HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. HMRC is also holding webinars which aim to explain its compliance professional standards. A webinar is also being held tomorrow (Tuesday 5 December) on the National Minimum Wage in the care sector.  Compliance and professional standards  HMRC is holding webinars which aim to explain its compliance professional standards. The webinars are scheduled for the following dates and times and will be recorded and available to view thereafter:-  8 December 2023 - 13:45; and  15 December 2023 - 15:45.  National minimum wage   HMRC’s National Minimum Wage team are holding a live webinar to talk through common issues found in the care sector, and how employers can protect their workers’ rights. There will also be a panel of experts on hand to answer questions on the topic - register here. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.  All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

In a new report, the European Commission analyses the solidarity contribution applied on the unexpected surplus profits for the fossil fuel industry which arose during the 2022 energy crisis. The report sheds light on market developments in the fossil fuels sector covered by this emergency intervention since the measure was adopted in autumn 2022.

The  OECD is running a public consultation to develop an alternative definition of permanent establishment for activities in connection with the exploration and exploitation of extractible natural resources. The changes put forward in this discussion draft are expected to be included in the next update to the OECD Model and its Commentary. The consultation closes on 4 January 2024.

Like previous global climate summits, days 1 and 2 of this COP saw global leaders, including Taoiseach Leo Varadkar, delivering speeches to the summit. As Environment and Science Editor Kevin O’Sullivan , writes in the COP28 special edition of the Irish Times Sunday ‘The game of “down or out” will surface repeatedly [at this year’s climate summit]. Should the world “phase out” what’s known as “unabated” oil and gas — that’s when fossil fuels are burned without technologies to capture their greenhouse gases — or should they just be “phased down”?’ Saturday Coinciding with Leaders Days was the newly launched two-day long Business & Philanthropy Climate Forum (BPCF). This multi-stakeholder-engagement platform is the first dedicated platform for the private sector and philanthropy to be included in the COP process. It convened over 1,300 global business leaders and philanthropists, and saw discussions on topics including carbon pricing, renewables, green economy programmes, commitments on nature, the role of media in climate change and AI’s impact on climate change. At the BPCF, three organizations – Green Climate Fund, Allied Climate Partners, and Allianz Global Investors – came together to mobilise $5 billion in collective philanthropic, public and private funding to unlock long-term capital of $20 billion to advance climate and nature action. Initiatives announced included  the new Climate Solutions investment platform, announced by Rishi Kapoor, co-CEO of Investcorp, which targets circa $750 million of growth capital investments to help scale companies that provide products, services and technologies to support decarbonization and address the impacts of climate change globally. Separately a pact, sponsored by COP28 President Sultan Al Jaber, was signed up to by 50 oil and gas companies. The Oil and Gas Decarbonization Charter commits signatories to cutting greenhouse gas emissions from their operations and slashing methane releases to near-zero by the end of the decade. The charter is reportedly one of COP28’s benchmark achievements for Al Jaber, himself the head of one of the world’s largest oil producers (ADNOC). Signatories to the charter represent nearly 40 percent of global oil production, and for 31 of those companies it was their first time making such a commitment to reach net-zero methane. Of the 50 companies that signed up, 60 percent of them were National Oil Companies, the largest-ever number to commit to a decarbonization initiative. The Charter was launched alongside another key initiative, the Global Decarbonization Accelerator (GDA). This initiative is focused on three key pillars: rapidly scaling the energy system of tomorrow decarbonizing the energy system of today and targeting methane and other non-CO2 greenhouse gases. The Charter has attracted criticism, including from UN Secretary-General António Guterres, however, because none of the companies have agreed to reduce oil and gas production, and that the Charter “says nothing about eliminating emissions from fossil fuel consumption”. Also, while signatories will have to submit a plan to meet the targets by 2025, the targets themselves are not binding. Defending the pact, Al Jaber argued that oil and gas will remain part of the energy system for decades to come even as fossil fuels are phased out, and they must be made clean as possible. In a widely supported initiatives, over 110 governments also pledged to triple the world's renewable energy capacity by 2030, as a route to cut the share of fossil fuels in the world's energy production. Also announced on Saturday was a collaboration by the International Energy Agency, Environmental Defense Fund, the UN