News

In this week’s public policy bulletin we take a look at the interest rate hikes announced this week by both the US Federal Reserve and Bank of England. We also examine the findings of the latest Wholesale Price Index from the CSO as well as a new initiative from the Government to increase SME access to public procurement opportunities. In addition, we review the Northern Ireland economic output statistics for Quarter 4 2022.   US Federal Reserve and Bank of England both announce further interest rate hikes This week the US Federal Reserve announced that its benchmark interest rate would rise another quarter of a percentage point to a range of 4.75 per cent to 5 per cent – its ninth consecutive rate rise and the highest rate since 2007. In a statement accompanying the announcement, the Federal Reserve noted how recent developments in the banking sector “are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation”. Meanwhile, the Bank of England raised interest rates by a further quarter of a percentage point on Thursday bringing its headline rate to 4.25 per cent. Wholesale electricity prices fall while food prices rise in year to February 2023 In its latest Wholesale Price Index for February 2023, the CSO has reported that wholesale electricity prices decreased by 1.8 per cent since January 2023 and were 9.2 per cent lower in February 2023 when compared with February 2022. However, in the same period, producer prices for food products rose by 6.2 per cent meaning that producer prices for products sold on the domestic market are now 10.6 per cent higher than they were in February 2022.  Some of the most notable changes in producer prices for food products over the 12 months to February 2023 include dairy (+23.8 per cent), fish (+18.2 per cent), fruit & vegetables (+18.2 per cent) and grain (+12.2 per cent). Government launch new initiative to support greater SME participation in public procurement opportunities Cabinet have this week approved a new government initiative aimed at supporting SME participation in public procurement. The initiative will act as an update to previous guidance, which introduced a number of measures aimed at assisting SMEs to access public procurement opportunities. The new provisions include: an increase to the threshold at which all contracts for goods and services must be advertised on eTenders from €25,000 to €50,000 (ex VAT) an increase to the threshold at which all contracts for works must be advertised on eTenders from €50,000 to €200,000 (ex VAT) enhanced measures that public bodies should take to promote transparency, including a requirement to publish contract award information for all procurements over €25,000 specific measures that public bodies should take to promote SME participation, including the use of proportionate financial capacity and insurance requirements Latest Northern Ireland economic output statistics This week saw the publication of the latest economic output statistics by the Northern Ireland Statistics and Research Agency (NISRA). According to the publication, output in the services sector increased by 1 per cent in real terms over the fourth quarter of 2022 and by 1.8 per cent over the year putting NI service output at a record high. Meanwhile, production sector output decreased by 0.6 per cent over the fourth quarter of 2022 and by 1 per cent over the year. Retail output saw an increase of 2.2 per cent in Quarter 4 2022 but a decrease of 2.3 per cent over the year. When comparing current output with the pre-Coronavirus pandemic levels seen in Quarter 4 2019, NI production output is 4.5 per cent above its pre-pandemic level and NI service output is 6.2 per cent above its pre-pandemic level. In contrast, NI retail output remains 4.5 per cent below its pre-pandemic level seen in Quarter 4 2019.

