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In this week’s public policy bulletin, we take a look at the latest Irish rental market statistics as well as the performance of Ireland’s exports in the first quarter of 2023. In addition we examine the annual rate of inflation across the Euro zone as well as Northern Ireland’s labour market statistics for April 2023.     Rate of rise in rental prices slows in first quarter of 2023 The rate of increase in advertised rents slowed slightly during the first three months of the year, rising just 1 percent compared to the average rate of 3 percent seen in 2021-2022 according to the latest Irish Rental Report from Daft.ie. In particular, the first three months of 2023 saw open-market rents fall in the cities outside Dublin - even as they continued to increase strongly in many rural markets. Nonetheless, market rents still rose by 11.7 percent in the year to March 2023, a high rate historically but a slowdown relative to the peak inflation rate of 14.1 percent seen in 2022. The total number of properties available to rent on May 1st was just 959. While this is up 13 percent on the same date a year earlier, it is one of the lowest totals seen on the site since the start of the report in 2005. Annual inflation up to 7 percent in Euro zone   According to figures published this week by Eurostat (the official statistical office of the EU), overall price growth accelerated to 7 percent in April from 6.9 percent a month earlier, as rising services and energy costs offset a slowdown in food price growth. The lowest annual rates were registered in Luxembourg (2.7 percent), Belgium (3.3 percent) and Spain (3.8 percent) while the highest annual rates were recorded in Hungary (24.5 percent), Latvia (15.0 percent) and Czechia (14.3 percent). Inflation has so far remained above the ECB's 2 percent target for nearly two years now with the bank raising interest rates by a combined 375 basis points since last July to arrest runaway price growth. Latest figures show Irish exports remaining strong in first 3 months of 2023 According to statistical data published this week by the CSO, the value of Irish goods exports came to €18.8 billion in March with exports of medical and pharmaceutical products accounting for nearly 40 per cent of this total figure. While this was down on same period last year, it was strong in historical terms and reflects the ongoing strength of Irish exports more generally. The figures show that total exports for the first quarter of the year were valued at nearly €51 billion. Irish goods imports for March amounted to €11.2 billion. In seasonally adjusted terms, the State’s trade surplus was €6.6 billion. Northern Ireland Labour Market statistics The Northern Ireland Statistics and Research Agency this week released its latest batch of labour market statistics for the region. According to the release, the number of employees receiving pay through HMRC PAYE in NI in April 2023 was 785,500, a 0.6 percent decrease over the month but a 1.5 percent increase over the year. Moreover, HMRC PAYE data indicated that NI employees had a median monthly pay of £2,062 in April 2023, a decrease of £56 (2.6 per cent) over the month and an increase of £128 (6.6 percent) over the year. Meanwhile, the seasonally adjusted number of people on the claimant count was 37,500, representing 3.9 per cent of the total workforce.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s third National Climate Stakeholder Forum, new rules for Government departments for assessing carbon impacts when drafting government memos, and advice from the Oireachtas Committee on Social Protection on how the automatic-enrolment pension system can be used to ensure Ireland’s Climate Action obligations. Also covered is the proposed strategy for Ireland to maximise the economic opportunity from the production of Offshore Wind Energy, the impact of climate and digital transitions on Ireland’s public finances, and how the EU is increasing climate-change adaptation resources, as well as articles, podcasts and upcoming events.  