The Central Statistics Office (CSO) has published Environment, Social and Governance Reporting: Data for the Enterprise Economy 2024. This is the first time the CSO has published environment, social and governance (ESG) information, and is one of the first European statistical offices to do so. Commenting on the publication, James Hegarty, Statistician, described the primary aim of this release “to raise awareness around ESG and corporate responsibility, and what it will increasingly mean for a range of Irish enterprises.” There are chapters on climate change, pollution, the workforce, governance, and other relevant ESG topics. The release finds that while Irish enterprises are making progress in terms of increasing the use of renewable energy and improving building energy ratings, there is still a significant journey to be travelled in terms of further reducing overall emissions. The most recent provisional 2023 emissions data, released by the Environmental Protection Agency on 8 July 2024, shows that greenhouse gas emissions (including Land Use, Land Use Change, and Forestry) were 7.8 percent lower than in 2018, with a distance to travel to the National Climate Ambition of a 51 percent reduction by 2030. In terms of the workforce, Irish enterprises are performing well in terms of overall employment, but improvement is still needed in terms of reducing the gender pay gap and increasing female representation on boards. In 2022, the gender pay gap for Ireland was 9.6 percent and mean earnings for females were €25.06 while mean earnings for males were €27.73. Only one in four members of Boards of Directors in Ireland were female in 2023, up from almost 22 percent in 2021. The release is part of the CSO Frontier Series which presents a series of environmental, social, and governance data that bring a heightened awareness to the non-financial performance of the enterprise economy in light of regulatory developments. The CSO is planning on developing a corporate responsibility/ESG dashboard in 2025. This will be an evolving and fluid space that will allow for additional quantitative and qualitative data sources to be added over time.  

The report from the Chair of the National Economic Dialogue 2024, which took place on 27 May, has published, and describes a “more shock-prone world” with changing global trade and investment patterns presenting significant implications for the domestic economy.  Under the broad headings of competitiveness and inclusion, four specific themes emerged as the key areas of concern. Public service delivery Challenges facing the SME sector Housing and infrastructure and Labour markets A breakout session on climate actions and the green transition discussed the impact of the green transition on Ireland’s international competitiveness. It pointed to how Ireland is operating in a global market and with vast investment in the green economy by the US and China. This, and the resulting actions by other EU governments, presents a danger that Irish businesses are losing a level playing field. There was a call to review how the tax system and further regulatory and policy certainty can assist with supporting the competitiveness of Irish businesses, particularly in giving confidence to businesses and industry to undertake the kind of long-term investments that are needed from the private sector for the green transition. There was a strong desire for multi-year budget policies that span Governments to remove the perceived risk to those investing in the green transition. Under the theme of ‘the challenges of sluggish and disjointed systems’, actions were suggested that could make it easier to access supports, including positive tax provisions. Carbon contracts for difference, which gave some certainty for investors, especially in the higher interest rate environment, were mentioned as a possible avenue for exploration.     