  In this week’s Sustainability/ESG bulletin, read about sustainability in the 2023 Action Plan approved to deliver the Ireland for Finance Strategy. Also covered is the launch of a set of statutory guidelines to assist local authorities in preparing climate action plans, the €2.1 million funding announced for research into innovative climate solutions, a stakeholder survey on sustainability and offsetting in Northern Ireland and the proposed reform of EU’s electricity market design, as well as articles, podcasts, and events.  Sustainability and Ireland’s Action Plan - updated Finance Strategy ‘Revising and updating the Government’s Sustainable Finance Roadmap’, and developing ‘an updated sustainable finance value proposition’ are among the 12 key deliverables of the first Action Plan for delivering the Ireland for Finance Strategy. The 2023 Action plan, which received Cabinet approval last week, follows an update to the Ireland for Finance strategy in 2022, which sets out the key measures that the public and private stakeholders will take this year to support the further development of the international financial services sector in Ireland. Local authority climate action plans See also news from our colleagues in Professional Accounting [link] The Minister for the Environment, Climate and Communications Eamon Ryan, T.D., has launched a set of statutory guidelines to assist local authorities in preparing local authority climate action plans.  Under the Climate Action and Low Carbon Development (Amendment) Act 2021, each local authority in Ireland must prepare a local authority climate action plan for its respective administrative area. The plans are to enable them to address, in an integrated way, the mitigation of greenhouse gas emissions and climate change adaptation and strengthen the alignment between national climate policy and the delivery of effective local climate action. Once adopted, each plan will be valid for five years. €2.1 million announced for research into innovative climate solutions Funding of €2.1 million has been announced for six new research teams who are developing innovative solutions to climate action challenges. The research teams will compete as part of the Sustainable Development Goals (SDG) Challenge. Run in partnership between Science Foundation Ireland (SFI) and Irish Aid, the focus of the SDG Challenge is the development of innovative solutions relating to challenges associated with climate, biodiversity and the environment, with a specific objective of addressing challenges in countries where Irish Aid works.  The challenge will see teams competing for an overall prize of €1 million as they tackle climate action issues on life below water and life on land. Northern Ireland stakeholder survey on sustainability and offsetting Belfast City Council is conducting a stakeholder survey on sustainability and the level of interest in offsetting. The survey is to evaluate the opportunity for a local offsetting scheme in Northern Ireland. (While not reducing GHG emissions, offsetting is a commonly used means of compensating for GHG emissions and delivering progress towards Net Zero targets and ambitions.) The survey includes 24 questions and will take approximately five minutes to complete. There will be two short online briefings about the project at 10am on Wednesday 22 March and 10am on Thursday 23 March, and the survey will close on Friday 14 April 2023. Read more Proposed reform of EU’s electricity market design The European Commission has proposed to reform the EU’s electricity market design to “boost renewables, better protect consumers and enhance industrial competitiveness”.  Part of the Green Deal Industrial Plan and in line with the European Green Deal and the REPowerEU Plan, the proposed reform foresees revisions to several pieces of EU legislation and aims to decrease the impact of fossil fuels on consumer electricity bills, boost “open and fair competition” in the European wholesale energy markets, and ensure a sustainable and independent energy supply to the EU through building a renewables-based energy system. The proposals will have to be discussed and agreed by the European Parliament and the Council before entering into force.     Ask the Expert Interview – Climate Technology Opportunities Aideen O’Hara, Co-Founder of SustainabilityWorks, climate innovation advocate and lead co-author of a recent report with PWC on The Irish Climate Tech Opportunity 2023, will join Institute’s Sustainability Officer Susan Rossney on Thursday, 23 March for a lunchtime Q&A to discuss climate innovation and the range of Irish climate tech companies that demonstrate the potential for Ireland as a global leader in climate technology. Register free here.  