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  In this week’s Sustainability/ESG Bulletin read about the Small-scale Renewable Electricity Support Scheme, sustainability and innovation in a new leadership programme for SMEs resources for creating a sustainable business, and a new nature recovery fund for Northern Ireland. Also covered is the sustainability implications for businesses of the new EU Competitiveness Compass, the new standards and guidance from IAASB and IESBA to strengthen sustainability reporting and assurance, and well as the usual articles and upcoming events.   Ireland news Small-scale Renewable Electricity Support Scheme The Small-scale Renewable Electricity Support Scheme (SRESS), the renewable electricity scheme without an auction, operated by the Department of the Environment, Climate and Communications, opened for applications this week (27 January). Small-scale renewable energy projects are defined as renewable electricity generation technologies with an electricity output greater than 50kW, but smaller than typical commercial generators. The SRESS will be operated on the basis of a policy lifetime out to 2030 and includes a 15-year tariff support lifetime for successful export applicants.   CSO figures on 2022 fossil fuel subsidies released CSO figures released this week show a 68% increase in fossil fuel subsidies in Ireland in 2022, from €2.8 billion in 2021 to €4.7 billion in 2022, including direct subsidies to households and tax rate reductions on petrol and diesel. Separately, 2024 was confirmed by the Copernicus Climate Change Service (C3S) to be the warmest year on record globally. Human-induced climate change remains the primary driver of extreme air and sea surface temperatures, with fossil fuel use one of the key contributing factors. Sustainability and innovation in new Dynamic Leadership SME programme Enterprise Ireland, in partnership with Dublin City University (DCU), has launched Dynamic Leadership: Roadmap to Growth. The leadership development programme is designed to equip senior leadership teams of Irish SMEs with the tools, strategies, and insights required for sustainable growth and international success. Programme highlights include a focus on innovation and sustainability, workshops on digital transformation, sustainability, and calculating carbon footprints. Resources for businesses to optimise energy usage and reduce costs The Sustainable Energy Academy Ireland (SEAI) has launched two free new eLearning modules through the SEAI Energy Academy platform: www.seaienergyacademy.ie/. Designed to help businesses optimise their energy usage and reduce costs, the modules are: The new "Fundamentals of Hot Water" module provides comprehensive guidance on managing hot water systems effectively across various business settings. While particularly valuable for sectors with high hot water demands—such as hospitality, manufacturing, and healthcare—the module offers insights relevant to businesses of all sizes.    "Introduction to Building Management Systems," focuses on the increasingly important role of Building Energy Management Systems (BEMS) in modern business operations. This module demonstrates how BEMS technology can revolutionise the way businesses control their building services and reduce energy waste.  Women in Finance Charter 2025 Annual Survey underway The 2025 Annual Survey is now underway for Signatories of the Women in Finance Charter, an initiative to promote greater gender equality in the financial sector. Firms signing the Charter commit to achieving greater gender balance across their organisations, set targets appropriate to the company, and formulate an action plan to achieve these targets. The closing date for the survey is 9 February and further details on the Charter and guidelines for signatories will be available on the Balance for Better Business website. Case Studies for sustainable businesses The Department of Enterprise, Trade and Employment (DETE) has published case studies on how businesses are becoming more sustainable. Three businesses are profiled, including Sweet N Green café, Stories by Ola, and Laundry Lab. For more information on all the supports available to business visit the National Enterprise Hub on neh.gov.ie.    Northern Ireland/UK news Northern Ireland launches nature recovery fund A new fund to support Nature Recovery environmental projects, the first of its kind, across Northern Ireland, has been launched by Environment Minister Andrew Muir. Councils and voluntary organisations can now apply for the Nature Recovery Challenge Fund Competition 2025/26 – 2027/28 which will offer a minimum grant award of £50,000. More details are on the DAERA website. UK government announces offshore infrastructure measures The UK government has announced measures to accelerate the construction of offshore infrastructure, with up to 13 major offshore wind projects expected to generate up to 16GWs of electricity, create employment in the offshore wind sector, and potentially unlock £20-30bn of investment in clean power. Earlier in January the government announced measures to support nature recovery at scale in for the Planning and Infrastructure Bill  as part the government’s Plan for Change. Aligning transition planning and financial planning- resource Accounting for Sustainability (A4S) has developed a resource on transition plans, with support from ICAEW. The resource, Aligning Transition Planning and Financial Planning: key questions for finance teams, outlines key questions for finance teams to help understand the different transition planning activities that may have financial implications. Transition plans can have many benefits, such as delivering new revenue streams, but to turn them into action they need to be supported by adequate financial resources.   