Ireland’s Climate Action Bill is signed into law; the Ireland for Finance Progress Report 2020 records the highest level of direct employment achieved in International Financial Services; dates are announced for Ireland’s fourth annual Climate Finance Week; Northern Ireland’s high street scheme roll out is announced; and the European Commission approves a €9.5 million Irish scheme to support not-for-profit regional, county and local entities affected by the coronavirus outbreak. Climate legislation signed into law The Climate Action and Low Carbon Development (Amendment) Act 2021 has been signed into law by President Michael D Higgins. This sets Ireland on a legally binding path to net-zero emissions no later than 2050, and to a 51 percent reduction in emissions by the end of this decade. The Act also provides the framework for Ireland to meet its international and EU climate commitments and to become a leader in addressing climate change. In consultation with the Climate Change Advisory Council (CCAC) the Government will now prepare regulations on carbon accounting. Following this, CCAC will produce carbon budgets and present them to the Oireachtas for approval. The Government will then set sectoral emissions ceilings determining how each sector of the economy will contribute to the achievement of the Budgets. Here is more on the Act from our Public Policy team. This week also saw the first meeting of Ireland’s National Bioeconomy Forum, which aims to promote, support and advocate for the sustainable development of the bioeconomy in Ireland in line with the progression of a circular economy, climate action and a climate-neutral, sustainable and innovative agri-food sector. The Forum will provide a voice for a broad range of stakeholders, including primary producers, industry, community groups, NGOs, innovation clusters and relevant semi-state bodies. The establishment of the Forum was an action of the 2018 National Policy Statement on the Bioeconomy.   Ireland for Finance Sean Fleming TD, Minister of State at the Department of Finance, has published the Ireland for Finance Progress Report 2020, which recorded the highest level of direct employment achieved in the International Financial Services (IFS) portfolio with 50,000 jobs.  Commenting Minister Fleming stated “Notwithstanding the challenges we faced, direct employment in the sector is at an all-time high and we continued to make good progress in advancing our four priorities; Fintech, Sustainable Finance, Diversity and greater Regional development.” Also this month, Minister for Finance, Paschal Donohoe, TD, announced the dates for the fourth annual Climate Finance Week Ireland (CFWI) 2021. The event is a key action under the Ireland for Finance Strategy, and an output of the Ireland for Finance annual Action Plan. It will take place from 11-15 October and will cover environmental, social and governance (ESG) topics in Ireland. Speaking about the event Minister Donohoe said: ‘With the launch of our own Climate Action Plan due shortly and the UN COP26 taking place in November, this year’s event can build on the strong momentum already underway in financing the climate transition and a forum for people to understand the opportunities being created in Climate and Sustainable Finance’. Minister Fleming, who is responsible for the Ireland for Finance strategy commented: “I am looking forward to taking part once again in Climate Finance Week Ireland as the Sustainable Finance agenda is a priority area for the future growth of the international financial services sector in Ireland. The event has developed into a key element of the Ireland for Finance strategy and how we engage with stakeholders on this vital topic.”   Minister for Economy in NI announces roll-out of High Street Scheme Northern Ireland’s Economy Minister Gordon Lyons has announced  that the High Street Scheme (HSS) will be launched in September with cards, branded with a ‘Spend Local’ logo, delivered shortly after. Under the scheme, worth £145 million, everyone aged 18 and over in Northern Ireland will be eligible for a pre-paid card worth £100 to spend on their local high street. The contract for the delivery of the scheme has been awarded to Prepaid Financial Services (PFS), a payments technology company, with the registration process for the cards planned for opening to the public in September. Speaking about the scheme Minister Lyons stated: “This scheme is a key element of my Department’s Economic Recovery Action Plan and will give a very welcome boost to our high streets which were hard hit by the Covid-19 pandemic. This uplift is what our local businesses need and deserve.” A Retail Economics research paper, carried out by Retail Economics to inform the roll-out of the High Street Scheme has also been published, and is available on the DfE website at Northern Ireland High Street Scheme - DfE website. Commission approves Irish scheme to support not-for-profits The European Commission has approved, under EU State aid rules, a €9.5 million Irish scheme to support not-for-profit regional, county and local entities affected by the coronavirus outbreak and the restrictive measures that the Irish government had to implement to limit the spread of the virus. The scheme, the ‘Regional Enterprise Transition Scheme', will provide aid in the form of direct grants of minimum €50,000 and up to maximum €1.8 million per beneficiary for projects, to be selected through a competitive procedure, which will contribute to the viability and competitiveness of small and medium-sized enterprises. You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre  