Podcasts Interview with Oisín Coughlan, Chief Executive of Friends of the Earth about Ireland’s Climate Policy goals (Listen Back) (7 mins) Articles EU green deal efforts at risk of ‘being compromised’ (Irish Times) Transforming the worst performing dwellings into energy-efficient homes could lift people out of energy poverty (Irish Independent) Global floods and droughts worsening with warming, study suggests (Irish Examiner) UK pension funds threaten to vote against BP and Shell directors over climate targets (Financial Times) UK Labels Nuclear Power ‘Green’ to Attract Climate-Friendly Capital (Bloomberg Green) Are we 50 years away from gender pay equality? (Briefly, from Accountancy Ireland) UN deputy chief warns of faltering progress towards SDGs (UN News) Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, including programme outline, eligibility and fees are on the A4S website or by email. Upcoming Events   Trinity College Dublin is running free Climate Action & Sustainability webinars on Wednesdays 1-2pm. Join 12 leading academics in Trinity College Dublin as they speak about technologies and solutions that will help deliver our goals in the areas of Climate Action and Sustainability. Coming up: Is the Circular Economy a Route to Sustainability? As Clear as Plastic? Wednesday 22nd March from 1pm - 2pm Trinity's Green Week (🌍👉http://bit.ly/3JeD8K4) turns 21 this month! It runs from 20-24 March and it's a week to celebrate, learn, explore, network, solve and have fun http://bit.ly/3JeD8K4 Social Enterprise NI is running a range of events for social enterprises or people interested in social entrepreneurship starting on 21 March. Events include ‘eBay for Change’ ‘Social Entrepreneurs Ireland’, ‘Social Enterprise NI: Dragons Den Event’ and ‘Maximise your CRM’.  Find out more. Leinster Society Sustainable Fashion: Workwear Essentials  - Wednesday 22 March | 12:30pm – 1:30pm - with personal stylist Orla Sheridan to discuss how to be more sustainable in our everyday fashion choices, both at home and in the workplace. She will discuss the "30 wear rule" and talk us through some key wardrobe essentials for the office. Natural Capital Investment Conference 2023 22 March, London Invest Northern Ireland/Keep NI Beautiful - Interested in becoming more climate smart in your home, business, local community? Wondering where to start? Invest Northern Ireland will be hosting a free webinar in partnership with Keep NI Beautiful to describe what changes we can make as individuals, groups, and organisations to make a significant impact 28 March 10:00 – 11:15 Clearstream Solutions and sustHub webinar - The Business Case for Sustainability 31 March, 12:00 – 13:00 Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 22 March, 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 the latest statistics on the growth in house prices from the CSO. We also report on this week’s meeting of the Irish Financial Stability Group following the collapse of Silicon Valley Bank. In addition, we review unemployment rates across the OECD as well as the latest batch of Northern Ireland Labour Market Statistics. 6.1 per cent growth in house prices in 12 months to January 2023 The CSO this week released its latest Residential Property Price Index (RPPI) in which it found that residential property prices across Ireland rose by an average of 6.1 per cent in the 12 months to January 2023. This figure is however down from the 7.7 per cent rate recorded in the year to December 2022, and from the high values of 15.1 per cent seen in the 12 months to February and March 2022. Nonetheless, according to the RPPI, residential property prices in Dublin saw an increase of 4.3 per cent in the period to January 2023, while property prices outside of Dublin were up an average of 7.4 per cent in the same period. The median price of a dwelling purchased in the 12 months to January 2023 was €305,000. Irish Financial Stability Group (FSG) meets to assess impact of Silicon Valley Bank collapse Following the announcement of the failure of Silicon Valley Bank (SVB), a US technology focused lender, the Irish Financial Stability Group (FSG) met on Monday, 13 March, to assess the situation and any impacts on the Irish financial system. The FSG consists of senior officials from the Department of Finance, NTMA and the Central Bank of Ireland, and is chaired by the Secretary General of the Department of Finance. Given that SVB had a significant number of Irish businesses among its clients, the Irish FSG has established a sub-group to co-ordinate enhanced monitoring and reporting on the domestic impacts arising from the failure of the bank. In a statement commenting on the meeting, Minister for Finance Michael McGrath stressed that while “it is important to highlight the limited direct impact on the Irish financial system of the failure of Silicon Valley Bank, the retail banks operating in Ireland have no exposure” to SVB. Unemployment rate across OECD hits record low The OECD unemployment rate remained at 4.9 percent in January 2023, the seventh consecutive month at this record low since the organisation’s report on unemployment rates began. The unemployment rate was stable in 12 of 38 OECD countries, but close to its record low in only 7 countries, including Canada, France, Germany, and the United States. The number of unemployed persons declined to 33.2 million, remaining close to the record low reached in July 2022. Relative to men, the unemployment rate for women was higher in 18 OECD countries, with the largest gender gaps recorded in Colombia, Costa Rica, Greece, Spain and Turkey. By contrast, 16 OECD countries recorded a lower unemployment rate for women than for men. You can read the full report here. 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 February 2023 was 787,200, a 0.4 per cent increase over the month and a 2.2 per cent increase over the year. Moreover, HMRC PAYE data indicated that NI employees had a median monthly pay of £2,047 in February 2023, an increase of £10 (0.5 per cent) over the month and an increase of £134 (7.0 per cent) over the year. Meanwhile, the claimant count rate remained constant for the tenth consecutive month with the seasonally adjusted number of people on the count standing at 35,600, a decrease of 0.1 per cent from the previous month’s revised figure and representing 3.8 per cent of the total workforce.

