Nature could be the new climate for the world’s biggest financial institutions. This is according to some reports of the latest financial disclosure report, Nature in Green Finance: Bridging the gap in environmental reporting.  Although, most financial firms are reportedly failing to see how the natural world impacts their business, this could change as it becomes increasingly clear how nature impacts on profit, especially since the Taskforce for Nature-Related Financial Disclosures (TNFD) published  a high-level scoping study exploring the case for a global nature-related public data facility. The scoping study found that a global nature-related public data facility could scale the availability, quality and maintenance of nature data “with significant benefits for public, private and civil society stakeholders globally”, for which there is growing demand from government, business, finance and civil society actors. Demand for nature-related data has accelerated since the successful agreement of the Kunming-Montreal Global Biodiversity Framework at the Convention on Biological Diversity (‘COP15’) in December 2022. This historic framework, agreed by 196 countries at the United Nations biodiversity conference, has been described as the 'Paris agreement for nature' in reference to the legally binding international treaty on climate change,  adopted at COP21 in Paris in 2015. The Global Biodiversity Framework set a target of US$200 billion per year of funding to be spent on nature repair by 2030, and committed signatory governments to ‘30×30’, i.e. designating 30 percent of Earth's land and ocean as protected areas by 2030. Commenting on the scoping TNFD study, Tony Goldner, Executive Director of the TNFD, said that “Government, business, finance and civil society can’t take effective action on nature and climate challenges without high-quality, comparable and easily accessible data. A lot of progress has been made since the Paris Agreement to upgrade the quality and accessibility of climate-related data. We now need a step change in focus and funding to enhance a global baseline of nature-related data.” For more describing the ongoing set of unique challenges facing businesses with regard to biodiversity click here. Find more on biodiversity and accounting for nature on the Institute’s Sustainability Centre here. About the Taskforce on Nature-related Financial Disclosures TNFD The Taskforce on Nature-related Financial Disclosures (TNFD) is developing and delivering a market-led and science-based risk-management and disclosure framework that will enable companies and financial institutions to integrate nature into decision making and for organisations to report and act on evolving nature-related risks. The idea for the TNFD began in January 2019 at the World Economic Forum's Davos meeting in response to the growing need to factor nature into financial and business decisions.  It was formally established in 2021. United Nations Environment Programme Finance Initiative (UNEP FI), United Nations Development Programme (UNDP), the World Wildlife Fund (WWF) and Global Canopy are founding partners. The TNFD consists of 40 individual members representing financial institutions, corporates and market service providers with over US$20trn in assets.   The TNFD takes its inspiration and approach from the Task Force on Climate-related Disclosures (TCFD). Both initiatives seek to use the power of risk management and disclosure of financial and non-financial information from companies to investors and lenders to shift capital flows to more sustainable outcomes. Find out more at the TNFD FAQs.

Revenue has published a new Tax and Duty Manual which provides guidance on the new Vacant Homes Tax (VHT) introduced in Finance Act 2022. VHT is an annual tax that applies to residential properties in use as a dwelling for less than 30 days in a 12-month chargeable period. The first chargeable period applies from 1 November 2022 to 31 October 2023 and the return is due on or before 7 November 2023. The manual outlines in detail when VHT applies, when properties are outside the scope of the tax, the obligations on chargeable persons, Revenue powers and certain exemptions that can be claimed. VHT is charged at three times the base Local Property Tax (LPT) rate (the rate excluding any local adjustment factor). It is charged in addition to LPT.