Europe News The European Commission has launched its Competitiveness Compass framework, a strategic initiative which aims to “rekindle economic productivity and secure the EU’s competitive edge”. It aims to promote sustainability through an Affordable Energy Action Plan, a Clean Industrial Deal, an Industrial Decarbonisation Accelerator Act and through tailor-made action plans for energy intensive sectors, such as steel, metals, and chemicals. It further sets out an approach and a selection of flagship measures to achieve the three transformational imperatives identified in the Draghi report, i.e. around innovation, decarbonisation and competitiveness, and security. One such measure is the Simplification Omnibus Packages, which aim to reduce the reporting obligations for businesses by up to 25 percent (and up to 35 percent for SMEs), and align various EU regulations related to sustainability, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy. It is anticipated that the Competitiveness Compass will help smaller companies integrate sustainability into their operations without facing excessive administrative burdens. World news IAASB and IESBA unveil new standards and guidance to strengthen sustainability reporting and assurance The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have launched an integrated effort to support effective implementation of their landmark standards aimed at advancing trust and transparency in sustainability reporting and assurance. Taken together, the IAASB and IESBA sustainability-related standards, as well as the new IESBA standard on using the work of experts, provide a unified global approach to address the growing demand for trustworthy sustainability information to support stakeholder decisions. Report highlights carbon pricing as essential for green hydrogen growth A report from the Potsdam Institute for Climate Impact Research has shown that the growth of green hydrogen is unattainable without carbon pricing. The report, Green hydrogen: Big gaps between ambition and implementation, emphasises the need to focus more on demand-side measures to increase the number of green hydrogen consumers, rather than concentrating solely on supply-side measures. It highlights legislation like the EU’s Renewable Energy Directive, which mandates that green hydrogen must constitute 42 percent of all hydrogen used in industry by 2030, as a crucial step forward. Additionally, it advocates for carbon pricing to account for the environmental costs of producing hydrogen with fossil fuels. Planetary Insolvency report - Risk management and policy decisions A new report has identified an increasing risk of ‘Planetary Insolvency’ – severe societal and economic disruption caused by a breakdown in critical ecosystem services.  The report, Planetary Solvency - finding our balance with nature, brings together risk management techniques, the latest climate science, and systemic risk assessment methodologies assesses the ability of our planet now, and in the future, to support human society and the economy. It is the latest in a series of papers focussing on climate risk from the Institute and Faculty of Actuaries (IFoA) and the University of Exeter, and highlights how risk management techniques, informed by the latest science, can help to guide policy decisions to support future prosperity. Technical Roundup (From our colleagues in Professional Accounting) The FRC has published a thematic review of Climate-related Financial Disclosures by Alternative Investment Market (AIM) and large private companies, following their first cycle of mandatory reporting in the UK.   EFRAG has published a document mapping the voluntary Eco-Management and Audit Scheme against the ESRSs.   Accountancy Europe has set up a tracker that monitors the transposition of the CSRD across the European Economic Area.   (update) Accountancy Europe has also published a FAQs webpage addressing common questions about sustainability reporting assurance. It’s organised into two sections: 1. key concepts of assurance in sustainability reporting and 2. EU regulatory framework.   Articles Why businesses must lead the charge on climate action (Accountancy Ireland - Briefly) The ESG divide in 2025 (Accountancy Ireland - Briefly) What has to happen next for the circular economy to become established in Ireland? (Irish Times) New sustainability reporting rules could hurt Ireland’s reputation, law firms warn (Irish Times) Trump’s Week One Ends With a Heap of Climate Rollbacks (Bloomberg) Administrative burden reduction: Accountancy Europe’s first specific recommendations (Accountancy Europe) What’s the Business Outlook for Nature in 2025? (Business for Biodiversity Ireland) Building credibility and trust in sustainability reporting and disclosure (ICEAW Insights) How accountants can create sustainable value (CPA Canada) Events A4S, The Sustainability Value Triangle The webinar includes exclusive findings from research with professionals: The sustainability actions with the highest perceived impact on value; Insights into overcoming barriers to cross-functional collaboration; The role of mandatory reporting in fostering integration. Expert panelists include: Brad Sparks, A4S;’ Dr. Robert Eccles, Saïd Business School, University of Oxford; Mardi McBrien, IFRS Foundation Virtual, 6 February, 16.00 GMT   Chartered Accountants Leinster Society, 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲𝘀 𝗼𝗻 𝗖𝗦𝗥𝗗 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻  Discover how the implementation of CSRD will present both challenges and opportunities for companies in Ireland from Deloitte's Hollie Keating, Director and Sustainability Reporting & Assurance Lead, and Gareth Martin, Audit Managing Director Virtual, 12 Feb | 1-2pm | FREE Queen’s Business School, QBS Business Breakfast Insights: Sustainability 2030 and beyond Queen’s Business School is hosting the Business Breakfast Insights series, offering insights to help businesses navigate economic and environmental challenges. This first event will explore sustainability in business, with a focus on digital sustainability and sustainability reporting. In person, 13 February, 8.30-10.30, Queen’s Business School, Riddel Hall, Belfast, BT9 5EE   A4S, Sustainability in Action Webinar: Management Information This interactive webinar, aimed at finance professionals, will provide practical insights on how to refocus management reporting and management information by introducing a more integrated approach. Information drives decisions – our speakers will show how considering social and environmental factors results in better information that drives better decisions. Virtual, 25 February, 16.00 GMT Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Link to job details)   Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

