In its Annual Review of Corporate Reporting 2022/2023, the FRC has reported findings from its monitoring activities along with its expectations for the coming year. Also included in the annual review were the most frequently raised issues identified by the FRC which includes impairment of assets, judgements & estimates, cash flow statements amongst other new and recurring themes. The report provides a useful insight for preparers and auditors of financial statements, investors and other users of corporate reports.

Unconscious bias can lead to discrimination and inequality in our lives and work. Dorcas Barry explains how we can avoid it Decision-making is part of being human. The choices we make, however small, impact our lives and work every day. In this hectic world, we can sometimes struggle to digest all the information coming at us at once. To cope with this, our brain naturally takes mental shortcuts to try to process this information more efficiently, sometimes with negative consequences. Many people are unaware of these shortcuts – also known as unconscious or implicit biases – which can lead us to discriminate against others without even realising it. Recognising and becoming aware of unconscious bias is essential to minimise its negative potential, and to create more inclusive and diverse environments.   Unconscious bias at work In the workplace, unconscious bias can contribute to discrimination and unequal treatment in many forms. It can influence hiring and promotional decisions, opportunities and pay. Examples of different types of unconscious bias that can arise at work include:   Perception bias: Overly simplistic stereotypes of groups of people. “All French people are rude,” for example.  Anchor bias: The first thing you learn about someone influences all subsequent thoughts about them. Affinity bias: Gravitating towards people we perceive as being similar to us.  Conformity bias: When we think and act in ways that are consistent with the people around us.   In a work environment where unconscious bias is prevalent, employees’ mental wellbeing can be negatively impacted. Unconscious bias can even lead to bullying, discrimination or harassment.  Feelings of alienation and the emotions associated with this have also been shown to lower employee productivity, engagement and satisfaction, increasing absenteeism and turnover.   Stereotypes and societal influence Stereotypes and the societal influences that create them play a significant role in unconscious bias. Stereotyping is defined as unconscious bias directed towards a specific social group, often in a negative or disparaging way.  While most people will assume they are not susceptible to biases and stereotypes, we cannot avoid engaging in them. This is down to our cognitive drive to create associations and generalisations.   Stereotypes are deeply ingrained in society and reflect our ability to establish mutually respectful relationships in all areas of life, including at work. Creating the potential to deconstruct preconceived societal models can help more people to flourish at work.   Understanding unconscious bias   Looking at the ways in which our thoughts and behaviours are influenced by unconscious bias requires understanding and awareness of the complex nature of how the brain processes information.   Here are three concepts to help you understand unconscious bias:   These biases operate without our conscious awareness and can often conflict with our conscious beliefs.  They are automatic mental shortcuts that influence the decisions we make and the experiences we have. Unconscious cognitive biases can manifest in many ways – affinity bias, groupthink or the halo effect, for example. There are over 150 different types of cognitive biases.   Improving self-awareness Unconscious bias influences our decision-making. At work, this can arise in hiring practices, social relationships and team interactions.   Here are some techniques you can use to help increase your awareness of your own personal biases.  Accept that everyone has biases and be willing to self-reflect honestly; this is an important first step.   Take the time to learn about different types of bias and those that you recognise in your own decision-making.   Question your assumptions, seek out different perspectives and challenge your thought processes about other people.   Use reminders to change biased-based thoughts and behaviours. This requires constant and deliberate effort, but it is vital for embedding more inclusive behaviours.   Tackling unconscious bias in organisations Employers and managers can also take steps to tackle unconscious bias and foster an inclusive culture by: Promoting diversity and inclusion throughout the organisation;   Increasing the representation of diverse groups;  Encouraging open dialogue about issues relating to unconscious biases; Encouraging empathy; and Auditing processes and procedures to remove any tendencies towards bias.   Promoting inclusivity Addressing unconscious bias at work creates the opportunity to move towards a more diverse and inclusive workplace.  As we all have biases – because of the way our brain works and our different and varying experiences in life – acceptance of this as a normal human trait is the first step to creating change. When we overcome biases by challenging them, we are far more likely to prevent them from affecting our decisions both at home and at work.   By acting and implementing strategies to address unconscious bias among their employees to create a more positive culture, organisations also have the power to foster a culture that is more accepting and inclusive of everyone.   Dorcas Barry is People Science Lead at Inclusio

A compulsory strike-off can have profound implications for a company and its directors. Ruairí Cosgrove explains how to avoid it Involuntary strike-offs are set to begin again in Ireland following a hiatus due to the pandemic. Up to 10,000 companies are at risk of being struck off the register for failure to file their annual returns and financial statements.  In 2020, the Irish Companies Registration Office (CRO) acted to ease the burden on companies struggling under pandemic pressures.  The CRO introduced extended filing deadlines, for example, along with a suspension of involuntary strike-offs for companies that had repeatedly failed to file their annual returns.  This gave companies an opportunity to bring their filing up to date in compliance with the Companies Act 2014. The Registrar has now indicated a return to usual practice.  While your company may have benefitted from the supportive measures put in place by the CRO during the pandemic, it’s crucial to understand that normal service is resuming, or your business may be at risk.   If your company is not fully compliant with the Companies Act 2014 in terms of certain obligations, it could be struck off. My advice is to review the reasons for strike-offs, listed below, and follow our action plan to make sure your business is either safeguarded or wound up properly.  Grounds for involuntary strike-off  If you want your company to stay in business, make sure you are not breaching any of the relevant rules. The CRO can strike a company off the register for any of the following reasons.  The company has failed to file an annual return – even if only for one year.  The company has failed to file Form 11F with Revenue.  The Registrar has reasonable cause to believe a company doesn’t have an EEA-resident director, a bond in place or a continuous economic link with the State.   The company is being wound up and the Registrar has reasonable cause to believe no liquidator has been appointed.   The Registrar has reasonable cause to believe the company’s affairs are fully wound up and the liquidator has not made the required returns for a period of six consecutive months.  No one is recorded in the CRO as acting as a current director of the company.  Consequences of involuntary strike-off A company being struck off is not a minor matter and can have prolonged implications for company directors. In fact, when a company is struck off involuntarily, it faces dire consequences.   It ceases to exist. Its protection of limited liability is lost. Its assets become the property of the State.  Directors of a company that has been involuntarily struck off can face disqualification. The Corporate Enforcement Authority can make an application to the High Court issuing an order to disqualify one or all the directors from acting as a director or being involved in the management of a company.  The length of disqualification would be a matter for the court to decide. So what are the steps your company should take now to ensure it is not struck off?  Avoiding involuntary strike-off If your annual return is late, avoid involuntary strike-off by taking immediate action to bring your annual return and financial statements filings up to date with the CRO. Handle disposals by the book. If your company has ceased trading, dispose of it through a voluntary strike-off or members’ voluntary liquidation. A director has a legal duty to dispose of a company properly – not doing so is a statutory offence.  Ruairí Cosgrove is a Director at PwC Ireland

