Leontia Doran takes a look at the key tax changes which take effect from April 2025 and looks ahead at what we can expect in the coming years.    The new tax and financial year always sees a plethora of previously announced tax technical and administrative changes; 6 April 2025 and the start of the new Financial Year 2025 on 1 April 2025 are no different. This article aims to provide a flavour of the key changes taking effect from April 2025 and looks ahead to some major changes in the coming years. Employer National Insurance Contributions (NICs) From 1 April 2025, employers are required to pay an increased rate of the National Minimum Wage and just days later from 6 April, a range of changes to employer NICs is resulting in higher wage bills. From 6 April 2025, the rate of Employer NICs increased from 13.8 percent to 15 percent and the 0 percent Employer NICs threshold reduced from £9,100 to £5,000, although the Employer NICs employment allowance increased from £5,000 to £10,500. These increased Employer NICs costs rise more sharply for businesses with lower-income employees which particularly impact on businesses who rely on part time staff such as in the retail and care sectors but especially for hospitality businesses. End of the non-domicile regime From 6 April 2025, the rules for the taxation of non-UK domiciled individuals, and specifically the remittance basis (RB) for foreign income/gains, came to an end. However, any foreign income/gains that arose on/before the 5 April 2025 which fell under the remittance basis are taxed under the previous rules when remitted. The concept of domicile as a relevant connecting factor in the UK tax system has now been replaced by a tax residence-based system. The new regime provides 100 percent relief on foreign income/gains for new arrivals to the UK in their first four years of UK tax residence provided the individual was not resident in any of the 10 prior consecutive years. For Capital Gains Tax (CGT) purposes, past remittance basis users are able to rebase foreign assets held on 5 April 2017 to the value at the disposal date provided they were non-UK domiciled up to 5 April 2025. A new Temporary Repatriation Facility (TRF) is also available for individuals who previously claimed the RB. This enables them to designate and remit at a reduced tax rate foreign income/ gains prior to 6 April 2025. The TRF is available for a limited period of three tax years commencing in 2025/26 at a 12 percent rate for the first 2 years and 15 percent in the final year. The domicile-based system of Inheritance Tax (IHT) has also been replaced with a new residence-based system for long-term residents owning non-UK property not previously within the scope of UK IHT. An individual is long-term resident when they have been UK tax resident for at least 10 of the previous 20 tax years and they will remain as such three to 10 years after becoming non-resident.  Business asset disposal relief (BADR) and Investors’ Relief (IR) As a result of the increased rates of CGT from 30 October 2024, BADR and IR both increased from 10 percent to 14 percent from 6 April 2025 and both will further increase to 18 percent from 6 April 2026. The lifetime limit (LL) for BADR remains at £1 million. In contrast, the LL for IR reduced from £10 million to £1 million for all qualifying disposals made on or after 30 October 2024. To compound these phased increases, anti-forestalling rules aim to limit potential planning in this area. Treatment of double cab pick-ups (DCPUs) From 1 April 2025 for Corporation Tax and 6 April 2025 for Income tax and NICs purposes, HMRC treats most DCPUs as cars, and not vans, for direct tax purposes. HMRC has therefore changed its policy on these vehicles potentially leading to increased tax bills for employers, employees and businesses. Previously HMRC treated a DCPU with a payload of one tonne or more as a van for the purposes of benefit-in-kind calculations, capital allowances, and certain deductions from business profits. In so doing, HMRC was following the definitions of ‘car’ and ‘van’ that apply for VAT purposes. From April 2025, a vehicle will therefore only be treated as a van if the construction of the vehicle at the time it was made means that it is primarily suited for the conveyance of goods. Tax reporting requirements At the start of each new tax year, HMRC’s self-assessment returns get a bit of a makeover to reflect any changes to legislation. This year, those changes will not only reflect some previously announced decisions but also help deal with late rate changes. CGT rate changes Last October, the Chancellor announced that for gains on assets other than residential property, the basic rate of CGT rate increased from 10 percent to 18 percent, and the higher rate from 20 percent to 24 percent with effect from 30 October 2024.  At that point HMRC had already updated the 2024/25 SA100 return therefore unrepresented taxpayers must use a HMRC calculator to calculate and report an adjustment figure to get the correct CGT position in their return. Agents using commercial software should check that this is reflected correctly in their client’s return.  For trustees/personal representatives, a new adjustment box will be added to that return and a similar calculator will be provided for taxpayers. As a result, HMRC has requested that trusts/estates wait until the 2024/25 SA900 return is published to ensure that the correct rate of CGT is used. Cryptoassets For the first time, individuals with cryptoassets are required to report income/gains arising on these transactions separately on their return. A policy first announced by the previous Chancellor in 2023, this aims to assist HMRC in making use of the data it expects to start receiving from 2027 about these transactions. 2025/26 tax returns  New regulations also bring in further changes for 2025/26. If an unincorporated business commences/ceases in the tax year, the taxpayer must include the date of commencement/cessation in their return. This could prove challenging in scenarios where the relevant date is not easily determined, for example where an individual has been trading under the trading allowance and first needs to begin reporting trading income. Also from 2025/26, director’s receiving dividends from close companies must include the following in their return: Name and registered number of the company; Amount of dividend received from the company (declared separately from other dividends); and Details of the highest percentage of share capital held in the year. Looking ahead It’s also important to look ahead and plan for what future changes are hurtling down the tax tracks at us. 2026/27 will be another exceptional year for tax practitioners with a wide range of changes previously announced and already expected to take effect from 6 April 2026. Mandatory payrolling of benefits in kind In January 2024 the previous Government announced that from 6 April 2026 employers will be required to report and pay Income Tax and class 1A NICs on most benefits in kind (BIKs) in real-time via the employer’s full payment submission, effectively introducing mandatory payrolling of BIKs. Feedback provided to the Government about this change mainly centred around the potential for increases in employer administrative burdens in relation to reporting all BIKs in real-time and that due to potential delays in receiving invoice details of BIKs provided by third parties, accurate real-time reporting would not be possible for invoices received after the end of provision of the benefit. As a result, the Government has announced some amendments as follows:  the real time reporting of and payment of tax on BIKs will not commence from April 2026 for employment related loans and accommodation but will for all other BIKs with voluntary payrolling available for these BIKs from April 2026, The P11D/P11D(b) process will still be available for those that do not want to voluntarily payroll employment related loans and accommodation which will be mandated in due course, an end of year process will be introduced to amend the taxable values of any BIKs that cannot be determined during the tax year. However, the taxable values of most BIKs will still need to be reported as accurately as possible during the tax year, and HMRC will continue to monitor the penalty position in 2026/27 whilst employers get used to the new process of reporting BIKs in recognition that there will inevitably be a period of adjustment in the first year. IHT future changes The Chancellor of the Exchequer announced in the 2024 Autumn Budget that following the April 2025 changes to IHT territoriality, there would be further significant changes to IHT in the next two tax years.  