Chartered Accountants Ireland was pleased to see the publication of the Programme for Government by the incoming administration this week. The Programme contains a number of commitments on key priorities for our members, that we hope will come to fruition, including:   On SMEs: the programme’s commitment to address the regulatory and cost burdens facing SMEs is welcome, in particular its pledge to establish a dedicated Small Business Unit in the Department of Enterprise and commitment to rigorously apply the’ SME test’ to all new legislation that risks further increasing business costs, prior to enactment.   On childcare: commitments to progressively reduce the cost of childcare to €200 per month per child are positive. Moreover, pledges to provide capital investment to build state-owned childcare facilities to create additional capacity will be welcomed by parents who are struggling to find a place for their child in local childcare facilities. If successfully implemented, these measures could leave working parents better off and free up vital working capacity in the economy.  On climate: the continued commitment to accelerating Ireland’s progress towards achieving the 17 Sustainable Development Goals (SDGs) is welcome. It is encouraging to see, in particular, a focus on the  further development of the sustainable finance sector, renewable energy, upskilling and training, and the provision of supports for industry – including supports for small businesses – to decarbonise and embrace a circular economy.     The Institute looks forward to working with the new Government to ensure these important commitments are delivered over the course of the 34th Dáil term and to continue to amplify the voice of our members on the policy issues of importance to them.      

  In this week’s Sustainability/ESG Bulletin read about sustainability in the new Programme for Government, planned Government climate and environmental spending 2025, and Responsible Business resources issued by DETE. Also covered is a survey showing a growth in confidence in sustainability governance, a ‘ticking clock’ for investors to invest in resilience, and the publication of the World Economic Forum’s Global Risks Report 2025, as well as the usual articles and upcoming events.   Ireland news Sustainability in the Programme for Government The Institute welcomes the continued commitment in Ireland’s published draft Programme for Government to accelerate Ireland’s progress towards achieving the 17 Sustainable Development Goals (SDGs). While much needs to be done, the focus on further development of the sustainable finance sector, renewable energy, upskilling and training, and the provision of supports for industry – including supports for small businesses – to decarbonise and embrace a circular economy, are welcome, as is the commitment to the continued use of carbon tax revenues to fund social welfare measures, among others.   Planned Government climate and environmental spending for 2025 A report published by the Department of Public Expenditure, NDP Delivery & Reform (DPENDR) on planned climate and environmental spending in 2025 has found that nearly €7 billion of expenditure allocated will have a “probable favourable impact” on climate and environmental criteria. This includes funding for activities targeting emissions-reductions (e.g. retrofitting, investment in public transport, implementing flood-risk-management programmes, biodiversity/ecosystem-protection programmes and more). The report found, however, that just over €2 billion of planned expenditure will have a “probable unfavourable impact” reportedly representing an increase of 40%  in 2025 on 2024 figures. This includes funding on measures such as fossil fuel subsidies or other potentially harmful supports, as well as emissions-intensive activities in transport, agriculture and industry.   CSO – Ireland 2024: The Year in Numbers Almost half (46%) of all new private cars licensed up to November 2024 were electric, plug-in hybrid, or hybrid, according to figures from the CSO’s Ireland 2024: The Year in Numbers. The figures also reveal that more than 4,000 Business Energy Rating (BER) audits were published in the first nine months of 2024 for non-domestic or commercial buildings, of which the most energy-efficient building types were found to be in schools and colleges. Separately, the Sustainable Energy Authority of Ireland (SEAI)’s end of year review shows a record year of progress for SEAI in 2024, with almost €616 million invested in projects across homes, communities, businesses, and public sector organisations. This 13% increase on 2023 activity included over 3,500 businesses being approved for more than €62 million in grant support, as well as the launch of a new, rapid approval Business Energy Upgrade Scheme.    DETE resources on Responsible Business initiatives: Environment Presentations from the Department of Enterprise, Trade and Employment (DETE) on responsible business and the environment held on 6 November 2024 are now available on the Department’s website. These include: Creating a Nature Positive Economy for Ireland – Lucy Gaffney, Executive Director, Business for Biodiversity Ireland Emissions Trading and Carbon Border Adjustment Mechanism by Dr Maria Martin Climate Change Programme, EPA Ecodesign for Sustainable Products Regulation, Aisling McCarthy, Climate Programmes Unit, DETE OECD Guidelines for Multinational Enterprises on Responsible Business Conduct   Northern Ireland/UK news Confidence grows in sustainability governance An annual survey of directors and executives from around the world conducted by INSEAD Business School (the non-profit business school with locations in Europe, Asia, the Middle East and North America) has found that confidence in sustainability governance had grown significantly year-on-year. In an article published last week, ICAEW Insights examined whether a sustainability committee might be a useful addition to the board.   “The clock is ticking” for investors, says CISL The Cambridge Institute for Sustainability Leadership (CISL) has published a guide for investors to build climate resilience within their portfolios and invest in systemic resilience through engagement with the broader ecosystem. Commenting on the publication, titled Investing in Tomorrow: A Guide to Building Climate-Resilient Investment Portfolios, Director at the Centre for Sustainable Finance, Dr Nina Seega said “The clock is ticking — investors face a critical choice: act now to safeguard portfolios and invest in resilience, or risk the future of both their assets and the global ecosystem. As climate risks intensify, this guide offers a clear path to build resilience and drive systemic change for a sustainable, adaptive future.”   World news Global Risks Report 2025 publishes The World Economic Forum has published its Global Risks Report 2025, listing ‘State-based armed conflict’ as the top risk likely to present a material crisis on a global scale in 2025. ‘Extreme weather events’, ‘Geoeconomic confrontation’, ‘Misinformation and disinformation’ and ‘Societal polarization’ remain top short-term risks, with ‘Economic downturn’ climbing up from tenth place in 2024 to sixth place this year.   