Following the release of two new standards by the International Sustainability Standards Board, Linda McWeeney outlines what companies can do now to prepare for their application The International Sustainability Standards Board (ISSB) has released two sustainability standards. It will be for jurisdictional authorities to decide whether to mandate use of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, consistent with the approach taken for IFRS Accounting Standards issued by the IASB. These will be effective for annual reporting periods on or after 1 January 2024. The main aim of the new ISSB sustainability standards (S1 and S2) is that, initially, companies will provide reasonable and supportive information with regard to sustainability. The ISSB has provided reliefs and guidance. Year one requirements Even though there will be a requirement to provide sustainability reporting information along with the financial statements, companies can hold off on this reporting in year one and align it with their half yearly reporting where necessary.  There will also be no requirement for comparative information in year one. Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the Greenhouse Gas (GHG) Protocol.    S1 and S2 will not be entirely new to many companies as they have been developed and built on the Task Force on Climate-related Financial Disclosures (TCFD) framework and Sustainability Accounting Standards Board (SASB) standards.   Investors and regulators demand and need high-quality, comparable information about risks and opportunities in relation to climate change in particular.   TCFD disclosure recommendations The TCFD sets out disclosure recommendations based upon core elements around which companies operate. These are: Governance Strategy Risk management Metrics and targets The disclosure recommendations are structured around these four elements. This information should help investors understand how the relevant reporting organisations think about and assess climate-related risks and opportunities: Governance Companies need to describe the board’s oversight of climate-related risks and opportunities.   Processes need to be in place to identify climate-related issues and boards need to be kept informed regularly on these issues. Climate needs to be part of the company’s strategy, policies, plans, budgets, goals and targets. Strategy Companies need to be able to describe the climate-related risks and opportunities and their impact on the organisation’s businesses, strategy, and financial planning. Risk management Processes need to be in place for identifying and assessing climate-related risks. How significant climate-related risks are in relation to other risks should be discussed and analysed. Boards should consider regulatory requirements related to climate change and how to mitigate and control material risks. Metrics and targets Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process should be disclosed.  GHG emissions should be calculated in line with the GHG Protocol methodology to allow for aggregation and comparability across organisations and jurisdictions.  Reporting on emissions Companies are required to report on emissions. Direct emissions are generated from sources owned and controlled by the reporting company – e.g., transport fuels, heating fuels and fugitive gases or emissions of GHG associated with particular manufacturing processes. These emissions are classified as scope 1.   Indirect emissions are also generated as a consequence of the activities of the reporting company—but occur at sources owned or controlled by another company. These include scope 2 and scope 3 emissions.  Scope 2 includes the emissions associated with the purchase of electricity, heat, steam and cooling. Companies can identify these energy uses on the basis of utility bills or metered energy consumption at facilities within the inventory boundary.  The ISSB has agreed that a company disclosing scope 2 emissions would use the locations-based approach, which emphasises the connection between consumer demand for electricity and the emissions resulting from local electricity production.  Within a particular geographic boundary and over a specified time period, electricity output is aggregated and averaged.   Scope 3 emissions include entire value chain emissions. The majority of total corporate emissions fall under this scope from the goods it purchases to the disposal of the products it sells. While Scope 1 and 2 emissions are within the control of the company as they are operational, scope 3 emissions raise business development and strategy questions pertaining to products and services.   Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the GHG Protocol.      Companies can also continue to be guided by the Global Reporting Initiative (GRI) and European Sustainability Reporting Standards (ESRS) to help assess and take responsibility for their impacts and contribute to a more sustainable future using a multi-stakeholder and investor-focused approach. Next steps The standards will be effective for annual reporting periods on or after 1 January 2024 and individual jurisdictions will decide whether and when to adopt the IFRS Sustainability Disclosure Standards. The ISSB has stated that it is working closely with jurisdictional standard setters to maximise interoperability between its standards and incoming mandatory reporting frameworks including the European Commission with their European Sustainability Reporting Standards (ESRS), and the US Securities and Exchange Commission. Linda McWeeney is Non-Executive Director and Senior Lecturer in Accounting and Finance at Technological University Dublin