Welcome to this edition of Technical Roundup. In recent developments, the European Commission has consulted on increasing the company size  threshold limits and IAASA has published the latest edition of its Standards Newsletter as well as its annual Observations Paper. Read more on these and other developments that may be of interest to members below. Financial Reporting Institute has responded to the International Accounting Standards Board’s (IASB) request for information relating to IFRS 9 Financial Instruments impairment requirements. Broadly speaking, the Institute believe that the impairment model in IFRS 9 is working as intended, but made some recommendations to the IASB in its response. EFRAG have also submitted a response to the same consultation. The Financial Reporting Council is welcoming applications for its Stakeholder Insight Group (SIG), a cross-stakeholder panel that represents preparers, investors and other key parts of our stakeholder universe including reporting framework owners and civil society groups.  The Financial Reporting Council have released FRED 84 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This proposes to introduce new disclosure requirements to provide users of financial statements with additional information about an entity’s use of supplier finance arrangements and the effect of such arrangements on the entity’s financial position and cash flows. The Financial Reporting Council has issued a project update relating to the ongoing periodic review of FRS 102. In its update, the FRC provided details of the feedback received on areas such as Revenue Recognition and Leasing. It also noted that it expects to issue the final amendments in the first half of 2024, with the changes becoming effective for periods commencing on or after 1 January 2026. The IFRS Interpretations Committee have issued their September 2023 update which summarises the decisions reached in its public meetings. The International Accounting Standards Board (IASB) have released the September 2023 IFRS for SMEs Accounting Standard Update a joint FASB-IASB Update and a September podcast. The IFRS Foundation have also issued their September news summary. The IASB has announced that it has decided to explore targeted actions to improve the reporting of climate-related and other uncertainties in financial statements. This may result in the development of educational materials, illustrative examples and targeted amendments to the IFRS Accounting Standards to improve the application of existing requirements. The IASB has issued amendments to the IFRS for SMEs Accounting Standard which provides temporary relief from accounting for deferred taxes arising from the implementation of the Pillar Two model rules. This follows similar amendments made to IAS 12 and FRS 102. In his opening address at the World Standard-setters Conference 2023, Andreas Barckow celebrated 50 years since the formation of the International Accounting Standards Committee (IASC), the predecessor to the IASB. He acknowledged the benefits gained from the establishment of global financial reporting standards and the efficiency and transparency they bring to companies and investors. He also discussed some of the upcoming standards being worked on by the IASB as well as the important role that the IFRS Interpretations Committee plays. During the conference, a video marking 50 years of accounting standard-setting was released by the IASB. EFRAG are seeking comments on its draft endorsement advice on the lack of exchangeability amendments to IAS 21. Comments on the draft endorsement advice letter are requested by 7 December 2023. Separately, EFRAG have completed its due process regarding Supplier Finance Arrangements (IAS 7 and IFRS 7) amendments and have submitted its Endorsement Advice Letter to the EC. EFRAG has issued its September 2023 update. This informs stakeholders about due process publications, public technical decisions and decisions taken during the month. Audit IAASA has published the latest edition of its Standards Newsletter as well as its annual Observations Paper. Insolvency - recently ruled case The case of Gerard Murphy liquidator of Diamond Rock Developments Limited (in liquidation) and Joseph Leddin recently ruled on by the Irish Court of Appeal, reminds readers of the importance of   registration within the statutory time period, of a charge created by a company. Practitioners whose clients lend money secured by a charge on company assets must ensure, so that the charge is enforceable against a liquidator and any creditor of a company, that it is correctly registered in the companies’ registration office (CRO). The required particulars of the charge must be registered with the Registrar of Companies not later than 21 days after the charge’s creation. The case also noted that the statutory provisions concerning registration empower a court to grant an extension of time where it is ‘just and equitable ‘to do so. However, in this case the jurisdiction was not invoked before the company went into liquidation as the judge said presumably because an extension can only be granted where it would not prejudice the position of creditors or shareholders of the company. The final point to make on this case which might be of interest to readers is that the attempted creation of a second charge by the company in favour of the appellant charge holder was unsuccessful in its attempt to regularise the position in the CRO. That second charge was stated by the Court of Appeal to be void as against the liquidator as an “unfair preference” as that term is defined in company legislation. Sustainability Accountancy Europe has published ‘5-step starting guide to a sustainable transition for SMEs’. This discusses the initial steps an SME can take in the early days of their transition towards a more sustainable business. EFRAG is have announced that they are recommencing the drafting of sector specific ESRS standards and are inviting external participants to interact with them as they commence the drafting of this. The sectors where they are seeking participants are as follows: Agriculture, Farming and Fishing Food and Beverage Services Mining, Coal and Quarrying Motor Vehicles Oil and Gas Power Production and Energy Utilities Road Transport Textiles, Accessories, Footwear and Jewellery   The International Sustainability Standards Board has congratulated the Task Force on Nature-related Financial Disclosures (TNFD) on the publication of its recommendations during New York Climate Week 2023.  The TNFD recommendations can help companies communicate nature-related risks and opportunities to investors and other stakeholders. The ISSB September 2023 Update has been issued.  This update highlights preliminary decisions of the International Sustainability Standards Board (ISSB). Projects affected by these decisions can be found on the work plan. The ISSB have also released their September 2023 podcast. The UK Endorsement Board has published two reports as a result of its Climate-related Matters Research Project; Climate-Related Matters: Summary of Connectivity Research A Study in Connectivity: Analysis of 2022 UK Company Annual Reports Insolvency Minister Dara Calleary, TD has signed the Companies Act 2014 (Section 682) Regulations 2023. The Regulations, which came into effect on 1 October 2023, prescribe a revised Report for use by liquidators when making reports to the Corporate Enforcement Authority under section 682 of the Companies Act 2014. The revised section 682 report should be used for all submissions made from 1 October 2023. The Rules of the Superior Courts (Order 74) 2023 also commenced on 1st October 2023. For more information please see recent news article. European Commission consults on increase to company size thresholds The company size thresholds which are essential in determining the type of financial statements that a company must prepare, whether or not they are required to have an audit and whether they must prepare consolidated accounts, are largely determined by the limits set out in the EU Accounting Directive. Ireland currently has company size limits which are the maximum allowed under that Directive. The European Commission has released a draft act which proposes to increase the current size limits by 25%, to take account of the impact of inflation since these rates were first introduced. If approved, this amendment would then allow Ireland to increase their limits accordingly (subject