Over the longer-term (10 years) the top four risks identified are: Extreme Weather Events, Biodiversity loss and ecosystem collapse, Critical change to Earth systems, and Natural resource shortages.   The report, which presents the findings of the Global Risks Perception Survey 2024- 2025 (GRPS), captures insights from over 900 experts worldwide and provides six in-depth analyses of selected risk themes. Did you know… …you can now ‘bulk return’ bottles and cans in Ireland through the Deposit-Return Scheme? Newcastle Services Station in Dublin has Ireland’s first Bulk Feed Recycling Machine which lets users recycle hundreds of containers in seconds - no more feeding them one by one. (TikTok) Articles IOB appoint Diarmuid Murphy as Director of Sustainability and International Markets (Business Plus) Insuring against climate change: An interview with Brian O’Neill, Head of Communications, Sponsorship, Sustainability at Aviva Ireland (Business & Finance) High Court rules An Bord Pleanála must prioritise climate law in wind farm case likely to affect all public bodies (Irish Independent) A4S unveils guide on making business case for nature (ICAEW) Greenwashing and sustainability assurance: a review and call for future research (Journal of Accounting Literature Events TEKenable Ltd and the EU Commission, CSRD Data Readiness Training This training session, organised in collaboration with TEKenable Ltd and the EU Commission offers insights on best practices, tools to improve your sustainability efforts, CSRD compliance, and more. Virtual, 24 January 2025, 13:00 - 14:30 CET Business in the Community Northern Ireland From Awareness to Action: Building Disability Inclusive Workplaces First of a new series of monthly online sessions aiming to support businesses in creating more diverse and inclusive workplaces Tuesday 28 January, 10:00 – 10:45am. Chartered Accountants Worldwide, Difference Makers Discuss: Resilience in the Chartered Accountant Accountancy profession Virtual, 30 January, 18.00 GMT Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Job details)   Sustainability Centre 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, Sustainability/ESG Bulletin read about tax measures for electrical vehicles now in effect from Budget 2025, detailed climate projections and new funding for adult financial literacy projects in Ireland. Also covered is the entering into application of new EU rules to improve gender balance in corporate boards, a new OECD paper on how public budgeting can support climate goals, the departure of US firms from the Net-Zero Banking Alliance, as well as technical updates, articles, podcasts and upcoming events.   Ireland news EV tax measures from Budget 2025 now in effect   The following tax measures pertaining to Battery Electric Vehicles (BEVs) announced in Budget 2025 took effect from Wednesday 1 January 2025: BIK Exemption for Installation of BEV home charger: From 1 January 2025, a benefit-in-kind (BIK) exemption will apply to the installation of a battery electric vehicle (BEV) home charger by an employer at a director’s or an employee’s private residence. This means that a director or employee will not pay BIK on the installation of a home charger, which is required for work purposes and aims to support the rollout of BEVs in the commercial fleet. VRT Rate Change for Commercial Battery Electric Vehicles (BEVs): Finance Act 2024 amended the weight ratio requirement from 130% to 125% for commercial electric vehicles in order to qualify for the €200 category C VRT rate. This amendment comes into effect from 1 January 2025.   Climate Projections for Ireland: Key Findings and Implications Scientists based at the Irish Centre for High-End Computing (ICHEC) in the University of Galway have warned that Ireland’s future weather will be even warmer and wetter than previously predicted. Commenting, the report’s lead author, Paul Nolan, said that it is imperative that planners and policymakers are adequately informed about future climate change so they can implement appropriate mitigation and adaptation measures: “This research will inform national policy and further our understanding of the impacts of climate change at a local scale”.   New funding for adult financial literacy projects in Ireland The Competition and Consumer Protection Commission (CCPC) is to contribute €250,000 towards adult financial literacy projects in 2025 supporting adults with the skills needed to build financial literacy and access financial services. Latest figures from the Programme for International Assessment for Adult Competencies (PIAAC) published by the OECD show that one in four adults in Ireland struggle with everyday maths. The funding announcement by the CCPC follows the publication in April 2024 by the Department of Finance of a mapping report into the development of a Financial Literacy Strategy.   Export phase of Small-scale Renewal Electricity Support Scheme The terms and conditions of the export phase of the Small-scale Renewable Electricity Support Scheme (SRESS) have been published. They have been designed with the aim of providing a simpler route to market for community and small-scale projects, and to align more closely to the experience and capacity of this sector. Commenting, Eamon Ryan, Minister for the Environment, Climate and Communications described the approval of the SRESS terms and conditions as “an important milestone for communities, SMEs [Small and Medium Sized Enterprises], farmers and others to maximise their participation in the energy transition.” The scheme is due to open for applications on 27 January 2025.   Northern Ireland news Business in the Community Northern Ireland (BITCI), in partnership with Diversity Mark, has announced a new series of monthly online sessions aiming to support businesses in creating more diverse and inclusive workplaces. The first session, ‘From Awareness to Action: Building Disability Inclusive Workplaces’ will take place on Tuesday 28 January, 10:00 – 10:45am.   Europe news New EU rules to improve Gender Balance in corporate boards enter into application New EU rules to improve Gender Balance in corporate boards have entered into application. The Gender Balance on Corporate Boards Directive, which entered into application at the end of 2024, aims for a more balanced gender representation on the boards of listed companies across all EU Member States. The Directive sets a target for EU large listed companies of 40% of the underrepresented sex among their non-executive directors and 33% among all directors. The deadline for the transposition by Member States was 28 December 2024, and companies must meet the targets by 30 June 2026.   