Firstly, controversial reforms were announced to the IHT reliefs, agricultural property relief (APR) and business property relief (BPR) which are expected to commence from April 2026. A new £1 million allowance will apply to the combined value of property that qualifies for 100 percent BPR or 100 percent APR or both. After this £1 million allowance has been exhausted, relief will apply at a lower rate of 50 percent to the combined value of qualifying agricultural and business property, effectively resulting in a 20 percent rate of IHT. The Government has already stated that it will not be consulting on this policy change, however a technical consultation is expected to take place on the draft legislation and a consultation is currently open seeking views on aspects of the application of the £1 million allowance for property settled into trust. Chartered Accountants Ireland has already discussed its concerns in relation to these proposals with HMRC and has highlighted the particularly damaging impact for Northern Ireland businesses and farms. Secondly, the Budget announced that from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for IHT purposes. Pension scheme administrators will also become liable for reporting and paying any IHT due on pensions to HMRC. Making Tax Digital (MTD) for Income Tax MTD for Income Tax is now less than a year from commencement with the first quarterly returns due to be submitted to HMRC on or before 7 August 2026. From 6 April 2026, the first phase of mandation for this major project commences for unincorporated businesses and landlords with total gross income from self-employment (excluding partnership income) and property in 2024/25 exceeding £50,000. Those with total gross income exceeding £30,000 will be mandated from 6 April 2027. Other income sources are not counted when assessing if the MTD turnover limit for mandation has been breached. In the Autumn Budget, the Government announced that the total gross income limit will drop to £20,000, the timeline for which will be set out at a later date within the current Parliament with no timeline currently set for the mandation of partnerships. Currently, taxpayers can voluntarily sign up to participate in testing MTD for Income Tax ahead of mandation. If a taxpayer is exempt or chose not to sign up voluntarily during the testing period, they must continue to report income and gains in a Self-Assessment tax return. If certain conditions are met, a taxpayer may be automatically exempt from MTD and does not need to apply for an exemption. MTD requires mandated taxpayers to: maintain digital accounting records in a software product/spreadsheet (paper records will not satisfy the legislative requirements), and submit quarterly updates to HMRC by the seventh day of the month after each quarter end (5 July, 5 October, 5 January and 5 April unless calendar months are elected for), and finalise their tax position after the end of the tax year (the final declaration is due by 31 January after the end of the tax year). Quarterly updates must be submitted using functional compatible software which can interact with HMRC's API (application program interface). This will require the taxpayer to either purchase a suitable commercial software product or appoint an agent to submit information to HMRC on their behalf using such software. Quarterly updates are intended to be a simple summary of transactions and a final, year-end return will also be required within which any tax and accounting adjustments will be made. The due dates for paying tax will be unchanged. Agents and taxpayers should take action now to prepare for this major change and consider signing up voluntarily to testing in 2025/26 which is subject to a number of eligibility conditions. Agents should also plan ahead and consider the impact on their practice and the steps needed to prepare both their business and their clients. Leontia Doran is UK Tax Manager and Tax NI Subject Lead for Student Education with Chartered Accountants Ireland. Email: leontia.doran@charteredaccountants.ie

Maura Ginty of Gintax discusses the Start-up Relief for Entrepreneurs. She explains how this all too often overlooked relief is potentially extremely valuable to new-stage entrepreneurs leaving employment to commence their own business venture.  Start-Up Relief for Entrepreneurs (SURE) is an Irish income tax relief targeted at founders of new businesses who leave employment to start their own company full time. The relief works so the individual can receive a refund of Irish income tax paid over the prior seven years on an investment in their new company. A total of twenty-seven individuals claimed the relief in 2022, with only a slightly higher number of claimants in 2021 and 2020.  Anecdotal experience suggests that many more could have been entitled to the relief.  To my mind there are two primary reasons for this—the complexity and the investment requirement.  While in some respects these are valid concerns, they are not insurmountable, and should not be the immediate ‘dealbreakers’ they seem to have become.  This article gives a general overview of the relief and the key provisions that are likely to have an impact in practice. It does not attempt to be comprehensive and is intended to be a general overview to establish potential eligibility. First, some further background on the two challenges noted above. The headline challenges 1. The regime generally / complexity The SURE regime is complex and convoluted.  SURE is drafted as an add-on to the Employment Investment Incentive Scheme (EIIS) rules with the EIIS being the tax incentive scheme for third party individual investors in Irish SMEs. For SURE, a founder needs to meet specific SURE requirements in addition to general EIIS rules. The specific EIIS sensitivities are well trodden by now but to refresh: EIIS is niche area of tax law with any eligible investments triggering a tax risk for the business – even an administrative error can result in full clawback of investor tax relief as a company liability.  The EIIS regime is a form of EU State Aid, with many terms in Irish law imposed directly from EU regulation albeit with no formal definitions attaching to these terms (which would be the norm in Irish tax law). Helpfully, this is one of the few areas of tax law in which a taxpayer may request an advance opinion from the Revenue Commissioners.  However, there is no time limit for Revenue engagement, and this creates further uncertainty for clients (usually in midst of a fundraising round with a 31 December deadline). Notwithstanding the above, in my view, many of the peculiar EIIS sensitivities resulting from EU regulations should not impact a new stage business, such as a SURE company, particularly in cases where a founder was simply an employee with no other business or family business interests. Certainly, there are aspects which will require careful management, such as preparation of a formal business plan, but these should not lead practitioners and their clients to discount a SURE claim. 2. Requirements for founder to invest in share capital Another reason for low take up is the requirement for a founder to invest in actual share capital of the company.  In contrast, the default market practice tends to be the issue of nominal share capital to the founder with any further investment being simply lent by them to the company, as a director’s loan. The latter is straightforward and as the company generates cashflow, the loan can be repaid in a tax neutral manner.  The initial client conversation in relation to SURE usually stops on this topic. However, to my mind, two further factors need to be borne in mind: Where a company is to subsequently seek external investors, then it is often a commercial requirement that any directors loan is converted into share capital at that point in time.  In many cases, at that stage it is too late to claim SURE in relation to the founder investment. Even after a SURE investment, it is still possible for the founder to take a salary from the company which will enable them to finance their day to day living expenses at startup stage. While salary is taxable income, it should be noted that the effective Irish tax rate for a single individual on a €30,000 salary is circa 12 per cent (being USC, PRSI and income tax after credits). This can be contrasted favourably with SURE tax relief which now can result in maximum refund of up to 50 per cent of the amount invested. Overview of the relief On paper, the relief appears generous with a maximum relief in any single tax year of €140,000 but this can potentially be claimed over 7 separate years. As a result, technically a single cash investment of up to €980,000 would be eligible for relief.  The relief ideally suits an individual who had a substantial employment income in recent years (such as share option gains, termination payment or even simply a significant salary), has no other business interests and wishes to commence a new business. Tax relief available There were significant changes introduced to the EIIS regime, effective from 1 January 2024 as a result of amendments to the underlying EU regulation. Prior to this, the quantum of tax relief available was at a person’s marginal rate (up to 40 percent) for qualifying investments, subject to an overall cap. The new changes result in varying amounts of relief, depending on the particular stage of the business life cycle.    These changes now apply to SURE investments. I would expect that most qualifying SURE claims could be eligible for tax refunds at up to 50 per cent or 35 per cent of the amount of investment. The differing rates apply as follows: Where the company is not yet operating in any market, the rules operate so that an income tax refund of up to 50 per cent of the investment could be available (relief is available at 125 per cent of the amount invested;  the marginal income tax rate is 40 per cent).  The term “not operating in any market” derives from EU regulation and Irish Revenue regard this as an operation that has not yet made its first commercial sale.  