bulletin, Friday 2 August 2024

In this week’s Sustainability/ESG bulletin, read about sustainability-related warnings from the National Competitiveness and Productivity Council (NCPC) and in the National Economic Dialogue 2024 report. Also covered is the CSO’s first-time publication of ESG information, sustainability indicators in Ireland’s wellbeing framework that contribute to the Budget process, updates from Northern Ireland and Europe, including the passing into law of the CSDDD and EFRAG’s release of a study on early implementation of ESRS, and the usual articles resources and events.

Ireland news

CSO offices publishes ESG information for the first time

The Central Statistics Office (CSO) has published Environment, Social and Governance Reporting: Data for the Enterprise Economy 2024. This is the first time the CSO has published environment, social and governance (ESG) information, and is one of the first European statistical offices to do so. Read our summary here.

Budget process contributor tracking sustainability indicators publishes

The Government has published 'Understanding Life in Ireland: The Well-being Framework 2024', showing Ireland’s performance on 35 indicators, across 11 dimensions. Of the 15 indicators considered particularly important for sustainability (economic, social and environmental), seven perform well over time and Ireland compares favourably with other countries in four. The Environment, Climate and Biodiversity dimensions performed negatively, though, both over time and in comparison, internationally. Analysing progress under the Well-being Framework is now an annual contribution to the Budget process and supports a broader discussion of the impact of budgetary decisions.

“A more shock-prone world”: challenges and opportunities for Ireland

The report from the Chair of the National Economic Dialogue 2024, which took place on 27 May, has published, describing a “more shock-prone world” with changing global trade and investment patterns presenting significant implications for the domestic economy.  Read our summary here.

Report finds deficits in Ireland’s competitiveness

The National Competitiveness and Productivity Council (NCPC) has warned that the current strain on utilities means business demand could soon outstrip supply with ramifications for inward investment. The Competitiveness Challenge 2024 report, which published last week, set out a range of key challenges facing Ireland’s economy, which included “persistent deficits” in energy and water representing a serious “reputational risk for Ireland”.

NESC calls for work quality across all sectors

The National Economic and Social Council’s (NESC) also published a report advocating for improving work quality across all economic sectors. The report, titled Towards a National Better Work Strategy calls for targeted state intervention and greater integration of social policy, productivity, and skills development. Key recommendations include sectoral taskforces, social partner involvement, comprehensive research programs, and a focus on workplace innovation.

Separately, the Minister for Social Protection, Heather Humphreys TD, launched Work and Access, a new Employment Programme aimed at removing barriers that disabled people may face in the workplace. The programme offers seven key grants for supports ranging from equipment to training.

UK/Northern Ireland news

Launch of open call for energy research

The Department for the Economy has launched an open call for energy research, with £400K funding available. The research funded will directly contribute to the evidence base that will support policy-making associated with the Energy Strategy. Further information on the call, including themes, proposal guidance and key dates, can be found here and the deadline for submissions is 30 August.

Survey into impact of plastics-related regulatory changes

The Office for the Internal Market (OIM), part of the Competition and Markets Authority (CMA), has launched a study on the economic impacts of measures to reduce the use of single-use plastics, which can help with the development of future policy by governments. OIM is seeking views from businesses about their experience of dealing with regulatory changes in relation to single-use plastics. They have issued an online survey which is available here until 16 September.

Women in business bootcamps

Women in Business is running a wide-ranging programme of female entrepreneurship programmes and events over the upcoming months. The free Yes You Can: Imagine It Bootcamps are delivered for women who want to turn their hobbies or burning business ideas into a reality. The next bootcamp is on Wednesday 18 September at Mallusk Enterprise Park, with more locations to be announced for Autumn 2024 and early 2025.

Sustainable development and The Kings Awards for Enterprise

Northern Ireland businesses are invited to apply for The King's Awards for Enterprise, which recognise and encourage the outstanding achievements of UK businesses in the fields of sustainable development, as well as international trade, innovation and promoting opportunity through social mobility. Businesses of all sizes and from all sectors can apply until Thursday 12 September, and full details are available here.