World news OECD publishes paper on how public budgeting can support climate goals The OECD has published a paper on how public budgeting can support climate goals. The paper, Beyond green tagging, discusses new instruments to better link budgets and results, the challenges involved in linking budget and emissions, and the steps needed to overcome them.   Net-Zero Banking Alliance loses firms Several major Wall Street banks, including Bank of America, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley and Wells Fargo have left the Net-Zero Banking Alliance – a group dedicated to helping lenders reduce their carbon footprints. More US banks are expected to follow their lead, in a development reportedly reflecting growing anti-ESG sentiment in the US.   LA fires damage and economic loss potential A preliminary estimate of the financial impact of the damage and economic loss caused by the Los Angeles wildfires of $52 billion is likely to make it one of the costliest natural disasters in US history.  Burned homes and losses in tourism are among the major long-lasting costs resulting from the fires, which are thought to be the result of high winds, lack of rain and climate change. Technical Updates (From our colleagues in Professional Accounting) EFRAG has added further non-authoritative technical explanations to its compilation of explanations that are intended to assist stakeholders in the implementation of the European Sustainability Reporting Standards (ESRSs).  EFRAG has also published an addendum to EFRAG IG 3 ‘ESRS Datapoints’, which is part of EFRAG's non-authoritative implementation guidance on the European Sustainability Reporting Standards (ESRSs)   EFRAG has announced that it has delivered its technical advice on the Voluntary SME (“VSME”) standard to the European Commission. EFRAG has also released some educational videos on the VSME standard.   The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other.     The FRC, in its role as the Secretariat to the UK Sustainability Disclosure Technical Advisory Committee, has published the Committee’s final recommendations to the Secretary of State for Business and Trade, recommending endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK.   Chartered Accountants Ireland has issued Technical Alert 04/2024 Sample CSRD Limited Assurance Report. This is in addition to Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive, issued in June 2024.   The Institute has revised the CPD Regulations with effect from 1 January 2025. CPD Regulation 4.6 now specifically mentions 'sustainability assurance' as a subject area in which a member who is working in practice should undertake CPD if that member is involved in work of this nature.  Read more here   Accountancy Europe has published a new webpage of FAQs: fundamentals to assurance on sustainability reporting  The International Federation of Accountants (IFAC) and the We Mean Business Coalition (WMBC), together with the Global Accounting Alliance (GAA), have published a report titled ‘Building Trust in Sustainability Reporting and Preparing for Assurance: Governance and Controls for Sustainability Information’.   Accounting for Sustainability (A4S) is preparing a series focused on nature to assist accountants and finance professionals in shaping a nature-positive economy that supports long-term value creation. The first guide in the series, The Business Case for Nature, explains why nature is vital to business and offers clear steps and practical tips for developing the business case for your organization. Articles Irish listed firms must ‘take action’ to meet new EU gender targets (Business Post) The antidote to doom is doing (FT-SustainableViews)   Podcasts Bloomberg’s Akshat Rathi talks to science fiction writer Kim Stanley Robinson, author of the seminal 2020 novel Ministry for the Future which is set in the year 2025 (Bloomberg) Events SEAI, Introduction to Energy Management Training The Sustainable Energy Authority of Ireland (SEAI) is running a free online workshop on the basics of implementing energy management within your business. Virtual, Thursday, 16 January, 2-4pm Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Job details)   Sustainability Centre 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 Sustainability/ESG bulletin read about the ESRI report on collective climate action, Ireland’s commitments to improve the sustainability of ICT procurement, and a report on Ireland’s recycling rates. Also covered is the 2027 cap on ETS2, responses to the EU-Mercosur trade deal, news from Europe on SME sustainability reporting, as well as a podcast, a new resource for finance professionals on building the business case for nature, articles, and updates to the Chartered Accountants Ireland Sustainability Centre.   Ireland news ESRI report finds cooperation in collective climate action key The ESRI has published a research bulletin, How to Encourage Collective Climate Action, including a review of 272 studies on how people behave in collective action problems specifically concerned with climate change. Some of these challenges are ‘multi-level coordination’ (i.e. that local action is needed to achieve national or international goals), uncertainty about which actions will be effective, the fact that consequences of today’s decisions will be most strongly felt by future generations, and the need to overcome psychological biases (e.g., status quo bias – a preference for things to stay as they are, even if the alternative is better).  