  In this week’s Sustainability/ESG bulletin, read about calls for more financial services firms to sign up to Ireland’s Women in Finance Charter. Also covered is the publication of the annexes to Ireland’s Climate Action Plan 2023; the UK Climate Change Committee's advice for the first three Northern Ireland Carbon Budgets; the percentage of Northern Ireland electricity generated from renewable sources in 2022; and the landmark UN agreement on global ocean conservation, as well as articles, resources and events.  Women in Finance Charter Minister of State at the Department of Finance for Financial Services, Insurance and Credit Unions Dr Jennifer Carroll MacNeill, T.D., has urged firms in the financial services industry to demonstrate their commitment to delivering gender balance by singing up to Ireland’s Women in Finance Charter. The Charter, launched in 2022, commits signatory firms to improving the number of women in management and board level positions. Over 50 firms, representing 44 000 employees, have already signed up to the Charter. The statement comes on the day before the announcement of the Government’s intention to hold a referendum on gender equality, as recommended by the Citizens’ Assembly on Gender Equality and the Special Joint Oireachtas Committee on Gender Equality. Ask the Expert Interview – Climate Technology Opportunities Aideen O’Hara, Co-Founder of SustainabilityWorks, climate innovation advocate and lead co-author of a recent report with PWC on The Irish Climate Tech Opportunity 2023, will join Institute’s Sustainability Officer Susan Rossney on Thursday, 23 March for a lunchtime Q&A to discuss climate innovation and the range of Irish climate tech companies that demonstrate the potential for Ireland as a global leader in climate technology. Register free here. Climate Action Plan 2023 Annex of Actions publishes The Irish Government has approved the Annex of Actions to the 2023 Climate Action Plan. The Climate Action Plan sets out a roadmap on how to halve Ireland’s CO2e emissions by 2030 and reach ‘net zero’ no later than 2050. The ‘Annex of Actions’ is the specific actions required to implement the targets set out in the Plan. The 2023 Plan takes account of the carbon budgets and sectoral emissions ceilings agreed in 2022.   In other climate news, plans to accelerate the delivery of 5GW of offshore wind by 2030 have received Cabinet approval, and key actions for 2023 under the Offshore Wind Energy Programme, the system-wide plan developed by the Offshore Wind Delivery Taskforce were also published. UK Climate Change Committee (CCC) publishes advice for first three Northern Ireland Carbon Budgets The UK Climate Change Committee (CCC) has published its advice for the first three Carbon Budgets for Northern Ireland, the first of which will cover the period 2023 – 2027. (A carbon budget is the maximum amount of greenhouse gases that can be emitted in a given period.) The advice will help inform the carbon budget being prepared for consultation and the content of Northern Ireland’s first Climate Action Plan for 2023 to 2027. This is required to be in place by end of 2023 under the Climate Change (Northern Ireland) Act 2022. In a press release DAERA encouraged organisations across the public, private and third sectors “to consider and debate the report and recommendations in readiness for participation in the consultation on a carbon budget and Climate Action Plan in the coming months.” Renewable sources generated 51 percent of Northern Ireland’s electricity in 2022 A report detailing the percentage of electricity consumption in Northern Ireland generated from renewable sources has found that 51 percent of total electricity consumption in Northern Ireland was generated from renewable sources located in Northern Ireland in 2022. This is a 9.7 percent increase on the previous year. Of this, 85.3 percent was generated from wind. EU Fiscal Policy Guidance for 2024 - Promoting debt sustainability and sustainable and inclusive growth The European Commission has provided guidance to Member States on the conduct and coordination of fiscal policy for next year. Overall, fiscal policies in 2024 “should ensure medium-term debt sustainability and promote sustainable and inclusive growth in all Member States”. The preliminary fiscal policy guidance for 2024 will be updated as necessary as part of the European Semester Spring Package in May 2023. Urgent need to speed up implementation of adaptation measures A better understanding of the costs and benefits of adaptation measures to counter climate change is needed. This is according to a European Environment Agency (EEA) briefing which assesses the main methods, challenges and constraints in taking action. The briefing ‘Assessing the costs and benefits of climate change adaptation’ explains that as the resources available to government decision-makers are limited, better understanding is needed about the costs and benefits of adaptive actions — and the costs of adaptation compared to the costs of failing to take action. Landmark UN agreement on global ocean conservation A landmark United Nations agreement on global ocean conservation has concluded, and will provide a framework for global action to protect the ‘High Seas’. The Marine Biodiversity Beyond National Jurisdiction (BBNJ) protects seas which comprise two thirds of oceans and half the surface area of the planet, but fall outside the jurisdiction of any country. In particular, the agreement will provide for the creation of a global network of High Seas marine protected