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In this week’s Sustainability/ESG bulletin read about Ireland’s Green Budgeting, including Carbon Tax Exchequer Revenue Projections. Also covered are new funding products for sustainable and green projects, news about boards and climate change, a report into climate tech and Ireland, coverage of the New York Climate Week, the A4S case competition, and the usual resources, articles and upcoming events. Ireland news Ireland’s Department of Finance Green Budgeting update Ireland’s  Department of Finance has published an update on Green Budgeting, as part of Ireland’s whole-of-government approach to Climate Action. This approach aims to achieve the targeted reductions in overall greenhouse gas emissions by 2030 and reach net-zero emissions by no later than 2050, in line with Ireland’s strategic objective of supporting environmentally sustainable economic progress. ‘Green budgeting’ is the process of documenting the impact of budgetary measures and wider fiscal policy on the transition to a more sustainable and climate friendly economy. The update’s focus is on analysis of the tax system, and the work complements the green budgeting expenditure analysis undertaken by the Department of Public Expenditure, NDP Delivery and Reform (DPENDR). Carbon Tax Exchequer Revenue Projections 2024-2030 publish The Department of Finance have published Carbon Tax Exchequer Revenue Projections 2024-2030, a report examining trends in carbon tax exchequer yields in Ireland over the last decade. It also provides forward projected estimates of carbon tax yields to 2030. Key findings highlight that overall environmental taxes as they currently exist, such as the carbon tax, excise duty and value added tax (VAT) on fuel, vehicle registration tax (VRT) and motor tax, account for a little under €6.8 billion annually of overall exchequer tax revenues in 2023, having risen from €5.1 billion of overall exchequer tax revenues in 2013. Over the last decade (2013 – 2023), carbon tax yields in Ireland have generated revenues of over €6 billion for the Exchequer, rising from €388 million in 2013 to €935 million (this amounts to approximately 1 per cent of total exchequer tax receipts in 2023). Over the next six years (2024 to 2030), the report estimates, the tax will raise €8.8 billion in exchequer revenue, approximately €6.4 billion of which will be directly allocated to climate actions in this period on a no-policy-change basis. SBCI and BVP launch €50m Green Transition Finance product The Strategic Banking Corporation of Ireland (SBCI) and Business Venture Partners (BVP) have announced a partnership with the launch of a new €50 million financing initiative. Designed to support the green and sustainable transition of Irish businesses, the ‘Green Transition Finance product’ is tailored to meet the needs of SMEs and Small Mid-Caps investing in sustainable and green projects and assets, as well as those already operating in a sustainable manner, subject to specific criteria. Loans range from €500,000 to €5,000,000 for terms up to 10 years, with competitive interest rates and flexible repayment terms tailored to support business growth. Boards and climate change The annual FTSE 350 Boardroom Bellwether survey, recently published by the Chartered Governance Institute UK & Ireland, has reported that only 29% of boards in the UK see climate change as a very important driver of risk (compared with 45 per cent last year). Supply chain disruption was likewise only ranked as a very important risk by a third of board, despite, a paper published in Nature in March 2024, concluding that heat stress alone will have impacts on supply chains of an estimated $25tn net losses by mid-century. The report did find that companies in the UK are performing well in making their boards more diverse and inclusive, with 76% of boards satisfied that their company policies and guidelines about ethnic minorities in the workplace are fit for purpose. Climate Tech Opportunity in Ireland A new report highlighting opportunities to unlock economic growth and simultaneously tackle climate change through the climate tech companies has published. ‘The Irish Climate Tech Opportunity 2024’ – the second such report published by SustainabilityWorks and PwC Ireland – showcases 22 entrepreneurs and companies from industries as diverse as construction, food, and transport. The report calls on the Irish government to recognise Climate Tech as a sector in its own right and to provide targeted funding and supports across this nascent ecosystem. Europe News Accountancy Europe has published a factsheet to help the accountancy profession in its role in supporting companies enforce the new Corporate Sustainability Due Diligence Directive (CSDDD). This law introduces mandatory due diligence obligations to EU and non-EU large companies and establishes liability in case of non-compliance. Small and medium-sized businesses (SMEs) will also be affected as they are part of value chains. MEPs have expressed deep concern about increasing intensity and frequency of extreme EU and global weather events. In the past 30 years, floods in Europe have affected 5.5 million people, taking almost 3,000 lives and causing more than EUR 170 billion in economic damage. The summer of 2024 was the hottest on record globally and in Europe. In a resolution on the devastating floods in Austria, Czechia, Germany, Hungary, Poland, Romania and Slovakia, approved on Thursday 19 September, MEPs express dissatisfaction with recent budget cuts to the EU’s Civil Protection Mechanism and have called for sufficient and upgraded funding to increase preparedness and improve capacity building. World news It was New York Climate Week this week. Now in its 16th year, this week-long event aims to inspire change in the mainstream of business and government. Climate Week NYC’s overall message this year was “It’s Time”, highlighting the urgency of acting decisively now, rather than deferring bold climate action to the future. New York Climate Week takes place every year in partnership with the United Nations General Assembly (UNGA) and is run in coordination with the United Nations and the City of New York.  Women climate leaders, including former Canadian environment minister Catherine McKenna and the German government’s special climate envoy, Jennifer Morgan, together with women from business, politics and non-profits, have launched the “women leading on climate network” at Climate Week NYC. Part of the group’s mandate is to empower women business leaders to step up and speak out on climate action.  