Environment Programme, the International Methane Emission Observatory and RMI, with support from Bloomberg Philanthropies. Data from the program — including surveillance by the MethaneSAT satellite set to launch next year — is meant to supply governments, and the public and others with information about emissions that can be used to hold companies accountable. Sunday – Health Day Health has become a major focus of the climate summit: extreme weather has been linked to the spread of disease – including spikes in infectious diseases, like cholera and malaria, due to floods caused by climate change – but also cardiovascular-related deaths due to unusually high temperatures (reportedly expected to nearly triple in the US by mid-century as climate change raises the frequency of very hot days), pollution and even fears about ancient outbreaks coming back to life from thawing Siberian permafrost (which also poses risks of release billions of tonnes of the extremely potent greenhouse gas methane into the atmosphere). Sunday was Health Day at COP28 with 123 countries backing the ‘COP28 UAE Declaration on Climate and Health’. This declaration aims “to place health at the heart of climate action and accelerate the development of climate-resilient, sustainable and equitable health systems”. Included in set of finance commitments on climate and health were commitments of $300 million commitment by the Global Fund to prepare health systems, and £54 million from the UK government. New initiatives were also announced to meet climate and biodiversity goals. $1.7 billion in nature conservation finance was unveiled, alongside a pledge by host country, the UAE, to contribute $100 of new finance for nature-climate projects. Other national and regional investment plans and partnerships were announced, focusing on nature-climate action to deliver on the Paris Agreement and the recently adopted Kunming-Montreal Global Biodiversity Framework. These included: $250 million new funding under the Ocean Resilience Climate Alliance (ORCA); three forest finance packages, and the Nature Finance Hub, a new initiative committing to mobilize $1 billion from development partners, with the intention of mobilizing a further $2 billion in additional private finance capital by 2030 into nature-focused climate projects. Addressing nature-loss can reportedly save $104 billion in adaptation costs and has the potential to provide upwards of 30 percent of the CO2 mitigation (i.e. reduction) action needed by 2030. As approximately 50 percent of global GDP is directly or indirectly dependent on nature and other ecosystem services, the conservation and restoration of natural ecosystems supports economic prosperity, with the potential to create nearly 395 billion more jobs and to protect 1 billion people whose livelihoods are directly dependent on nature.  Articles Hopeful signs emerging in the serious business of climate talks (Irish Times) UAE COP28 guest list led by bankers, lobbyists — and housekeeping (Financial Times)  

Climate finance was expected to be a major agenda item for this COP, so it comes as no surprise to find it dominating coverage of this summit so far. Often described as the ‘master key’ needed to unlock climate action, climate finance is a central focus area of the COP presidency’s plan of action to deliver on the pillars of the Paris Agreement. These four focus areas are: fast-tracking the energy transition fixing climate finance putting nature, people, lives and livelihoods at the heart of climate action underpinning everything with full inclusivity. In his opening speech UN Climate Change Executive Secretary Simon Stiell laid out a vision for the next two years and what is expected of countries, i.e. “every single commitment – on finance, adaptation, and mitigation – has to be in line with a 1.5 degree world”. UK’s King Charles III used his opening speech  to appeal to countries to unlock more capital for the energy transition and UN Chief Antonio Gutérres warned that "Earth’s vital signs are failing", before urging a faster transition to renewable energy. A new Loss and Damage Fund was established on the first day of COP (30 November) which will aim to keep up with the rising costs caused by extreme weather and slow-onset disasters such as sea level rise, ocean acidification and melting glaciers. The cost of loss and damage is estimated to be over $400bn annually. The initial funding for the Loss and Damage fund is close to US$429m, with $245m coming from the EU, including $100m pledged by Germany, which was matched by a pledge of $100 million from the UAE and $75 million from the UK. UAE President Mohammed bin Zayed Al Nahyan subsequently announced a $30bn fund for "global climate solutions" to be put into a climate finance vehicle called Alterra. The US has pledged $17.5 million, and Japan $10 million. Agriculture and food also dominated discussions. COP28 President Sultan Al Jaber announced a new major declaration on the future of food which some 134 countries have signed up to, including major food producers and consumers. The first of three high-level events focusing on the global stocktake also got underway today, focusing first on adaptation. Delegates are expected to discuss how the stocktake’s outcome can bolster efforts for countries and communities to better adapt to the impacts of climate change.