In a world where social connections fuel success, extroverts hold a natural edge. Jean Evans explains how they can supercharge their networking through authentic and considerate interactions Extroverts have a natural advantage when it comes to networking. They thrive in social situations and are energised by interacting with others. Extroverts get their energy from other people. Extroverts are the quintessential social butterflies. They can easily dominate a room and a conversation. This can be intimidating for people who identify as shy or as shy introverts. However, even for extroverts, effective networking requires some strategies and considerations. Leverage your strengths Extroverts have a natural ability to engage in conversations and connect with people. They should use their outgoing personality to their advantage by initiating conversations and showing genuine interest in others to make them comfortable. Become an active listener While extroverts enjoy talking and sharing their thoughts, it’s important to remember that networking is a two-way street. Extroverts should practise being active listeners, asking open-ended questions, and giving others their full attention to build meaningful connections. Offer help and support Extroverts can make a lasting impression by being genuinely helpful and supportive to others by sharing their knowledge, expertise or resources whenever possible. When people genuinely desire to help others, they increase the likelihood of being remembered and having a favour reciprocated. Follow up After meeting someone, the extrovert should take the initiative to follow up and nurture the connection. Send a personalised email, connect on social media or schedule a coffee meeting to continue the conversation. Effective networking requires ongoing effort and relationship-building. Attend to body language Extroverts can easily express their enthusiasm and energy through their body language. However, they should also be mindful of subtle non-verbal cues, such as maintaining eye contact, smiling and having an open posture. These signals convey approachability and engagement. Numbers matter Setting a goal and being intentional about attending networking events is crucial. Extroverts can manage meeting more people without depleting their internal battery, but successful networking is not about meeting as many people as possible. It’s about having meaningful conversations that can lead to further meetings.  You don’t want to meet more people than you can realistically follow up with after the event. Meet only three to five people per event. Networking as a long-term investment Remember that effective networking is a long-term investment, and it’s about building genuine connections rather than collecting business cards.  Networking is a marathon and not a sprint. Extroverts can leverage their social nature by making meaningful connections and expanding their professional network. Jean Evans is Networking Architect at NetworkMe

Despite mounting scepticism, financial trends suggest that ESG is here to stay even if it is under a new name. Dan Byrne explains why You’d be forgiven for doubting the staying power of the environmental, social and governance (ESG) movement given the current wave of negativity. After all, the stories of pushback are mounting.  Granted, most are coming from the US. Republicans and fiscal conservatives are openly hostile to the term. They are led by people such as Texas Governor Greg Abbott and Florida Governor/presidential contender Ron DeSantis, who dismiss the concept as “woke capitalism”, restricting business and harming profits.  But the old saying still has weight: “If America sneezes, the world catches a cold.” It’s enough negativity to make investors more wary of ESG, and boards wonder whether they need to bother with it. Is this backlash a legitimate threat to ESG? Not from where we’re standing. Follow the money The main reason ESG will survive the backlash is that the money simply isn’t following the rhetoric. ESG critics can be as loud as they want, but they’re not making the corporate world think differently.  Two-thirds of respondents to a 2023 Bloomberg survey expect firms to continue incorporating ESG metrics into their business.  Meanwhile, financial services firm Morningstar Inc. has released new data showing that the success of anti-ESG funds has fallen dramatically from its peak in the third quarter of 2022. This peak was minor compared with the total value of ESG assets.  In other words, ESG priorities remain fixed, and the money working against them is dwindling.  The only thing likely to suffer from this wave of negativity is the actual term: ‘ESG’. Rechristening ESG The true measure of the longevity of ‘ESG’ is that many in the pro-ESG camp are willing to part ways with the term. Larry Fink, head of BlackRock Inc, has said he no longer uses it because of how politicised it has become. Even McDonald’s has done away with it. Meanwhile, the same two-thirds of respondents to the Bloomberg survey said that while firms would keep pursuing ESG, they would stop using the acronym.  But none of these groups are abandoning the principles underpinning ESG.  You might call it the one potential victory of the anti-ESG brigade: a rechristening – purely because firms are worried about reputational risk. Before the current backlash, it was estimated that the value of ESG assets would reach US$50 trillion by 2025. At the start of this year, they were estimated at $41 trillion and growing.  If, in five years, we’re calling ESG something different, it probably won’t dent the underlying principles that investors, consumers and many politicians care so vocally about. So, while the ESG backlash may be loud, we’re not seeing any evidence that its principles are losing ground.  Hence, directors and other corporate leaders hearing the noise from the US and thinking the concept is almost irrelevant should think again.  ESG remains ESG, even if its name changes. Dan Byrne is a journalist with the Corporate Governance Institute