Top leaders in global sustainability standard setting, regulation, and accounting, including IFAC, the IFRS Foundation, and IOSCO, attended Accelerating Climate and Sustainability-Related Disclosures: A Global Perspective, on September 23 as part of Climate Week NYC. The objective of the event was to advance global adoption and implementation of the ISSB Standards and build an understanding of sustainability assurance in its early days. A compilation of a recording of the event will be made available in due course. For more information and to be notified of the release of the recording, please reach out to climateweek@ifac.org A report by the Cambridge Institute for Sustainability Leadership says there is a “very real risk” that corporate action to address sustainability issues is negatively impacting the climate and nature crisis. The report, Survival of the Fittest: From ESG to Competitive Sustainability, calls for ESG to be replaced with a “competitive sustainability” agenda, with, with business leaders focusing on how their company can “compete and win” within a whole-of-economy transition, rather than setting sustainability targets. The Hague has become the first city in the world to pass legislation that bans the advertising of fossil fuel related products. The ban takes effect from 2025 and will see publicly and privately funded advertising for petrol and diesel, aviation and cruise ships banned from appearing in areas such as bus shelters and billboards.   Have your say on AI Chartered Accountants Worldwide is bringing together its member Institutes to undertake an important study on the impact of Artificial Intelligence (AI) on the future of the global Chartered Accountancy profession. Please support this research which aims to understand your views, experience and expectations regarding AI technologies in your professional role. (FYI: Watch the Chartered Accountants Ireland webinar on Socially Conscious AI and CSRD.) A4S International Case Competition  - corporate decarbonization and a fair and just climate transition Accounting for Sustainability (A4S) haslaunched the 2025 A4S International Case Competition (A4SICC). This year’s case challenge asks students to focus their business skills on corporate decarbonization within the broader context of a fair and just climate transition. This year’s competition will again offer students a transformative and practical learning experience with the unique opportunity to travel to Toronto, Canada, win a cash price of CA$10,000, access internships and cultivate critical skills and connect with industry leaders.  Places still available on Sustainability Reporting and Assurance Diplomas With the mandatory corporate Sustainability Reporting and Assurance in the EU starting this year, Chartered Accountants Ireland’s Sustainability Diplomas are back for the Autumn Schedule of our Professional Development courses. Tthe Diplomas are: Diploma in Sustainability Reporting, designed for chartered accountants and others leading the implementation of the new European Sustainability Reporting Standards (ESRS).  Diploma in Auditing and Assuring Sustainability Reporting, tailored for Chartered Accountants and others seeking to conduct sustainability assurance and become licensed as Sustainability Assurance Service Providers (SASPs). Articles We are incredibly vulnerable to an energy shock, so cutting fossil fuel dependence is a must (Irish Times) Research reveals challenges facing female SME owners (RTÉ) Materiality: The five steps that will get you on track (Business for Biodiversity Ireland) Podcasts Sustainable Views (FT): Can female leadership accelerate climate action? There was barely a woman to be seen in the official photograph of the world's climate leaders at COP28. This is a problem when half of the world's population is female. We spoke to former Canadian environment minister Catherine McKenna and Aron Cramer, CEO and president of sustainability consultancy BSR, about how they believe more women can be brought into the climate space and how this can change the dynamics around climate action (Listen) Did you know? Publishers are working to bring down the carbon footprint of books. ‘Sustainable Typesetting’ a project called from a Danish typesetting company has been developing fonts that reduce the number of pages while still prioritising readability. A typical paperback book accounts for around 1kg of carbon dioxide, and with 767 million paperback books being sold in the US last year alone, innovative initiatives are key to reducing emissions. Upcoming Events Ireland’s third SDG (Sustainable Development Goals) Week takes place this year from 20 – 29 September. The SDGs work towards ambitions such as an end to poverty, access to decent work, sustainable consumption, protection of nature, better health and wellbeing, universal access to education, gender equality, climate action, and peaceful societies. Trinity College Dublin, What does economics have to do with nature? What does economics have to do with nature? What is the natural capital approach? Why do we need an economic approach to climate change risks?  Come and hear answers to these questions and more from Ece Ozdemiroglu, environmental  economist, founder & CEO of EFTEC (Economics for the Environment) In person, Oct 14, 2024 at 6:00 PM UN Global Compact Network Ireland, Virtual Open House: Exploring the UN Global Compact & the Network for Ireland Are you interested in learning more about the world’s largest corporate sustainability initiative? Curious about how your company can play a role in advancing the UN SDGs and driving impactful change? Join the Virtual Open House on 16th October for a unique opportunity to connect with like-minded leaders and explore how we can work together to create a more sustainable and responsible future. At this webinar you’ll gain insights into the value of engaging with the UN Global Compact and the soon-to-be-launched Network for Ireland. - Overview of the UN Global Compact and its Ten Principles - Benefits of joining the UN Global Compact for your business - Introduction to the new Ireland Network and how it can support your sustainability goals Online, 16 October, 3:30- 4:30pm ESG Summit Europe, ESG Summit Europe 2024 In person, Madrid, October 1-2  ICAEW, Annual Conference 2024 Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future. In person, Convene, London UK, 4 October, 08:00 - 17:00 BST  (WAIT LIST) Accountancy Europe, Unpacking CSRD transposition across Europe This webinar will take stock and share insights into the Corporate Sustainability Reporting Directive (CSRD) transposition across EU Member States. Join us for this overview with experts. Speakers to be confirmed. Programme coming soon. Virtual, October 8 October 2024 (12:00 - 13:15) Brussels time Environment Ireland, Environment Conference Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield. In person, Croke Park, 17 October Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 24 October, 08:30 – 12.00, Virtual IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. In person, 1 November, Maynooth University 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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: Wednesday, 23 October, 14:00-15.30 Zoom 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.    