Munro O’Dwyer outlines the potential changes to the state pension from 1 January 2024, including emerging details concerning auto-enrolment and media coverage of the Standard Fund Threshold There are several changes coming down the pike regarding pensions, and it’s important employers know the impending changes and prepare for them. The Social Welfare (Amendment) Bill 2023 From 1 January 2024, changes are expected to the contributory state pension to facilitate greater flexibility, improved access and modifications to how it is calculated. The Social Welfare (Amendment) Bill 2023 is currently in pre-legislative scrutiny. Here are the provisions contained within it.   Increased flexibility There will be an ability to take the state pension at any age between 66 and 70, with an actuarially increased rate to reflect the later payment commencement date. There will also be an ability to make additional PRSI contributions after age 66 to increase the level of the state pension. However, an overall cap of 40 years of PRSI contributions will remain. This greater flexibility is in recognition of workforce, retirement and longevity trends. People are living longer, and there is increased demand to work longer and take phased retirement. The recent Budget announced a 0.1 percent per annum increase in PRSI from October 2024, which is part of steps to manage the long-term sustainability challenges associated with state pension provision. Change in state pension calculation There is currently a ‘yearly average method’ approach to calculating the level of state pension, which is inherently complex. From January 2025, there will be a ten-year phase-in of a ‘total contributions approach’ (TCA), with a target implementation date of 2034. This will recognise contributions (earned or credited) and home caring periods, up to 40 years, to be entitled to the full state pension. Between 2025 and 2034, a hybrid of both approaches will be used. The TCA aims to bring greater fairness to who receives a state pension and at what level, where contributions can be both earned and credited. Long-term carers Those who have spent more than 20 years providing full-time care for an incapacitated person may be entitled to an enhanced state pension from 2024. Credits will be given for periods greater than 20 years where there is a gap in the level of contributions due to caring. Individuals can request a contribution statement from the Department of Social Welfare through a MyGovID account to help ascertain contributions made and any shortfall in those contributions. For employers, these changes may mean further employee demand for both later and phased retirements. Rather than treat each case on its merit, having a suitable retirement framework for employees (covering early, normal and late retirement and the benefits provided) will clarify your retirement policies and procedures. It will also support future workforce planning. Auto-enrolment: the devil is in the detail Auto-enrolment (AE) legislation is expected in the coming weeks, with an anticipated introduction in late 2024. Stakeholders in the pensions industry have been liaising with the Department of Social Protection to understand the practical aspects employers must be aware of. Waiting period There is no waiting period in the AE system. The Central Processing Agency (CPA) intends to apply a 13-week rolling period for assessing eligibility without any backdating of contributions. Careful consideration of eligibility conditions in existing pension arrangements and the implications in the context of the AE system will be needed. Eligibility and exemption For existing schemes where employee contributions are non-mandatory but the employer contributes, they will be exempt from AE. There will be no other qualifying conditions at the outset of AE – these will only come into force in future years. The CPA drives participation in the AE system for employees. Employers cannot influence this; only employees can opt out once in the AE system. For this reason, assessing who will be eligible for AE (both existing employees and future hires) will be essential. There can be no dual participation in an occupational scheme and AE. It will only relate to employment where there is no pension provision. Should employers wish to move employees into their occupational scheme later, this will need to be triggered by the employee. Automation The intention will be for automated electronic payment notifications (AEPNs), similar to Revenue payroll notifications (RPNs), to be issued with effective dates from which payroll must apply. Payroll procedures will need to be updated to reflect this. The Standard Fund Threshold and its implications The impact of the Standard Fund Threshold’s €2 million cap on retirement savings has gained publicity recently. It causes a barrier for senior gardaí promotions where they would face a significant tax bill for excess pension savings above the €2 million limit. This €2 million limit has been in place since January 2014 and has not been indexed. As a result, more employees are currently, or are at risk of, breaching this limit and facing a significant tax bill. In the context of AE, it is unlikely that employers will have the freedom to exclude members who may have ceased contributions due to reaching the Standard Fund Threshold. It is good practice for employers to monitor those at risk of breaching the limit and identify a suitable strategy for dealing with impacted employees (more so in the context of AE). Defined benefit pension scheme settlements A recent move by central banks to pause the continued increase in interest rates has led to a change in the market expectation of future interest rate movements. For employers sponsoring defined benefit pension schemes, this may present a window of opportunity to consider the full or partial settlement of its defined benefit pension scheme liabilities in the near-term. Given the economic backdrop, many sponsoring employers are now exploring the feasibility of partial/full buyouts. Insurers are also in the market, offering strong commercial terms to take on the liabilities. It would be sensible for employers to at least consider their long-term objective and potential readiness for settlement in 2024. Munro O’Dwyer is Partner at PwC