Where a company is operating in a market, then a tax refund of up to 35 per cent could be available (relief available at 87.5 per cent of the amount invested). For the reliefs noted above (50 per cent and 35 per cent), the investment would need to be classified as “initial risk finance” which relates to early-stage companies (as defined). Most SURE eligible investments should be in this “initial risk” category. However, there is a technical provision for a lower rate to apply. In the context of the terms above, the requirements (as to first commercial sale/initial risk finance, etc.) technically need to be met by all entities within an “RICT group”—a concept derived from EU Regulation.  Further, many other EIIS conditions apply by reference to this concept. For SURE specifically, I would expect that a newly established business owned by an individual who had been in long term employment (with no other business interests) to be a standalone “RICT group”. Thus, the references in this article are to a singular company. SURE – headline conditions The key conditions for SURE are:  A company must be established carrying on a new business. There is two-year window to make the SURE investment and it must be made by 31 December in the second year after the company’s incorporation. The trade activity must be new, and the company cannot have taken over an existing trade, such as a sole trade.  The individual must: Have mainly employment (PAYE) income in the previous four years. Take up full-time employment in the new company - an existing employment can be retained for up to 10 hours per week (there is no stipulation as to salary level). Invest cash in the new company by acquiring shares - there is also a provision for relief on conversion of existing directors’ loans within a certain timeframe (this route will require an auditor’s statement). Retain the shares for at least four years. Hold at least 15 percent of the shares in the company. Not hold more than 15 percent of any other company (this requirement can rule out many employees who have had other business ventures). There is a requirement that the company carry on “relevant trading activities”—this definition includes most trades apart from those on an “excluded” list. Excluded trades include financing activities, professional services, and land dealing. Professional services are specifically defined and include legal, accounting and medical services.  The exclusion does not extend to engineering or computer programming. “Research and Development and Innovation” activities may also be permissible. The relief could apply to new tech startups or also to those entering traditional sectors, including consultancy services.  Specific EIIS requirements for SURE investments Qualifying company The company will need to be regarded as a “qualifying company” which is the same requirement as the current EIIS rules. This involves tests such as being an SME, satisfying the “undertaking in difficulty” test, and the requirement to have tax clearance. The conditions can be limiting—especially the requirement that the company cannot be under the control of another company—limiting flexibility for founders, or other controlling shareholders, with a holding company structure often their preference.  Qualifying investment Similarly, the EIIS “qualifying investment” requirements will need to be met—key here is that the money must contribute directly to the creation or maintenance of employment.  While the EIIS conditions requiring there to be no arrangements to reduce investor risk are still applicable, in practice they should not cause any commercial difficulty for a founding shareholder. The investment must be based on a business plan. In drafting the plan, consideration should be given to the scenario where EIIS is either to be offered or potentially offered to new external investors. Administrative requirements / clawback risk There are administrative requirements which need to be met including submission of a specific tax return (RICT return) by the company and provision of a Statement of Qualification (SQSURE3) to the founder. The actual technical administrative requirements are not unduly onerous, but it is critical they are met. Similar to EIIS, there is a provision which deems clawback of tax relief to be a liability of the company in certain cases, e.g. where the Statement of Qualification is incorrect, such that the company will not be considered a “qualifying company”. Summary In conclusion, while SURE relief offers significant potential benefits for founders of new businesses, its complexity and specific requirements (outside of commercial norms) have clearly limited the uptake. There has been much lobbying of Government to simplify the entire suite of investment reliefs, with particular focus on the prohibition of a holding company and for SURE specifically, its restriction to employees only. Given the lack of success to date, one would suggest that all stakeholders reconsider the SURE rules as they stand—especially for cases where founders are satisfied to progress with a standalone company. One also hopes the soon-to-be updated Irish Revenue guidance documentation on SURE/EIIS will better assist all parties navigate matters here. Maura Ginty is a Chartered Accountant and Chartered Tax Advisor with over 20 years of professional experience advising clients. She advises Irish and international businesses at all stages of development from start-up, expansion in Ireland and abroad, acquisition, day-to-day operations, and restructuring to succession and disposal.

On April 8th, the Institute published Technical Release TR 01/2025 Guidance on the Corporate Sustainability Reporting Directive (CSRD). This Technical Release covers the application of the CSRD in Ireland, including; An introduction to the CSRD Transposition of the CSRD in Ireland Scoping and timelines The Technical Release covers the CSRD legislation as currently drafted in Ireland. It does not address the potential implications of the recent Omnibus Proposals. This Technical Release is available to members by logging in to the Institute Technical Content section of the website. We hope to update this publication with supplementary content in coming months.

Following public consultation last year, IAASA has published a revised Ethical Standard for Auditors (Ireland). As part of the revisions to the standard, IAASA has also updated its Glossary of Terms. IAASA has also published a feedback paper which summarises its response to the main points raised by the consultation respondents. The effective date of the revised standard is for audits of financial statements for periods beginning on or after 15 December 2026. Early adoption is permitted. The feedback paper is available here. The responses received are available here. The revised standard is available here. The revised Glossary of Terms is available here.    

The International Auditing and Assurance Standards Board (IAASB) has released its revised International Standard on Auditing 570 (Revised 2024), Going Concern. The revised standard responds to corporate failures that raised questions regarding auditors’ responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. The revise standard is effective for audits of financial statements for periods beginning on or after 15 December, 2026. ISA 570 (Revised 2024) introduces several key changes: Robust risk assessment. Auditors must conduct, in a more timely manner, thorough risk assessments to determine whether events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern. Evaluating Management’s Assessment. Auditors must evaluate management’s assessment of going concern irrespective of whether events or conditions are identified. In doing so, auditors must consider the potential for management bias and evaluate the underlying method, significant assumptions, and data used when management formed its assessment. Additionally, auditors must evaluate whether management’s judgements and decisions indicate potential bias. Extended date of evaluation period. The auditor’s evaluation period for going concern now extends at least twelve months from the date of approval of the financial statements, contributing to an assessment of more relevant, decision-useful information. Enhanced transparency. The standard requires clearer communication in the auditor’s report about the auditor’s responsibilities and work related to going concern and strengthened communications with those charged with governance and external parties. The IAASB also developed a fact sheet and Basis for Conclusions, which are available on the IAASB’s website. The IAASB will also issue a frequently asked questions document and technical overview video to support the revised standard’s implementation.

The Institute has today published a webpage on Economic Crime and Corporate Transparency Act 2023 - Changes in Companies House.  The aim of this webpage is to inform members of the recent Companies House identity verification changes and how to register as an Authorised Corporate Service Provider. These identity verification requirements came into effect on a voluntary basis on 8 April 2025 and will be mandatory for all company directors and People with Significant Control from Autumn 2025.  It also sets out other changes to be introduced by Companies House at a later date and reminds members of the changes from phase 1 last year.   