Gender Pay Gap legislation is signed into law; the Pensions Authority publishes a draft code of practice for trustees of occupational pension schemes and trust RACs; a report shows that the accounting and business sector form the largest portion of new start-ups in 2021; and the private sector in Northern Ireland experiences its fastest growth in seven years. Gender Pay Gap legislation signed into law Legislation requiring businesses to report on pay and bonus differences between male and female employees was signed into law last week by President Michael D Higgins. Under the Gender Pay Gap Information Bill, which was originally published in April 2019, organisations with 250 or more employees will have to publish certain details of pay and bonuses for men and women, including: The mean and median gap in hourly pay between men and women The mean and median gap in bonus pay between men and women The mean and median gap in hourly pay of part-time male and female employees The percentage of men and of women who received bonus pay The percentage of men and of women who received benefits in kind. The legislation also requires publication of the reasons, in the employer’s opinion, for any gaps and also the measures (if any) that the employer is taking or proposes to take to eliminate or reduce them. Employers with fewer than 250 employees will have until the second anniversary of the making of the first regulations to publish details, while employers having 150 employees have until the third anniversary. There will be no requirement for employers having fewer than 50 employees to publish details. Roderic O’Gorman T.D, Minister for Children, Equality, Disability, Integration and Youth welcomed the Bill saying: “With the passage of the Gender Pay Gap Information Bill, pay transparency is now one step closer. Reporting of the gender pay gap by employers will provide accountability and transparency, helping to ensure that employers address the gender pay disparity between men and women. The passing of this strengthened legislation is testament to this Government’s commitment to gender equality, and I am determined to continue making progress on this”. Read the Bill. Pensions Authority publishes draft code of practice for trustees of occupational pension schemes and trust RACs The Pensions Authority has published a draft code of practice for trustees of occupational pension schemes and trust RACs which sets out what the Authority expects from regulated entities to meet their obligations under the European Union (Occupational Pension Schemes) Regulations 2021 (the Regulations). The Authority welcomes views on the draft code of practice, and the closing date for the receipt of submissions is 5pm Thursday 16 September 2021. The final code of practice will be published in the week commencing 15 November 2021. In addition, the Authority will issue information for new one-member arrangements on the Regulations, and information on the annual compliance statement provided for under the Regulations during the week of 30 August 2021. Guidance for the public and employers about the minimum standards they should expect from master trust vehicles will be published the week of 13 December 2021. Irish SMEs to avail of a €2,000 voucher to cover energy audit The Sustainable Energy Authority of Ireland (SEAI) is encouraging Irish SMEs to take control of their energy use with the launch of a new support scheme, the Support Scheme for Energy Audits. The scheme will provide SMEs with a €2,000 voucher to cover the cost of an energy audit, which identifies tailored energy saving opportunities that can save businesses up to 30 percent on their energy bills and help to reduce their climate impact. The audit will also assess whether renewable energy technologies are a viable option for their business. More details can be found here. Accounting and business sector largest portion of 2021’s new start-ups A new study by risk analyst firm CRIFVision-net reportedly shows that of the almost 14,000 new companies registered in Ireland in the first half of 2021 (an increase of 42 percent on the same period in 2020) the legal, accounting and business sector accounted for the largest portion, with a total of a total of 2,543 new companies registering. This is an increase of 19 percent when compared to 2020. However, Christine Cullen, Managing Director of CRIFVision-net, in a statement said the figures show that many businesses are struggling and will continue to struggle for the foreseeable future, with the impact the pandemic visible in rising insolvencies (up 45 percent) in the first half of the year: "These insolvencies are likely to increase, particularly in hospitality sector, as Government supports are rolled back and credit lines dry-up”. NI private sector experiences fastest sector growth in seven years Northern Ireland has seen its fastest pace of growth across the private sector in almost seven years, according to according to the latest Ulster Bank purchasing managers’ survey for June. The report shows: A new 7-year high in the rate of new orders (58.7) A record rise in the rate of input costs (87.5) led by construction (97.5) A record rise in firms’ prices (70.9) led by construction (85.1) A record increase in backlogs (58.8) A slow in employment growth from joint record high (53.7) A reading of above 50.0 signals an increase on the previous month, while below 50.0 signals a decrease. According to an article in the Financial Times, PwC, Deloitte and KPMG have already announced plans to create 2,200 jobs over the next five years which will further boost Northern Ireland’s 43,000-strong professional and financial services sector. PwC has now opened its Merchant Square office in Belfast and Jackie Henry, Deloitte’s lead partner for Northern Ireland points to the popularity of Belfast with staff: “We have one of the youngest populations across Europe here. It’s a brilliant starting point.” Henry, whose firm already has 1,000 people in Belfast and plans to double that by 2025 as it invests in areas including data analytics, cloud, robotics and cyber security, chairs the regional government’s skills advisory working group. However, Richard Ramsey, chief economist Northern Ireland, Ulster Bank, reportedly stated that it was also the worst quarter for inflationary pressures in the PMI survey’s history. “Rising demand coupled with ongoing supply chain disruption led firms to increase their backlogs of work at the fastest pace in the survey’s 19-year history”. Ramsey further stated this it is likely that supply chain disruption and significant inflationary pressures will be a feature of the business environment “for the rest of the year and well into 2022”.  You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre  

  The Institute has written to Tánaiste Leo Varadkar this week asking his Department to consider applying the current tax relief system to auto-enrolment and also to consider the timeline for auto-enrolment’s introduction.