Navigating political discourse in the workplace poses challenges. Moira Grassick explores the complexities of managing diverse political views, freedom of expression and social media conduct for employers and employees In an increasingly polarised world, employers and employees are wrestling with how to manage conflicting political views in the workplace. The escalation of violence in the Middle East led to the high-profile dismissal of an Irish woman employed by an Israeli software company who posted critical views of Israel’s response to the Hamas attacks on her social media page and described Israel as a “terrorist state”. The dismissal raises questions about the authority of employers to restrict freedom of expression and to terminate an employee’s contract of employment for their political beliefs. Let’s take a look at how employers can manage this problematic area. Expressing political beliefs in the office It’s unlikely that an outright ban would be practical or enforceable. This doesn’t mean employers can’t communicate specific rules for workplace behaviour that can also extend to social media use. For example: Limit political discussions during work areas; No display of political literature, badges or jokes; Remain civil and respectful when discussing politics; Remain open-minded; and A zero-tolerance stance on bullying, harassment or hate speech. To make sure staff are clear on the ground rules, the Employee Handbook should have a policy that outlines: The company’s attitude towards political debates; Behaviour that is acceptable or not; Forbidden activities – e.g. demonstrating or creating petitions; The difference between opinion and hate speech; The process for staff to report an incident; and Consequences for staff who don’t follow the rules (disciplinary action, dismissal, etc.). Expressing political views online Employees have a right to express their political opinions, but employers also have a right to discipline staff for making statements that may harm their business. It may be reasonable for an employee to be disciplined or even dismissed for social media posts they make on their own time and on their private accounts if it brings the employer’s good name into disrepute, depending on the view expressed. It’s vital that employers have clear social media policies in place outlining the circumstances in which disciplinary action may be taken. If employers are concerned that an employee has published political statements that may harm their reputation or business position, they should not make any kneejerk reactions. Employers must remember the employee’s right to free expression, which includes their political views. Employers should create a comprehensive and fair policy clearly setting out the type of social media activity that would be considered employee misconduct and stick to the procedures outlined in their disciplinary and grievance policy. It would be wise to seek the advice of legal and human resources professionals before finalising any policies surrounding social media to ensure it stays within the law. Employee rights Employees have strong legal rights under a range of Irish employment laws. The key obligation for employers is to give employees every chance to state their case in response to an allegation that they have breached the terms of their contract. It is open to employers to summarily dismiss employees who are guilty of gross misconduct, but this option applies only to cases of very serious misbehaviour of such a kind that no reasonable employer could continue the relationship. When legislating for summary dismissals, lawmakers envisaged scenarios involving serious issues such as violent assault or theft. Whether an employer would be entitled to summarily dismiss an employee for expressing political opinions on social media is likely to be arguable rather than a straightforward case of gross misconduct warranting summary dismissal. Unfair dismissal claims One of the most common reasons for unfair dismissal claims is a failure by the employer to adhere to the rules of their own disciplinary policy. If you believe an employee has breached their obligations around social media use, ensure that you follow your procedures and apply a disciplinary sanction that is proportionate to the offence. As discussed above, summary dismissal will only be appropriate for certain cases of gross misconduct. Business owners are perfectly entitled to regulate political discussion to ensure that their operations run smoothly. Moira Grassick is Chief Operating Officer at Peninsula Ireland

A significant (and unexpected) amendment provided for in Ireland’s Finance Bill (No.2) of 2023 is an overhaul of the method by which taxes on employee share option gains are collected and remitted to Irish Revenue. Olive O’Donoghue and Thalia O’Toole explain From 1 January 2024, the tax collection method for share option gains will become a real-time payroll withholding (PAYE) obligation for the employer under Finance Bill (No.2) of 2023. While the extension of PAYE to share options is broadly a welcome measure from an employee perspective (as it removes the onus from employees to settle their own taxes within 30 days), it is a significant change for employers, who may never have had an obligation to operate PAYE on share-based compensation previously. The move to the collection of employee liabilities on share option exercises through the PAYE system in such a short timeframe is likely to present several challenges for employers, at least until appropriate processes and procedures have been developed to aid compliance with the new rules.  The timeframe to prepare for this new process is very tight for employers, especially for organisations with frequent grants and exercises of share options. Relevant tax on share options Share options are one of Ireland’s most common forms of share-based remuneration. Currently, gains arising from the exercise, assignment or release of share options are taxed via the self-assessment system known as the relevant tax on share options (RTSO). Under the RTSO system, the employee is responsible for settling the income tax, the universal social charge (USC) and employee pay-related social insurance (PRSI) due within 30 days of the exercise of the option.   In any tax year where an employee exercises, assigns or releases their share options, they must file an income tax return under self-assessment. This is due for filing by 31 October following the year the shares were exercised, assigned or released. Ireland follows OECD principles and treats the attributable gain at exercise as earned during the vesting period. However, the current RTSO rules also apply to non-residents who have performed taxable workdays in Ireland in the vesting period. The employer is obliged to file a RSS1 return annually by 31 March following the calendar tax year to report the grant, exercise, assignment or release of an option.  