Minster for Finance, Jack Chambers, last week published the report of the independent examination of the Standard Fund Threshold (SFT). Following this review, the Government will implement phased increases in the SFT of €200,000 per year beginning in 2026 until 2029; after which the level of SFT will move with the applicable level of wage growth.    The SFT is the limit on the total capital value of an individual’s pension pot before unfavourable tax consequences are realised and has remained at €2 million for the past 10 years.   The Institute, under the auspices of the CCAB-I, responded to the public consultation on the SFT regime in December 2023 and recommended that the SFT should be increased in line with inflation as well as harmonising the treatment of public and private sector pensions when the SFT is breached.   The Minister also confirmed that there would be no change to the rate of chargeable excess tax (CET), currently 40 percent, but that this would be reviewed in 2030.  In relation to lump sums, the threshold for the higher rate of taxation to apply to a pension lump sum will be limited to €500,000 rather than a proportion of the SFT and this change will be introduced in Budget 2025.   Read the Minister's statement announcing the changes.  

In this week’s Sustainability/ESG bulletin read about the upcoming Sustainability Reporting and Assurance diplomas from Chartered Accountants Ireland and a call for accountants to participate in an ENACT workshop. Also covered are new sources of climate funding, developments in renewable energy financing, investment in entrepreneurship programmes aimed at women, the Draghi report, and the usual resources, articles and upcoming events. Ireland news 2024 Climate Action Plan Report shows progress towards targets The Department of the Taoiseach has described the latest progress report on the 2024 Climate Action Plan as showing “continued progress towards Ireland’s climate targets”, with 20 out of 33 new actions completed on time. The statement comes after the recent publication by the EPA of provisional greenhouse gas emissions for Ireland for 2023, showing a reduction of 6.8% (excluding land emissions) compared to 2022, with emission reductions in almost all sectors. Climate funding made available Climate Actions Work, a campaign and fund specifically aimed at climate engagement, has been launched to support and inspire people to take action and talk about the climate actions that can improve their local areas. The campaign will include national radio, print and social media broadcasts to amplify climate actions already happening, with a particular focus on local media linked to local actions. The fund will be administered by Community Foundation Ireland. €27 million in funding under the Community Climate Action Programme has also been provided to local authorities to partner with community groups, supporting initiatives like community gardens, solar energy, EV charging, and community composting. The programme comprises a national Climate Action Fund allocation of €24 million and €3 million provided by the Government’s Shared Island Fund to support cross-border and all-island community climate action initiatives. CSO publishes ‘ecosystem accounts’ for forests and woodlands The Central Statistics Office (CSO) has published Ecosystem Accounts - Forests & Woodlands 2012-2022, as part of the CSO Frontier Series Output. It is the first time the CSO has produced a full set of ecosystem accounts for one of Ireland's ecosystems. International politics are shifting towards frameworks of environmental policies that aim to  achieve sustainable development and increase human well-being in the coming decades. Ecosystem accounting has a role to play in the development and monitoring of such policies by offering a unique approach through the ecosystem perspective. Fourth Renewable Electricity Support Scheme (RESS 4) auction results announced The provisional results of the fourth Renewable Electricity Support Scheme (RESS 4) auction have been announced, provisionally procuring over 2GWh (2,071 GWh), or enough energy to power up to half a million homes. Ireland's target, as set out in the government's Climate Action Plan 2024, is to achieve 80% renewable electricity by 2030. To deliver this a minimum of five RESS auctions are to occur between 2020 and 2025. The RESS provides pathways for renewable developers to plan and develop their projects. Offshore wind projects can participate through dedicated offshore auctions. Separately, the European Investment Bank (EIB) and the Irish Department of Transport have formally announced an advisory cooperation to assess capacity, demand and financing strategies required for the development of ORE (Offshore Renewable Energy) port infrastructure. This infrastructure is crucial for the development, construction, and long-term operation and maintenance of offshore wind projects in Irish waters and economic activity. The new advisory cooperation aims to evaluate the scale and nature of investment needed to upgrade port infrastructure in order to unlock the estimated €30 billion in investment in offshore renewable projects in Irish waters. Irish Sovereign Green Bond (ISGB) Allocation Report 2023 publishes The National Treasury Management Agency (NTMA) has published the Irish Sovereign Green Bond (ISGB) Allocation Report for 2023 and the Impact Report for 2022, both issued by the Government of Ireland. A total of €521 million was allocated to eligible green projects in 2023. Both reports and an excel file of the Impact Report are available here. Report into Ireland’s farming climate action publishes A new report published recently by Ifac - Ireland’s farming, food and agribusiness specialist professional services firm – has found that 90% of Irish food companies are now actively taking climate action, positioning sustainability as a central focus alongside global expansion efforts. Getting your business fit for export, Ifac’s 2024 Food and Agribusiness Report (the seventh in the series) contains insights from industry leaders in over 120 food and agribusinesses. Sustainability at Senior Cycle Minister for Education Norma Foley, TD, has launched the two new Senior Cycle subjects: Leaving Certificate Drama, Film and Theatre Studies; and Climate Action and Sustainable Development. 