Institute attends Ireland’s third National Climate Stakeholder Forum Institute’s Sustainability officer, Susan Rossney, represented Chartered Accountants Ireland in Ireland’s third National Climate Stakeholder Forum on Climate Action. Described by forum’s chair, ESRI’s Professor Alan Barrett, as “an inclusive platform for considered debate among key stakeholders" the workshop for policy makers explored the challenges and opportunities presented by the transition to carbon neutrality in a fair and equitable manner. The forum is a central pillar of Ireland’s National Dialogue on Climate Action (NDCA), and is one of the key actions identified in Ireland’s National Climate Action Plans to drive active engagement in shaping Ireland’s sustainable future. Irish Government climate administration The first quarterly Progress Report of Ireland’s Climate Action Plan 2023 has been published with 36 actions scheduled for delivery and reporting in Q1 2023. The implementation rate achieved was 75 percent with 27 measures completed on time this quarter. It was also reported that under new rules individual Government departments must assess the potential carbon impact when drafting important government memoranda Ireland. Also last week, the Oireachtas Committee on Social Protection  advised that the automatic-enrolment pension system not allow funds to invest in fossil fuels or the arms industry, and that a minimum percentage of the funds should be invested in Irish renewable energy development in order to ensure our Climate Action obligations. Plans announced to develop a National Industrial Strategy for Offshore Wind for Ireland Minister for Enterprise, Trade and Employment, Simon Coveney, T.D., has announced plans to develop a National Industrial Strategy for Offshore Wind. The Strategy, which is expected to publish in Q1 2024, will set out how Ireland can maximise the economic opportunity arising from the production of Offshore Wind Energy (OWE). In order to deliver the enterprise opportunities associated with Ireland’s ambitious OWE targets, a collaborative approach between state and industry is needed. The National Industrial Strategy for Offshore Wind will be developed in consultation with the relevant government departments, agencies, and industry, with the objective of ensuring that Ireland fully captures the value of both the supply chain to deliver an OWE sector at scale, and the routes to market for this renewable energy. Impact of climate and digital transitions on Ireland’s public finances The impact beyond the short-term on Ireland’s public finances of financing the climate and digital transitions was acknowledged this week in the Department of Finance’s ‘Future-proofing the Public Finances – the Next Steps’. In 10 Key Facts prepared by the Economics Division Department of Finance, the structural shift to Electric Vehicles was identified as likely to have an adverse an impact on Vehicle Registrations Tax, for instance, while up-skilling and re-skilling the population to harness the benefits of digitisation, automation, artificial intelligence, etc., will involve additional expenditure in the years ahead. Minister McGrath, in an accompanying press release commented: “Looking ahead, Government is also aware of the major expenditure challenges on the horizon. Shifting demographics and adapting to the climate and digital transitions will impose large costs on the public finances.” Energy in business – Sustainable Energy Authority of Ireland (SEAI) Sustainable Energy Authority of Ireland (SEAI) has published ‘Energy in Business’, its monthly update, with information on how participating businesses are finding the EV Commercial Fleet Trials. It also includes notes from the Interim Energy Report (see radio clip below), which gives an overview of the transformation of Ireland’s energy use at national level, and which showed an increase in 2022 in Ireland’s dependency on imported fossil fuels. Also covered is the €19 million in funding available from the 2023 SEAI National Energy Research, Development & Demonstration Funding Programme, which is now open for applications until 3pm, Monday 29th May 2023.   Are you an SME interested in retrofitting your premises (renters or owners)? A National Roadshow to help SMEs take the next step in commercial retrofitting is now underway. The roadshow, organised by ENACT, will be travelling across Ireland to bring in-person and online sessions to Cork, Dublin, and Galway. Sessions are organised by building type and sector. This is a unique opportunity for SMEs either owners or renters of premises: planning to/currently renovating offices, retail space, hospitality venue, leisure facility or warehouse, or have already completed a renovation and want to share their insights. Find out more and sign up here.   ENACT is a 3-year initiative tasked with ‘enabling national action on commercial renovation’.  