Proposed employer requirements The Bill provides for a significant overhaul of the current treatment by abolishing the RTSO system. For gains arising in respect of the exercise, assignment or release of a share option on or after 1 January 2024, employers must now account for the income tax, USC and PRSI due on share option gains through the PAYE system. Employees may still be required to file an income tax return for a relevant tax year.    No changes are currently proposed that alter the obligation to file an annual RSS1 informational return by the employer.  Practical considerations Under current real-time reporting, an employer is generally expected to file details of pay, non-cash benefits that have associated payroll liabilities due on or before the payment date. These rules will now apply to share options. Clarity is, however, needed from Irish Revenue on what is meant by “real-time” for options.    Under PAYE rules, employers remain obliged to settle the liabilities due on share remuneration, even where the employee does not have sufficient net salary to fund all relevant payroll deductions. As a result, employers will need to make sure they have adequate provisions in place to calculate the correct option gain and effect a ‘sell to cover’ mechanism on exercise where required. This broadly involves the immediate sale of a sufficient number of shares purchased by the employee to finance the PAYE/PRSI due following exercise. In addition, funding complexities can arise where options are exercised outside of a liquidity event.  For globally mobile employees, the calculation of the taxable gain depends upon several factors, such as the country of residence at exercise, location of workdays during the vesting period, and the application of tax treaty provisions – access to all relevant facts will be important in managing payroll compliance.   Employers will also have potential trailing payroll obligations for former employees and directors who exercise the option after leaving the business. Given the above, employers will need to keep track of employee share option events for current and former employees and globally mobile employees. Employers should ensure that the necessary processes and controls are in place to capture the correct taxable gains via the PAYE system (and in real time).  Next steps for employers The changes announced will lead to some payroll compliance challenges for employers for both domestic and globally mobile employees. While formal Revenue guidance is pending, employers may wish to consider the following: Review current Share Option and Employee Share Purchase Plan (ESPP) arrangements so the taxation and reporting positions are fully understood. This may also be an opportunity to consider whether the current arrangements remain fit for purpose.   Consider the impact of the new provisions in the context of globally mobile employees and former employees/directors, or those due to leave their roles, to understand how payroll will be updated to account for same. Identify the stakeholders responsible for providing the information needed for the payroll withholdings and map out relevant processes needed. Prepare an employee communication regarding the updates setting out how their share options will now be taxed through payroll and that the responsibility for collecting the relevant liabilities has now shifted to the employer. It should also set out details concerning the various ongoing employee responsibilities for filing their tax return under self-assessment. Olive O’Donoghue is Partner in KPMG Thalia O’Toole is Tax Principal and Head of Global Mobility at KPMG 

Welcome to this edition of Technical Roundup. In recent developments, IAASA has issued a letter to the CEOs of Recognised Accounting Bodies (RABs) setting out their expectations for the initial approval of existing statutory auditors to be Sustainability Assurance Service Providers (SASPs). In other news, the European Council has adopted a regulation creating the European Single Access Point (ESAP) which will give companies more visibility towards investors, and open up more financing opportunities.  Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has launched a consultation on improved accounting requirements for financial instruments with characteristics of debt and equity. In the exposure draft, the IASB proposes; to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity; to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate to the amounts attributable to other holders of equity instruments. The IASB has also released a webcast which gives an overview of the forthcoming standard for Subsidiaries without Public Accountability. The IASB has issued its November 2023 update which highlights preliminary decisions made by the board during their meetings on 13th to 15th November. In their November podcast, members of the IASB Board provided some insights from the recent meetings, including discussions on the progress and direction of the following projects; Business Combinations under Common Control; Post-implementation Review of IFRS 9—Impairment; and Provisions The IFRS Foundation has published a video which explains how IFRIC, the IFRS Interpretations Committee helps maintain and support consistent application of IFRS Accounting Standards; what happens when the Committee receives an application question; and how it works with the International Accounting Standards Board. EFRAG, the European Financial Reporting Advisory Group has issued its updated Endorsement Status Report which now reflects the European Commission’s endorsement of the amendments to IFRS 16 (Lease Liability in a Sale and Leaseback). The UK Endorsement Board has published its 2022/23 Annual Report. The UK Endorsement Board has also adopted Supplier Finance Arrangements: Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, issued by the International Accounting Standards Board in May 2023. The International Accounting Standards Board’s (IASB) Research Forum hosted 85 participants at the IESEG Management School in Paris 2–4 November. Key highlights and findings from this event are now available to view online. In a recently uploaded video, IASB Member Ann Tarca explains proposals in the IFRS Accounting Taxonomy—Proposed Update 2 Common Practice for Financial Instruments, General Improvements and Technology Update currently out for consultation. The International Forum of Accounting Standard Setters met on 26th to 27th September to discuss matters of relevance to National Standard Setters across the globe. A report which discusses the key messages has been published. Olivier Boutellis-Taft, CEO of Accountancy Europe has announced that he will step down from his role at the end of 2024. Assurance and Auditing FRC The Financial Reporting Council has published its thematic review of audit sampling. The aim of the review is to identify common practice, concerns and good practice across 7 (Tier 1) firms. The publication shares findings to educate the wider market as audit sampling has been an area of repeated Audit Quality Review (AQR) findings for smaller firms. It will also be useful for Audit Committees in understanding the approach taken by audit teams.  