43 schools will introduce Climate Action and Sustainable Development from the start of the 2025/26 school year. Climate Action and Sustainable Development will develop students’ capacity for informed and meaningful action for a just and sustainable world as they engage with key sustainability challenges including the climate crisis. Students will be empowered to build their understanding of a number of interconnected core concepts and principles related to climate action and sustainable development. Northern Ireland/UK news InterTradeIreland, in partnership with Invest Northern Ireland and Enterprise Ireland, have introduced eight new entrepreneurship programmes designed to empower women and help them collaborate, learn, grow and scale their business. Alongside cross-border clusters and sustainability innovation investment, a key element of the Shared Island Enterprise Scheme is dedicated to fostering women’s entrepreneurship on an all-island basis, of which these programmes are the first stage. Further announcements as part of the wider Shared Island Enterprise Scheme will follow in the coming months. Europe news The Draghi Report on “The future of European competitiveness” was presented to the President of the European Commission on 9 September. The 400-page report by former Italian prime minister and president of the European Central Bank Mario Draghi, grouped its findings around three pillars: innovation, decarbonisation and dependency. Decarbonisation, the report says, should be used as a tool for competitive advantage, with Europe needing to decouple the price of natural gas from renewable energy so as to reduce energy prices and allow the benefits of clean energy to be passed on to consumers. The report also suggested that Europe needs to mobilise at least €700–850 billion in investments a year and that common asset funding and joint debt could be used to finance this upscale in investment.   The European Commission has released a paper discussing how the shift to climate neutrality will affect public finances. The paper, Fiscal Challenges in the Green Transition: A Global Perspective, looks identifies the fiscal implications of the transition to climate neutrality on government budgets, assesses the revenue boost from carbon pricing and the eventual decline as emissions reduce and suggests possible options to broaden the tax base and introduce innovative sources of financing for fiscal sustainability. Sustainability Reporting and Assurance Diplomas starting 26 September With the mandatory corporate Sustainability Reporting and Assurance in the EU starting this year, Chartered Accountants Ireland’s Sustainability Diplomas are back for the Autumn Schedule of our Professional Development courses. Starting on 26 September 2024, the Diplomas are: Diploma in Sustainability Reporting, designed for chartered accountants and others leading the implementation of the new European Sustainability Reporting Standards (ESRS).    Diploma in Auditing and Assuring Sustainability Reporting, tailored for Chartered Accountants and others seeking to conduct sustainability assurance and become licensed as Sustainability Assurance Service Providers (SASPs). Students who previously completed the Certificate in Sustainability Strategy Risk & Reporting receive 20% off the cost of the diplomas and there is Skillnet funding available for all three qualifications. Calling accountants –ENACT  workshop – decarbonisation – SMEs Can you take part in a 90-minute workshop, no preparation required, to give your expertise and experience on SMEs and access to finance? SMEs face barriers and challenges in carrying out energy efficiency upgrades to commercial buildings. One of these barriers is finance. SustainabilityWorks has developed an outline of a financial decision-making tool which could direct SMEs to the grants, low-cost loans and tax reliefs available, as well as providing insights into other financing options such as asset finance, solar power purchase agreements, lighting as a service, solar as a service etc.  SustainabilityWorks is seeking accountants who have worked with SMEs to review the tool to see whether it would overcome some of the complexities around the financing angle. (Commercial buildings are defined as offices, hotels, pubs/restaurants, heated/lit warehouses and leisure facilities.)  Participants will be credited in the final reports to be issued by the SEAI-funded ENACT research project, that will inform national policy with a view to accelerating the retrofit of commercial buildings nationally and making a meaningful contribution to meeting national decarbonisation targets. Contact laura@sustainabilityworks.ie or paddy@sustainabilityworks.ie Articles Ireland’s nature in focus - Valiant efforts give cause for hope (Irish Times)   Sustainability assurance market under spotlight in FRC study (ICAEW)   What will Labour do about green taxes? (CityAM)   Accountants in business: ignore ESG at your peril (ICEAW)   If warnings about Atlantic ocean circulation are correct, Irish people could become climate migrants The Irish Times   “This stuff’s hard. It will take time, but through transparency we can get there.” - Almost half of FTSE 100 companies restate climate scores (The Times)   Podcasts Noeline Blackwell, Irish Human Rights and Equality Commissioner, discusses the key findings of their latest report into the growing problem of human trafficking. Click here for more on what accountants can do in the fight against modern slavery and human trafficking website (RTÉ Radio 1) Watch back Chartered Accountants Worldwide Special Edition In this special episode of the "Difference Makers Discuss Live", Jessica Fries, FCA, shared insights into her career path and role as Executive Chair at A4S. Jessica also discussed the current global sustainability landscape and Chartered Accountants' impact on advancing sustainability.   Upcoming Events EARTH RISING IMMA - Irish Museum of Modern Art IMMA’s flagship festival focused on the Earth crisis, celebrating art and culture as catalysts for environmental change and collective action. This festival includes free exhibitions, workshops, talks, performances, screenings and more. Explore innovative solutions and contribute to a thriving, sustainable future for Ireland. 20 - 22 September 2024, Irish Museum of Modern Art   Ireland’s third SDG (Sustainable Development Goals) Week will take place this year from 20 – 29 September. Last year, almost 200 events were held across Ireland, with 5,000 events taking place across Europe for the wider European Sustainable Development Week (ESDW). The SDGs work towards ambitions such as an end to poverty, access to decent work, sustainable consumption, protection of nature, better health and wellbeing, universal access to education, gender equality, climate action, and peaceful societies.   