We all get stressed from time to time. A certain amount of stress can be useful but if you feel constantly overwhelmed this can lead to health problems. This article will look at the causes of stress and provide some tips on how to increase your resilience. You probably know the feeling of being stressed out all too well. Your breathing quickens, your heart starts to pound, your mouth feels dry, your muscles feel tense, your hands feel cold yet sweaty. Situations we find stressful can vary widely from person to person as some of us are more susceptible to the effects of stress than others. These situations trigger the release of stress hormones that are responsible for the way you feel when stressed. This is called the stress response, or the fight or-flight response. Survival mechanism The term fight or flight was first used by American physiologist Walter Bradford Cannon back in the early 1900s. It describes the body's automatic response to danger which is thought to have evolved as a way of helping humans react quickly to life-threatening situations. This response is triggered so fast you won't have time to think about it. Here's how it works: Step 1 In the presence of danger, the eyes and/or ears send information to the area of the brain involved in emotional processing, called the amygdala. The amygdala sends a distress signal to a tiny area at the base of the brain called the hypothalamus, which communicates with the body via the nervous system. Step 2 The hypothalamus activates the part of the nervous system called the sympathetic nervous system. This then sends signals to the adrenal glands, which respond by producing hormones including adrenaline, norepinephrine and cortisol into the bloodstream. As these hormones circulate through the body they bring about a range of physiological changes, such as: Faster heart rate Increase in blood pressure Faster breathing rate Increase in mental alertness Decreased saliva production Increased sweating Sharpening of senses such as sight and hearing Increased energy (caused by the release of sugars and fats into the muscles) Reduced urination Step 3 If the brain perceives the threat as ongoing the hypothalamus releases more hormones. These act on the adrenal glands, making them release more cortisol and leaving the body in a continued high state of alertness. Step 4 When the brain perceives the threat as having passed, cortisol levels fall and the hypothalamus activates the parasympathetic nervous system, which dampens the stress response.  Long-term effects Though the threats we encounter these days are usually very different from those faced by our prehistoric ancestors, the stress response is still useful as it boosts our awareness in stressful situations and helps us cope with emergencies. If your fight-or-flight response is triggered too often and for too long, the constant release of stress hormones in your body can lead to one or more of the health problems associated with chronic stress. These include digestive issues, impaired resistance to colds and other infections, heart disease, sleep difficulties, weight gain, anxiety and depression. While it's unlikely you'll be able to remove stress from your life entirely, there are steps you can take care of your physical and emotional wellbeing. Try to make your lifestyle as healthy as possible by: Eating well Eat a healthy balanced diet. Have at least five portions of fruit and vegetables every day and try to limit how much sugar you eat. Sleeping well Getting a good night's sleep (read our tips for a better night's sleep for pointers). Learning how to relax Try yoga, meditation, deep breathing or whatever helps you feel calm. Move more Taking regular exercise can help reduce the build-up of stress hormones in the body. Improve your resilience Increasing your resilience can help you to cope with stressful situations. Learn how to be more resilient by reading our article 5 ways to boost your resilience.  If stress or any other issues is impacted your health or quality of life, the Thrive Wellbeing Hub has a multitude of supports you can avail of. From 1:1 listening service to professional counselling, contact Thrive to discuss your options.  Article reproduced with the kind permission of CABA, the organisation providing lifelong support to ICAEW members, ACA students and their close family around the world.

In a unsettled world in which global temperatures continue to rise, accounting for sustainability has never been more important, writes Susan Rossney  On 26 February 2025, the European Commission proposed changes to the laws governing, among other things, sustainability reporting.  Regardless of any changes to sustainability reporting legislation, there will be little let-up in the momentum of the sustainability policy developments impacting those accountants working to embed sustainability in company strategies and operations. Accountants and sustainability  ‘Sustainability’ is a broad term, defined in 1987 by the United Nations (UN) as: “meeting the needs of the present without compromising the ability of future generations to meet their own needs”.  Financial professionals often describe it as ‘ESG’—i.e. measuring an organisation against specific environmental, social and governance metrics.  The need to gather the data required to measure business performance, and allow investors to compare businesses, is one of the many reasons sustainability has become increasingly important for accountants.  Even before the introduction of legislation compelling disclosure of sustainability information, however, many businesses had been working hard to integrate sustainability into their operations. This is partly because it makes good business sense—reduced energy costs being just one of them—but also because businesses are run by and for people who appreciate that businesses depend on a functioning society. And society, in turn, needs functioning ecosystems—energy, raw materials and a healthy workforce with access to clean air, clean water, food and security.  The risk of the ‘wicked problem’  Climate change and biodiversity collapse are archetypal ‘wicked problems’, a term coined in the 1970s by design theorists Horst Rittel and Melvin Webber. Wicked problems describe planning and social policy problems that seem difficult or impossible to solve. They resist resolution. Like Whac-A-Moles, you hit one part of a wicked problem on the head and another one pops up to surprise you.  Solving wicked problems requires thousands of stakeholders to do “everything, everywhere, all at once,” as UN Secretary-General António Guterres has put it.  With all indicators pointing to a relentless rise in global temperatures, both mitigation (reducing harmful emissions) and adaptation (adapting to the effects of climate change—wildfires, floods, droughts, migration, costs etc) have never been more necessary for businesses to mitigate risks.  Systemic risks Systemic risks are the widespread and interconnected threats posed by the climate and biodiversity crises to the stability of financial systems and the global economy.  These risks include the world reaching so-called ‘tipping points’—levels of global warming and rising sea levels from which there is no return, for example.   A report commissioned by the European Central Bank in 2022 found that climate risk could substantially amplify losses in an interconnected financial system of banks, investment funds and insurers.  In a report published in December 2024, the European Central Bank and the European Insurance and Occupational Pensions Authority warned that climate change is increasing the frequency of natural disasters, resulting in multibillion euro costs left uncovered by insurance.  In January 2025, global reinsurer Aon disclosed that economic losses resulting from natural disasters in 2024 totalled $368 billion, marking 2024 as the ninth consecutive year of losses exceeding $300 billion.   Physical risks The physical risks to businesses can be both acute and chronic.  An example of an acute physical risk is a wildfire, such as the Los Angeles wildfires that took place in the US in January, which are likely to be one of the costliest natural disasters in US history.  A chronic risk could be a drought, such as those that cause water shortages in regions in which semiconductors are manufactured—a core component of enabling technologies critical to economic growth, national security and global competitiveness.  Along with the loss of life and suffering of those caught up in these physical events and their immediate and long-term aftermath, there are also risks to business. These include damaged assets, raw materials shortages, environmental degradation (such as those affecting tourism industries), resource scarcity, supply chain disruptions and business interruption.  Transition risks In the context of business and climate change, transition risks are the financial and operational uncertainties businesses face in the shift towards a low-carbon economy.  These transition risks include fluctuating costs and secure energy supply as the economy and societies transition to net zero. They also include increased operating costs for waste management and insurance and exposure to carbon tax liability, which is expected to rise to €100 per tonne of CO2 emitted in Ireland by 2030.  Recent reports from the World Economic Forum warn that climate inaction could cost businesses up to seven percent of annual earnings by 2035. Other risks include reputational risk and a threat to a company’s ‘social licence to operate,’ as well as legal challenges.  In 2024, London’s Grantham Research Institute on Climate Change and the Environment reported that there are 2,666 ongoing climate litigation cases globally, noting a rise in the number of climate cases filed against companies. Another transition risk for businesses is their potential inability to secure lower-cost funding, as lenders and investors increasingly seek information on sustainability-related risks.  