Diversity is not just about race and gender. Andrea Dermody explores the benefits of embracing neurodiversity in the workplace, fostering inclusivity for all employees Research indicates that a significant portion of the global population – 15 to 20 percent – are neurodivergent, with distinct cognitive processes. This encompasses conditions such as attention deficit disorders, autism, dyslexia and dyspraxia, adding a unique dimension to workplaces. Despite growing emphasis on diversity, equity and inclusion (DE&I), the employment prospects and support for neurodivergent individuals remain inadequate. As a result, neurodivergent individuals often experience higher rates of unemployment compared with the general population. However, when organisations attract and retain neurodiverse talent, the benefits can be far-reaching. Benefits of a neurodiverse workforce A neurodiverse workforce can bring many benefits to an organisation: Increased creativity: Neurodiverse individuals often have unique perspectives and ways of thinking, which can lead to innovative ideas and solutions. Enhanced problem-solving skills: Neurodiverse individuals may approach problems differently from their neurotypical counterparts, which can lead to more effective problem-solving and decision-making. Improved productivity: By tapping into the strengths of each individual on the team, a neurodiverse workforce can be more productive and efficient. Deloitte research suggests that teams with neurodivergent professionals in some roles can be 30 percent more productive than those without them. Better employee retention: When organisations embrace neurodiversity, it creates a more inclusive and welcoming environment leading to higher employee satisfaction and retention rates. Enhanced customer relationships: A neurodiverse workforce can help an organisation better understand and meet the needs of diverse customers, leading to improved customer relationships and increased sales. Attracting and retaining neurodiverse employees To ensure the success of neurodivergent workers, Deloitte suggests the following three approaches: Revisit the hiring process: Consciously hire from diverse sources and consider how the hiring process can be made fairer by reducing artificial intelligence or natural human bias. The interview process may also require tweaking. Consider moving from abstract questions to accessing specific skills and experience, and do not assume that everyone will connect the dots the same way. Create a conducive work environment: Everyone has different working styles, but managers should consider how individuals work best and what accommodations can be made. This may be as simple as adjusting communication styles, providing workplace mentors, or considering how flexible work policies can be expanded. Provide tailored career journeys: Many organisations do not have specific policies to support neurodivergent talent. Clearer policies ensure that everyone understands them in the same way, and unspoken rules that some neurodivergent workers might otherwise miss should be codified. Tailored career paths should therefore recognise the goals, capabilities and strengths of the individual – whether neurodivergent or neurotypical. The halo effect What’s clear is that what organisations do to provide an inclusive environment for their neurodivergent workforce can have a halo effect on the entire workforce. These ‘universal accommodations’ are adjustments that benefit all employees, jobseekers or customers and make the workplace a better, safer, more inclusive place for everyone. Andrea Dermody is a diversity and inclusion consultant at Dermody

Strong employer demand and higher earning potential for accountants    Accounting bodies congratulate Leaving Cert class of 2023; welcome 27% increase in those taking accounting in last five years    Friday 25 August – The body representing professionally qualified accountants in Ireland has said it is vital that accountants remain on the government’s Critical Skills Occupations List. Its call comes as it responds to the Department of Enterprise, Trade and Employment’s public consultation to review the eligibility of occupations on this list. The list is subject to regular review to ensure it reflects shortages of critical skills required for the proper functioning of the Irish economy. The Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) is the representative committee for Chartered Accountants Ireland, the Association of Chartered Certified Accountants (ACCA), the Institute of Certified Public Accountants in Ireland (CPA Ireland) and the Chartered Institute of Management Accountants (CIMA). Its 43,500 members work across industry, professional practice, and the public sector. Commenting, Crona Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said, “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “In the larger firms in particular, over half of new recruits filling vacant positions for experienced hires are currently being sourced from non-EEA countries due to a significant shortage of suitably qualified EEA-based candidates. Therefore, the inclusion of accountants on the Critical Skills Occupations List helps to meet ongoing capacity shortages.”  