Chartered Accountants Ireland, Advance your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Mike O’Halloran, Chartered Accountants Ireland and guest to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. Virtual, Chartered Accountant House, 25 September, 10.00 – 11.30 (Free)   EPA, Circular Economy Conference 2024 Online and in-person (Aviva Stadium, Dublin), 25 September   Dublin Chamber, The Sustainability Academy Dublin Chamber is running its Sustainability Academy again this year with workshops offering a unique opportunity to gain a comprehensive and well-rounded understanding of sustainability. This course fee includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor Virtual, starting 27 September   ESG Summit Europe, ESG Summit Europe 2024 In person, Madrid, October 1-2  ICAEW, Annual Conference 2024 Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future. In person, Convene, London UK, 4 October, 08:00 - 17:00 BST      Accountancy Europe, Unpacking CSRD transposition across Europe This webinar will take stock and share insights into the Corporate Sustainability Reporting Directive (CSRD) transposition across EU Member States. Join us for this overview with experts. Speakers to be confirmed. Programme coming soon. Virtual, October 8 October 2024 (12:00 - 13:15) Brussels time   Environment Ireland, Environment Conference Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield. In person, Croke Park, 17 October   Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 24 October, 08:30 – 12.00, Virtual   IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore: Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance, Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education, Future skills for sustainability reporting and assurance, Strategies for enhancing accounting education and student skills development. In person, 1 November, Maynooth University 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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: Wednesday, 25 September, 14:00-15.30 Zoom 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.

As anticipation for an early general election continues to grow, the Institute’s public policy team has made submissions to all of the main political parties setting out the key policy priorities we would like to see featured in any future Programme for Government. Read our manifesto. Supporting small businesses While the Government has acknowledged the financial pressures SMEs are under, many businesses remain constrained by rising labour costs. In a recent survey of our members, 90 percent of respondents identified labour costs as being the single biggest operating cost facing their business today with over 90 percent saying that these have increased over the past year. With this in mind, we are calling for the next Government to: 1. Reduce Employers’ PRSI on minimum wage workers by 1.5 percent to mitigate the cost of auto-enrolment for employers Currently employers’ PRSI is paid at a rate of 8.8 percent (8.9 percent from October 2024) and a reduction by 1.5 percent would cost the Exchequer an estimated €63 million in a full year. This proposal would compensate employers who will have to introduce pensions auto-enrolment during 2025 at an initial cost of 1.5 percent. The cohort most impacted by the new pensions scheme will be the estimated 164,000 minimum wage workers. 2. Think small first when it comes to introducing new legislation and regulations SMEs have also had to deal with the introduction of an unprecedented number of new legislative requirements over the past 2 years, adding to their cost and administrative burden.  One example is the introduction of enhanced reporting for employers meaning that employers have to report in real-time details of tax-free travel and subsistence and other benefits paid to employees.  Government needs to be cognisant of these challenges when implementing new regulations and have regard to the timing and suitability of same. It is important that small companies do not face any unnecessary or disproportionate regulatory obstacles to start up, establish and grow.  This can be achieved by: Strictly applying the ‘enhanced SME test’ across all government departments when introducing new legislation that will ultimately affect the bottom lines of SMEs. Staggering the roll out of new workplace legislation in a timely manner so as not to overburden employers with additional new costs all at the same time. Facilitating consultation and dialogue with SMEs and other impacted stakeholder groups before introducing new legislation or policy that affects small businesses. Reducing the frequency of reporting the payment of travel and subsistence and other benefits to a monthly or annual basis. 3. Simplify the tax regime for SMEs to encourage enterprise and innovation It is acknowledged that businesses face a complex challenge in accessing tax reliefs and schemes and the Government has shown a desire for all businesses, especially SMEs, to know what they are entitled to claim and can access all appropriate schemes and reliefs.   However, there are several areas where improvements must be made including: (i) Making share-remuneration more attractive by: Maintaining the Employers’ PRSI exemption, which offsets some of the cost of establishing share schemes. Deferring all tax charges for the employee until a sale or liquidity event occurs and allowing CGT treatment on a redemption of employee-owned shares. Enhancing the Key Employee Engagement Programme (KEEP) scheme by relaxing some of the onerous conditions for establishment which drives set-up costs. (ii) Encouraging SMEs to claim the R&D tax credit Larger organisations represent a larger proportion of the amount of R&D tax credit claims in a year. Smaller organisations are disincentivised from claiming an otherwise-available R&D tax credit on the basis of a lack of certainty, fundamental tax risk, and burdensome scrutiny of claims. This can be achieved by: Offering an enhanced rate for small and micro companies of 50 percent. Simplifying the documentation and qualification requirements for SMEs. Introducing a Revenue pre-clearance system for first time claimants. Improving Revenue guidance targeted at SMEs and including a list of common pitfalls encountered by claimants. (iii) Reduce Capital Gains Tax from 33 percent to 25 percent Investment is critical in enabling start-ups to thrive and SMEs to grow and expand.  A lower rate of CGT has been shown to encourage innovation and risk taking. It encourages the sale and purchase of assets, which drives investment activity. This would improve returns for entrepreneurs and in turn the Exchequer.  