to government approval and legislation). Anti Money -laundering and sanctions Europol via EMPACT (European Multidisciplinary Platform Against Criminal Threats) has this week issued a factsheet with statistics and other information on areas such as migrant smuggling, human trafficking ,environmental crime and excise fraud .You can access a copy of the EMPACT 2022 factsheet here. Other News The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have issued their Autumn 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines the continued high economic uncertainty. The ESAs warn national supervisors of the financial stability risks stemming from the heightened uncertainty and call for vigilance from all financial market participants. The Department for Communities has announced the appointment of Terence McGonigal as a Commissioner to the Board of the Charity Commission for Northern Ireland, from 1 September 2023 to 31 August 2028. A new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the register of charities. The public register lists all the charities registered in Northern Ireland as well as providing information such as what they do, where they work and their annual accounts for applicable years. In July 2023, the Pensions Authority surveyed the trustees of 150 defined contribution (DC) schemes and 150 defined benefit (DB) schemes to assess trustee awareness and management of risks facing pension schemes. The Pensions Authority has this week published the results of the survey and you can read about the questions posed and conclusions of the Authority here. The European Banking Authority (EBA) recently published its 2024 work programme. It lays out 5 core areas of strategic priorities for 2024-2026. It has adapted its strategic priorities for its work programme for 2024 which includes developing an oversight and supervisory capacity for DORA (Digital Operational Resilience Act) and MiCAR (the EU Markets in Crypto-assets Regulation) and preparing the transition to the new AML/CFT framework. On the former, the EBA says will continue to deliver the policy mandates included in MiCAR and DORA, thereby contributing to the digital risk management dimension of the Single Rulebook and to a consistent framework for the regulation and supervision of crypto-asset activities. On the latter the EBA says it will work closely with competent authorities and the European Commission to facilitate the transition to the EU’s new legal and institutional AML/CFT framework. As part of this, the EBA will prepare the transfer of data, knowledge and powers to AMLA; support national competent authorities in their preparatory work; provide technical advice to the European Commission as necessary; and help to put in place the gateways necessary to make the effective cooperation between prudential and AML/CFT supervisors and regulators possible going forward. Minister of State for Trade Promotion, Digital and Company Regulation, this week urged early action on filing of company annual returns with the Companies Registration Office (CRO) in the context of the late November peak filing period. Please click here for the press release   where he reminds of the particular importance this year with the implementation of the requirement for PPS numbers to be provided for company directors. The Government has recently published its legislative programme for Autumn Session 2023. Read the press release here and the contents of the programme here. Items which might be of interest to members include: The Digital Services Bill 2023 is priority for publication and the General Scheme of the Bill  was published by DETE in March 2023. Pre legislative scrutiny has been completed since the summer update and the report on that can be accessed here . The Bill is designed to implement the EU’s Digital Services Act, and it aims to establish a new Media Commission which will be designated digital services coordinator and responsible for regulating online intermediaries. The Charities (Amendment) Bill is listed in the priority publications and is listed as heads in preparation. The General scheme of the Charities (Amendment ) Bill was published in April 2022 . You can read the press release from the Minister at the Dept of Rural and Community Development and download the general scheme of the Bill here. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is listed as heads in preparation. Since the summer legislative programme a public consultation has been held by the Dept. of Enterprise Trade and Employment on the four areas of proposed amendment to company law proposed by the Bill namely corporate governance ,company law enforcement and supervision, administration, and insolvency including the regulation of receivers. Read here the response to the consultation of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) of which Chartered Accountants Ireland is a member. Two other bills which may be of interest are the Co-operative Societies Bill on which drafting is on-going and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 on which heads in preparation is ongoing. For further technical information and updates please visit the Technical Hub on the Institute website.

In the wake of the Windsor Framework agreement, traders and businesses across the island of Ireland need to be mindful of the various changes due to take effect over the coming months and years as the provisions of the new framework are gradually phased in. To help navigate this landscape of new regulations, the Institute’s public policy team have prepared a high-level infographic which summarises all of the key dates and changes that traders need to be aware of in the short to medium term. As further developments with respect to the Windsor Framework arise, the policy team will ensure that our members are kept up to date and informed. 

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s representation at the One Young World summit in Belfast. Also covered is the forecast on how climate change will impact on Ireland’s public finances, a public consultation on Green Public Procurement, the first meeting of the Department of Enterprise’s Responsible Business Forum, the New Planning and Development Bill 2023, global climate policy forecasts, new resources on sustainability for SMEs and finance teams, as well as the usual roundup of technical updates, articles and events. Chartered Accountants at One Young World Belfast 2023 Chartered Accountant Peter Gillen represented Chartered Accountants Ireland at the One Young World Summit in Belfast this week. The One Young World summit, held in Belfast this year, saw the brightest young talent from every country and sector come together to work towards accelerating social impact, debate the key issues the world faces, share ideas and experiences and work with peers to formulate and share innovative solutions. Chartered Accountants Ireland held a workshop with delegates on the final day of the summit to demonstrate how the analytical and problem-solving skills of Chartered Accountants can contribute to achieving the Sustainable Development Goals. Ireland’s public finances and the impact of climate change The Irish Fiscal Advisory Council (IFAC) has reportedly estimated that the impact of a changing climate in Ireland and globally on Ireland’s public finances could amount to annual lost revenues of 1.6 percent of gross national income (GNI). This equates to €4.4 billion in today’s terms. The estimates appeared in IFAC’s paper What Climate Change Means for Ireland's Public Finances, published this week. The paper also stated that current policy is not sufficient to meet targets. Three key areas of costs were identified as: arising from non-compliance with legally binding targets (€0.35 billion annually, rising to approximately €0.7 billion in 2030) the impact of transitioning to lower emissions on tax receipts (€2.5 billion in today’s terms) per annum by 2030 and on government expenditure (€1.6 - €3 billion in today’s terms) the physical costs associated with extreme weather events, through mitigation measures and repairing and rebuilding damaged property (0.1 percent of GNI, on average, per year) The paper, which is part of a new series of research outputs that supports the Council’s assessments of the long-term sustainability of the public finances, suggests that the reforms needed to address climate challenges will take time to plan for and enact, and recommends that the Government sets out its plans now so that the disruptions necessary will be less pronounced by introducing adjustments in a gradual and phased way rather than overnight. Public consultation on green public procurement The Minister of State with special responsibility for Public Procurement, eGovernment, Communications and the Circular Economy, Ossian Smyth, T.D., has launched a public consultation