Key observations include: Audit sampling is still prevalent. Most firms base their methodology on similar statistical models but with their own methodologies. This leads to substantial variation. Professional judgement is key. Sufficient training is vital. You can read the full report here. IAASA In the years 2020 to 2022 IAASA’s Audit Quality Unit completed 90 audit file inspections across firms. In November IAASA published a report outlining its key messages and recommendations for auditors relating to the area of audit evidence and procedures performed on the financial statement disclosures. The report highlights the key findings from the inspections, in particular: the number of PIE audit file inspections resulting in findings and recommendations in this area; the number of findings and recommendations relating to this area; and the common auditing standard requirements relating to the respective findings and recommendations raised in this area. IAASA’s YouTube channel includes a video that outlines the key messages and recommendations of the thematic review. Sustainability Climate Finance Week Ireland’s 6th annual Climate Finance Week took place from Monday 20th to Friday 24th November. This year’s theme was ‘Exploring a Sustainable and Just Economic Transition’ and the agenda featured the AIB Sustainability Conference; Biodiversity Finance Day; Innovation in Sustainable Funds and Asset Management and Skills & Expertise Day – Empowering Finance Climate Practitioners. IAASA has issued a letter to the CEOs of Recognised Accounting Bodies (RABs) setting out their expectations for the initial approval of existing statutory auditors to be Sustainability Assurance Service Providers ( SASPs). Accountancy Europe and EFRAG are jointly hosting a webinar on Supporting High Quality ESRS Implementation on Tuesday, 12 December. Accountancy Europe, in collaboration with Ecopreneur.eu and supported by the European Association of Co-Operative Banks has published “5 Reasons why Sustainability Matters for SMEs” which sets out some reasons why SMEs should not wait to start transitioning to more sustainable business models. The International Sustainability Standards Board has issued its November 2023 update and Podcast. The Financial Conduct Authority has confirmed that will introduce a package of measures designed to protect consumers by helping them to make more informed decisions when investing and to enhance the credibility of the sustainable investment market. Other News IAASA has launched a Stakeholder Perceptions Survey to gather insights into how its stakeholders perceive IAASA, it focuses on IAASA achievement of its mission of upholding quality corporate reporting and an accountable profession. The Charity Commission for Northern Ireland is writing to around 7,000 charities in preparation for the roll out of the new traffic light display on the register of charities. The new display, expected to go live later this year, will indicate if a charity has submitted their accounts and reports to the Commission on time or late, and by how many days they are overdue if not submitted at all. The European Council have adopted a regulation creating the European Single Access Point (ESAP) - a platform that will make information easier for investors to consult.  The European Single Access Point will give companies more visibility towards investors and open up more financing opportunities, especially for small companies in small capital markets. The Minister for Enterprise, Trade and Employment recently published the First Update Report on the White Paper on Enterprise Implementation Plan 2023-2024, which was published in May of this year. This report details the work undertaken to progress the 40 initiatives identified in the Implementation Plan and also provides an update on the 15 key target metrics identified in the White Paper. Please click here for the press release and here for the report. The Department of Enterprise, Trade and Employment is holding a free business event in Dublin which will focus on the opportunities and challenges presented by the green economy and digital transformation. The event is on Thursday 7 December. The Director of Financial Regulation, Policy and Risk at the Central Bank of Ireland spoke recently at a conference about the EU’s new Digital Operational Resilience Act or DORA. He delved into some of the detail including the challenges faced when trying to design and implement a framework to address digital operational resilience in the financial sector. He also referred to the work being done by the European Supervisory Authorities (the ESAs) on the implementation of the new framework. Please click here for full details. Private sector organisations with 50 employees or more will shortly be in scope of obligations under protected disclosures legislation to have internal reporting channels and procedures for the making of protected disclosures. Also, this week the Minister for Public Expenditure, NDP Delivery and Reform has issued new statutory guidance on the Protected Disclosures Act 2014. Read more in the Institute’s recent news item. Accountancy Europe discussed the attractiveness of the accounting profession, including how younger generations can be attracted into the profession in their recent article. A reminder again this week of the CRO deadlines for Christmas filing. The CRO writes that processing before the Christmas break of submissions received after the dates below cannot be guaranteed:      FE PHRAINN ONLINE SCHEME 12 DECEMBER 2023 A1 ORDINARY ONLINE SCHEME 7 DECEMBER 2023 CHANGE OF NAME 8 DECEMBER2023 REREGISTRATIONS 8 DECEMBER 2023 COMPANY NAME RESERVATIONS 15 DECEMBER 2023   For further technical information and updates please visit the Technical Hub on the Institute website.