Improving childcare capacity and affordability for working parents Childcare provision is part of the critical infrastructure necessary for a functioning economy. Access to affordable and good-quality childcare can play a key role in driving more sustainable and inclusive economic growth. In a survey of our members published earlier this year, 97 percent of respondents surveyed said that they had considered adjusting their working patterns as a result of not being able to find a childcare place while almost half of respondents signalled that they have had to reduce their working hours as a result of this. From a cost perspective, one third of members currently pay up to €1,000 a month per child on childcare with one third paying between €1,000 and €2,000 per child per month. This is not a sustainable situation. To address these issues, we are calling on the next Government to: 1. Commit to a whole-of-government strategy which recognises childcare as part of the critical infrastructure necessary for the functioning of the economy. This strategy should: Focus on encouraging the availability of flexible or part-time childcare places to reflect current work patterns. Targeted funding could be directed at facilities to offer more flexible offerings. Ensure adequate capacity in the sector by officially analysing and documenting childcare needs in local areas on a regular basis.  Expand the work of the Access and Inclusion Model (AIM) programme which caters for children with a disability by creating a more inclusive environment in pre-schools through universal and targeted supports. 2. Ensure funding of the existing system reflects the true cost of service provision and encourages growth in the sector. This can be achieved by: Regularly reviewing Core Funding to ensure that the model is suitable for the sector and enables providers to be sustainable, profitable and retain an ability to invest in their own services. Supporting an integrated system of full time and after-school care with both types of care adequately funded. Reflecting the additional cost burden placed on providers by the administrative requirements of Core Funding, the administration of the National Childcare Subsidies as well as the enhanced regulation experienced by childcare providers (and SMEs generally) by the introduction of new labour laws including pensions auto-enrolment, which is expected in 2025.   3. Enhance awareness of support subsidies available to parents under the National Childcare Scheme. This can be achieved by: Ensuring that maternity hospital and Public Health Nurses to provide information on the supports available to new parents in the early years. Requiring childcare providers to highlight available supports to parents as part of the application process to register their child with the childcare facility. Translating the NCS portal into other languages as language barriers have been reported as being a barrier to claiming the subsidy. As part of our pre-election campaign to promote the above advocacy agenda, in recent weeks representatives from the Institute have met with Minister for Enterprise, Trade and Employment Peter Burke and Minister for Finance Jack Chambers. In addition, we have engaged with senior officials at the Department of Children, Equality, Disability, Integration and Youth and have arranged forthcoming meetings with spokespeople from all of the main opposition parties. As we approach the next general election, the Institute’s public policy team will continue to advocate for our members interests across the political spectrum. Should you have any questions on our campaign or wish to bring a specific issue to our attention, please contact the public policy team at publicpolicy@charteredaccountants.ie  

In this week’s Sustainability/ESG bulletin, read how costs remain both a driver and an obstacle in SMEs taking action on sustainability. Also covered is Ireland’s B- in climate performance, sustainability in the Ireland For Finance Progress Report, funding available in Northern Ireland for SMEs and Women in Business, the All-Ireland Sustainability Awards, Earth Overshoot Day and reports into the effectiveness of climate policies and board-level climate knowledge, as well as the usual resources, articles and upcoming events. Ireland Costs still primary driver and obstacle to SMEs sustainability action A survey commissioned by Uisce Éireann which published this week has found that cost remains both the primary driver and obstacle in SMEs taking sustainability action. Read more here. The Chartered Accountants Ireland SME and SMP Sustainability Workshop Chartered Accountants Ireland is running an online workshop for SMEs and small/medium accounting practices (SMPs) who want to get ahead of the sustainability curve. The interactive half-day session will cover the impact of ESG policies and trends on business. Also covered will be the impact of CSRD, the steps to create a sustainability small practice, opportunities to advise on ESG now and in the future, and sources of sustainable finance available. If you run or advise an SME, join us on Friday 13 September from 9.30am. ‘B-’  grade for Irish Government’s climate progress Ireland has received a ‘B-’ from leading Irish academics for its progress on the climate and environmental commitments in its Programme for Government. The grade, an improvement on last year’s C+, was given as part of a project commissioned by the Friends of the Earth Ireland. In awarding the Government the B- grade, the report acknowledged that Ireland has ‘turned a corner’ away from its ‘climate laggard’ origins, but that momentum will have to accelerate over successive governments to make Ireland a genuinely sustainable economy. Non-Domestic Electricity Consumption figures released Figures released by the Central Statistics Office (CSO) show that restaurants/public houses consumed more than twice the electricity per square metre of offices in 2023. The figures included in the Non-Domestic Electricity Consumption by Building Energy Ratings 2023, show that the next highest consumption was by retail, followed by offices, primary health care, and community/day centres. A revised and updated Sustainable Finance Roadmap A ‘revised and updated Sustainable Finance Roadmap’ is among the achievements noted in the 2023 progress report of the Ireland for Finance strategy. The Progress Report 2023, which published this week, provides an update on the 12 measures that were due for reporting last year under the Ireland for Finance strategy. This strategy first published in 2019 and aims to further establish Ireland’s position as a global location of choice for companies operating in the financial sector. The five core themes of the strategy are fintech, sustainable finance, diversity and talent, regionalisation and promotion, and operating environment. Online Survey for the next National Strategy for Women and Girls The Department of Children, Equality, Disability, Integration and Youth has issued an Online Survey as part of its development of the next National Strategy for Women and Girls. This new strategy will expand on the progress made to date and aims to help advance the rights of women and girls. The survey will be open until 30 September, after which the