Equally, a company’s existing products or services could become obsolete in the transition, while competitors may gain an advantage by adopting new technologies and attracting or retaining valuable talent as more and more candidates vet companies’ ESG credentials before deciding to join or remain with a business.  This shift in preference towards more sustainably run companies extends to an organisation’s ability to tender for contracts, particularly in the public sector with the rise of green public procurement practices. In Ireland, for example, the Government published Buying Greener: Green Public Procurement Strategy and Action Plan 2024-2027 in April 2024 with the aim of driving green and circular procurement practices across the public sector. With annual public sector purchasing accounting for 10 to 12 percent of Ireland’s gross domestic product, this plan will likely influence a significant portion of economic activity and demand.  Regulations and policies Businesses must carefully consider sustainability-related regulations and policies that affect every level of the economy, from international to local. At the international level, treaties such as the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework join supranational policy initiatives, such as the EU Green Deal and EU Biodiversity Strategy, to ensure specific climate action and biodiversity protection commitments cascade to the national policy level.  Sustainability is one of the core pillars of Northern Ireland’s 10X Strategy where the Climate Change Act (Northern Ireland) 2022 requires at least 80 percent of electricity consumption in the region to be from renewable sources by 2030.  The Northern Ireland Executive’s Programme for Government 2024-2027, Our Plan: Doing What Matters Most, prioritises the development of a globally competitive and sustainable economy while also focusing on protecting the environment.  The UK government recently published its National Biodiversity Strategy and Action Plan in which it commits to achieving all 23 targets of the Global Biodiversity Framework at home. More recently, the UK government published the Department of Agriculture, Environment and Rural Affairs’ Corporate Plan for 2025-2027 which sets a strategic direction for its path towards a transition to a net-zero, nature-positive future. Ireland has implemented similar policies to achieve its climate and biodiversity targets through successive Climate Action Plans and sectoral targets for emissions. Additionally, under the fourth National Biodiversity Action Plan, a key objective is to engage 900 businesses in the Business for Biodiversity Ireland initiative by the end of 2025.  Other measures will prevent companies from making misleading claims about the environmental merits of their products and services, while also helping Ireland to transition to a circular economy.  Achieving the legally binding climate targets established under the Climate Action and Low Carbon Development Act 2021, which aims to ensure Ireland meets its national emissions reduction targets, is critical from both a financial and a climate perspective.  In December 2024, the Irish Fiscal Advisory Council (IFAC) warned that the climate transition poses Ireland’s second largest budgetary challenge, second only to our ageing population.  In a 2025 joint report with the Climate Change Advisory Council, IFAC estimated that failure to meet our climate targets would incur penalties of up to €8 billion for Ireland and €26 billion for Europe. Alongside these policy developments, businesses will be required to gather more climate, nature and biodiversity information this year and beyond — and accountants in  the public and private sectors will play a critical role in managing it.  In a shock-prone world where all indicators point to a relentless rise in global temperatures, accounting for sustainability has never been more crucial.  Chartered Accountants Ireland’s Sustainability Centre offers guidance and resources for businesses. Additionally, members can subscribe to the Institute’s fortnightly Technical Round Up and weekly Sustainability/ESG Bulletins, both included in the weekly Chartered Accountants Ireland newsletter, and on LinkedIn.    Susan Rossney is Sustainability Advocacy Manager at Chartered Accountants Ireland

As the founder of Bleeper, the Dublin-based bike sharing venture, Hugh Cooney, FCA, is playing a crucial role in supporting and promoting sustainable travel in the nation’s capital A 2016 trip to China prompted a career change for Chartered Accountant Hugh Cooney who would go on to launch Bleeper, his Dublin-based dockless bike rental start-up, the following year. “It was when I was in China that I saw the world’s first standalone bike-sharing scheme,” Cooney explains.  “Up until then, it was all bikes at fixed locations. These standalone bikes each had smart locks which were opened by an app. I really liked the concept, and I spent the next four months or so looking at how to bring it to Ireland.” Path to accountancy His foray into sustainable entrepreneurship wasn’t Cooney’s first career shift. Prior to his 2016 trip to China, he had already lived in Shanghai for five years, working for property developer Treasury Holdings, before returning home to train as a Chartered Accountant. “I moved back to Ireland in 2010. The jobs market was tough at the time due to the global financial crisis. I didn’t want to stick with the property business and decided to add a qualification to my CV. I had always been interested in accountancy and had studied it at college,” he says. “I saw that Chartered Accountants Ireland had launched its Elevation Programme in 2009 to enable people to become Chartered Accountants without a training contract.  “I thought it would be perfect for me and signed up for it in 2010. I got a job in PwC’s corporate finance division, did my Final Accounting Exams in 2013 and became a qualified Chartered Accountant.” A subsequent role with KPMG saw Cooney working on aspects of the Irish Banking Resolution Corporation (IBRC) administration.  “I joined KPMG in 2014 and worked on the sale of IBRC non-performing loans in their transaction services division. We had to get the loan book into a condition where buyers were happy with the information provided,” he says. Then came that lightbulb moment in China and the launch of Cooney’s Bleeper business: “I left KPMG in April 2017 and Bleeper opened for business soon after,” he says. The birth of Bleeper The name for Bleeper came to Cooney one day as he was walking past the Luas stop on Dublin’s Harcourt Street.  “I heard the ‘ding ding’ sound of the Luas. The bikes make a bleep sound when they are unlocked, so I decided to call it Bleeper.” Start-up finance came from a mix of sources. “At the start, I had a joint venture with a Chinese company. They contributed the bikes and I raised money from friends and family as well. We started with a thousand bikes and the Chinese company also made the software we used.” Having the bikes, software and finance in place was just the beginning, however. It’s not possible to simply start a bike-sharing business in a city like Dublin without some form of permit or licence.  For Cooney, this ultimately came down to the introduction of a set of bylaws by Dublin City Council.  “Dublin city centre is so complex and there is such competition for road space, Dublin City Council needed to put some rules around it,” he explains, paying tribute to the speed with which council officials and elected members of the Strategic Policy Committee approved the bylaws.  “It usually takes a few years, but they started working on the bylaws in June 2017 and they were approved the following December.” The council then ran a competition for two licences, one of which was awarded to Bleeper. “We were allowed to put our first bike in the Dublin City Council administrative area in June 2018,” Cooney says. Regular Bleeper users can buy a pass, while less frequent users can pay as they go. The pay-as-you-go rate is €1 to unlock the bike and four cent per minute thereafter.  “Our average trip is 17 minutes, and most people pay us €1.68. Under the bylaws, the bikes have to be locked to a public bike rack,” Cooney explains. “We are fined if they’re not locked to the racks, and we pass that on to the customer concerned. There is a chain on the bike which they use to lock it to the rack. Compliance is very good—less than one percent of users don’t follow the rules.” Since its launch, Bleeper has grown to include electric bike leasing and sales divisions. “People can lease a bike just like a car,” Cooney says.  “They pay by the week and can give it back at a week’s notice. We found that some customers want to buy an electric bike, but they are not cheap. The entry level is €2,000 and they can go right up to €5,000.  “We opened a shop on Lower Bridge Street and people can come in and take a bike for a test ride before they buy. Business is good and we’ve been profitable for the last couple of years. We are growing revenue every year and hope to continue on that path.” Mobility Partnership Ireland Bleeper was one of the founding members of Mobility Partnership Ireland (MPI)—a coalition of shared transport providers launched four years ago—and Cooney was recently elected as MPI Chair for the year ahead.  “MPI started with three member firms, including ourselves, Moby and Yuko. We had realised that all commercial operators in the sustainable transport space were meeting the same State officials. It was time-consuming and inefficient. We decided to come together as a collective for lobbying purposes and to promote sustainable transport generally,” Cooney says. Definitions of sustainable transport can vary. “For me, it is anything that is not a single passenger car journey. A car with four people in it isn’t unsustainable. Anything that is not a single occupancy car journey can be sustainable. “If you read the Climate Action Plan, the goal is to enable 500,000 daily sustainable travel journeys by 2030. It’s not realistic to ask people to give up their cars. People have lots of reasons to hold onto their cars.  “But, if it’s a sunny day, we can get them to ask themselves if they need to drive to work that day. It’s not about whether people have a car or an electric vehicle. It’s about the amount of time they use it.” Promoting sustainable transport Cooney believes more should be done to promote the sustainable travel targets set out in the Climate Action Plan. “I don’t see the Government advertising their Climate Action Plan target for sustainable journeys. They need to get out there and break the target down into smaller steps,” he says. Commercially operated sustainable transport services should be supported as part of the this, Cooney adds.  “A lot of people think public transport is publicly owned and funded but there are lots of alternative commercial providers,” he says.  “It needs a bit of a shift in mindset. All of the incentives and subsidies tend to go to publicly owned services, but more consideration needs to be given to commercially operated sustainable transport services.” Since its launch four years ago, MPI has grown to eight member firms, including Aircoach and FreeNow.  “Our plan is to work closely with the Minister for Transport and the National Transport Authority as one group. We want to break down the ‘us and them’ mentality that currently exists,” Cooney says. “We can easily get to the 500,000 trips target in sustainable transport if we all work together, and I believe we can get way more than that if commercially operated sustainable transport services are supported. “We want to work with the government to get more people out of the default habit of jumping in the car for every trip.” It isn’t always easy to get these ideas across to Government, however. “The process of making pre-budget submissions is very costly and time-consuming for businesses,” Cooney points out.  “You don’t get written answers or clarity on why proposals have not been accepted. There should be a downloadable template on the Department of Finance website. That would make it easier for businesses to make submissions and easier for the department to run the process.  “It’s not unreasonable to ask that they make it easier and to give people feedback on their submissions. We have put forward ways of encouraging people to use alternatives to their cars but haven’t got any response.” On a more positive note, Cooney sees lots of potential for Bleeper to grow.  “Less than six percent of people in Dublin commute to work on a bike. In Amsterdam and Copenhagen, it’s closer to 50 percent. The government target for Ireland is 15 percent. Our goal is to play a big role in reaching that target,” he says. Interview by Barry McCall

Dee Moran, FCA, explores the potential impact of the European Commission’s much-anticipated Omnibus package on the Corporate Sustainability Reporting Directive  26 February 2025 felt like doomsday for many immersed in sustainability. After weeks of rumours, the European Commission published its first Omnibus package of simplification measures for sustainability reporting and regulation. If approved, these measures will substantially water down the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive, Carbon Border Adjustment Mechanism and EU taxonomy for sustainable activities.   In publishing the proposals, the European Commission noted that they would enable businesses “to grow and create quality jobs, attract investments, get the necessary funds for their transition towards a more sustainable economy and help the EU meet the Green Deal’s ambitious objectives”. Many in the profession were dismayed by the introduction of the new CSRD simplification proposals, however, particularly those that had just published their 2024 annual reports with the required environmental, social and governance (ESG) information included for the first time.  Their companies have invested heavily in sustainability reporting and, depending on their size, could now potentially fall out of scope of the CSRD under the new proposals.   Their less prepared counterparts, meanwhile, will have felt some relief that their own tardiness in starting their sustainability journey and preparing for CSRD reporting has been rewarded. So, where does the Omnibus package leave the future of CSRD reporting? Some of the proposed amendments are outlined here, with a short analysis for each. Timeline: two-year delay The Omnibus measures propose delaying the deadline for CSRD reporting by two years—to 2027 for wave two companies, and 2028 for wave three. The two-year ‘stop the clock’ proposal has generally been welcomed as it would give companies more time to prepare for CSRD reporting.  There are concerns among some, however, that the two-year delay is too long, with some maintaining that a 12-month lag would have been more effective in maintaining momentum. Budgets are already approved for next year, but securing the budget for a second year might be more challenging.   Overall, however, the proposed delay is being viewed as a welcome means to provide a much-needed breather for companies.  Threshold: employee numbers The European Commission’s Omnibus package proposes raising the threshold for numbers employed by companies in scope of the CSRD from 250 to 1,000 (and either a turnover greater than €50 million or balance sheet total exceeding €25 million). This proposal would reduce the number of companies in scope of the CSRD across Europe by about 80 percent—from 50,000 companies down to about 7,000.  The 7,000 figure is also substantially lower than the 11,000 companies obliged to report under the Non-Financial Reporting Directive.  The higher employee threshold proposal has met with varying reactions in the profession, with many expressing that 1,000 goes too far, and that 500 employees and above would be more proportionate. This will no doubt be debated at length in the months ahead.  It is worth pointing out, however, that companies that would not fall in-scope of the CSRD under the new proposed threshold may still opt to voluntarily adopt the proposed standard. Voluntary SME standard The Commission has proposed that it will adopt, by way of a delegated act, a voluntary sustainability reporting standard (VSME) to facilitate reporting of sustainability information by companies that are not in-scope for the CSRD.  This will be based on the revised voluntary sustainability reporting standard for non-listed micro, small and medium enterprises (VSME) submitted by the European Financial Reporting Advisory Group (EFRAG) to the European Commission in December 2024. Value chain cap The Omnibus measures propose the introduction of a ‘value chain cap’. This move would serve to limit the information CSRD reporters can request from non-CSRD reporters in their value chain with fewer than 1,000 employees. They would not be permitted to request any information exceeding that specified in the revised VSME. While this proposal could potentially diminish the comprehensiveness of sustainability reports, it would also reduce the sustainability reporting burden on smaller companies and—provided that the revised VSME standard is comprehensive—should still provide companies in-scope of the CSRD with the value chain information they need. Reasonable assurance standards The requirement to have assurance on a sustainability report is a fundamental part of the CSRD, with limited assurance in the first instance and the potential to move to reasonable assurance following a review.  The Omnibus package seeks to remove the requirement for reasonable assurance as a means to streamline the reporting process, while also maintaining some oversight.  This proposal has been largely welcomed as it would reduce the cost of compliance for CSRD reporters and would also be less burdensome.  Some stakeholders have, however, voiced concerns that removing the need for reasonable assurance over the longer term may compromise the trustworthiness and reliability of data.  Investors, in particular, have been vocal about their need for accurate data to reduce the risk of greenwashing. Reasonable assurance would provide an additional level of comfort. European Sustainability Reporting Standards The Omnibus package commits to simplifying the European Sustainability Reporting Standards (ESRS), including a reduction in the number of data points, clarification of provisions deemed unclear and an improvement in consistency with other pieces of legislation. With in excess of 1,100 data points, the volume and complexity of the ESRS has raised many concerns, and Chartered Accountants Ireland was critical of the high number of ESRS data points in our response to the initial public consultation on the draft ESRS.  The Omnibus proposes to simplify the ESRS by reducing the number of data points and focusing on qualitative over quantitative information.  The Commission has asked EFRAG to commence the work of simplifying the ESRS and to provide their technical advice by 31 October 2025. It is important, however, that sufficient time is allowed for proper consultation with stakeholders. Sector-specific standards The Omnibus proposal reverses the existing plan for sector-specific standards to be developed and adopted by the European Commission, a move that would have increased the number of data points required for CSRD reporting.  Again, there are varying views on this proposal in the profession. Some maintain that sector-specific standards would lead to more relevant and meaningful disclosures in specific industries while also providing for more effective comparability.  Others cite increased cost and complexity as a potential negative, particularly for companies operating across multiple sectors.  Double materiality assessment The Omnibus proposal does not change the CSRD’s double materiality perspective, meaning that companies remaining in scope will have to report on how sustainability risks affect their business and their own impact on people and the environment. The retention of the double materiality assessment (DMA) is not surprising given that it is a key requirement under the CSRD.  While cost and the availability of data have been cited by some as barriers to completing the DMA, the recommended reduction in ESRS data points and proposed two-year reporting delay should assist reporters in meeting this requirement.      