In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s response to the call for expert evidence on the Climate Action Plan 2024. Also covered is Institute representation at the Commercial Built Environment Roadmap Working Group, the recent increase to the Non-Domestic Microgen Grant to install Solar PV panels, the launch of the first Biodiversity Leaders Programme for Irish Industry, sustainability-related updates from Europe, as well as the usual roundup of articles, resources and events.
Chartered Accountants Ireland - Climate Action Plan 2024
Chartered Accountants Ireland has responded to the call for expert evidence by the Department of the Environment, Communications and Climate Action (DECC) to support and inform the preparation of the Climate Action Plan 2024. This plan is due for publication later this year.
In the Institute’s response, Chartered Accountants Ireland identified challenges facing businesses - particularly SMEs - in decarbonising, and recommended that the Government further investigates barriers to businesses wishing to take climate action. Also included in the response was a recommendation the Government highlights the risks and opportunities that climate change presents for businesses, as well as tax measures to support climate action. For more details on tax measures see the Pre Budget Submission 2024 – Supporting Ireland’s Transition to a Sustainable Future of the Consultative Committee of Accounting Bodies – Ireland (CCAB-I).
Chartered Accountants Ireland attends Commercial Built Environment Roadmap Working Group
Institute representatives Stephen Lowry, Public Policy Manager and Joey Hayden, Conferencing & Facilities Manager, attended a meeting of the Government’s Commercial Built Environment Roadmap Working Group under the Heat and Built Environment Taskforce. This Taskforce was established to accelerate and drive delivery in relation to retrofitting, renewable heat, district heat and decarbonisation of the building stock. The meeting was to help inform the development of a Commercial Built Environment Roadmap as it relates to office users and the commercial landlord sector. The roadmap, which will set out the key existing and new policy interventions to achieve the objectives set out to reach Ireland’s targets in relation to the commercial buildings sector, is due to be published in September.
Increased financial support for businesses – solar panels
The Irish Government has announced an increase to the Non-Domestic Microgen Grant. This grant provides financial support for businesses, farms, schools, community centres or other non-profit organisations to install Solar PV panels to generate electricity on site. New funding ranges from €2,700 to €162,600, typically supporting 20-30 percent of the investment cost and reducing payback periods. The grant is administered by the Sustainable Energy Authority of Ireland (SEAI).
Separately, the Department of the Environment, Climate and Communications has published its Policy Statement on Geothermal Energy for a Circular Economy, to raise awareness of the potential of geothermal energy, and its National Hydrogen Strategy, which sets out the strategic vision on the role that hydrogen will play in Ireland’s energy system.
Summer Economic Statement – Climate Action Fund
An additional €2¼ billion to spend over the period 2024-2026 has been announced in the Irish Government’s Summer Economic Statement 2023. The additional finance, from windfall corporation tax receipts, will be made available to boost delivery of critical capital infrastructure projects and make a contribution to the existing Climate Action Fund.
New Retrofit Collection of Standards launched
A new collection of standard recommendations has been published, compiled by the National Standards Authority of Ireland (NSAI). The Retrofit Collection aims to guide the delivery of high-quality, sustainable, and efficient building upgrades. Launching the collection at a Department of Enterprise Trade and Employment’s ‘Building Better Business’ event, Minister of State with responsibility for Employment Affairs and Retail Business, Neale Richmond TD stated that “[t]his collection of standards from NSAI provides a clear and reliable pathway for businesses in the construction sector, enabling them to confidently deliver high-quality retrofit installations to their customers.”
First Biodiversity Leaders Programme for Irish Industry launches
A new programme has launched that will facilitate professionals across all sectors to implement effective Biodiversity Action Plans. An eight-week course, led by Anja Murray, Broadcaster, Ecologist, and Programme Lead at Climate Ready Academy, the Biodiversity Leaders Programme was launched by the Climate Ready Academy (an initiative of Skillnet Ireland). It aims to guide and empower businesses to adopt responsible and sustainable practices that can promote and enhance biodiversity within their field. In the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) ‘E4 standard’ specifically addresses corporate sustainability relating to biodiversity and ecosystems (see Business for Biodiversity Ireland).
Department of Enterprise Trade and Employment encourages businesses to engage with sustainability reporting
The Minister of State with responsibility for Company Regulation at the Department of Enterprise, Trade and Employment, Dara Calleary TD has encouraged businesses to engage on new Corporate Sustainability Reporting Directive, the CSRD. Read more.
Northern Ireland’s 10X Delivery Plan publishes
Northern Ireland’s Department for the Economy has published the 10x Delivery Plan for 2023/24. The plan aims to be a step-change for growth for Northern Ireland’s economy. It outlines a work schedule to help deliver the 10x Economic Vision and its objectives and represents a ‘transformative approach to supporting innovative economic growth in a way that is inclusive and sustainable’. Among the sustainability areas of focus are Northern Ireland’s use of renewable energy and reduction of greenhouse gas emissions, and a planned doubling in the size of the low carbon and renewable energy economy.