CCAB-I notes that the problem will be compounded by global trends and challenges. The Corporate Sustainable Reporting Directive (CSRD) will bring all quoted and large companies (as defined) within scope of a new set of sustainability reporting and assurance requirements from 1 January 2024. In addition, Ireland is bidding to host the new European AMLA (Anti-Money Laundering Authority), and if successful, there will be a considerable demand for accountants with AML and Combatting Terrorist Financing (CTF) skills. Building the talent pipeline CCAB-I is engaged with the National Apprenticeships Office (NAO) on the potential creation of a new national professional accountancy apprenticeship to facilitate the entry of school leavers into the profession on an “earn and learn” basis. It is also liaising with the Department of Education on the reform of the outdated Leaving Certificate accounting syllabus as part of wider efforts to attract candidates into the profession.  There are 16,500 students studying to become accountants in businesses and firms around Ireland, and in addition to strong demand from employers, there is continued strong earning potential, with newly qualified Chartered Accountants receiving an average salary package of €58,967 in 2022. Commenting Brian Feighan, Chair of the CCAB-I Working Group on Leaving Certificate Syllabus Reform said;  “Looking at the results for Leaving Certificate Accounting, it is really encouraging to see a 27% increase in those taking the subject since 2018, and an increase in those taking higher level. But this increase in popularity at second level is not feeding through to sufficient take-up of places on accounting courses in third level and further education.  “We have long highlighted that students are being dissuaded from pursuing accounting as a career choice because of the outdated Leaving Certificate accounting syllabus. We are engaged with the Department of Education to prioritise the introduction of a new specification for Leaving Certificate Accounting which will better reflect the role of the accountant in today’s workplace.  “A huge amount of work is being done by the CCAB-I at second level to attract students into the profession. I would say to students receiving their exam results (and their parents), that employer demand for accountants is extremely strong. Salary levels for qualified accountants reflect this demand and the vitally important roles that accountants perform in all organisations. There have never been more ways to enter the profession, be it directly from school, or after third level. This demand continues to grow and so too does the range of opportunities.” Read the CCAB-I submission in full here.

In this week’s Sustainability/ESG bulletin, read about ‘green and social considerations’ in public procurement, new funding for bioeconomy initiatives and requests for input on the ongoing consultation on Ireland’s charging network. In addition, we provide updates on Pre-Seed Start Fund applications, the Irish Sovereign Green Bond (ISGB),  European Commission updates on CBAM and sustainable forest management, and the usual roundup of articles, resources and events. ‘Green and social considerations’ in public procurement The Office of Government Procurement (OGP) and the sector procurement bodies in Education, Health, Defence, and Local Government have established 150 central buying arrangements across 16 main categories of expenditure, according to a Memorandum for Government to Cabinet published this week. The Memorandum outlines plans to promote the increased use of centralised procurement arrangements across the civil and public service. In addition to aggregating the buying power of the State and avoiding duplication of effort by public service bodies and suppliers, these solutions allow for the mainstreaming of green and social considerations into public procurement. A Circular, provisionally scheduled for publication in early 2024, will be issued to all public bodies focusing on Government’s procurement policy regarding the use of central procurement arrangements.  New €10 million bioeconomy funding initiative announced €10 million has been announced for a 2023 Bioeconomy Demonstration Initiative under the EU Just Transition Fund, aiming to support close collaboration between stakeholders along the bio-based value chain (including SMEs, research-performing organisations, local authorities, and others). Applications must be submitted online through Application Submission Portal of Department of Agriculture, Food, and the Marine (flexigrant.com) by 13 October 2023. Consultation on Ireland’s charging network ongoing The Minister for Transport intends to publish Universal Design Guidelines for Ireland’s Electric Vehicle Charging Infrastructure in December 2023. The Department of Transport is inviting everyone to have their say by completing this public survey accompanying the draft Guidelines. The guidelines propose key recommendations to ensure universal access to EV charging infrastructure. The closing date for taking part in the public consultation is 5pm on Tuesday, September 26 2023. Enterprise Ireland ‘particularly interested’ in solutions to climate crisis in Pre-Seed Start Fund applications