It is funded by the Sustainable Energy Authority of Ireland (SEAI) and led by the Irish Green Building Council, in partnership with the University of Galway, SustainabilityWorks, Dublin Chambers of Commerce and the Society for Chartered Surveyors of Ireland. It aims to accelerate the rate of energy efficiency retrofits of commercial buildings around Ireland by enabling the commercial sector to overcome the barriers to retrofitting, which include financial, technical, knowledge and behavioural challenges. EU increases climate-change adaptation resources ‘Adaptation’ in the context of climate breakdown refers to how we adapt our society and economy in response to climate change by changing our processes, practices, and structures to moderate potential damages or to benefit from opportunities associated with climate change. Adaptation is at the heart of the European Climate Law and as part of the EU Adaptation Strategy. In this article the European Commission has gathered some examples of how the EU is helping Europeans both to prepare better for heatwaves and protect themselves from their severe consequences. This follows the recent launch of Commission’s new portal to help drive forward the EU’s Mission on Adaptation to Climate Change, offering knowledge and tools for use by regional and local authorities to help them develop, implement and monitor their climate change adaptation plans. Technical Update From our colleagues in Professional Accountancy  The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance. To access this guidance, its summary At-a-Glance document, and webcast, visit the IPSASB website. The International Sustainability Standards Board (ISSB) has published Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards.  The document will be available to download from the Open for comment section and from the International Applicability of the SASB Standards project page. The Irish Central Bank has recently issued a financial stability note entitled “Going Green, The Growth in Green Mortgage Financing in Ireland” . Content includes an overview, characteristics of green mortgages and comparison of green and non-green market shares. IDA Ireland has published an article on “How Ireland Is Becoming a leader in Renewable Energy Technology” Did you know? The GAA has been appointed as one of Ireland’s champions to help progress the United Nations’ Sustainable Development Goals (SDGs). The role of an SDG Champion is to act as an advocate and promoter of the SDGs and provide good practice examples of how an organisation can contribute to the SDGs and integrate them into their work and activities. 26 organisations were selected as part of the 2023-2024 SDG Champions Programme, to raise public awareness of the SDGs and to demonstrate that everyone in society can make a contribution to the 2030 Agenda for Sustainable Development.           Articles Company culture is more important than money to many job seekers - “In particular, they are both aware of and monitor corporate attitudes towards sustainability and workplace diversity and inclusion” (Irish Times) The Number of Climate Funds Out There Has Exploded (Bloomberg) 13 lessons from a climate change diplomat with months left to live – fascinating article on why Pete Betts, one of the world's most experienced environmental negotiators, still has hope for the planet (Financial Times) Climate body warns Government that delivery of measures not happening fast enough due to planning delays (Irish Times) Top court orders French govt to take more climate steps (RTÉ) Spain will ban some outdoor working during extreme heat (RTÉ) ‘Forest’ of Carbon Dioxide-Sucking Vending Machines Planned in Japan (Bloomberg) Podcasts SEAI publishes Ireland’s Interim Energy Balance for 2022 (RTÉ Radio 1) (5-min clip) Congratulations to shortlist for PwC Business Post Sustainable Business Awards 2023! Congratulations to all the businesses shortlist for the PwC Business Post Sustainable Business Awards 2023! Among those shortlisted are Chartered Accountant Climate Champions Bleeper Bikes and accountancy firm Grant Thornton. Upcoming Events   Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting. 16 May, 14:00-16:00 CEST  CDP Ireland - Network’s free Responder Training 2023  If you are considering disclosing your company’s environmental performance, or simply keen to understand what the latest best practice in Climate Reporting is, join the CDP Ireland Network’s free Responder Training 2023 online webinar on 17 May 17, 2pm-3.30pm delivered by CDP and Clearstream Solutions. This event is ideal for companies interested in disclosing their environmental performance for the first time or those who want to stay updated on the latest new topics and changes to the CDP 2023 Questionnaire.  