on a draft Green Public Procurement Strategy and Action Plan. ‘Green public procurement’ uses the purchasing power of the public sector to stimulate the creation and provision of more resource-efficient, less polluting goods, services and works within the marketplace. Key areas of focus in the draft Green Public Procurement Strategy and Action Plan include measures to progress Green Public Procurement implementation in the Public Sector; Green Public Procurement Monitoring and Reporting; Green Public Procurement Training and Awareness; and further development of national Green Public Procurement guidance and criteria. Submissions may be made until 5.30pm on 10 November 2023. New Planning and Development Bill 2023 receives Cabinet approval The new Planning and Development Bill 2023 received Cabinet approval this week, and, if enacted, aims to bring greater clarity, certainty and consistency to how planning decisions are made. As well as reforming aspects of planning judicial review, the Bill also introduces a new Environmental Legal Cost Scheme and a revision of Environmental Assessment provisions to ensure full compliance and alignment with EU Directives. Speaking at the announcement Minister for the Environment, Climate and Communications and Minister for Transport Eamon Ryan, T.D., stated that the Bill “will future-proof our planning system whilst balancing key pillars of the Irish planning system such as public participation and access to justice, environmental considerations and delivery of key infrastructure such as public transport, housing and renewable energy. This Bill can be a cornerstone to our sustainable and balanced development as a country.” First meeting of Responsible Business Forum The first meeting of the Department of Enterprise, Trade and Employment (DETE)’s newly established Responsible Business Forum was convened last week. The forum is made up of representatives from key business bodies, including IBEC, Business in the Community Ireland, Fáilte Ireland and the Irish Exporters Association. The forum, which aims to provide a platform to discuss specific responsible business issues and initiatives under DETE’s remit that are in place or being developed at national and EU level, will also consider how these initiatives will impact on businesses, what will be expected of businesses and supports available to them, and the positive outcomes for early adopters. Find out more on DETE’s dedicated Responsible Business webpage, and see also FCA Sheila Killian’s new book Doing Good Business – How to Build Sustainable Value, published last month by Chartered Accountants Ireland and launching at 6 pm on 19 October at O’Mahony’s Booksellers, O’Connell St, Limerick. Fiscal policy and natural resources – NCI’s pre-Budget submission Natural Capital Ireland (NCI) has issued a pre-Budget submission to Government recommending that the natural capital accounting approach be used to ensure that Ireland’s natural resources and the valuable services they provide are taken into account across fiscal policy. Read more. Research finds that more action is needed on environmental sustainability in Ireland New research from the National Economic and Social Council (NESC) has found that while Ireland is ‘thriving in many aspects’, more must be done on environmental sustainability and for the Ireland of tomorrow, especially on our climate, biodiversity, and infrastructure. NESC is the national advisory body to the Taoiseach and the Irish Government, and provides research, dialogue and advice that helps achieve  sustainable economic, social and environmental development in Ireland. Global climate policy forecast predicts ‘well below 2°C’ Paris Agreement climate goals will be met The latest forecast from the Inevitable Policy Response (IPR) has found that with global climate policies expected to be put in place in major economies between now and 2050 that the world will likely achieve the Paris Agreement goal of limiting temperature increase to ‘well below 2°C’ and continue to make efforts towards 1.5°C once temperatures peak. The Inevitable Policy Response is a Climate Transition Forecasting Consortium, set up by the Principles of Responsible Investment and others in 2018 to forecast the speed and scale of the transition to net zero. It aims to prepare institutional investors for the portfolio risks and opportunities associated with a forecast acceleration of policy responses to climate change. The forecast is informed by live tracking of over 300 climate policies over the past two years, as well as input from over 100 climate policy experts across 12 countries. Speaking about the forecast, Mark Fulton, Founder of Inevitable Policy Response stated that “Climate-induced social tipping points and the Paris Stocktake-Ratchet cycles over this decade will accelerate pressure for policy makers to deliver a well below 2C outcome. This will have huge implications for investors and investment markets.” Resources Accountancy Europe has published a 5-step starting guide to a sustainable transition for SMEs. It sets out five first steps an SME can take to begin a sustainable journey. Accounting for Sustainability (A4S) has published top tips for finance teams of financial institutions to address the challenges associated with ‘footprinting’ - focusing on data collection, methodologies, and establishing a baseline. See also their recent webinar recordings on: factoring environmental and social concerns into debt financing  the evolving sustainability reporting landscape transition planning   Carbon Brief has published a series of explainers on “carbon offsets”. Carbon Brief. See also their webinar on How can carbon offsets be reformed?, a Q&A, and a timeline of the 60-year history of carbon offsets. Did you know? The team at Euronews.Green regularly updates its list of positive environmental stories from 2023. According to Centre Director at DCU’s Centre for Climate and Society, Dave Robbins, “the longer you read, the more you’ll be convinced of the reasons to be hopeful.” Watch: Al Pacino  It's 2023, we’re down to halftime and we're losing the fight. So, we can crumble, inch by inch, or we can recommit to the SDGs. Watch the half-time speech by Al Pacino as adapted by Richard Curtis. Articles Let’s make accountants accountable for better business behaviour – Paul Druckman (Accountancy Age) John FitzGerald: Raising the price of dirty fuels drives investment in greener technologies (Irish Times) As data centres sector keeps growing, can Ireland cope?  (Irish Times) Why sustainability must be a priority for Irish firms  (Irish Times) ESG ratings: whose interests do they serve? Regulators and politicians are focusing on the accuracy, transparency and potential for conflicts of interest with sustainability scores (Financial Times) Ireland Makes Rare Decision to Deny LNG Port for Climate Reasons - The country’s top planning body turned down a proposal for a liquefied natural gas import facility, which would have helped keep the island hooked on fossil fuels for years (Bloomberg Green) Upcoming Events   ESDN: European Sustainable Development Week (ESDW) 2023 18 September – 08 October. 113 initiatives in 10 countries. Women in Business (Northern Ireland) Women in Finance Women in Business is running a wide-ranging programme of female entrepreneurship events over the upcoming months. The events include sectoral networking, webinars, and training courses for essential skills. On 25 October 2023, 10am to 11:30am, a specific session on women in finance will focus on work in finance departments, small scale accountancy or work for yourself, both members and non-members are welcome to join this online event. Sustainable Finance Skillnet is offering funded training opportunities until October and November 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence). A series of short, deep dive training modules on key sustainable finance topics include  •           EU Taxonomy •            Net-Zero •            SFDR (Sustainable Finance Disclosure Regulation) Chartered Accountants Ireland: Ask the Expert, Supply chain sustainability (ROI/NI) In this 15-minute chat, Institute's Sustainability Officer Susan Rossney will talk to Shane Faulkner,  KPMG's Sustainability Manager, about what a sustainable supply chain looks like, what questions SMEs might be asked by their customers and clients, and how they might respond. Virtual: 12 October, 12:45-13.00 Department of Enterprise, Trade and Employment: Building Better Business in the West The Department of Enterprise, Trade and Employment is holding a free business event in Ballina which will focus on the opportunities and challenges presented by the green economy and digital transformation. In person: 13 October, Ballina Arts Centre, Barrett Street, Ballina, Co Mayo, F26 NW83 Book launch! Doing Good Business: How to Build Sustainable Value by Sheila Killian In Person: 19 October, 6pm, O’Mahony’s Booksellers, O’Connell St, Limerick. To celebrate the publication of Doing Good Business: How to Build Sustainable Value by Sheila Killian, Professor Finbarr Murphy, Executive Dean of the Kemmy Business School, University of Limerick will launch guide to responsible business. Wine and refreshments will be served and all are welcome. Chartered Accountants Ireland ESG Masterclass: Take your Sustainability Knowledge to the Next Level A 3-hour online masterclass providing a high-level overview of the key global, European and national regulations, standards and developments impacting sustainability governance, reporting and assurance, with an emphasis on areas highly relevant to accountants. Virtual: 26 October, 8.30-13.30, €206.25 (€165.00 Chartered Accountants Ireland Member Price) Climate Finance Week Ireland 2023 In person and virtual: Monday, 20 November – Friday, 24 November ICAEW: ICAEW Climate Summit Virtual: 13-17 November Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 25 October 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