The bulletin recommends showcasing success stories to inspire action, and using multiple, smaller-scale initiatives instead of one large strategy to help foster cooperation by aligning goals with local identities and benefits. Ireland joins international partnership aimed at promoting sustainable ICT procurement practices Ireland has entered into a voluntary agreement to co-operate with other bodies, internationally, to improve the sustainability of ICT procurement. The initiative – the Circular and Fair ICT Pact (CFIT) – is an international procurement-led partnership with a remit to accelerate circularity, fairness, and sustainability in the ICT sector. Joining the CFIT Pact fulfils a commitment in Buying Greener: Green Public Procurement Strategy and Action Plan 2024-2027, which aims drive the implementation of green and circular procurement practices across the public sector. Ireland shows no improvement in recycling rates in 10 years The Environmental Protection Agency (EPA) has published the Circular Economy and Waste Statistics Highlights Report 2022, which states that Ireland generated 15.7 million tonnes of waste in 2022. Although a decrease on 2021 figures, this still shows a growth of over 20% in the last decade, with construction activities accounting for half of all waste generated. Ireland is now almost certain to miss EU municipal and packaging recycling targets for 2025. Europe news The EU-Mercosur trade The EU-Mercosur trade deal has been signed by the EU and four Mercosur countries — Argentina, Brazil, Paraguay and Uruguay – following 25 years of negotiations. While the annex to the trade and sustainable development chapter of the deal commits parties to “prevent further deforestation and enhance efforts to stabilise or increase forest cover from 2030”, trade experts and environmental experts disagree, citing deforestation risks, among other negative impacts. Cap adopted for 2027 Emissions Trading System for buildings, road transport and small industry (ETS2) The EU Commission has adopted a decision establishing the EU-wide quantity of allowances issued under Emissions Trading System for buildings, road transport and small industries (ETS2) in 2027. The ETS2 is a new emissions trading system created as part of the 2023 revisions of the ETS Directive. It is separate from the existing EU ETS and will cover and address the CO2 emissions from fuel combustion in buildings, roadtransport and additional sectors (mainly small industries not covered by the existing EU ETS). This cap will amount to 1,036,288,784 allowances for 2027 and aims to contribute to the EU achieving its 2030 climate targets. Sustainability reporting for SMEs - update The European Financial Reporting Advisory Group (EFRAG) has delivered the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) to the European Commission. Based on market acceptance, the VSME has been designed to provide a standardised set of information in order to support ESG reporting for SMEs and boost access to finance. In 2025 EFRAG will issue support guides and educational material, among other initiatives. Accountancy Europe’s Sustainability update – December Covered in the recently published Accountancy Europe’s December Sustainability update are the EU Taxonomy FAQs on the usability of the  EU sustainable finance frameworks; updates on the Green Claims Directive; approval of ESG rating activities regulation; updates on the Deforestation Regulation, and ESMA’s proposal to phase in ESRS digital tagging requirements. World news The International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with the Global Accounting Alliance (GAA) have published Building Trust in Sustainability Reporting and Preparing for Assurance: Governance and Controls for Sustainability Information. The guide aims to provide a roadmap for organising and enhancing governance and control systems, and outlines steps to align sustainability and financial reporting in terms of quality, timing, and connectivity, and addresses challenges in sustainability reporting. The new guidance can be applied to the adoption of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) and jurisdictional requirements, including the European Sustainability Reporting Standards (ESRS). Articles In this blog post, Fergus Sharkey, Head of Business at the Sustainable Energy Authority of Ireland (SEAI), discusses the new suite of business energy grants available to SMEs to reduce costs, cut carbon emissions, and remain competitive (SEAI) Goldman Sachs’ Exit from the Climate Alliance: What’s Behind the Move? (Climate Action for Associations) Biodiversity hit to economies estimated at up to $25tn a year in landmark report (Financial Times) Paris to Replace Parking Spaces With Trees (Bloomberg) Podcast The financial case for sustainability: In this episode of Behind the Numbers from ICEAW, Philippa Lamb is joined by Richard Spencer, ICAEW Director of Sustainability and others  to discuss the challenge for accountants in ensuring that the quality of non-financial information matches that of financial information. New resource – The Business Case for Nature A4S (Accounting for Sustainability) has published The Business Case for Nature,  a guide explaining why nature is vital to business and offering clear steps and practical tips for developing the business case for organisations. The guide is part of the ‘A4S’s nature guidance series’, currently being created to give finance teams the practical guidance and tools to understand their nature-related impacts and dependencies, and to take steps to integrate nature-related risks and opportunities into business strategy and decision-making processes. Sustainability Centre Our Sustainability Centre has been updated to include links to sustainability webinars run by Chartered Accountants Ireland on the topic of sustainability.

  In this week’s Sustainability/ESG bulletin read about warnings from the Climate Change Advisory Council and the Irish Fiscal Advisory Council, the SEAI’s new Business Energy Upgrade Scheme, guides to sustainable gifting, and news on Northern Ireland’s carbon budgets, biofuel consultation and energy developments, as well as the UK Citizen’s Assembly’s call for trade policy to combat climate crisis. Also covered is the €340-€477bn decarbonisation investment gap identified for the EU, the Commission’s 2024 ‘SMEs, resource efficiency and green markets’ survey, news from the latest UN COP, and a report into product-level carbon intensity metrics.   