In this week’s bulletin we bring you news of an Irish Government report into sustainable finance talent needed by the Irish financial services sector, published the same week as a UCC report finding Irish businesses 'underprepared' for net zero transition. Read about a proposal to oblige Ireland’s heat sector to include renewable heat; the establishment of a dedicated planning and environmental division of the High Court; an EU proposal for new temporary energy regulation for renewal energy sources; a report into the risks facing citizens and businesses from heatwaves in Europe; and an IFAC report highlighting the lack of comparability in corporate climate reporting. You can also find out how to measure your business carbon footprint, what is happening at COP27 and what events to watch out for.
COP27 – “Together for implementation – just and ambitious"
With the world’s international climate conference COP27 now well under way in Sharm El-Sheikh in Egypt, Chartered Accountants Ireland will be closely monitoring progress until the conference closes on 18 November. For members who want to follow the proceedings and get insights into their applicability for the accounting profession, see our daily news round-ups on our website, and on LinkedIn and Twitter. You can find out more our COP27 webpage, which also includes our glossary of climate terminology "Climate Essentials for Accountants". All of this and more is available for free to download at the Chartered Accountants Ireland Sustainability Centre.
Irish Government launches report on sustainable finance talent
Minister of State at the Department of Finance with special responsibility for Financial Services, Credit Unions and Insurance, Seán Fleming TD, this week launched a report outlining the skills required by the domestic retail financial services sector to finance Ireland’s net zero transition. Released to coincide with COP27 Finance Day on 9 November, the Sustainable Banking and Finance Report identifies the skills gaps, education and training needs for Ireland’s retail financial services in the area of sustainable finance, and makes a number of key recommendations as to how to progress the sustainable finance agenda.
Decarbonising Ireland’s heat sector
It was announced last week that Minister for the Environment, Climate and Communications, Eamon Ryan TD, will introduce an obligation on the heat sector to include renewable heat by 2024. Ireland’s renewable energy share in the heat sector last year was 6.8 percent, compared to the European Union average of 22 percent. A scoping exercise will be carried out to develop options for the proposed structure of the scheme, including an examination of proposed obligation rates, scalability, and costs to the consumer.
Report finds Irish businesses 'underprepared' for net zero transition
A new report by UCC’s Sustainable Futures Project has reportedly found that Irish businesses are ‘significantly underprepared’ when it comes to making the transformative changes required to transition to a net zero future. "The Sustainability Transformation: Assessing the Readiness of Irish Businesses", which included a national survey of 380 small and medium-sixed firms and larger enterprises across industry and service sectors, was commissioned by Microsoft Ireland. It found that businesses might underestimate the scale of ambition and action that are required to build a path to net zero emissions by 2050, with only 22 percent having committed to a net zero target. This is in spite of the Government’s aim to reduce emissions nationally by 51 percent by 2030 and to become carbon neutral by 2050.
Role of finance function combatting climate change impact
“Finance and accounting professionals need to move beyond simply measuring and reporting the impact of climate change, environmental regulation, supply chain pressure and rising energy costs. They must focus on understanding those implications and integrating them into financial management and business planning.” In this article by Sustainability: Finance at the heart of decision making, authors Nina Johansson and Henning Diederichs discuss the goal of climate reporting and the challenges facing finance professionals in collecting data from different professions (climate scientists, engineers, meteorologists, etc).
Dedicated Planning and Environment division of High Court to be established
It was announced this week that the establishment of a dedicated Planning and Environment division of the High Court has received Government approval. The new court, which was committed to in the Programme for Government will be established “as soon as possible” without the need for amending primary legislation. Commenting, Minister for Justice Helen McEntee, TD, said that it is envisaged that the court will operate in a similar manner to the Commercial Court and will work in tandem with reforms to planning legislation, to bring about improvements in the ability to process cases and in costs, and to be consistent with Ireland’s obligations under EU environmental law.
EU proposes new temporary emergency regulation for renewable energy sources
The European Commission has proposed a new temporary emergency regulation to accelerate the deployment of renewable energy sources. The new Council Regulation will apply for one year while the Renewable Energy Directive (currently discussed by the co-legislators) is being adopted and transposed in all Member States. It will target specific technologies and types of projects which have the highest potential for quick deployment and the least impact on the environment.
Probability increases of dengue and malaria in Europe
With increasing heatwaves the spread of climate-sensitive infectious diseases like dengue and malaria represent a new emerging threat for Europe. A new report from European Environment Agency (EEA)’s Climate change as a threat to health and well-being in Europe: focus on heat and infectious diseases focuses on the impact high temperatures are having on the European population, especially as over a fifth of it is aged 65 and over. The report describes ‘heat-aware working conditions’, that employers could consider, listing examples on p.32 of the report, of specific plans developed by Member States for the protection of the working population from heat events.
IFAC report highlights lack of comparability in corporate climate reporting
A new report Getting to Zero: A Global Review of Corporate Disclosures based on 2020 corporate reporting has been released by the International Federation of Accountants (IFAC). It found inconsistency and incomparability in how corporates are reporting on how they are reducing their carbon emissions, which may pose challenges for investors, regulators, and other stakeholders who require actionable information. The report analyses disclosure trends in emissions reduction targets and transition plans of the 40 largest exchange-listed companies in 15 jurisdictions, for a total of 600 companies.
Calculate your carbon footprint
Revenue’s guidelines for eligible businesses wishing to avail of the Temporary Business Energy Support Scheme (TBESS) state that they must tick a box declaring that they have completed a carbon footprint exercise and are taking steps to reduce its energy use and environmental impact. In this short ‘Ask the Expert’ interview on 10 November, Chartered Engineer Joe Borza gave simple steps to calculate your carbon footprint using the free Government resources. Joe also shows how businesses can make better energy decisions and reduce their costs and emissions. You can watch the interview here.
Some useful resources
- Tangible progress on climate finance options lifts the mood at Cop27 (Irish Times)
- A new report from The Rockefeller Foundation and Boston Consulting Group (BCG) finds that the term climate finance is used loosely with varying definitions resulting in difficulties calculating finance flowing into climate areas. Despite this shortcoming the research was able to show that only about 16percent of the necessary climate finance to reach net-zero is being deployed
- The Taskforce on Nature-related Financial Disclosures (TNFD) recently released v0.3 of its beta framework for nature-related risk & opportunity management and disclosure - it is now open for feedback! (A4S on LinkedIn)
Upcoming events
- COP27: 2022 United Nations Climate Change Conference, more commonly referred to as ‘COP27’, Sharm El Sheikh, 6 - 18 November 2022
- Accountancy Europe, SMEs' sustainable transition: how to support it? 15 November, 10:00-11:30 CET
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Institute of Chartered Accountant England & Wales, ICAEW Climate Summit, 21-25 November 2022 (Virtual). With growing climate concerns an ever-present consideration for companies around the world, what can – and should – finance professionals be doing to support efforts towards net zero, sustainability and green finance? This week of virtual sessions will join experts and professionals from across sectors to engage on this biggest of issues.
- Reuters, Sustainability Reporting and Communications Europe,Nov 22-23 November 2022, London
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Biodiversity COP15 Part 2, 7-19 December
You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our onlineSustainability Centre.
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