Rochelle Beluso-Tadique talks to Accountancy Ireland about her experiences as the parent of an autistic child, and her hopes and expectations for the future  Rochelle Beluso-Tadique is an Auditor and Associate Director with KPMG Ireland. Originally from the Philippines, she moved to Dublin in 2008 and has worked with KPMG since then.  Rochelle and her husband Sherwin Anthony Tadique welcomed their elder daughter Kate in 2012 and, Khloe, her younger sister, was born one-and-a-half years later. Khloe was diagnosed with autism aged three-and-a-half.  Here, Rochelle tells Accountancy Ireland about her experiences as the parent of an autistic child, and about how she would like to see the world of work change to better support the needs of people who have autism and other forms of neurodivergence. Tell us about your daughter Khloe; when she was born and your journey to learning that she has autism. Khloe was born in November 2013. She had a routine check with a Public Health Nurse who found that she was not meeting her milestones both developmentally and behaviourally.  The Public Health Nurse recommended that Khloe be assessed but it was a long journey from that point on because of HSE waiting lists. Khloe was about three-and-a-half when she was finally diagnosed.  I struggled a bit when the diagnosis first came. I was aware of autism but there is a big difference between being aware of autism and having a child who is autistic.  There is a lot to learn. Autism has a very wide spectrum. Some people with autism can manage very well with social communication and interaction. Khloe is non-verbal. She doesn’t talk.  What have you learned about autism and how Khloe experiences and interacts with the world around her? Khloe experiences sensory overload. She doesn’t like strangers or closed spaces and noise upsets her. She is wearing headphones now, which help to eliminate noise and make life easier for her. Because she is non-verbal, she uses an iPad as her communication tool. This helps her to tell us what she wants to eat, when she wants to play, when she wants to wash. It really helps her to communicate her needs. How has your experience with your daughter influenced the way you see the world of work? Fully functioning autistic people tend to have very good attention to detail. They can be very good with numbers and working in fields like data analytics.  The challenge right now is that it can be difficult to get these people into the workforce, despite their strengths, because most companies do not have strategies for supporting and managing neurodivergent employees. It can even be challenging to get internships for people who are neurodivergent. Do you think employers are well prepared to work with people who have autism and other neurodiverse conditions? This is a complex area. If you look at the hiring process alone, someone who is autistic may have different ways of communicating that are not facilitated in the recruitment process.  They may not engage in eye contact, for example. They may speak very loudly and excitedly. Ideally, companies should have managers and other people involved in the hiring process who have been trained to interview neurodivergent people. Supporting people who are neurodivergent at work isn’t just about hiring. Employers also need to think about how these people experience work day-to-day and how best they can support them.  If you have someone who is neurodivergent in your organisation, you must be aware of their needs, including intolerance to noise in some instances.   You could allow this person to wear headphones, for example, or give them access to a room where they can get away from noise. There is a lot to think about, but it is manageable with the right approach. My advice is that employers link up with organisations that are working with and serving the neurodivergent population.  These organisations can help companies develop strategies to manage the specific areas they need to address. Based on your own experience and knowledge, what do employers need to know and understand about people who are autistic so they can offer them the right support? A lot of companies have policies on diversity and inclusion in areas like ethnicity and physical disability, but the majority do not address neurodiversity. Every one of us has our own unique traits, characteristics and preferences, but we need to pay special attention to employees who have neurodiverse conditions, such as autism spectrum disorder, attention-deficit hyperactivity disorder, dyslexia, dyscalculia and dysgraphia. This process must be collaborative and prioritise talking to these employees, listening to them, and using their feedback to decide on the approach that works for them. How would you like the world of work to be when your daughter Khloe grows up? I used to worry a lot about Khloe’s future but less so now. At the moment she is non-verbal and I don’t know if she will be able to read or write because her literacy skills have not been assessed.  There is a long way to go for Khloe so we will just have to wait and see what happens. How would you like to see the wider world change to better meet the needs of neurodivergent people? There will always be challenges but I want people who are neurodivergent to be given the same opportunities as neurotypical people.  Ideally, companies should have neurodiversity policies and strategies in place, not just to support, but also attract neurodiverse employees.  Neurodivergent people have a lot to offer. They have unique talents. They think outside-the-box and they can bring something unique and beneficial to the companies that employ them.  On a wider scale, there is now better awareness of neurodiversity because of media coverage in newspapers, magazines, radio and TV shows. In Ireland, I can already see companies like Starbucks employing people who are neurodivergent. Hopefully in the future, more companies will integrate more neurodiversity into their workforce. It’s a very long journey, however, and right now we need a lot more support from government and health organisations and from society in general to be able to really move forward. How is your employer supporting you as the parent of an autistic child? I was very grateful that I was given the flexibility to work my own hours specifically at the early stages of Khloe’s diagnosis when I needed to attend therapy sessions with her, usually for two to three hours per week over six to eight weeks each time. This was offered in addition to my existing leave entitlements, such as parental leave, carer’s leave, etc. KPMG has also introduced wellbeing initiatives, hosting sessions to help parents deal with the challenges we face.  In the latest session I attended, they mentioned that they planned to introduce sessions specifically for parents of neurodivergent children. This will be very helpful for me, I think, and it is very welcome. Are there any books you have read that have been particularly helpful or organisations you lean on for advice and information? One of the best books I have read is The Reason I Jump. It was written by Naoki Higashida, a non-verbal autistic boy who was 13 at the time. Reading about Naoki’s experiences really helped me to understand Khloe’s experiences because she is also non-verbal. I am currently reading Not What I Expected by Rita Eichenstein, who is a Paediatric Neuropsychologist based in the US. This book is about helping people like me to navigate our lives as parents of children who are neurodivergent. In terms of organisations, AsIAm (asiam.ie) has been very helpful for me because it provides up-to-date information and a forum for connecting with other parents and people in the autistic community.