Ireland news Global Chartered Accountancy institutes lead the way towards net-zero Chartered Accountants Ireland has participated in a study mapping the collective efforts of global Chartered Accountancy institutes in leading the way towards net zero and demonstrating the profession’s leadership in advancing sustainability. Read more here. CACC calls for transformational opportunity to achieve a sustainable society The Climate Change Advisory Council (CCAC) has issued a press release warning of “profound costs to the Irish economy and to … people” if Ireland does not reduce its emissions. In its final proposed Carbon Budget 3 (2031-2035) and provisional Carbon Budget 4 (2036-2040), CACC calls for strong political leadership to make the necessary investment, taxation and policy decisions to help Ireland capitalise on the “transformational opportunity that a climate neutral society presents”. An annual reduction of at least 6.3% on average year on year to 2040 is needed in order for Ireland to remain within the carbon budget, CACC warns, while the Sustainable Energy Authority of Ireland (SEAI) reportedly finds that emissions from the transport sector would need to be reduced by 35% in 2025 alone for that sector to stay within its existing 2025 carbon budget. Irish Fiscal Advisory Council advises spending rule Government “will stick to” The most recent report from the Irish Fiscal Advisory Council (Ifac) is calling for Ireland to set a more strategic course in budget policy, and a sustainable spending rule that “it will stick to”, and a realistic plan for dealing with the State’s health, housing and climate challenges. Commenting, Ifac chairman Seamus Coffey advised the incoming government to put in place ‘guardrails’ in the form of a rule to ensure against ramping up ongoing commitments as each budget day approaches: “A rule and some realistic plans would help to tackle infrastructure deficits, ageing pressures and climate needs, while also protecting growth and limiting future job losses.” SEAI launches new Business Energy Upgrade Scheme The Sustainable Energy Authority of Ireland (SEAI) has launched a new Business Energy Upgrade Scheme. The scheme, funded by the Climate Action Fund, offers up to €120,000 for a range of common building upgrade measures including pumps, solar thermal, automatic controls, heat pumps, ventilation, and wall insulation. The scheme is open to all businesses and small public bodies who are upgrading a building they own or occupy. Applications can be made online. BITIC publishes guide to sustainable gifting Business in the Community Ireland (BITCI) has published its Corporate Gift Guide 2024, with advice for choosing presents and a list of business and charities offering sustainable gift ideas. According to BITCI, corporate gifting is an opportunity for a company to put its sustainability values into practice, inspire employees, build a positive brand image, and contribute to a better world. Irish minister delivers keynote at Coalition for Capacity on Climate Action The President of the Eurogroup and Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, T.D., has delivered a keynote speech at the inaugural Symposium of the World Bank’s Coalition for Capacity on Climate Action (C3A). Launched in 2023, the C3A seeks to bridge the gap between science and policy in addressing climate and nature-related economic and financial challenges. It engages with Ministries of Finance, among others, to support informed policy debates on ways to achieve shared prosperity on a liveable planet. In his address, Minister Donohoe stated that “a liveable climate is our collective goal, whether we like it or not”, and that “[t]o succeed, [climate] policy must be effective, legitimate and global”. Calls for participation in development of standards in support of Accessibility Act The National Standards Authority of Ireland (NSAI) is inviting interested parties to get involved in the development of new standards and the revision of existing standards, in support of the European Accessibility Act (EAA). The EAA seeks to harmonise accessibility requirements for certain products and services within the EU, by eliminating and preventing barriers to the free movement of products and services in scope of the EAA. NSAI is calling for interested parties to participate in national technical committees, to represent the national position during the development of these standards. Read more on the European Accessibility Act (EAA) from Chartered Accountants Ireland. ISIF trebles its target allocation, committing a further €100m, to female-led investment funds The Irish Strategic Investment Fund (ISIF) has announced a further €100m funding to its initiative to invest in female-led private equity and venture capital funds. The initiative, which was launched in 2022, exceeded its original commitment of €50m by €10m. Through the initiative, ISIF is seeking to demonstrate its commitment to addressing gender inequality and promoting greater diversity at senior levels – both within ISIF and in the companies and funds in which it invests. Ireland's UN SDGs - Goal 4 Quality Education 2024 The Central Statistics Office (CSO) has published Ireland's UN SDGs indicators data for Goal 4 Quality Education 2024. The release is one of a series monitoring and reporting on how Ireland is progressing towards meeting its targets under the 17 UN Sustainable Development Goals (SDGs). This report on Goal 4 has 12 indicators which are organised under ‘Childhood Education’, ‘Adult Education’ and ‘Education Infrastructure’.  Among the findings was that 64% of adults aged 25-34 participated in lifelong learning in 2022, compared with 35% of people aged 55-69. Northern Ireland/UK news Northern Ireland approves carbon budget legislation The Northern Ireland Assembly has approved legislation setting Northern Ireland’s first three carbon budgets and a new 2040 target to reduce emissions. The approval delivers further on key statutory requirements of the Climate Change Act (Northern Ireland) 2022. Commenting DAERA Minister Andrew Muir stated: “There is already a statutory target for 2030. However, setting the carbon budgets and the 2040 target will provide all sectors with a clear focus and driver to step up action to address climate change.” Separately, Carbon Intensity Indicators published by the Statistics and Analytical Services Branch in the Department of Agriculture, Environment and Rural Affairs (DAERA) has found that Gross Value Added (GVA) has grown substantially since 1998, despite a decline in greenhouse gas emissions. The ratio of total greenhouse gas emissions to GVA in the region decreased 70% from 1998 to 2022. Call for evidence on use of biofuels Northern Ireland’s Economy Minister Conor Murphy has launched a Call for Evidence to explore the potential use of biofuels as an alternative to home heating oil and fossil-based LPG. Industry research and analysis indicates biofuels are the most likely renewable heat alternative for homes and businesses that cannot be heated by heat pumps, the gas grid or heating networks. The Call for Evidence is available at Citizen Space and will remain open until 4 March 2025. Separately the Executive has endorsed Minister Murphy’s proposal to ban onshore oil and gas exploration and production in the north. Commenting, Minister Murphy stated: “Reaching our net zero target by 2050 is both a legal requirement and a moral obligation which is why