Register here. 17 May Chartered Accountants Ireland - Annual Conference, Focus on the Future 18 May  SME Business Briefing, 10am – 11am Wednesday 24th May  Join SEAI on Wednesday 24th May at 10am and learn about how your business can save money and energy this year. This webinar will help you understand energy use and how to reduce energy costs, immediate ‘no-cost’ actions you can take to save, benefits of completing an Energy Audit and how SEAI will support you, the Climate Toolkit for Business and how to start your zero-carbon journey. 24 May Chartered Accountants Ireland - Webinar on the Corporate Sustainability Reporting Directive (CSRD) Join Dee  Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions. 25 May Irish Environmental Network, National Biodiversity Week 2023 19-28 May Business Post, ESG Summit, Croke Park, Dublin 30 May Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition. 8 June Northern Ireland Healthy Working Lives Conference 2023 This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June 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 : 24 May, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

In this week’s public policy bulletin we take a look at proposals issued this week by the Department of Finance on the set up of a new national public savings vehicle. We also review the latest inflation estimates from the CSO as well as the launch of a public consultation on the right to request remote working by the WRC. In addition, we take a look at the latest data on the growth of the UK economy from the Office for National Statistics. Department of Finance publishes proposals to establish long-term public savings vehicle The Department of Finance has this week published a paper entitled ‘Future-proofing the Public Finances – the Next Steps’. This scoping paper outlines some of the merits of establishing a long-term public savings vehicle in Ireland. With the Government forecasting budget surpluses of up to €65 billion between now and 2026, the proposed long-term savings fund would be capitalised with some portion of windfall tax receipts and future budgetary surpluses. According to the paper, this approach would follow a well-trodden path of advanced countries establishing sovereign wealth funds in order to build fiscal buffers in good times to part pre-fund future liabilities. It is understood that the Minister for Finance is planning to bring forward legislation in the coming weeks to establish such a long-term savings vehicle, similar to sovereign wealth funds that have operated in Norway, Australia and Japan. Slight ease in rate of inflation recorded in April – CSO The CSO this week published its latest Consumer Price Index for April 2023. According to the Index, inflation fell to 7.2 percent in the 12 months to April, down from 7.7 percent in March – marking its lowest level in a year. The most significant increases in the year were seen in the costs of housing, water, electricity, gas and other fuels which rose by 20.7 percent, while food and non-alcoholic beverage prices increased by 13.1 percent. On an annual basis, the Index found that electricity prices jumped by a total of 51.3 percent in April, while gas prices increased by 55.8 percent. The CSO noted that the cost of education and transport were the only divisions to show a decrease when compared with April of last year, with prices in the sectors down 6.3 percent and 2.3 percent respectively. WRC launches public consultation on code of practice for remote working The Workplace Relations Commission (WRC) has launched its consultation on the Code of Practice that will govern the right to request remote working under the Work Life Balance and Miscellaneous Provisions Act 2023. The code will set out practical guidance for employers and employees when it comes to requesting remote or flexible work while complaints can be taken to the WRC where an employer has not complied with the code. The deadline for submissions from stakeholders is 5pm on 9th of June 2023. Further details regarding the consultation process can be found here. UK economy grows slightly in first quarter but slumps unexpectedly in March The UK economy marginally grew over the first quarter of the year, according to official data from the Office for National Statistics (ONS). UK gross domestic product (GDP) increased by 0.1 percent between January and March, the lowest amount possible to still be classed as growth as IT and construction sector activity offset the impact of ongoing strikes in other industries. However, the economy shrank 0.3 percent in March as retail and car sales fell sharply, and public sector strikes intensified. Contraction also came thanks to a 0.5 percent fall in services production while distribution and retail also underperformed as cost of living pressures hit consumers.  