Permanent TSB’s Norma Conway tells Accountancy Ireland why neurodiversity must be part of every organisation’s diversity, equity and inclusion strategy Employers who embrace neurodiversity stand to benefit from new ideas and fresh thinking that can boost the bottom line. So says Norma Conway, Diversity and Inclusion, Wellbeing and Engagement Manager with Permanent TSB. As Conway sees it, the neurodivergent community is currently a largely untapped resource for employers in Ireland, many of whom are unaware and unprepared for the strengths and capabilities this cohort can bring to the talent pool. “The benefits of neurodiversity are undeniable. Companies with neurodiversity programmes already in place report improved retention rates, reduced turnover and increased productivity and innovation,” Conways says. In “Neurodiversity as a Competitive Advantage”, an article published in The Harvard Review in 2017, for example, authors Robert D Austin and Gary P Pisanom reported that neurodiverse teams were 30 percent more productive than their neurotypical counterparts. Similarly, a still oft-quoted survey commissioned back in 2003 for the BBC series Mind of a Millionaire found that 40 percent of the UK’s self-made millionaires were dyslexic. Neurodiversity: what it means So, what is neurodiversity? The term was coined in the late nineties by Judy Singer, an Australian sociologist, to recognise that everyone’s brain develops in a unique way.  Harvard Health defines neurodiversity as, “the idea that people experience and interact with the world around them in many different ways; there is no one ‘right’ way of thinking, learning, and behaving, and differences are not viewed as deficits”. While Singer primarily views neurodiversity as a social justice movement, research and education in the area is also increasingly used by clinicians to understand numerous conditions, according to Harvard Health. These conditions range from autism spectrum disorder and attention deficit hyperactivity disorder (ADHD) to dyslexia, dyscalculia and dyspraxia. The upside for business For Conway, the benefits of these different ways of thinking are obvious for employers.  “Neurodivergent people bring a ‘business upside’ literally because they think differently,” she says. “In general, people with dyslexia are better at visual thinking and they are more creative. They have an approach to looking at data and problem-solving that I wouldn’t see myself.  “People with ADHD bring creativity, energy and passion. That’s built into the mindset of how they think and how they approach problems.” For employers, this can mean valuable access to better problem-solving capabilities and a more effective approach to strategising. “In most workplaces, we are generally trying to solve problems, improve things or find solutions, so having someone in the room who thinks differently automatically brings a new approach,” Conway says. “If you’re trying to brainstorm ideas and you bring someone into the mix who thinks differently, is more creative and asks questions nobody else is asking, the power in that is phenomenal.” Understanding and embracing neurodiversity in workplaces, schools and communities can also improve inclusivity for everyone, Conway adds.  “Every human is unique, with a unique combination of abilities and needs. Creating an environment that is helpful to neurodivergent people and that recognises everyone’s individual strengths and talents embraces this idea,” she says.  While she sees growing awareness of neurodiversity in society generally, Conway says the majority of employers continue to adopt a one-size-fits-all approach to recruiting, managing and supporting their employees.  “We have students in Ireland now receiving supports and accommodations throughout school and college, but they reach the workplace and hit immediate barriers as these supports and accommodations don’t exist in most companies,” she says. There is a “huge opportunity” here for employers to access a talent market that is thus far largely untapped, says Conway. The Same Chance Toolkit: A Step by Step Guide to Becoming an Autism Friendly Employer, published earlier this year by AsIAm, Ireland’s national autism charity, revealed that 85 percent of autistic individuals are either unemployed or underemployed.  “This is an opportunity for companies, not only to fill roles, but also to contribute to social justice and employment equity,” says Conway. The Permanent TSB experience As a large organisation employing 3,000 people nationwide, Diversity, Equity and Inclusion (DE&I) first became a key strategic priority for Permanent TSB back in 2017. Neurodiversity has been part of this strategy from day one and continues to evolve in line with developments in the wider world. “The focus on neurodiversity has changed in more recent years and there is an awareness that we need to do more, which has been captured as part of our latest DE&I Strategy for 2023 to 2025,” Conway says. “We now understand the complexities of neurodiversity, how neurodivergent colleagues are impacted by the work environment and the multiple potential business advantages to having diversity of thought in teams.” Ability is one of the main areas of focus in Permanent TSB’s DE&I strategy. “In May, we announced the establishment of our Ability Employee Resource Group (ERG) encompassing both physical ability and neurodiversity. We wanted to hear from colleagues and get their input as we plan to increase awareness and supports,” Conway says. “We’ve worked with the Trinity Centre for People with Intellectual Disabilities (TCPID) for a number of years and more recently we started working with Specialisterne (specialisterne.ie) and AsIAm (asiam.ie) to help understand what a positive experience should look like for candidates and colleagues when hiring neurodiverse talent.  “We have taken their advice on how we can improve our existing processes, onboarding and training and they have also helped us to understand accommodations that may be needed.”  AsIAm is currently working with Permanent TSB’s Digital and Direct Office teams on a sensory review of the banks’ premises and facilitating training for managers.  “It’s important that managers have a core understanding of the realities of neurodiversity and have the strategies needed to respond and take action,” Conway explains.  “Our first Ability ERG workshop will be facilitated in October by the Irish Centre for Diversity and, from there, we will have a clear plan of action based on our colleagues’ feedback and their needs.” Best practice advice for employers Based on her own experience with Permanent TSB, Conway’s advice for other employers is that supporting the needs of employees who are neurodivergent starts right at the beginning of the employment relationship – the recruitment stage. “Standard recruitment practices can be a barrier. Aptitude tests or complex job descriptions and formal interview processes can be challenging – so working with external experts who can advise on any adjustments needed has been a big help for our team,” she says.  Accommodations should be considered relative to the built environment, communications and sensory supports.  “Simple adjustments, such as the lightbulbs we use, or having a decompression room available away from the open-plan office space if needed, can make a difference,” Conway says. “We’re also in the process of rolling out Microsoft 365 and a team of neurodiverse colleagues and allies have worked with IT to ensure that all accessibility features are switched on for all colleagues.  “To complement this, we aim to introduce a support toolkit to include, for example, noise-cancelling headphones and screen readers colleagues can order online.”    Also key to supporting employees who are neurodivergent is buy-in and input right from the top of the organisation. “The support of our own leadership at Permanent TSB has been very important for us,” Conway explains. “It’s great to try to start initiatives and broaden communications and training but without their support – and a willingness to be visible in their support – it would be very challenging.” Start today: first steps  So, what are the first steps employers can take now to begin implementing a workforce strategy that encompasses neurodiversity? “First, listen to the experts,” Conway says. “There are many organisations out there that understand the complexities and supports needed that can guide you – they have the answers so ask for advice as you map out a plan.”  Second, listen to your employees. “Most people now have a personal interest in making the workplace more neurodiverse inclusive, whether it’s from their own perspective, a family member’s or a friend’s,” Conway says.  “Listening to these employees, encouraging them to share their stories and helping them shape your strategy will build trust that is invaluable.”    Ultimately, implementing a workforce strategy that accommodates neurodiversity benefits everyone, Conway says: “It has a knock-on effect on how we interact with each other, our openness with each other, and comfort in sharing information. It is well worth the effort.” Written by Tess Tattersall and Elaine O’Regan  