areas, and will strengthen processes for environmental impact assessments for activities that may impact the marine environment. Ireland has also announced a programme of measures designed to target the pressures on Ireland’s marine environment. The programme consists of a broad range of actions with commitments across Government Departments to ensure the sustainable use of Ireland’s seas and restore degraded ecosystems and species. Videos European Financial Reporting Advisory Group (EFRAG) has published a series of introduction videos to the first set of draft European Sustainability Reporting Standards (ESRS). Articles Here are some good sustainability-related newsletters to subscribe to: “Climate quitting”: what is it and how can you avoid it? As jobseekers show increasing willingness to vote with their feet on corporates’ ESG credentials – or lack thereof – how should businesses ensure they keep talent on board? (ICAEW Insights) How a tax break meant to curb climate change could make it worse (Washington Post) ‘Devastating loss’ of Irish plant life revealed in 20-year study (Irish Times) Climate action in slow motion as politicians balk at prospect of change (The Irish Independent)  Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, including programme outline, eligibility and fees are on the A4S website or by email. Upcoming Events   Trinity College Dublin is running free Climate Action & Sustainability webinars on Wednesdays 1-2pm. Join 12 leading academics in Trinity College Dublin as they speak about technologies and solutions that will help deliver our goals in the areas of Climate Action and Sustainability. Trinity's Green Week (🌍👉http://bit.ly/3JeD8K4) turns 21 this month! It runs from 20-24 March and it's a week to celebrate, learn, explore, network, solve and have fun http://bit.ly/3JeD8K4 Natural Capital Investment Conference 2023 22 March, London Invest Northern Ireland/Keep NI Beautiful - Interested in becoming more climate smart in your home, business, local community? Wondering where to start? Invest Northern Ireland will be hosting a free webinar in partnership with Keep NI Beautiful to describe what changes we can make as individuals, groups, and organisations to make a significant impact 28 March 10:00 – 11:15 Clearstream Solutions - Return on Sustainability Investment Webinar 31 March, 12:00 – 13:00   Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 22 March, 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 the first economic forecast of 2023 from the Central Bank. We also report on the Government’s announcement this week of a referendum on gender equality. In addition, we examine the latest Government bond sales from the NTMA and the signing into law of a new accountability framework for the financial services sector. Central bank forecasts lower inflation but reduced rate of growth for domestic economy   In its latest Quarterly Bulletin published this week, the Central Bank has forecasted that inflation is likely to ease to a rate of 5 percent this year. However, growth of the domestic economy is expected to slow to a rate of 3.1 percent in 2023, reducing again in 2024 to a rate of 2.9 percent according to the bulletin. Noting how “headwinds from higher inflation have tempered the pace of growth”, the Bank also points to “tighter monetary policy” in the Euro area as also affecting overall growth. Separately, the findings suggest the unemployment rate is expected to remain low, averaging at a rate of approximately 4.4 percent out to 2025, with tight labour market conditions continuing.  Government announces referendum on gender equality The Government has this week announced its intention to hold a referendum on gender equality as recommended by the Citizens’ Assembly on Gender Equality and the Special Joint Oireachtas Committee on Gender Equality. The referendum will propose amending the Constitution to enshrine the right to gender equality and to remove the current reference to ‘women in the home’. Announcing the plans as part of International Women’s Day earlier this week, the Government’s proposals on specific constitutional amendments are to be published by the end of June, with the referendum due to take place in November. NTMA raises €1.25 billion in latest bond auction The National Treasury Management Agency (NTMA) this week completed an auction of €1.25 billion worth of Irish Government bonds. The funds raised as part of the sale included €450m worth of ten-year bonds maturing in 2032, carrying a yield of 3.133 percent. In addition, €800m was also raised as part of the sale of treasury bonds maturing in 2037, carrying a yield of 3.37 percent. With the completion of this week’s auction, the NTMA has so far issued a total of €4.75 billion in benchmark bonds during 2023. New accountability framework for financial services sector signed into law On Thursday of this week, the Central Bank (Individual Accountability Framework) Act 2022 was formally signed into law by the President. The new legislation will place statutory obligations on certain customer-facing firms and senior individuals within them to set out clearly where responsibility and decision-making lies in what is termed as a new ‘Senior Accountability Executive Regime’ (SEAR). In addition, the Act also includes enhancements to the existing fitness and probity regime as well as providing for stronger Central Bank enforcement capabilities. Elements of the new regime will be enforced immediately and the Central Bank is expected to publish regulations and guidance around them shortly.