In this week’s public policy bulletin we take a look at the latest interest rate hikes from the ECB. We also review the CSO’s unemployment rate estimates for April 2023 as well as an assessment of Ireland’s competitiveness from the National Competitiveness and Productivity Council. In addition, we report on a series of anti-corruption measures proposed this week by the European Commission. ECB hikes interest rates for seventh time in less than a year The European Central Bank this week raised interest rates by an additional 25 basis points to 3.25 percent. Making the announcement, the bank’s governing council warned that “the inflation outlook continues to be too high for too long” and that “future decisions will ensure that the policy rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2 percent medium-term target”. This week’s rate increase marks the seventh such increase in less than a year with the bank now signalling that further rate increases are likely in the face of growing wage and price pressures across the Euro area. Rate of unemployment falls to match previous record low of 3.9 precent   The CSO this week released its Monthly Unemployment Estimates results for April 2023. According to the estimates, the country's unemployment rate fell to 3.9 percent in April – down from a revised rate of 4 percent a month earlier. Noting a decrease of 15,200 in the seasonally adjusted number of persons unemployed in April 2023 when compared with a year earlier, there were approximately 108,200 persons unemployed in the State last month. The unemployment rate was last at 3.9 percent between October 2000 and April 2001. You can read the full results of the publication here. Housing supply the most serious problem undermining Ireland’s competitiveness – report The National Competitiveness and Productivity Council (NCPC) this week published its 2023 Competitive Scorecard Report in which it found that housing supply is the most serious problem undermining the State’s competitive performance. The report specifically notes that in 2021, Ireland was the poorest performer in western Europe in terms of housing investment and that such constraints ultimately pose a risk to the State’s overall employment and living standards. In addition, while noting that overall Ireland’s macroeconomic fundamentals are strong, the report goes on to highlight how “there remain important areas for improvement if Ireland is to maintain, or improve upon, its competitiveness position in the years ahead” including improved efforts on meeting environmental targets and tackling price levels. The NCPC reports to the Government on key competitiveness and productivity challenges facing the Irish economy. European Commission puts forward new anti-corruption package This week the European Commission proposed a broad anti-corruption package consisting of a new Directive on fighting corruption and an expansion of the Common Foreign and Security Policy (CFSP) toolbox of restrictive measures (sanctions) to cover serious acts of corruption. According to the Commission, the aim of the new proposals is to integrate the prevention of corruption into the design of EU policies and programs, and actively support Member States' work to put in place strong anti-corruption policies and legislation. The package specifically includes new and strengthened rules criminalising corruption offences and harmonising penalties across the EU, as well as a proposal from the High Representative, supported by the Commission, to establish a dedicated Common Foreign and Security Policy (CFSP) sanctions regime to target serious acts of corruption worldwide.

In this week’s Sustainability/ESG bulletin, read about Ireland’s Long-term Strategy on Greenhouse Gas Emissions Reductions, the Launch of Ireland’s Programme for the EU Just Transition Fund, and the publication of the report on Ireland’s progress against Goal 17 of the UN Sustainable Development Goal. Also covered is the EU’s 30 percent emissions reduction since 1990, the go-live of the European ‘environment and health atlas’ and news on the European Parliament’s position on corporate sustainability due diligence, as well as articles, a webinar recording and news. Ireland publishes Long-term Strategy on Greenhouse Gas Emissions Reductions Ireland’s Department of the Environment, Climate and Communications has published its Long-term Strategy on Greenhouse Gas Emissions (GHG) Reductions. GHG emissions are gases that trap heat in the atmosphere and cause the Earth's atmosphere to warm up. Examples of greenhouse gases include carbon dioxide (CO2) and methane. The purpose of this Strategy is to deliver on Ireland’s 2030 climate targets and the long-term goal set by Ireland’s National Climate Objective and the European Climate Law. The Strategy looks at the next 30 years and covers: total GHG emission reductions and enhancements of removals by carbon sinks; emission reductions in individual sectors; expected progress on transition to a low GHG emission economy; the expected socio-economic effect of the decarbonisation measures; links to other national long-term objectives, planning and other policies and measures, and investment. A wide range of stakeholders fed into a public consultation on the strategy, along with cross-departmental input. However, a second consultation will launch shortly given recent climate policy developments.  