Lorna Conn, CEO of Cpl, talks to Accountancy Ireland about her career, unconscious bias, and how women can support each other to advance together I have always wanted to be an accountant, so I studied hard at University College Dublin for my BComm, did the ‘milk round’ and was fortunate to get offers from all the ‘Big Five’, as they were known at the time.  I joined Deloitte, which sponsored my accountancy master’s degree, also at University College Dublin, and where I trained to become a qualified Chartered Accountant.  I stayed with Deloitte until I was an Audit Manager and gained experience I don’t think I would have if I hadn’t trained as a Chartered Accountant.  I travelled to the US for three months on CRH’s SOX (Sarbanes–Oxley) readiness programme and relocated to Australia on secondment to Deloitte Darwin. I also worked with some really great clients, including Kerry Group plc and Microsoft.  The Chartered Accountant skillset is incredibly transferable, and I believe career progression opportunities are limitless with this qualification. Many CEOs of large multinationals have started their careers as Chartered Accountants, and I think the new era of accounting is much more strategic in outlook.  Financial literacy is a remarkably marketable skill around the world.  Now, I am 43 years old. Married to Geoff with three children – Ollie (11), Lucy (9) and Louis (6) – and I’m CEO of Cpl – a talent solutions organisation with 14,000-plus staff operating in 13 countries with 47 offices worldwide.  I am a Senior Managing Executive Officer of our parent company, Outsourcing Inc (OSI), and a member of OSI’s Group Executive Committee. Finally, I am a Non-Executive Director of Bord na Móna plc. Life is fairly busy and I am lucky to have a great support network around me, including my husband. As someone once said to me – equality starts at home.  Geoff works full-time too, but we share the load 50:50 – and this includes the mental load of raising children. School WhatsApp groups, sports activities, their emotional well-being, etc. fall equally on both our shoulders. We are also privileged to have two sets of healthy grandparents who mind the children one day a week each. Mutual respect and equal opportunity Many women assume the role of working mum and caregiver all on their own but to their detriment. Not only do we need support from our partners, but we must insist on that support when it’s not forthcoming. This is the same in our profession as it is at home. As the stats show, accountancy is a popular profession for women – 43 percent of the members of Chartered Accountants Ireland are female, and the new student intake is 47 percent female.  While I have seen great representation at graduate level, however, this tends to wane on the climb to partnership. Our workplace structures were created in an era when women stayed in the home. These structures need to fundamentally change to accommodate a growing and hugely valuable female workforce. I have experienced conscious and unconscious bias – lazy assumptions that my ambition to succeed was somehow tempered by having a family.  To the best of my knowledge, I have never been adversely impacted in my career because I’m a woman, and I’ve only ever considered my gender as a positive attribute. Women bring different skills and perspectives to the workplace, and the right mix of men and women at the top table can be very impactful for an organisation.  I think men and women are hugely effective when they work together in an equitable working environment – one of mutual respect and equal opportunity. In my view, equity is top-down – see it at the top, and you will feel it throughout the organisation.  That said, I continue to be impressed by accountancy firms that promote women to partner mid-pregnancy and mid-maternity leave. It is a smart approach to retaining top talent, and I would like to see the trend of female representation in top finance roles continue. Empathy, compassion and communication While expertise and strategic acumen remain crucial in business, the need for empathy, compassion, the ability to communicate openly and transparently and to make decisions has taken centre stage, in my opinion. These are traits equally required of women and men to succeed today. Leaders who can understand and connect with their teams on a human level are not just desirable but crucial.  Empathy allows leaders to comprehend the unique concerns and aspirations of their employees, fostering a sense of belonging and loyalty. Compassion enables them to provide support during difficult times, building trust and camaraderie.  Moreover, open and transparent communication cultivates an environment of trust where employees feel valued and informed, empowering them to contribute their best.  The need for these skills has become pronounced in an era of social media and in a generation that wants to feel empowered, not controlled.  For many women, these skills come naturally, and that is the ace card we bring to the table.  I have developed these skills over time by seeing them as a strength and not a weakness. I also choose companies that align with my personal values. These are the environments where I know I can thrive. Women and career progression With the advent of gender quotas, ESG best practices, and an increasing focus on diversity, equity and inclusion, I think this is our time to advance in the workplace.  Businesses need more strong women at the helm. With better family-friendly structures (hybrid working, affordable childcare, etc.), we have a good shot at attracting, advancing and retaining women in the workforce.  If there are issues with advancement in your workplace, I have found the best tactic, assuming you’ve exhausted all avenues, is to move on. There are lots of great companies out there, and you are the navigator of your own career.  You are not entitled to career progression. It’s your responsibility to create opportunities and pursue them elsewhere if you have reached your cap with your current employer.  It might be nerve-wracking to move on from what’s comfortable and familiar, but I have always looked at my career as a 40-year horizon – plenty of time to take risks and explore new opportunities. And women should be taking advantage of their networks. Mentoring and networking enables women to broaden their circle of advocates.  People who will publicly endorse and support you can be a very valuable asset to have. I think women, in particular, need to advocate for each other more – at all levels across an organisation.  I’ve certainly been helped along the way, and it has been hugely impactful for me during my own career advancement.  Authenticity is key. Being unapologetically ‘you’ is incredibly empowering.  The old stuffy image of an accountant is long gone. There is widespread recognition now that accountancy skills are enduring, and they will serve you in every facet  of life.  If you’re starting off in the profession, absorb every bit of knowledge you can from your colleagues as you progress through your accountancy qualification. This will be the foundation for a successful career in private practice or in industry – the options are literally limitless. Interview by Liz Riley