Department will begin a series of in-person consultations to further inform the strategy’s development. Participants can submit their own views (anonymised) or those of an organisation they represent. Separately, figures recently published by Central Statistics Office (CSO) how that Q2 2024 saw the highest participation rate for females since the series began in 1998, with females representing 61.4% of the labour force, up from 61% in the same quarter in 2023. Northern Ireland/UK news Funding and training available A new programme has launched in Northern Ireland to support SMEs taking climate action and reducing their CO2 emissions. Developed by Business in the Community Northern Ireland (BITC) and partially funded by the British Business Bank, the programme will help participating businesses to build capacity, assist with net-zero planning, and increase levels of reporting and capacity-building to enable delivery of immediate and long-term climate action. More details. Applications are also open for the Women in Business ‘Explore It’ programme for women at the pre-start (idea stage) or early stage of trading in their business. Training will address a wide range of business start-up issues and help to build confidence and grow business skills. The application deadline is midday on Friday 11 October 2024. All-Ireland Sustainability Awards open Applications are open for the All-Ireland Sustainability Awards, which celebrate organisations that have excelled in improving their environmental, social, and financial performance to create a more sustainable future and drive a greener economy.  Applicants can submit multiple projects across various categories, which include Tech for Good, Sustainable Tourism, Green Marketing, and Net-Zero Initiatives. The Awards are free to enter and the deadline for entry is 1pm on Friday 6 September. Calls for lobbying to be included in companies’ climate reports The University of Oxford’s Smith School of Enterprise and the Environment, in association with the non-governmental Exponential Roadmap Initiative have stated that current climate standards must be expanded to include a company’s broader influence on climate action in order  to deliver net zero. The report further states that current reporting standards fail to incentivise broader climate action and can even discourage it. Calls for a just transition and investor action in the mining industry The London School of Economics’ Grantham Research Institute on Climate Change and the Environment has published a report setting out the importance of a just transition in the mining sector and presenting a framework for investor action. Included in the report’s eight recommendations is a call for investors to “deepen their engagement efforts” with mining companies and state-owned enterprises around a just transition, and to inform governments of their expectations for just transition policies. World news Earth Overshoot Day – 1 August 2024 Earth Overshoot Day fell on 1 August this year. This is the date on which humanity’s demand on nature’s resources surpasses Earth’s capacity to regenerate them for the given year. The date is calculated by the international sustainability organisation Global Footprint Network. For the remainder of this year humanity lives on overuse, further depleting the biosphere, and increasing pressure on the planet. Heat-related impacts study A new modelling study in the Lancet using data on 854 European cities has found that heat-related deaths could triple in Europe by 2100 under current climate policies, as climate change expected to exacerbate heat-related morbidity and mortality presents unprecedented challenges to public health systems. Effectiveness of climate policies A new study on climate policies has found that just 63 policies were effective at reducing emissions. The study, which examined 1,500 climate policies implemented over the past 25 years, found that ‘effective but rarely studied’ policy combinations highlight the important role of price-based instruments in well-designed policy mixes and the policy efforts necessary for closing the emissions gap. Board-level climate knowledge A study by ESG-rating-provider MSCI has found that investors’ assessments of how prepared a company is to deal with climate-related financial risks is being made difficult by a lack of stringent criteria setting out exactly what it means if corporate board members claim to have climate expertise. The study also found that few boards had multiple climate experts, and 65% had no climate experts at all. ‘Accounting for a Better World’ The International Federation of Accountants (IFAC) has published an article on the pivotal position it says accountants occupy in driving sustainable business practices. Accounting for a Better World: Insights from IFAC’s Professional Accountants in Business Advisory Group outlines multiple opportunities where professional accountants can have an impact. These include ensuring sustainability and excellence as a CFO, driving integrated thinking through strong corporate governance, harnessing the transformative opportunities of AI,  and nature-related accounting and financial disclosure. Sustainability Reporting and Assurance Diplomas starting 26 September With the mandatory corporate Sustainability Reporting and Assurance in the EU starting this year, Chartered Accountants Ireland’s Sustainability Diplomas are back for the Autumn Schedule of our Professional Development courses. Starting on 26 September 2024, the Diplomas are: Diploma in Sustainability Reporting, designed for chartered accountants and others leading the implementation of the new European Sustainability Reporting Standards (ESRS).    Diploma in Auditing and Assuring Sustainability Reporting, tailored for Chartered Accountants and others seeking to conduct sustainability assurance and become licensed as Sustainability Assurance Service Providers (SASPs). Articles Ireland’s nature in focus - Valiant efforts give cause for hope (Irish Times)   The new EU deforestation regulations businesses should know about (Accountancy Ireland – Briefly)   The uninsurable world: rethinking how to cover for climate damage (Financial Times)   Fighting Greenwashing: The Role of Strong Corporate Governance in Reliable High-Quality Sustainability Information (IFAC)   The case for standardised social impact reporting measurements (CPA Australia)   Frame climate policies as economic not environmental benefits (New York Times)   Accountants key to accelerating energy transition (ICAEW Insights)   Cost- and climate-conscious companies are swapping business class for economy as they return to air travel (The Times)   Northern Ireland Shoppers Confused About Product Sustainability (Business Eye)   BlackRock’s support for ESG