decarbonisation is central to my economic plans.” There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020. Northern Ireland energy developments A report detailing the percentage of electricity consumption generated from renewable sources in Northern Ireland shows that for the year ending September 2024, 44.5% of total metered electricity consumption in Northern Ireland was generated from metered renewable sources (81.9% of which was generated from wind). This is a decrease of 2.9 percentage points on the previous 12 months. The full report is available on the DfE website. Separately, Economy Minister Conor Murphy has launched a ‘Save Energy, Save Money’ information campaign which aims to lower energy bills through energy efficiency. The campaign, which will run until March 2025, aims to help consumers save money on their bills through energy efficiency advice and information whilst also increasing public understanding about the transition to net zero in Northern Ireland. UK Citizens’ Assembly calls for trade policy to combat climate crisis The world’s first Citizens’ Assembly on Trade and Climate has issued a call for the UK Government to use trade policy as a tool to combat the climate crisis. The Assembly, convened by the Trade Justice Movement, Queen Mary University of London, and MutualGain, agreed 15 specific and detailed recommendations for the UK government which can be found in its Policy Brief: Assembly Findings and Recommendations. The recommendations are grouped under ‘Tariffs, quotas & trade agreements’, ‘subsidies’, ‘procurement’ and ‘standards’. Europe news EU decarbonisation investment gap - €340-€477bn A study by European policy advisory company Climate Strategy and Partners has found that the EU faces an annual investment gap of between €340-€477bn to decarbonise its highest emitting sectors by 2050. The report was based on data from the 2024 ‘Draghi Report’ on European competitiveness, and outlines ways the EU can close the investment gap. These include eliminating waste and inefficiencies in the delivery of EU funds, not reinventing the wheel, removing bottlenecks and channelling grants to where they are most needed. 12-month delay in EU deforestation rules Companies will have one more year to adapt to new EU rules to prevent deforestation which will ban the sale of products sourced from deforested land. The delay in the coming into force of the EUDR is in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024. The deforestation regulation adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Already in force since 29 June 2023, its provisions were to be applied by companies from 30 December 2024. SMEs, resource efficiency and green markets The European Commission has published its 2024 SMEs, resource efficiency and green markets. The report aims to contribute to the Commission’s efforts to help SMEs become greener and foster their long-term competitiveness. Findings include that 93% of EU SMEs are implementing at least one resource-efficiency measure such as saving energy, minimising waste, and recycling, and that renewable energy use is on the rise. Challenges reported by SMEs include complex administrative or legal procedures (35% of SMEs) and high costs (28% of SMEs), identified as major barriers to implementing resource-efficiency measures. World News Consultation on reporting on financial activities emissions The Partnership for Carbon Accounting Financials (PCAF) is calling on signatories, industry experts, and all relevant parties to participate in a public consultation on its newly developed methods for measuring and reporting the greenhouse gas (GHG) emissions associated with financial activities. This consultation will run 28 February 2025. The COP combatting desertification, land degradation and drought The sixteenth session of the Conference of the Parties on the United Nations Convention to Combat Desertification (UNCCD) has taken place in Riyadh, Saudi Arabia, from 2 to 13 December. Confusingly also called ‘COP16’, like the Biodiversity COP in late October this year, the UNCCD COP aims to raise global ambition and accelerate action on land and drought resilience. According to the Business for Land (B4L) Initiative, launched at the 2024 World Economic Forum, up to 40% of the world’s land is already degraded, threatening key economic sectors. Separately, read Susan Rossney’s article in Accountancy Ireland this month on the uneasy agreement read at COP29 to pledge $300 billion in climate funding to developing countries. Product-level carbon intensity metrics The OECD has published a report Towards more accurate, timely, and granular product-level carbon intensity metrics: challenges and potential solutions. Prepared under the auspices of the Inclusive Forum on Carbon Mitigation Approaches (IFCMA), this report presents an overview of the main approaches to, and challenges faced when calculating product-level carbon intensity metrics – including those applicable to collecting and verifying information along the supply chain. It provides insights on how to minimise duplication among various initiatives, minimise compliance and reporting costs for firms, and avoid possible disruptions to trade. Articles Italy plans mandatory insurance for climate risks (Bloomberg) Sustainability reporting: why standards matter (ICAEW) The professional services sector needs to develop a moral climate compass (Business Post) Ireland can be a net exporter of green electricity to Europe but only if we act now (Irish Times) Accountancy Europe and IFAC Reunite to Discuss the Future of Sustainability Assurance Engagements (IFAC) Why companies need to put profitability at the centre of transition planning (SustainableViews) Law to cut emissions in NI approved by assembly (BBC News) Podcast Speakers dissect COP29, what it means for businesses and why private sector voices should be in the room. Sustainable Views: Why businesses should be at COP  Did you know? The much-anticipated Chartered Accountants Ireland Annual Dinner will once again be held in the Convention Centre Dublin (CCD). The world’s first carbon-neutral constructed convention centre, and one of Europe’s most environmentally friendly venues, the CCD is one of only three venues in Ireland to hold the ISO 20121 accreditation in Event Sustainability Management Systems. It also holds Quality Standard ISO 9001 and Environmental Standard ISO 14001, as well as British Security Standard BS7499. The Annual Dinner will take place at the on Friday, January 24, 2025.  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.