Enterprise Ireland has announced it is ‘particularly interested’ in receiving applications from start-ups with solutions to address challenges and opportunities regarding climate action with an emphasis on decarbonisation, including but not exclusive to renewables, carbon capture technology, innovations in buildings and transport applications and sustainable materials. The announcement was made as Minister for Enterprise, Trade and Employment Simon Coveney, T.D., invited early-stage businesses to apply for Enterprise Ireland Pre-Seed Start Fund (PSSF) which supports the critical early needs of new start-up companies. The fund, which will provide up to €100,000, is open to innovative start-ups in all sectors, with a focus on manufacturing, life-sciences, food and renewables sectors. NTMA announces publication of the Irish Sovereign Green Bond (ISGB) Allocation Report for 2022 and the Impact Report for 2021 The National Treasury Management Agency (NTMA) earlier this month announced the publication of the Irish Sovereign Green Bond (ISGB) Allocation Report for 2022 and the Impact Report for 2021 (available here). Over €3 million was allocated to eligible green projects in 2021 and 2022. Since the launch in 2018 of the Irish Sovereign Green Bond (which is designed to provide investors with the financial features of standard Irish government bonds combined with sovereign green bond market practices), over €10,787.8 million proceeds has been allocated. This is the fourth Impact Report issued in accordance with the ISGB Framework, and it details the environmental impact measures connected with the 2021 Allocation Report. It is spread across the six eligible green categories: Built Environment/Energy Efficiency; Clean Transportation; Climate Change Adaptation; Environmentally Sustainable Management of Living Natural Resources and Land Use; Renewable Energy; Sustainable Water and Wastewater Management. European Commission updates: CBAM and sustainable forest management The European Commission has adopted the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its transitional phase, which starts on 1 October of this year and runs until the end of 2025. During the transitional phase, traders will only have to report on the emissions embedded in their imports subject to the mechanism without paying any financial adjustment. This is to give adequate time for businesses to prepare in a predictable manner, while also allowing for the definitive methodology to be fine-tuned by 2026. Separately, the European Commission has approved a €45 million Irish scheme to support sustainable forest management. The scheme, which will run until 31 December 2027 and will be open to companies of all sizes in the forestry sector. The scheme will be in the form of direct grants, covering up to 100 percent of the eligible costs, to support landowners to implement economically, ecologically and socially sustainable forest management and use techniques to promote the growth of forests, protect biodiversity, soil and water quality and the forest landscape, adapt forests to climate change, and increase the ability of forests to store carbon. Resources The updated Climate Essentials for Accountants guide demystifies the vocabulary of climate action and introduces accountants to jargon that they will hear with increasing frequency over the coming months and years. Articles ESG for SMEs: how to adapt your finance function (ICAEW) Campaigners threaten EU with legal action over climate policy (RTÉ News) BlackRock’s support for climate and social resolutions falls sharply (FT)   Jobs Group Sustainability Reporting Manager - Glenveagh Properties plc,  Maynooth, County Kildare. Upcoming events  Dublin Chamber: The Future of Sustainable Finance  The latest event in our Dublin 2050 series. Dublin has been steadily growing its reputation as a hub for sustainable finance in recent times, making significant progress in advancing sustainable finance practices and attracting investments aligned with ESG principles. This expert panel-led event aims to contribute to knowledge sharing, collaboration, and innovation within the business community. In person, 5 September, 8.30 – 10.00. Dublin Chamber, 7 Clare Street, Dublin 2 Dublin Chamber – Sustainability Academy Workshops Dublin Chamber has announced it will offer Sustainability Academy workshops in Autumn. Beginning with a workshop on Sustainability/ESG 101 in September, the 3-hour Zoom workshops includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor. Find out more here. InterTrade Ireland: The Shared Island Fund – Bioeconomy Demonstration Initiatives Funding opportunity Virtual, 14 September, 10:00 - 11:00. Environment Ireland’s: Environment Conference In person: 14–15 September,  Croke Park, Dublin Business Post LIVE/iQuest: Energy Transition Summit In person: 19 September, Croke Park, Dublin ESDN: European Sustainable Development Week (ESDW) 2023 18 September – 08 October. 