measures falls to new low (Financial Times)   EU faces lawsuits over emissions rules, 'green' label for planes (RTÉ) Did you know? The number of plastic bags found on UK beaches has dropped by an average of 80%,  according to the charity which runs the Great British Beach Clean each September. The charity reportedly credits the reduction to charges on single-use carrier bags, and has stated it hopes for similar bans on other plastic items will result in cleaner beaches in the future. Podcasts The Guardian – Science Weekly - What’s happened to all the butterflies? (18 minutes) Upcoming Events Ireland’s third SDG (Sustainable Development Goals) Week will take place this year from 20 – 29 September. Last year, almost 200 events were held across Ireland, with 5,000 events taking place across Europe for the wider European Sustainable Development Week (ESDW). The SDGs work towards ambitions such as an end to poverty, access to decent work, sustainable consumption, protection of nature, better health and wellbeing, universal access to education, gender equality, climate action, and peaceful societies. A4S (Accounting for Sustainability) Pensions Deep Dive: Using a narrative scenario approach for asset allocation Mirko Cardinale, Head of Investment Strategy, USS Investment Management, will share insights on using a narrative scenario approach within investment decision-making processes, and how this affected USS's thematic investment outlook and strategic asset allocation review. There will also be a Q&A discussion on the practical implementation of narrative scenarios to support the asset allocation process. In person/virtual: 5 September, 16.00–17.30 BST A4S (Accounting for Sustainability) Sustainability in Action Webinar: Net zero – Scope 3 for the real economy Register for this webinar to receive practical advice for measuring and reducing your scope 3 emissions and find out about the pivotal role that finance teams can play in addressing scope 3 emissions. Practical examples shared during the webinar will help you translate the experience and learnings of others to your work. In person, 10 September, 16:00 BST Premier Publishing & Events, Northern Ireland Sustainability Summitl The 2024 Northern Ireland Sustainability Summit is being held in the TEC, Belfast on the 12 of September with an impressive line-up of Sustainability leaders, academics and government agencies who will engage in a stimulating blend of keynote addresses and debates. The theme is ‘Creating an Innovative and Sustainable Manufacturing & Supply Chain Ecosystem’ In person, Titanic Exhibition Centre Belfast, Sept 12th Chartered Accountants Ireland, The SME and SMP Sustainability Workshop A workshop for SMEs and small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve. Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points.  Chartered Accountants Ireland, Advance your knowledge on the Corporate Sustainability Reporting Directive Join Dee Moran, Professional Accountancy Lead, and Mike O’Halloran, Technical Manager, both from Chartered Accountants Ireland to understand more about the Directive, the transposition into Irish law and what it might mean for your organisation. Virtual, Chartered Accountant House, 18 September, 10.00 – 11.00 (Free) Chartered Accountants Ireland, Advance your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Mike O’Halloran, Chartered Accountants Ireland and guest to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. Virtual, Chartered Accountant House, 25 September, 10.00 – 11.30 (Free) EPA, Circular Economy Conference 2024 Online and in-person (Aviva Stadium, Dublin), 25 September Dublin Chamber, The Sustainability Academy Dublin Chamber is running its Sustainability Academy again this year with workshops offering a unique opportunity to gain a comprehensive and well-rounded understanding of sustainability. This course fee includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor. Virtual, starting 27 September ESG Summit Europe, ESG Summit Europe 2024 In person, Madrid, October 1-2  ICAEW, Annual Conference 2024 Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future. In person, Convene, London UK, 4 October, 08:00 - 17:00 BST    Environment Ireland, Environment Conference Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield. In person, Croke Park, 17 October Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 24 October, 08:30 – 12.00, Virtual IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore: Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance, Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education, Future skills for sustainability reporting and assurance, Strategies for enhancing accounting education and student skills development. In person, 1 November, Maynooth University 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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: Wednesday, 25 September, 14:00-15.30 Zoom 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.

  A survey commissioned by Uisce Éireann which published this week has found that costs remain both the primary driver and obstacle in SMEs taking sustainability action. The survey, which interviewed the owners of more than 350 small- and medium-sized businesses, sought their opinion on the importance of investing in sustainability for their businesses and customers. It also examined the barriers that currently exist to investment in the area.  The survey found that for seven in 10 SMEs said cost savings is the primary driver in decision-making on sustainable investment, but cost concerns remain the primary obstacle for almost 70% of SMEs. The survey also revealed that 9 in 10 businesses still intend to maintain or increase their investment in sustainable practices in the coming year, but there has been a slowdown overall in the number of businesses planning sustainability investments, falling from 20% in 2023 to 15% in Q2 2024.  75% of companies surveyed intend to maintain levels of investment, with 15% planning to increase it, but only 11% have accessed external expertise in the past 12 months. Speaking about the survey findings, David Broderick, Director of the Small Firms Association (SFA), said: “it is worth noting that small businesses are still operating in a high inflation economy with 68% of SMEs claiming that costs remain a primary barrier to investment.” The top three areas where SMEs are most actively tackling environmental issues are reducing their energy use, waste, and plastics. The proportion of businesses taking measures to conserve water is at its highest level in three years, with more than seven SMEs in 10 say they are conserving water, and a 10% decrease over the same period in the number who say it is ‘not on their radar’ (31% in 2022 to 28% in Q2 2024.)