  In this week’s Sustainability/ESG bulletin, read about sustainability-related warnings from the National Competitiveness and Productivity Council (NCPC) and in the National Economic Dialogue 2024 report. Also covered is the CSO’s first-time publication of ESG information, sustainability indicators in Ireland’s wellbeing framework that contribute to the Budget process, updates from Northern Ireland and Europe, including the passing into law of the CSDDD and EFRAG’s release of a study on early implementation of ESRS, and the usual articles resources and events. Ireland news CSO offices publishes ESG information for the first time The Central Statistics Office (CSO) has published Environment, Social and Governance Reporting: Data for the Enterprise Economy 2024. This is the first time the CSO has published environment, social and governance (ESG) information, and is one of the first European statistical offices to do so. Read our summary here. Budget process contributor tracking sustainability indicators publishes The Government has published 'Understanding Life in Ireland: The Well-being Framework 2024', showing Ireland’s performance on 35 indicators, across 11 dimensions. Of the 15 indicators considered particularly important for sustainability (economic, social and environmental), seven perform well over time and Ireland compares favourably with other countries in four. The Environment, Climate and Biodiversity dimensions performed negatively, though, both over time and in comparison, internationally. Analysing progress under the Well-being Framework is now an annual contribution to the Budget process and supports a broader discussion of the impact of budgetary decisions. “A more shock-prone world”: challenges and opportunities for Ireland The report from the Chair of the National Economic Dialogue 2024, which took place on 27 May, has published, describing a “more shock-prone world” with changing global trade and investment patterns presenting significant implications for the domestic economy.  Read our summary here. Report finds deficits in Ireland’s competitiveness The National Competitiveness and Productivity Council (NCPC) has warned that the current strain on utilities means business demand could soon outstrip supply with ramifications for inward investment. The Competitiveness Challenge 2024 report, which published last week, set out a range of key challenges facing Ireland’s economy, which included “persistent deficits” in energy and water representing a serious “reputational risk for Ireland”. NESC calls for work quality across all sectors The National Economic and Social Council’s (NESC) also published a report advocating for improving work quality across all economic sectors. The report, titled Towards a National Better Work Strategy calls for targeted state intervention and greater integration of social policy, productivity, and skills development. Key recommendations include sectoral taskforces, social partner involvement, comprehensive research programs, and a focus on workplace innovation. Separately, the Minister for Social Protection, Heather Humphreys TD, launched Work and Access, a new Employment Programme aimed at removing barriers that disabled people may face in the workplace. The programme offers seven key grants for supports ranging from equipment to training. UK/Northern Ireland news Launch of open call for energy research The Department for the Economy has launched an open call for energy research, with £400K funding available. The research funded will directly contribute to the evidence base that will support policy-making associated with the Energy Strategy. Further information on the call, including themes, proposal guidance and key dates, can be found here and the deadline for submissions is 30 August. Survey into impact of plastics-related regulatory changes The Office for the Internal Market (OIM), part of the Competition and Markets Authority (CMA), has launched a study on the economic impacts of measures to reduce the use of single-use plastics, which can help with the development of future policy by governments. OIM is seeking views from businesses about their experience of dealing with regulatory changes in relation to single-use plastics. They have issued an online survey which is available here until 16 September. Women in business bootcamps Women in Business is running a wide-ranging programme of female entrepreneurship programmes and events over the upcoming months. The free Yes You Can: Imagine It Bootcamps are delivered for women who want to turn their hobbies or burning business ideas into a reality. The next bootcamp is on Wednesday 18 September at Mallusk Enterprise Park, with more locations to be announced for Autumn 2024 and early 2025. Sustainable development and The Kings Awards for Enterprise Northern Ireland businesses are invited to apply for The King's Awards for Enterprise, which recognise and encourage the outstanding achievements of UK businesses in the fields of sustainable development, as well as international trade, innovation and promoting opportunity through social mobility. Businesses of all sizes and from all sectors can apply until Thursday 12 September, and full details are available here. Europe News EFRAG releases study on early implementation of ESRS The European Financial Reporting Advisory Group (EFRAG) has published a study that sets out preliminary practices related to the implementation of European Sustainability Reporting Standards (ESRS). The conclusions of the study are based on interviews of 28 large EU-headquartered undertakings across eight sectors split between financial and non-financial enterprises. The report, titled State of play as of Q2 2024 | Implementation of European Sustainability Reporting Standards (ESRS): Initial Practices from Selected Companies' has a section ‘Preliminary observed ESRS implementation practices’ which sets out practices and challenges observed by a sample of large companies in the initial stages of ESRS implementation focusing on four areas: The double materiality assessment Data points Value chain and ESG reporting organisational approaches CSDDD enters into force The EU Corporate Sustainability Due Diligence Directive (CSDDD) has come into force after a lengthy legislative process during which it was approved by the EU Parliament in April 2024, adopted by the EU Council on 24 May 2024, published in the EU's Official Journal on 5 July 2024, and entered into force on 25 July 2024. EU member states now have 24 months to transpose the legislation into national law. The Directive  aims to foster sustainable and responsible corporate behaviour throughout global value chains. It applies to EU and non-EU companies with a turnover over €150 million and smaller companies in certain sectors. The European Commission has announced that it will start infringement procedures against Ireland and several other members states in the field of, among things, environment, calling on it to meet waste collection and recycling targets. Ireland has two months to respond and address the shortcomings raised by the Commission. In the absence of satisfactory responses, the Commission may decide to issue reasoned opinions. World news According to Copernicus Climate Change Service (C3S) data, the Earth experienced its warmest day since records began on July 22, 2024. As the planet continues to warm, it is anticipated that records will continue to be broken, underscoring the need for adaptation to climate change impacts. Articles Yes, these grey skies are ‘global warming’ (Irish Times) Survey shows 80 per cent of Irish people are ‘alarmed’ or ‘concerned’ about climate change (Irish Times) Could ISSB reporting mandates arrive sooner than first thought? (Accountancy Age) Bonuses linked to diversity & inclusion are being challenged. Where do Irish companies stand? (Business Post) Resources A4S (Accounting for Sustainability) has published a new report providing economy-wide, actionable recommendations for accelerating the global transition to a just, climate-resilient, net zero world. Accelerating the Transition: Assessing Progress and Driving Action outlines the current state of sustainability efforts and identifies barriers to progress. It proposes practical actions for businesses, investors, governments and regulators. IFAC has published an article The Value of Sustainable Practices at SMEs: A View from Pakistan sharing experiences from Pakistan to help small businesses identify how they can take action and how they can start their own sustainability journey, supported by a free resource that IFAC has developed. This resource is “Small Business Sustainability Checklist,”  a diagnostic tool to help SMEs identify sustainability risks and opportunities. Upcoming Events The Law Society of Ireland 2024 Environmental, Social and Governance (ESG) Massive Open Online Course (MOOC) Delivered over 5 weeks, the Law Society’s 2024 MOOC on ESG is now available online and on demand. The MOOC is free and open to all, and Institute Professional Accounting Lead, Dee Moran, is speaking on the topic of the sustainable reporting landscape. 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. During the webinar, we will discuss 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 Summit The 2024 Northern Ireland Sustainability Summit is being held in the TEC, Belfast on the 12th 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, 12 September  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. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands. Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points. 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,  8:00 - 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, 28 August, 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.