What happens next? It is important to remember that these Omnibus simplification measures are just proposals. The next step will see these proposals reviewed by both the European Parliament and the Council of the European Union.  A staggered approach to the proposed amendments would see the ‘stop the clock’ proposals be approved in the first instance to give companies clarity on their reporting requirements for 2025.  The European Council and the European Parliament have already approved this amendment.  The proposal now needs to be approved formally by the Council and signed by the Presidents of both Institutions. It will then be published in the Official Journal, which is expected by the end of June. Member States have until 31 December 2025 to transpose into their national laws. We have been advocating for speedy transposition of the Directive to the Department of Enterprise, Tourism and Employment , which has committed to prioritising this.  Once the ‘stop the clock’ proposal has been approved, this will allow time for the other proposals to be debated, and for EFRAG to develop and present to the European Commission a revised set of ESRS and a new set of voluntary standards based on the VSME.  The revised ESRS are expected to be adopted as soon as is practicable, but no later than six months after the entry into force of a revised CSRD.  Our professional accounting team at Chartered Accountants Ireland will continue to review these proposals, engage with members, other professional bodies and relevant stakeholders, and respond to European Commission and EFRAG consultations on your behalf. Our priority, as always, will be to represent our members in lending our voice to continued progress in the sustainability agenda that is also proportionate and cost-effective for companies.  While the initial reaction to the Omnibus package of proposals was mixed, it has been encouraging to hear from many in the profession that a reduced scope would allow them to better focus on material matters and on gathering quality data, while the delayed timeline would also give them greater scope to prepare thoroughly for CSRD reporting.  Dee Moran, FCA, is Professional Accountancy Lead at Chartered Accountants Ireland

Martina Goss, FCA, continues to broaden her skill set to support sustainable entrepreneurship and ESG progress in Ireland and beyond Martina Goss, FCA, is leveraging her financial knowledge and expertise in business strategy and lean methodologies to help start-ups and SMEs succeed, innovate and build sustainable strategies aligned with Ireland’s climate goals. Here, she tells Accountancy Ireland about the career path that has seen her pivot from finance to supporting Ireland’s entrepreneurial community and more besides.  Q. What first sparked your interest in sustainability and the whole area of environmental, social and governance?  I have always had a love of nature. I grew up in rural Ireland and, today, I live in the countryside in Co. Louth surrounded by mountains, nature and wildlife.  A few years ago, I pivoted my career away from pure finance to what I do now, offering training and business coaching to start-ups and small and medium-sized enterprises (SMEs). That shift brought me into contact with the United Nations’ Sustainable Development Goals and the entrepreneurs doing amazing things on the ground to progress these goals. I look at environmental, social and governance (ESG) principles in a holistic way. I’m not just interested in nature and climate change, but also in the human aspect—the ‘S’ in ‘ESG’ and, in particular, the focus of the fourth UN SDG on ensuring inclusive, equitable and quality education and promoting lifelong learning opportunities for all. To this end, I began working in 2023 as a facilitator with Global Youth Forum, a non-profit in Kenya that offers life-skills coaching, mentoring and sports programmes to young people with the aim of equipping them with the skills to improve their lives by securing a job or starting a business. Q. Tell us about that career pivot: what prompted it?  I started my career in practice before transitioning into industry where I held financial roles in many different organisations.  Then, in 2015, I did Chartered Accountants Ireland’s first ever Diploma in Strategic Finance and Business Analytics. That was the turning point for me.  By complete chance, while I was looking for a project for the course, I met an entrepreneur who was taking part in New Frontiers, Enterprise Ireland’s national entrepreneur development programme. He had a sustainable business idea for flood defence and wanted support from someone with a business background. I needed an idea for my diploma, so we did this match transaction.  At that stage, I knew I wanted to move beyond focusing solely on the numbers of a business. Fast forward a few years and I became the programme manager of New Frontiers at both Dundalk Institute of Technology and Invent, DCU’s commercialisation and technology transfer unit. Whilst managing that programme, I was introduced, not just to the world of start-ups and innovation but also entrepreneurs building sustainable businesses in alignment with the UN’s SDGs. Later, I reskilled as a Lean Start Up Coach, training with Ash Maurya, the founder of Leanstack in the US. He is the author and creator of the Lean Canvas, a business modelling tool used by businesses worldwide. Q. Can you describe the work you do today and the services you offer?  I work predominantly with start-ups and SMEs, helping them with their business strategy, reimagining their business models and innovating in a sustainable manner, so they can successfully launch or reinvent products and services. My work combines my expertise as a Chartered Accountant and Lean Start-up Coach and increasingly incorporates ESG. Last year, I completed my second course with Chartered Accountants Ireland, this time a certificate in sustainability strategy, risk and reporting. Innovation is a big focus for many of my clients. They understand the world is rapidly changing and they know they need to reassess their business model, but they may feel a little stuck or challenged as to where to start.  They may have new products or services they want to launch, or they might want to adapt what they are already doing to changing customer needs and market trends.  At the forefront of my work is the idea that you must always listen to the market—to what your customers want and the problem you solve for them.   We do a deep dive into their business model. We look at why the company exists—what problem does it solve for customers? What is its vision? What are its goals and strategy to compete?  We look at trends in the marketplace, we talk to the company’s customers and stakeholders. We use that information, both qualitative and quantitative, to reimagine the company’s business model and its products and services. The aim is to create a business model that is financially viable, desirable for its customers and sustainable for the planet.  Q. Where does ESG come into the work you do with these companies?  It comes back to that critical piece in any business strategy—listening to the market trends and responding to customer needs. Developing new products and services is the perfect opportunity to blend sustainability and innovation together into one. More people today are thinking about sustainable products and sustainable business practices because they are concerned about the climate crisis and the need to decarbonise our economies. This is a market trend, so, by embedding sustainable practices into their strategy and operations, start-ups and SMEs can help to ensure long term viability. There is a cost involved at the outset, but it is worth mentioning that, by incorporating Lean practices into their business model, businesses can eliminate costly waste. There is often so much waste in organisations. Lean start-up principles, when applied to new product development, can have a considerable ESG impact on a business because they fundamentally seek to minimise waste.  Q. What would you like to see happen now to support the advancement of ESG in Ireland and beyond?  From my perspective working with businesses, I think what is required to galvanise the ESG movement is a change in mindset. Businesses are run by people, so the shift in mindset is down to the individual—to each and every one of us.  This starts with small changes in our personal lives where we can embrace a more minimalist way of living, consume less and cut down on the excess in our lives. We buy too much. We have too much waste.  The Sustainable Progress Index 2025, published in February by Social Justice Ireland, ranked Ireland ninth out of 14 comparable EU countries overall, but placed us in the bottom five for nine SDGs, including responsible consumption and production (SDG 12). According to Social Justice Ireland, we continue to generate a significant amount of municipal waste per capita, while the recycling rate of our municipal waste and circular material use is low. So, I think we all need to think about our own consumption, and about what we can do to cut down on the waste we generate.  I believe that, if each one of us was just one percent better, the collective impact would be massive. These changes at an individual level can then feed into new businesses and start-ups launched by people with ESG principles at their core, in terms of what they are bringing to market or how their businesses operate with sustainability, minimal waste and other societal benefits at their core.  Critically, as Chartered Accountants, we have quite a vast skill set we can apply to helping businesses delivering ESG benefits. For younger generations, ESG is already instilled in their mindset. They care about the future of the planet, about climate change and a fair and just society.  Businesses today can’t afford to overlook this fundamental shift in what people and the market wants.  Real change comes when you believe in it and work towards it. 