Outputs from this consultation will form the basis for preparing an updated Strategy by the end of 2023. Launch of Ireland’s Programme for the EU Just Transition Fund Ireland’s Programme for the EU Just Transition Fund, worth €169 million, has officially launched with the aim of supporting communities most negatively affected by the move away from fossil fuels (coal, oil and gas) and the cessation of commercial peat extraction. These communities - 'Designated Territories' - include the counties of Laois, Longford, Offaly, Westmeath, Roscommon, and the Municipal Districts of Ballinasloe (Co. Galway), Athy and Clane-Maynooth (Co. Kildare), and Carrick-on-Suir and Thurles (Co. Tipperary). The Programme for the EU Just Transition Fund sets out the investment priorities and proposed allocation of expenditure to address the negative impacts identified in Ireland’s Territorial Just Transition Plan, which was finalised in 2022.  The fund, which will be in place until 2027, will support training and upskilling for former peat workers, enable communities to benefit from new green jobs, the development of affordable green energy, the decarbonisation of local transport, and the roll-out of new tourism enterprises. It will also support investment in sustainable agriculture and forestry, the development of SMEs and start-ups, as well as support for vital research and innovation. Also announced this week was a new research project exploring how AI can monitor Irish peatlands and boost biodiversity through targeted restoration. Peatlands cover roughly 17 percent of Ireland’s land surface, store vast amounts of carbon, are a source of biodiversity and protect nearby areas from flooding. Peatlands have been drained for decades for the purposes of farming, planting forests and as a source of fuel. The €200,000 project proposes using AI to monitor deteriorating peatlands, while using data gathered by drones, satellites and citizen scientists to develop an all-island map which will be used to identify peatland areas of high conservation value and those under threat from erosion, exploitation and the climate crisis.  Ireland's UN SDGs - Goal 17 - Partnerships for the Goals 2022 The Central Statistics Office (CSO) has published a report on the actions Ireland has taken towards achieving Goal 17 – Partnership for the Goals – of the United Nations Sustainable Development Goals (SDGs). The UN Sustainable Development Goals (SDGs) are a set of global development targets adopted by UN member countries in September 2015 to achieve a better and more sustainable future for all. The CSO is responsible for monitoring and reporting on the actions Ireland is taking against the targets under the goals. The report on Goal 17 is the 17th in a series of CSO reports which monitor and report on how Ireland is progressing towards meeting its targets under the 17 UN Sustainable Development Goals. This one focuses on data from 24 ‘indicators’ for Ireland divided across the chapters Finance; Technology; Capacity Building; Trade; Policy & Institutional Coherence; Multi-Stakeholder Partnerships; and Data, Monitoring & Accountability.   VAT treatment of the supply and installation of solar panels (From our colleagues in Tax) Revenue has published a new Tax and Duty Manual to provide guidance on the new zero VAT rate for the supply and installation of solar panels. EU reduces emissions by 30 percent since 1990 Official data published by the European Environment Agency (EEA) has confirmed that the EU has reduced its emissions by 30 percent since 1990. The ‘Annual EU greenhouse gas inventory 1990-2021 and inventory report 2023’ – the EU’s official submission of greenhouse gas emission data to the United Nations Framework Convention on Climate Change (UNFCCC) – reported that the economic recovery in 2021 increased the EU’s greenhouse gas emissions but their level remained lower than before the COVID-19 pandemic. Read more. European ‘environment and health atlas’ goes live The European Environment Agency (EEA) has launched an online platform housing data on the quality of the environment. The European environment and health atlas presents data and information in a user-friendly way on how pollution and other environmental risks affect the health and well-being of Europeans, and how environmental assets protect the human population find out more here link. The interactive online tool, a first on such a scale for all of Europe, allows users to visualise how the environment around them affects their health and well-being via set of detailed maps. It covers topics like air quality, noise and quietness, green and blue spaces and climate change throughout the member and collaborating countries of the EEA. Closely aligned by many EU policy targets, the atlas is one of the tools by prepared and published the EEA with the aim to support monitoring the European Union's zero pollution ambitions. Corporate sustainability: firms to tackle impact on human rights and environment MEPs on the Legal Affairs Committee of the European Parliament have adopted their position on the so-called corporate sustainability due diligence, the proposal for which was introduced by the European Commission on 23 February 2022. Under the proposed legislation firms would be obliged to identify, and where necessary prevent, end or mitigate the negative impact of their activities, including that of their business partners, on human rights and the environment, including child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss. Once the Parliament adopts its mandate in the plenary, the negotiations with the Council on the final text of the legislation can start. According to the committee’s proposal, the new obligations would apply after 3 or 4 years depending on the company’s size and turnover. Read more here Did you know? Spanish team FC Barcelona’s players chose to take a train over a private jet when traveling to a recent match against Getafe CF, which plays on the outskirts of Madrid. “We decided to do this trip to state that the club wants to be a solution to climate change, and not a problem,” the club’s sustainability directory Jordi Portabella reportedly said.  “We want to increase the number of trips we make by train instead of plane.” Articles Why restoring natural capital is good for business (McKinsey) Ireland has finally released its 30-year climate plan - here's what it says (The Journal) Five ways finance is trying to de-risk heat waves: some financial service providers have started to offer instruments aimed at reducing personal and economic risk associated with heat waves (Bloomberg Green) Empowering SMEs with carbon accounting tools is the key to reducing enterprise emissions across value chains (edie) 30 Per Cent club sets up new investor group to drive change and better gender balance (Business Post) Plastic packaging tax: detailed HMRC guidance on penalties - The penalties cover failing to register, submitting a late return, late payments and failing to meet other requirements of plastic packaging tax (ICAEW) Congratulations to our Chartered Star! Peter Gillen, Manager with the Sustainability Advisory Team, Grant Thornton, is the Chartered Accountants Ireland 2023 Chartered Star winner. Peter will attend the One Young World Summit in October, representing Chartered Accountants Ireland and Chartered Accountants Worldwide in Belfast. Peter began his career training with PwC in their Risk Assurance department before his passion for sustainability led him to joining the Sustainability team in Grant Thornton. As part of his role supporting clients navigate their sustainability journeys, Peter has worked closely with the EU in drafting the European sustainability reporting standards for a number of key industries and has facilitated workshops on the Textiles sector standard to over 135 stakeholder organisations reporting companies, NGOs, and industry groups. Peter is involved with several initiatives which help further the SDGs including Chair of the Young Professionals Committee and Mentor for the Trinity Alumni Mentoring Programme and has been a vocal advocate and ambassador for the profession for many years.  Watch Back - How 'green' is green electricty? Killian Daly, General Manager with EnergyTag and global expert on science-based decarbonisation at scale discusses 'green electricity', what is truly 100% renewable electricity and what standards – if any – exist for renewable electricity. Watch back here. (24 mins) Upcoming Events   Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting. 16 May, 14:00-16:00 CEST  Chartered Accountants Ireland Annual Conference, Focus on the Future 18 May  Webinar on the Corporate Sustainability Reporting Directive (CSRD) Join Dee Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions. 25 May,10-11, Zoom, register here.   Irish Environmental Network, National Biodiversity Week 2023 19-28 May Business Post, ESG Summit, Croke Park, Dublin 30 May   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 : 24 May, 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.  

European Commissioner Mairead McGuinness speaks to Neil Stokes, Tax Associate at PwC, about the European economy, the possibilities for a digital euro and sustainable finance What is your outlook for the European economy in 2023, given the backdrop of the continued war in Ukraine, monetary tightening and the spectre of a recession looming large? The past few years have been a time of immense change.  While we are not yet completely out of the woods with the pandemic, people are back at work, and the threat to global health has decreased.  However, we find ourselves in a very dark time for Europe, and indeed the world, with the Russian invasion of Ukraine on 24 February 2022. The terrible impact has been, first and foremost, on Ukraine and its people. But there are knock-on effects, including dramatic volatility in energy prices, requiring Member States to take action to help the most vulnerable families and businesses.  The EU is among the most exposed advanced economies due to our proximity to the war and our past reliance on gas imports from Russia.  Despite these headwinds, the EU economy has shown remarkable resilience. We have thus far avoided recession and energy shortages.  Political unity of EU Member States is paying off. The Commission worked hard to counteract the worst impacts of the war, just as it acted to avoid the worst impacts of the global pandemic.   We need the same collective effort for the year ahead to make progress on the transition to net zero and maintain the competitiveness of European businesses.  We are also strong in our solidarity with Ukraine. What is your outlook in the medium to long term for cryptocurrencies/decentralised finance, given the recent collapse of FTX? Digitalisation is a game-changer. We can all see that. It’s causing deep structural changes and creating new opportunities and challenges in the financial sector.  I can’t say what will happen with crypto in the long term, but the EU is ahead of the curve in acting to regulate these relatively new developments.  