In Irish news, the Budget 2025 Tax Strategy Group papers have been published, the Institute writes a letter to the Minister for Finance seeking a reduction in Employers’ PRSI and CCAB-I writes to the Minister for Finance on the Employment Investment Incentive Scheme. In UK news, we bring you an update from HMRC on Pillar Two. In International news this week, the European Commission proposes a new electronic system for digitalising VAT exemption procedures.   Ireland The Tax Strategy Group (TSG) last week published its annual papers in advance of Budget 2025. Read the Institute’s letter to the Minister for Finance on Employers’ PRSI. Read CCAB-I’s letter to the Minister for Finance on the Employment Investment Incentive Scheme. UK Read about HRMC’s update on Pillar Two. International The European Commission proposes a new electronic system for digitalising VAT exemption procedures.    Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.

Both Irish and UK AML legislation requires firms to take the appropriate steps to identify and assess the risk that they could be used for money laundering and terrorist financing, and in the UK, also proliferation financing. The Accountancy AML Supervisors Group (AASG) in the UK has recently updated its Risk Outlook Guidance which identifies those circumstances where there might be a high risk of money laundering, terrorist financing or proliferation financing in the accountancy sector. (Although drafted pursuant to UK AML legislation, many of the risks are also relevant in Ireland.) This Guidance has been updated to include risks associated with the following: Complex supply chains Crypto Register of Overseas Entity verification Services subject to trade sanctions Proliferation financing Contractors or agency workers paid by umbrella companies

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. Miscellaneous updated guidance etc. Recently updated guidance, and publications relevant to EU exit are set out below: External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service Create a goods movement reference CDS Declaration Completion Instructions for Exports Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS) Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS) Appendix 2: DE 1/11: Additional Procedure Codes 4-digit to 3-digit procedure to additional procedure code correlation matrix for exports Appendix 1: DE 1/10: Requested and Previous Procedure Codes Simplified processes for fixed transport installations Get your postponed import VAT statement Known error workarounds for the Customs Declaration Service (CDS) 4. Common/Union Transit 9. Transport Internationaux Routiers (TIR) 5. Simplifications 6. The Business Continuity Procedure 1. Introduction 2. Status of goods - Transit Manual Part II refers 3. Guarantees (Transit Manual Part III refers) 12. Receiving an adverse customs decision from HMRC 11. Specimen Management System (SMS) 8. Contraventions and Civil Penalties (CPs) Imports and exports: general enquiries

The latest UK tax tidbits feature guidance changes in a range of areas. Rates of Stamp Duty Land Tax for non-UK residents Pensions schemes newsletter 160 — May 2024 Find out how to register as a professional tax agent with HMRC Higher rates of Stamp Duty Land Tax Find out the rules about Individual Lump Sum Allowances Register as a sole trader subcontractor, or apply for gross payment status, or both Decisions and appeals for National Insurance Contributions and Statutory Payments Report chargeable event gains for life insurance policies — guidance for insurers; Named tax avoidance schemes, promoters, enablers and suppliers Completing your Company Tax Return

