Sustainability/ESG bulletin, Friday 3 February 2023 ​

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