Europe News

EFRAG releases study on early implementation of ESRS

The European Financial Reporting Advisory Group (EFRAG) has published a study that sets out preliminary practices related to the implementation of European Sustainability Reporting Standards (ESRS). The conclusions of the study are based on interviews of 28 large EU-headquartered undertakings across eight sectors split between financial and non-financial enterprises. The report, titled State of play as of Q2 2024 | Implementation of European Sustainability Reporting Standards (ESRS): Initial Practices from Selected Companies' has a section ‘Preliminary observed ESRS implementation practices’ which sets out practices and challenges observed by a sample of large companies in the initial stages of ESRS implementation focusing on four areas:

1. The double materiality assessment
2. Data points
3. Value chain and
4. ESG reporting organisational approaches

CSDDD enters into force

The EU Corporate Sustainability Due Diligence Directive (CSDDD) has come into force after a lengthy legislative process during which it was approved by the EU Parliament in April 2024, adopted by the EU Council on 24 May 2024, published in the EU's Official Journal on 5 July 2024, and entered into force on 25 July 2024. EU member states now have 24 months to transpose the legislation into national law. The Directive  aims to foster sustainable and responsible corporate behaviour throughout global value chains. It applies to EU and non-EU companies with a turnover over €150 million and smaller companies in certain sectors.

The European Commission has announced that it will start infringement procedures against Ireland and several other members states in the field of, among things, environment, calling on it to meet waste collection and recycling targets. Ireland has two months to respond and address the shortcomings raised by the Commission. In the absence of satisfactory responses, the Commission may decide to issue reasoned opinions.

World news

• Yes, these grey skies are ‘global warming’ (Irish Times)
• Survey shows 80 per cent of Irish people are ‘alarmed’ or ‘concerned’ about climate change (Irish Times)
• Could ISSB reporting mandates arrive sooner than first thought? (Accountancy Age)
• Bonuses linked to diversity & inclusion are being challenged. Where do Irish companies stand? (Business Post)

Resources

• A4S (Accounting for Sustainability) has published a new report providing economy-wide, actionable recommendations for accelerating the global transition to a just, climate-resilient, net zero world. Accelerating the Transition: Assessing Progress and Driving Action outlines the current state of sustainability efforts and identifies barriers to progress. It proposes practical actions for businesses, investors, governments and regulators.

The Law Society of Ireland 2024 Environmental, Social and Governance (ESG) Massive Open Online Course (MOOC)
Delivered over 5 weeks, the Law Society’s 2024 MOOC on ESG is now available online and on demand. The MOOC is free and open to all, and Institute Professional Accounting Lead, Dee Moran, is speaking on the topic of the sustainable reporting landscape.

A4S (Accounting for Sustainability) Pensions Deep Dive: Using a narrative scenario approach for asset allocation
Mirko Cardinale, Head of Investment Strategy, USS Investment Management, will share insights on using a narrative scenario approach within investment decision-making processes, and how this affected USS's thematic investment outlook and strategic asset allocation review. There will also be a Q&A discussion on the practical implementation of narrative scenarios to support the asset allocation process.
In person/virtual: 5 September, 16.00–17.30 BST

A4S (Accounting for Sustainability) Sustainability in Action Webinar: Net zero – Scope 3 for the real economy
Register for this webinar to receive practical advice for measuring and reducing your scope 3 emissions. During the webinar, we will discuss the pivotal role that finance teams can play in addressing scope 3 emissions. Practical examples shared during the webinar will help you translate the experience and learnings of others to your work.
In person, 10 September, 16:00 BST

Premier Publishing & Events, Northern Ireland Sustainability Summit
The 2024 Northern Ireland Sustainability Summit is being held in the TEC, Belfast on the 12th of September with an impressive line-up of Sustainability leaders, academics and government agencies who will engage in a stimulating blend of keynote addresses and debates. The theme is ‘Creating an Innovative and Sustainable Manufacturing & Supply Chain Ecosystem’
In person, Titanic Exhibition Centre Belfast, 12 September 

Chartered Accountants Ireland, The SME and SMP Sustainability Workshop
A workshop for SMEs and small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands.
Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points.

EPA, Circular Economy Conference 2024
Online and in-person (Aviva Stadium, Dublin), 25 September

Dublin Chamber, The Sustainability Academy
Dublin Chamber is running its Sustainability Academy again this year with workshops offering a unique opportunity to gain a comprehensive and well-rounded understanding of sustainability. This course fee includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor.
Virtual, starting 27 September

ESG Summit Europe, ESG Summit Europe 2024
In person, Madrid, October 1-2 

ICAEW, Annual Conference 2024
Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future.
In person, Convene, London UK, 4 October,  8:00 - 17:00 BST   

Environment Ireland, Environment Conference
Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield.
In person, Croke Park, 17 October

Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI)
Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape.
24 October, 08:30 – 12.00, Virtual

IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference
The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore:

• Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance,
• Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education,
• Future skills for sustainability reporting and assurance,
• Strategies for enhancing accounting education and student skills development.

In person, 1 November, Maynooth University

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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.

• Next meeting: Wednesday, 28 August, 14:00-15.30
• Zoom

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.