In this week’s miscellaneous updates, we bring you an update from HMRC’s Employer Payroll Group (EPG) on earlier year updates and a reminder of the different ways to notify HMRC that you have been authorised to represent a client. A new form is also now available to appoint an agent to represent the personal representatives of a deceased taxpayer. Update from HMRC’s EPG on earlier year updates HMRC’s EPG has sent the below message on earlier year updates. “At the January bespoke meeting of EPG, feedback was received that Employer liabilities and payments viewer is still using the label ‘Earlier Year Update’ (EYU) for adjustments to previous tax years when this ceased to be a valid submission type for tax years from 2020/21. Year ended 5 April 2018 and earlier years: Adjustments can be made by submission of the EYU only. Year ended 5 April 2019: EYU or FPS will be accepted. Year ended 5 April 2020: EYU or FPS will be accepted. Year ended 5 April 2021 and later years: Adjustment can be made by submission of FPS only. EPG members offered some suggestions for a revised label - one of which was ‘End of tax year adjustment’.  We have now made that change to the online service. When looking in the online account, you will now see the new terminology where End of tax year adjustments have been made for 2020/21 or later years. If you are reviewing 2019/2020 or earlier years, you will continue to see ‘Earlier Year Update’.” Reminder - how to notify HMRC that you have been authorised to represent a client When acting as an agent, there are a number of different ways to notify HMRC that you have been authorised to represent your client, including: The Digital Handshake via the Agent Service Account Other online methods Asking your client to authorise you through their Business Tax Account Submitting Paper Forms such as the 64-8. At present there are a number of different processes for accepting 64-8s, as the authorisations span across multiple tax regimes, hence HMRC is currently reviewing these. However, HMRC caseworkers are guided to ensure that they are satisfied that the client is aware and has agreed to authorise an agent to act on their behalf. They can satisfy themselves in a number of ways e.g. by reviewing the specific taxpayer’s records related to the authorisation, reviewing contemporaneous documentary evidence provided alongside the 64-8 itself and requesting that the client be CC’d when the 64-8 it is provided via email. Authorisation of agent for personal representatives When HMRC becomes aware that a taxpayer has died, HMRC immediately cancels any appointed agent’s authority to act for that taxpayer. Form P1000, which is now available on GOV.UK, should be used, and not form 64-8, to request authority to act on behalf of the personal representatives of the deceased’s estate. This form should be used in preference to the 64-8 because it requires additional information, such as details of the personal representatives, which HMRC may not have. This helps to avoid HMRC having to seek these details later such as in scenarios where a tax refund may be payable to the personal representatives. 

HMRC has recently advised that a new package of Administrative Guidance on Pillar Two, agreed by the Inclusive Framework on BEPS, was published by the OECD last month. HMRC has also commenced its latest series of educational comms on the UK’s Pillar Two rules. The latest OECD administrative guidance on Pillar Two features the following: Use of deferred tax assets and liabilities in the calculation of the effective tax rate (application of the recapture rule, and clarifications in cases of divergences between GloBE and accounting carrying value) Cross-border allocation of current and deferred taxes Allocation of profits and taxes on certain flow-through tax structures Treatment of securitisation vehicles. Further work remains ongoing on the Inclusive Framework on several fronts and a further update will be provided in due course. The latest communication from HMRC on Pillar 2 is the third in the current series. This is being sent to taxpayers which HMRC considers to be in scope of the new Multi-national Top-up (MTT) and Domestic Top-up ( DTT) taxes, as well as those who have asked to be on this mailing list and other interested agents. This update, delayed from its original intended issue date due to the general election, is happening via the following channels: Directly to some large businesses through their Customer Compliance Managers (CCMs) if they have one A bulk email to other large businesses who do not have a CCM and to wealthy/mid-sized taxpayers who have subscribed to receive updates on Pillar Two A letter going to other businesses not already signed-up to receive updates but likely to be in scope.  

The second and final 2023/24 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment in two days’ time on or before midnight on Wednesday 31 July 2024. Each payment on account is half of the previous year’s tax bill. Anyone who is self-employed is required to make two payments on account for 2023/24 unless: their 2022/23 Self-Assessment tax bill was less than £1,000, or more than 80 percent of all the tax owed in 2022/23 was deducted at source, for example via PAYE. If a taxpayer knows that their tax bill for 2023/24 is going to be lower than that in 2022/23, a claim can be made to HMRC to reduce payments on account. Each payment on account made should be 50 percent of the person’s total income tax and Class 4 NICs liability for 2022/23. If the final tax liability in 2023/24 is greater than the total payments on account made, a balancing payment will be due on or before 31 January 2025. By way of reminder, a “Time to Pay” arrangement payment plan can be made online by a taxpayer in relation to self-assessment tax debt, including payments on account. The limit for an individual is £30,000 and £50,000 for a business.  

The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors has been published. The report outlines some of the key developments in international tax reform since February 2024, including on the Two-Pillar Solution to address the tax challenges arising from the digitalisation of the economy and on the implementation of the BEPS minimum standards.    

The European Commission proposes to replace the current paper version of the VAT exemption certificate with an electronic one as it progresses digitalising exemption procedures. The proposal includes implementing measures laying down the technical details and specifications concerning the applicable electronic format of the certificate and the way in which it is to be processed electronically. Member States will be allowed to continue to use the paper version of the exemption certificate for a transitional period until 30 June 2030. The Commission has created a portal where stakeholders can share their views and is inviting feedback until 13 September 2024.