113 initiatives in 10 countries. DETE: Building Better Businesses North-East Event, Dundalk Institute of Technology The latest in the series of Building Better Business events organised by DETE across the country to help businesses focus on the opportunities and challenges presented by the green economy and digital transformation. This event is open to businesses based in the North East. In person: 22 September, 9.00 - 1.00 -  Multi-Purpose Centre (MPC), Faulkner Building, Dundalk Institute of Technology. EPA: Circular Economy Conference This hybrid event will be an opportunity to learn about recent developments in the circular economy and the opportunities and challenges in implementing a circular economy in Ireland. There will be opportunities to network and participate in polling and Q&A sessions. Women in Business (Northern Ireland) Women in Finance Women in Business is running a wide-ranging programme of female entrepreneurship events over the upcoming months. The events include sectoral networking, webinars, and training courses for essential skills. On 25 October 2023, 10am to 11:30am, a specific session on women in finance will focus on work in finance departments, small scale accountancy or work for yourself, both members and non-members are welcome to join this online event. Accountancy Europe: Preparing for high-quality sustainability assurance engagements In person: 3 October, 14.00-17.00, ACE events - Av. d'Auderghem 22, 1040 Brussels Climate Finance Week Ireland 2023 In person and virtual: Monday, 20 November – Friday, 24 November 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. 3rd or 4th Wednesday of every month Next: 30 August 2023  14.00-15.00/30 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.

Revenue has issued notices to employers and agents via the ROS inbox facility  with further information on the new Enhanced Reporting Requirement introduced in Finance Act 2022.  Revenue intends to hold information sessions on the new reporting requirement in the coming weeks. The sessions will provide an overview of what will need to be reported to Revenue.  A link to Eventbrite will issue to employers and agents advising where they can register their interest in attending one of the information sessions, which are to run from late August to mid-November. We will keep you updated on the proposed sessions as more information becomes available. Further information on the reporting requirement can be found on the leaflet.

This summary AML Alert Russia Sanctions – Trade Sanctions Circumvention has been produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the Department of Business and Trade Notice NTE 2023/08: Russian sanctions – Trade sanctions circumvention. The Department of Business and Trade issued notice NTE 2023/08 to prevent the undermining of trade sanctions, export controls, and other restrictive measures designed and implemented in response to Russia’s invasion of Ukraine. Awareness of the risk and obligations in relation to sanctioned goods is an important first step for those working in the accountancy profession so that they don’t become party to the trade sanctions circumvention. Direct trade between the UK to Russia has fallen significantly since sanctions were introduced. However, Russia will seek to procure restricted goods via other routes. As such, there are risks around displacement of trade and diversion of goods to Russia. Businesses, and their accountants, should ensure that they consider these risks as part of their due diligence. This summary AML Alert highlights the key risk indicators. For more information click here. 

HM Treasury (HMT) has issued a consultation on the Reform of the Anti-Money Laundering and Counter-Terrorism Financing Supervisory Regime Consultation. This consultation offers stakeholders the opportunity to provide their views on the future of AML regulation and supervision, and, in particular, which of the four options proposed would most improve the regime. The consultation closes on 30 September 2023. Chartered Accountants Ireland will be submitting a response. Model 1: OPBAS+ The first potential model would involve no structural change to the regime. The Office for Professional Body AML Supervision (OPBAS), the oversight body, would be given enhanced powers to increase the effectiveness of the AML supervision undertaken by the Professional Body Supervisors (PBSs). Model 2: PBS Consolidation Model 2 would likely see either two or six PBSs retain responsibility for AML/CTF supervision. There could be either one accountancy sector supervisor and one legal sector supervisor, both with UK-wide remits, or one accountancy sector supervisor and one legal sector supervisor within each jurisdiction: England and Wales, Scotland, and Northern Ireland. Model 3: Single Professional Services Supervisor (SPSS) The third model would see a single body supervise all legal and accountancy sector firms for AML/CTF. It may also supervise some or all of the wider sectors currently supervised by HMRC. This body would most likely be a public body, unlike the PBSs. Model 4: Single Anti-Money Laundering Supervisor (SAS) Under this model, all AML/CTF supervision in the UK would be undertaken by a single public body. The major difference between this and previous options is that the Financial Conduct Authority and Gambling Commission would also stop supervising firms for AML/CTF compliance. HMT has organised two roundtables for accountancy firms and practitioners regarding HMT’s consultation on the future of the supervisory system and are inviting as many firms as possible to attend the roundtables to discuss the supervision reform consultation. There will be roundtables on two dates. Firms who would like to attend should sign up for one of the two roundtables using the following links below: 31st August, 11 am - 12:30: https://www.eventbrite.co.uk/e/700132925427?aff=oddtdtcreator. 6th September, 14:00 - 15:30: https://www.eventbrite.co.uk/e/700229012827?aff=oddtdtcreator. If you have any questions about the roundtables, or problems signing up, please contact HMT directly at Anti-MoneyLaunderingBranch@hmtreasury.gov.uk.