In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s coverage of COP28. Also covered are CSO figures on environmental subsidies, sustainability in ISME’s ‘Shop Local’ campaign, Ireland’s progress towards EU recycling targets, a Net Zero Accelerator Program announced for Northern Ireland, and a consultation on the UK Climate Change Agreements scheme. Also covered are sustainability developments in Europe, a new report into the role of the CFO and finance function in the climate transition, and the usual articles, podcasts, videos and upcoming events.   COP28 - the global climate summit   The United Nations’ annual climate change conference, COP28, began on Thursday 30 November in Dubai. Chartered Accountants Ireland has compiled useful resources about it on our COP28 page. We will publish a daily update and weekly round-up from the global summit.  White Paper on Enterprise Update Report: H1 2023  The Department of Enterprise, Trade and Employment has issued the first update report for the White Paper on Enterprise detailing progress made on the implementation of the White Paper during the first six months of 2023. This White Paper was published in December 2022, and set out Ireland’s medium- to long-term industrial strategy, with the vision for Irish-based enterprise to succeed and deliver rewarding jobs and livelihoods by increasing their sustainability, innovation, and productivity. Among other things, carbon abatement has now been integrated into the Oversight and Performance Delivery Agreements of Enterprise Ireland and IDA Ireland; work is underway on the development of a national strategy for offshore wind, with stakeholder groups established and a broad outline agreed; and efforts towards a more circular economy have progressed, including through the launch of the Food Waste Charter 2.0 under the EPA.  Environmental Subsidies and Similar Transfers 2022 – CSO   Figures published by the Central Statistics Office (CSO) in Ireland indicate that Environmental Subsidies and Similar Transfers figures for 2022 were €1.6 billion, an increase of €105 million, or 7 percent, when compared with 2021. Climate-related subsidies reached their highest value in current prices since 2000 at €396 million in 2022, up 6 percent on 2021. The increase in environmental subsidies in 2022 was mainly due to increases in funding for energy efficiency retrofitting schemes and wastewater infrastructure, which outweighed decreases in support for production of energy from renewable sources and protection of biodiversity. Commenting, Clare O'Hara, Statistician in the CSO’s Environment and Climate Division, said that capital transfers such as investment grants made up 56 percent of environmental transfers paid in 2022, while current transfers were 43 percent of the total and tax abatements, such as Vehicle Registration Tax relief on electric vehicles, accounted for the remainder.   Sustainability and ISME’s ‘Shop Local’ Campaign    The Irish SME association, ISME, has created two online portals to launch its 2023 Shop Local campaign, one for consumers and one for businesses. The campaign aims to, among other things, support the local community, reduce carbon emissions and transport costs, and promote goods and services that are sustainable and traceable. Businesses can access a directory of B2B products and services via the portal, such as corporate gifts, legal and financial services, IT and marketing, transport, training and more.  Report finds Ireland off track to meet key EU recycling targets  A report published this week by the Environmental Protection Agency (EPA) has found that Ireland’s waste generation levels are continuing to rise. Figures in the Circular Economy and Waste Statistics Highlights Report 2021 also indicate that Ireland is failing to make sufficient inroads towards key EU recycling targets that apply from 2025 onwards. To address this, the report state that Ireland must improve waste prevention, roll-out a brown bin service for organic waste to all customers, improve waste segregation by businesses and householders, reduce reliance on vulnerable export markets for waste, and fully implement Ireland’s Circular Economy Plan.   Net Zero Accelerator Programme announced for Northern Ireland   Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) has announced it will partner with Digital Catapult Northern Ireland to support the launch of their Tenfold NetZero Accelerator Programme. The programme aims to help in the delivery of greenhouse gas (GHG) emissions reductions locally as required under the Climate Change (Northern Ireland) 2022 Act, and so contribute to the UK Government’s target of zero carbon emissions by 2050. The programme, the first of its kind in the UK, will offer local business the opportunity to access the UK’s technology community to assist on their journey, and is a one-year pilot open to business in all sectors for which DAERA has policy responsibilities. Digital Catapult is now seeking to recruit up to six industry partners with whom they will work to scope and define a specific business challenge they face in reducing GHG emissions.   Support measures for Northern Ireland businesses impacted by floods  Several support measures have been announced to help businesses in Northern Ireland impacted by recent flooding. The support measures include rates relief for flooded business premises and one-off grant payments of £7,500 for affected businesses to assist with the immediate response, clean-up costs, and to make properties more resilient to future floods. It is estimated that up to 200 businesses will be eligible for the grants, which will be administered by the local council areas affected.  £60 million joint funding for research into food sustainability and climate change  £60 million in joint funding for the Co-Centres programme has been announced this week to bring academics, industry and policymakers across the Irish government, UK government and Northern Ireland Executive closer together, to work on food sustainability and tackling climate change. The programme is funded over six years, with up to €40 million from Science Foundation Ireland (SFI), up to £17 million from Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) and up to £12 million through UK Research and Innovation (UKRI), and is co-funded by industry. The two new Co-Centres will formally commence activities on 1 January 2024, and will be funded to 2030.  