EU Nature Restoration Law passes
The European Parliament has adopted its position on the EU Nature Restoration Law. This law proposes to restore at least 20 percent of the EU’s land and sea areas by 2030 and repair all ecosystems in need of restoration by 2050. The package reportedly aims to set specific targets for the first time on nature restoration. Measures will include rewetting some peatlands that had previously been drained, increasing green spaces in urban areas, and improving biodiversity in land used for agriculture and forestry.
The European Commission has also adopted a package of measures for a sustainable use of key natural resources. Measures include a soil monitoring law, proposals to boost innovation and sustainability, and new measures to reduce food and textile waste. The proposals are to be discussed by the European Parliament and the Council in the ordinary legislative procedure.
‘Unprecedented’ sustainability commitments in EU/New Zealand free trade agreement
A new landmark free trade agreement between the EU and New Zealand includes ‘unprecedented’ sustainability commitments, including in respect of the Paris Climate Agreement and core labour rights. For the first time ever in an EU free trade agreement the deal has a dedicated sustainable food systems chapter, a dedicated trade and gender equality article and a specific provision on trade and fossil fuel subsidies reform. It also liberalises environmental goods and services at entry into force. Following the ratification process in both the EU and New Zealand, the deal will enter into force.
International Federation of Accountants feedback on Sustainability Reporting Standards
The International Federation of Accountants (IFAC) has submitted feedback in response to the European Commission’s European Sustainability Reporting Standards (ESRS). In its response, IFAC welcomed the standards while noting significant concerns regarding the need for interoperability that supports a global system for reporting.
IFAC has also welcomed the International Sustainability Standards Board’s (ISSB) new standards and other important jurisdiction or regional initiatives, notably the U.S. SEC’s proposed climate disclosure rule. However, these approaches, it says, must align key concepts, terminologies, and metrics to avoid regulatory fragmentation, especially on matters of materiality.
Glossary update
The Chartered Accountants Ireland sustainability glossary has been updated to include carbon sinks and geothermal energy.
Did you know?
- 15 July has been inaugurated as the EU Day for the Victims of the Global Climate Crisis. The annual day will serve to commemorate victims in Europe as well as worldwide and to raise awareness of concrete steps that people can take to help prevent - and be better prepared for and respond to - climate disasters.
- The International Sustainability Standards Board (ISSB) has opened a new office in Beijing. The office’s work will focus on executing the ISSB’s strategy for emerging and developing economies, developing countries and SMEs, and will serve as a hub for stakeholder engagement in Asia.
Resources
- A free sustainability advisory service is now available from the Enterprise Europe Network at Dublin Chamber. The new EEN Sustainability Advisory Service focuses on improving business’ sustainability strategy. It is suitable for SMEs and companies at any stage in their sustainability strategy journey.
Articles and newsletters
- Accountancy Europe’s Sustainability Update covers the European Commission’s sustainable finance package, the European Supervisory Authorities sharing a common understanding of greenwashing, the start of the CSDDD trilogue negotiations and the publication by the ISSB of its two inaugural standards.
- Five tips for easier climate reporting – British luxury brand Burberry shares the five things that would have been good to know right from the start (ICAEW Insights)
- Accounting firms accused of missing climate risks in company audits (Financial Times)
- Irish businesses demonstrate confidence and pursue sustainability (Accountancy Ireland – Briefly)
- The NewERA Climate Action Framework- a guide (Accountancy Ireland – The Bottom Line)
- Four pathways to sustainable Irish cities (Accountancy Ireland – Briefly)
Upcoming events
- SMEs and Your Finance for Energy Projects – Webinar – 25 July, 13:00 – 14.00
Is energy a business significant cost? If so, join next week’s webinar about SMEs and Your Finance for Energy Projects. The webinar will focus on SMEs that rent/own buildings for office, retail, warehouse, hotel, pub or leisure services, and landlords that lease/rent buildings to SMEs. The panel discussion will address key topics, including financial supports and where should an SME start. Register here.
- Dublin 2050 - the Future of Sustainable Finance – In-person event – 5 Sept, 8.30 – 10.00
The latest in the ‘Dublin 2050 series’ this expert panel-led event aims to contribute to knowledge sharing, collaboration, and innovation within the business community on advancing sustainable finance practices and attracting investments aligned with ESG principles. Dublin Chamber, 7 Clare Street, Dublin 2
- Dublin Chamber – Sustainability Academy Workshops
Dublin Chamber has announced it will offer Sustainability Academy workshops in Autumn. Beginning with a workshop on Sustainability/ESG 101 in September, the 3-hour Zoom workshops includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor. Find out more here.
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 or 4th Wednesday of every month
- Next: 26 July, 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.
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