Irish organisations face geopolitical tensions, pandemic aftermath and new work norms. Boards must intensify governance, risk and compliance focus for resilience amid rapid change, says Ivan O’Brien Irish organisations are operating in a rapidly changing business environment. The war in Ukraine, the lingering aftermath of the pandemic and the shift to new ways of working all give rise to unknown risks, including cybersecurity threats. Boards must respond with an intensive focus on governance, risk and compliance (GRC) to achieve organisational goals during increasing uncertainty. Boards should view these challenges as opportunities to verify the effectiveness of existing GRC arrangements, foster continuous improvement efforts and drive progress toward a holistic GRC management system environment that helps drive long-term value and resilience. Keep reporting on track The board’s role is to monitor management’s performance against the organisation’s strategic objectives and understand how risk and uncertainty impact the organisation’s ability to achieve those objectives. Regular, timely and comprehensive management reporting allows the board and the audit committee to continuously monitor the design’s appropriateness and the GRC systems’ effectiveness. The COVID-19 pandemic, in particular, has demonstrated the importance of GRC systems for addressing critical situations, such as health risks, business interruptions, breakdowns in supply chains and financial losses. As a result, organisations have had to act fast and, in many cases, rethink their operational resilience approach. Data breaches pose regulatory and reputational risks to Irish and European organisations. Organisations with insufficient security solutions to protect their systems, networks and data can be fined up to €20 million or 4 percent of their annual global turnover under the General Data Protection Regulation (GDPR). The need for integrated GRC systems Overall, the events of the last several years have highlighted the necessity for organisations to adopt integrated GRC systems to achieve organisational goals, effective emergency management and a culture of integrity during times of uncertainty. By adopting integrated GRC systems, organisations are more likely to respond and recover effectively from crises and transform potential problems into business advantages. Failure to adopt an integrated approach to GRC can undermine the board’s ability to provide adequate oversight on risk and controls and lead to potential exposures that could jeopardise the organisation’s ability to continue as a going concern. This needs to be supported by an effective exchange of GRC-related information within the organisation through a board risk or GRC committee, for example. There is guidance available to boards who wish to improve GRC performance. In April 2021, the International Organization for Standardization (ISO) published a new certifiable standard for compliance management systems – ISO 37301. The standard explains how organisations should implement GRC management systems to satisfy international legal norms and regulations. Implementing ISO 37301 provides assurance that risks are regularly assessed, business partners are screened, and the organisation has a working system to raise concerns. It is committed to improving its systems to deal with non-conformance. Boards can also use the COSO Enterprise Risk Management Framework to evaluate their organisation’s approach to risk management. Developed by the Committee of Sponsoring Organizations of the Treadway Commission, the principles-based framework enables boards to identify all the components of a comprehensive enterprise risk programme. Building resilience Regardless of the model employed, effective GRC management systems rely heavily on the expertise of the internal audit and risk management functions. The scale and increasing complexity of the current risk landscape demands knowledge sharing at every level of the organisation. Boards should, therefore, challenge management to invest in the resources and technological tools required to improve shared risk intelligence throughout the business, to build an even more resilient organisation capable of driving long-term value and withstanding the challenges that lie ahead. Ivan O’Brien is Consulting Partner and Head of Risk at EY