Kate van der Merwe, FCA, has carved out an impressive career in sustainability driven by her passion to effect positive societal and climate change  An abiding sense of adventure and curiosity has guided Kate van der Merwe’s career from accounting to sustainability, and from the corporate realm to the world of nonprofits, as she continues to pursue her passion to effect positive societal and climate change. Originally from KwaZulu-Natal in South Africa’s east coast, van der Merwe studied social science at the University of Cape Town before qualifying in Ireland as a Chartered Accountant and forging a successful career as a sustainability consultant. Driven to explore “I think it’s my background in social science that has made me so curious and driven to explore,” van der Merwe says. “The social sciences have a good dose of curiosity and exploration, but in the early stages of my career, I found myself struggling a bit to find roles in the messy ‘real world’.  “I lived in the UK on a working visa for two years after college and, being a South African, my mobility was restricted. I decided to go into Chartered Accountancy to open doors and cross borders. “At the time, I told my humanities-driven self that finance was the linchpin of economic systems, and it might one day allow me to effect some positive societal change.”  Van der Merwe relocated to Ireland in 2006 to train as a Chartered Accountant with a firm in Dublin. Her qualification in 2009 coincided with the onslaught of the global financial crisis, however, prompting her to return to Southern Africa, where she spent five months travelling around the region. “It really was a case of ‘when life gives you lemons’, because that trip was pivotal for me,” she says.  “It brought me back to my childhood surrounded by so much biodiversity. I was fortunate growing up that, during the holidays, we were able to go to the beach, to the mountains and, every now and again, to the bush.”  “Years later, my childhood experience would also become the driving force behind my interest in the social aspect of environmental, social and governance (ESG) principles. “The apartheid system was still in place when I was at primary school and then Nelson Mandela was released, and we had our first democratic elections in 1994. Those experiences instilled in me an awareness of the importance of social justice and equality.”  Early career Van der Merwe returned to Ireland in 2011 to take up finance roles, first in the pharmaceutical industry and then in the technology sector. “I joined Google and I was immersed in this environment in which values, such as sustainability, were on the agenda. Google was doing interesting work in renewable energy innovation at the time. “Then I received my naturalisation to become an Irish citizen, and that stability compelled me to think about what I could do to become an active participant in bringing about positive change. I started to find my voice.” At the time, van der Merwe says she felt an “urgent sense of responsibility” in the face of the burgeoning climate crisis and global biodiversity loss. She decided to embark on a master’s in renewable energy and environmental finance at UCD Michael Smurfit Graduate Business School, dropping to part-time hours with Google to facilitate her studies. “My master’s marked a sea change for me—a deliberate journey of exploration. The key was finding the strength to speak up about the things that are important to me, and that’s not necessarily easy to do,” says van der Merwe. Once her master’s was complete, she joined Trócaire, where she became Financial Planning and Analysis Manager, supporting the NGO’s carbon measurement and reporting processes, and developing organisational carbon budgets.  “I wanted to return to working with an NGO, on a short-term contract. I was looking for a total contrast to the powerful, cash-rich corporate world—a grounding experience, working in a much more resource-constrained environment. “Fortunately, thanks to my network, a nine-month role came through with Trócaire and I stayed with them for a year-and-a-half. “I really grew with Trócaire. It is an amazing organisation with many passionate, committed people who are so bold in how they approach the change they want to make. That perspective was invaluable.” Transformational projects In the years since—and now on the cusp of taking up a new role with Hometree, the nature restoration charity—van der Merwe has worked as a sustainability consultant, lending her considerable expertise to the advancement of transformational projects at the intersection of finance, social and environmental sustainability. Her advocacy efforts extend beyond this work, however, to a range of voluntary roles, including board member with the Irish Social Enterprise Network and advisory committee member with Friends of the Earth Ireland. Van der Merwe is also a member of Chartered Accountants Ireland Sustainability Working Group. “My approach is to use systems thinking to look at sustainability in a holistic way across a multitude of spaces, and to introduce this concept wherever I have a platform,” she says. “People often think of ESG solely from an environmental perspective, forgetting about the social piece. In actuality, both are highly interdependent and very much impact each other.  “Then, you have to look at the problem of who has a voice and who doesn’t? I am fortunate to have a voice, but others don’t. Often, decisions are made that impact them and they have no influence.” Van der Merwe has just completed a postgraduate certificate in climate entrepreneurship at Trinity College Dublin. “In everything I do today, I think back to that time just before I started my master’s in renewable energy and environmental finance when I felt like I was waiting for other people to come and save us all,” van der Merwe says. “I found my voice and now I want to continue to build my network, experience as much as I can and do as much as I can to change society for the better and support the fight against the climate crisis.  “I think a lot of people are nervous about taking action, or feel, like I did, that others will do it better on their behalf—but, right now, we are at an absolutely pivotal stage.  “The existing system—the old way of doing things—is dying. It is going to change and what we do now will determine the new system that emerges.  “We really need the silent majority to speak up to support ESG. We are the cavalry, and I don’t think we can afford to be complacent, particularly in the face of current developments, such as the backtracking we are currently seeing in the US under Donal Trump’s presidency.” Interview by Elaine O’Regan