The FTX collapse is evidence that all that glitters is not gold, and it is a cold shower for ‘believers’ in crypto – who see it as the future of finance.  Our approach to cryptocurrency is to address the clear risks and shortcomings while still enabling innovation to flourish.  We will soon have the Markets in Crypto-Assets regulation in force, which will bring crypto into the regulatory and supervisory fold.  We also have a new pilot regime for Distributed Ledger Technology, or DLT, which is the technology that underpins crypto. This pilot will allow financial companies to experiment with DLT for the trading and settlement of ‘tokenised’ financial instruments in a safe environment and let regulators learn from the experience.  What do you see as the main advantages/disadvantages of cryptocurrencies from a consumer standpoint? Do you see them being used as a widespread medium of exchange in the near future? Crypto comes with risks, as we’ve seen all too clearly.  Some consumers invested in crypto, lured by a false promise of value going up and up and up.  Crypto is a risky investment and subject to volatility. What goes up can also come down – and very dramatically, as some investors have experienced.  Others have been victims of scams or hacks that are all too frequent in what’s still a largely lawless ‘Wild West’ of crypto.  There are advantages to blockchain technology. It cuts out the middleman – removing the need for centralised processes and intermediaries. It can make transactions more efficient and transparent by recording key information in an unchangeable format, making it accessible to all market participants.  For instance, this could make payments cheaper, faster and safer. Blockchain technology also has the potential for the trading and settlement of securities. But those benefits cannot emerge in a Wild West scenario. So, we need regulation, and that’s what the EU is doing. What are your thoughts on the future of the digital euro and its interaction with the physical euro? First, a note on the process. It is the European Central Bank that will decide on whether to issue a digital euro or not. But a decision with such huge consequences for people, businesses and economies needs a strong democratic basis.  This year, the Commission will propose a legal framework to regulate the essential elements of a digital euro, and the European Parliament and Member States will discuss and shape this proposal. What should a digital euro look like if we decide to proceed? I always stress that the idea for the digital euro is that it will complement, not replace, cash.  We are witnessing a society becoming increasingly digital, and the pandemic accelerated this trend with the closure of bank branches and more transactions on mobile apps and online services.  A digital Central Bank euro would ensure that we maintain a public complement to private digital means of payment.  It could, for example, address some of the shortcomings in current options, like enabling offline payments – serving people without access to the internet or in remote areas.  It could be an open solution, unlike many private options that often rely on both sender and receiver using the same closed interface.  It could also be useful for payment providers, especially national providers that want to expand into other countries – which is essential because we want public and private solutions to coexist.  We have to carefully consider the possible design: privacy and data protection are vital, but we also need to consider how we fight financial crime.  Commercial banks are wondering about the impact it would have on them – the investigative work of the European Central Bank is pointing to a digital euro primarily to be used as a means of payment, not a store of value – so it doesn’t create an incentive to move deposits away from commercial banks.  We’re also considering questions around who would distribute a digital euro, the costs involved and ensuring easy access to it.  The key point is that a digital euro would have to provide real added value. And – again – we would also make sure that people can access and use physical cash. There is a need for a public discussion about a potential digital euro, and our pending legislative proposal will allow for that discussion. What are the European Commission’s priorities on sustainable finance and how does the EU plan to finance the transition to a more sustainable economy? The ambition of the European Green Deal is high: Europe should become the first climate-neutral continent by 2050.  The cost of the transition cannot be funded by the public purse alone; we need every part of the economy and the financial system to play its part.  Overall, when it comes to sustainable finance, we are thinking both about how the financial sector is resilient against climate risks, and the contribution it can make to the transition.  The EU sustainable finance agenda is about transparency, so we have a number of tools relating to disclosure. Companies will disclose their transition plans, helping to refocus and track their efforts towards sustainability.  The key to becoming a more sustainable economy is to invest in the transition.  Our work on Capital Markets Union is important in providing the necessary private financing of the transition and allowing citizens to become more involved in capital markets, putting their money towards this more sustainable future.