By Susan Rossney, Chartered Accountants Ireland Accountants play a key role in making sure their clients and business partners can spot, avoid and act on greenwashing. ‘Greenwashing’ is where a company presents a false or misleading image to persuade the public that its products, aims or policies are more environmentally friendly than they actually are. Greenwashing is on the rise for a number of reasons. More and more companies want to take advantage of the growing public concern for environmental issues, a concern which has created a fast-growing market for green products. Companies that wish to attract talent know they can benefit from a competitive advantage over their peers by advertising their commitment to the environment. Other incentives include a desire to convince critics or stakeholders that a company is well-intentioned. There is also a rising appetite among investors for green projects. The IMF noted in its October 2021 Global Financial Stability Report that sustainable investment funds doubled in the four years up to 2021. It also noted that up to $20 trillion of new sustainable investments would be required to achieve global climate goals by 2050.   Greenwashing is dangerous and unethical because it misleads investors and consumers who are genuinely looking to buy environmentally friendly products or to join or trade with environmentally minded companies. Greenwashing aims to capitalise on consumers’ willingness to sacrifice a saving by paying what is often a premium for ‘green’ products. It weakens the efforts of those businesses actually working to create a better world. Greenwashing also represents a serious risk to businesses when misleading activities are exposed. In How Greenwashing Affects the Bottom Line, HBR authors cited that 42 percent of green claims from Europe were exaggerated, false, or deceptive, and could potentially qualify as unfair commercial practices under EU rules. The much publicised Volkswagen emissions-test scandal caused an almost 20 percent drop in the price of its shares and wiped more than €13bn off its market capitalisation.  Other high profile examples include HSBC, when the UK Advertising Standards Authority (ASA) upheld greenwashing accusations about environmental claims; Tesco, which was rebuked over greenwashing in adverts for plant-based food; and Asos, Boohoo and George at Asda, which were all investigated over their eco-friendly claims. In its 2021 report mentioned above, the IMF noted that proper regulatory oversight and verification mechanisms were essential to prevent financial companies making misleading claims concerning their environmental credentials. To combat greenwashing, regulators have begun to introduce proposals to protect consumers and investors. This activity gained pace in 2022. In August, the US Security Exchange Commission (SEC) launched the Climate and ESG Task Force in order to fight misleading ESG disclosures. In October, the UK’s Financial Conduct Authority (FCA) proposed a package of new measures to protect consumers and improve trust in relevant investment products.  Potential measures include restrictions on how terms like ‘ESG’, ‘green’ or ‘sustainable’ can be used. In December China announced plans to further regulate funds claiming to be environmentally friendly. In Ireland, the Irish Auditing & Accounting Supervisory Authority (IAASA) started to tackle climate related statements made in Companies annual reports. In its recent Compendium of Financial Reporting Decisions it challenged statements made by some companies such as “Net zero by 2050” and promised reduction of carbon emissions. As these publications have traditionally dealt with accounting standards, their starting to address ESG statements is an interesting development. So how can greenwashing be avoided, and what can accountants do? With their skills of professional scepticism, rigorous attention to detail and an ability to interrogate data, accountants are ideally placed to be part of the global fight for better, decision-useful information to help business make critical investments. The key to this is transparency. Work is ongoing in creating global sustainability standards, but accountants can still make a valuable contribution to existing reports by making sure that company financial information and sustainability-related material ‘balances’. Accountants can ensure that the company is clear about what it is currently doing, what it has achieved to date and what it is likely to be able to do in the future. This can involve reviewing corporate pledges such as ‘Net Zero by 2050’ against planned investments in emissions-reduction in the company’s facilities projects and screening for emissions-heavy products in a company’s investment portfolio. When making procurement decisions, accountants also have the skills of professional scepticism, rigorous attention to detail and an ability to interrogate data to separate fact from aspiration. The following are questions accountants can ask of  their suppliers’ products and services: Does the company making the product or providing the service back up its environmentally friendly claims? Are the claims independently certified by a verified third-party, such as B-Corp or Fair Trade? Does the product use language that is vague and unspecific (for example, ‘eco-friendly’) without any description of how this is achieved? Are the claims made by a company too good to be true (for example, ‘carbon-neutral coal’)? Accountants can also increase their knowledge about the meaning of terminology such as ‘carbon neutral’, ‘climate-friendly’ and ‘nature positive’. By increasing their knowledge they can use it to critically assess claims made by companies that are not backed up by quality, third-party independent verification. Accountants can look to their professional associations, such as Chartered Accountants Ireland Sustainability Hub (which contains a useful glossary of terms and other resources) and international organisations such as Chartered Accountants Worldwide for further guidance.