UK launches consultation on new Climate Change Agreements scheme  The UK’s Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on proposals for a new six-year Climate Change Agreements scheme, to begin in 2025. The voluntary Climate Change Agreement (CCA) scheme, established in 2001, serves the dual purpose of making energy and carbon savings through energy efficiency targets while also helping maintain competitiveness by reducing energy costs in eligible industrial sectors. It does this by providing a significant discount to participating businesses on the Climate Change Levy (CCL) paid. The new scheme would add three new target periods running from 2025 to 2030, resulting in three certification periods running to 31 March 2033, as well as providing further reductions in the Climate Change Levy for eligible participants. Closing date for responses to the consultation is Wednesday 14 February 2024.   Sustainability Development in Europe   The European Commission has announced an Action Plan to make sure electricity grids will operate more efficiently and will be rolled out further and faster. Electricity consumption in the EU is expected to increase by around 60 percent between now and 2030, and interconnected and stable energy networks are key to enabling the green transition. The Action Plan aims to address the main challenges in expanding, digitalising and better using EU electricity transmission and distribution grids.   Separately, the EU and Greenland have also signed a strategic partnership on sustainable raw materials value chains. 25 of the 34 critical raw materials identified by the Commission as strategically important for Europe's industry and the green transition can be found in Greenland. The signature of the Memorandum of Understanding will contribute to the development of sustainable projects along the raw materials value chains, and to the deployment of infrastructure required to develop them.  The role of the CFO and finance function in the climate transition  Businesses are integral to the successful transition to a low carbon economy and society. However, a report published this week has found that nearly half of businesses surveyed have no carbon emissions plan, and of those, 70 percent have no intention of developing one. The report, The role of the CFO and finance function in the climate transition: driving value and sustainability, is the result of research by Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC) and PwC and is based on a survey of 1,000 senior finance professionals around the world. Speaking about the report, IFAC’s President Asmaa Resmouk said: “The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs. This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders.”   In case you missed it   At Climate Finance Week Ireland 2023 Chartered Accountants Ireland’s event ‘You’re in Scope because They’re in Scope’ demonstrated the impact of the Corporate Sustainability Reporting Directive (CSRD) on value chains in Ireland, regardless of whether companies – such as SMEs – are directly in scope of the new Directive. Watch back here  Articles  Ageism in the workplace is proving costly for business (Irish Times)  Global tangle of climate disclosure rules risks causing ‘reporting fatigue’ (Financial Times)  Ireland ranked 12th most attractive market for green investors (Irish Times)  Accountants must redouble net zero efforts, A4S warns (ICAEW)  Climate risk analysis must be part of the audit process (Accountancy Age)  We have to balance outrage with optimism, says UN’s former climate chief (The Guardian)  Resources  5 reasons why sustainability matters for SMEs: The sustainable transition is a collective effort and a matter for society as a whole. SMEs, as the backbone of Europe’s economy, also have a key role to play. The transition poses challenges, but also offers opportunities. This paper details 5 reasons for why SMEs should not wait to start transitioning to more sustainable business models. Written in collaboration with Ecopreneur.eu – the European Sustainable Business Federation, and supported by the European Association of Co-operative Banks (EACB).  Watch   Climate correspondent George Lee’s summary of progress at COP28 for RTÉ1 (RTÉ Player)   Listen   An inspirating and energising interview with climate diplomat Christiana Figueres (On Being)  Upcoming Events   Accounting for Sustainability (A4S) at COP28  A4S, which aims to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy, will bring the voice of the finance and accounting community to COP28 through a series of in-person and virtual events. Their first event is on 5 December. Find out more here.  Innovate UK's showcase for climate tech event in Northern Ireland  Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero.  In person: 6 December, Various Locations (See event listings)  DETE, Building Better Businesses   During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation.   In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.   Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face  Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. The Sustainability Reporting Update will be given by Catherine Duggan, Head of Sustainability, Financial Services Advisory, Grant Thornton and Dr Louise Gorman, Trinity College Dublin. Get up to date with the latest developments in sustainability reporting, including reporting standards internationally, and insights into developing and implementing necessary reporting systems. Emerging assurance considerations will also be considered along with the future evolution of the sustainability reporting landscape.  In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin.  Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face  Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin.  In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin.  Accountancy Europe, ESRS Webinar   Co-hosted by Accountancy Europe and EFRAG, this event aims to assist stakeholders in the implementation of ESRS under CSRD.  Webinar: 12 December, 10:00 - 12:00 (Brussels time)  Network for Chartered Accountants working on ESG projects  Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?  Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.  3rd or 4th Wednesday of every month  Next: 24 January 2023   In person: Time and location tbc  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.