Julia Rowan answers your management, leadership and team development questions I work in HR and recently helped a partner recruit a manager to lead a team of six people. The team had been without a manager for about a year and there are issues which need tackling. We wrote a very specific job description which highlighted the people management aspect of the role and focused on this a lot at the interview. The new manager has not stepped up to the people management aspect of the role; they say that they don’t have the time as there is too much work. The partner has asked me to intervene – but the new manager is very defensive.  Managing people is wonderful. It is also tough, and it can be much easier for managers at all levels to focus on the work than on the people.  In many organisations, there is a lot of aspirational talk about people/culture that does not translate into the lived experience of employees. So, sometimes people ‘talk the talk’ to get a role and then step back when faced with a challenge.. I love that you paid so much attention to the job description and interview – you laid a solid foundation for future conversations.  When the new manager came on board, did the partner sit down with them and draw a red thread between the interview and the role, explaining why they were given the role? This type of conversation builds on the foundation and provides real clarity about desired behaviours. It is not too late to do this, and probably very important that it happens. The partner has asked you to intervene – is this due to lack of time, misperception of HR’s role or avoidance of the issue? Certainly, you can help, but this is a great opportunity for the partner to role model how to step into leadership and deal with a tough issue.  I think your first call is to explore how the partner is supporting their new manager. Do they have regular one-on-one meetings? If so, are they all ‘business’, or are they talking about the people issues too? If the partner cannot offer support, at the very least they need to let the new manager know that you are acting on their behalf and they need to stay involved. You and/or the partner may need to have a few meetings with the new manager to explore what is happening, build trust around the issue and ensure that they are bought in.  You will need to ‘listen like crazy’ without explaining or advising so that you can get to the heart of the matter.  Ask them what support they need to tackle the situation. Make sure they are connected to other people managers across the organisation who may be able to support them. Let us not forget that there are legacy issues at play here, and perhaps the ‘ask’ of the new manager is too big. A well-run team session could help the team to disentangle issues and move on. But these issues can run deep, and professional help may be needed. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie

Three Chartered Accountants share their perspectives on the changing role of the Chief Financial Officer in today’s fast-paced business, regulatory and societal environment Johnny Harte Founder True Fund Solutions  The Chief Financial Officer (CFO) in a company has long been considered the chief bean-counter whose job has been to say ‘no’ more than ‘yes’.  And in the past, this has been true. CFOs today still have responsibility for the core finance function in an organisation, but they are now increasingly regarded by management and key stakeholders as value-creation partners in a business, and their expanding role reflects this. As a starting point, to realise more efficiencies, CFOs are now investing more in technologies to assist the finance team. Transactional activities are being replaced by artificial intelligence and machine learning technologies, and the way in which financial information is being presented, shared and consumed has changed in line with the expectations of end-users. The CFO may have responsibilities outside the core finance function, too, like human resources and IT, so collaborating with many other departments in the business is more important than ever.  New initiatives to address issues such as environmental, social and governance (ESG) concerns fall under the remit of the CFO as well.  As an example, the financial implications and reporting obligations of ESG are felt company-wide, but they ultimately feed into the finance function. Companies find themselves in times of rapid change that offer potential opportunities, like product innovation, access to new markets, and even the development of new business models. Change can also result in potential risks such as cyber security, geopolitical and environmental concerns, however.  CFOs, by necessity, find themselves at the heart of all of this and play a vital role in navigating the landscape and advising on strategic decisions that can shape the future of the business. CFOs are in a unique position in a company in so far as everything that is important eventually gets reflected in numbers. The old line of “you can’t manage what you can’t measure” still holds true. Karen Sugrue Hennessy  Sustainability Consultant and CEO Real Leaf Farm As our nation, along with the rest of the world, faces mounting pressure to fulfil its climate change commitments, Chief Financial Officers (CFOs) are stepping into a critical leadership role.  According to the Environmental Protection Agency (EPA), Ireland is currently on track to achieve just 29 percent of its committed 51 percent net zero target by 2030. Finance stands as a pivotal enabler in the acceleration of climate action, as emphasised by the Intergovernmental Panel on Climate Change report (AR6).  CFOs, accountants, bankers and directors are primed to lead the charge by shifting their focus away from financing environmentally detrimental projects and redirecting their efforts toward funding initiatives that bolster the transition to a sustainable economic model. By 2029, all businesses, including SMEs, will be mandated to enhance transparency and accountability concerning corporate sustainability, operating under the Corporate Sustainability Reporting Directive.  Significant challenges lie ahead, however. Recent research conducted by LinkedIn revealed that close to 95 percent of financial professionals in 48 countries, including major European nations, lack essential green skills.  Shockingly, Ireland ranks at the lowest end of the spectrum in Europe, with just 0.16 percent of finance job postings related to green skills, according to LinkedIn data. So, where should CFOs begin their journey to upskill in this pivotal area, which is undeniably becoming a sought-after area of expertise?  An excellent starting point is joining Chapter Zero Ireland – a collaborative initiative between Chartered Accountants Ireland, IBEC and the Institute of Directors.  Chapter Zero’s primary purpose is to ensure that companies are well prepared for the future and that global net-zero aspirations translate into robust plans and measurable actions.  The evolving role of CFOs in Ireland is not merely a response to regulatory demands; it represents a unique opportunity for financial leaders to champion a more sustainable and responsible future for both their businesses and the nation.  Embracing this transformation is not only a strategic imperative but a moral obligation that can reshape Ireland’s path toward a greener, more prosperous future. Mark Mulqueen CFO KPMG Ireland Like other C-suite roles, the Chief Financial Officer (CFO) role has evolved significantly, reflecting the evolving landscape of business, technology, regulation, global markets and shifting expectations from internal and external stakeholders.  In addition to the traditional CFO responsibilities as financial ‘gatekeeper’, the role has broadened beyond core topics to become more like that of a strategic partner. At the centre of this evolution is a business appetite for greater insights, data-driven commercial partnering, and a more significant focus on profitability and an organisation’s need to transform operating models and core supporting technology.  Consequently, CFOs must keep up to date with the changing landscape of data, technology, taxation and compliance while also managing the organisation’s financial health. As business models continue to transform, looking to the future, this presents opportunities and challenges for CFOs. The value of data – going beyond traditional finance data to provide valuable insights to enhance forward-focused decision-making. Embrace the challenges of data – overcoming disparate systems with multiple data sources to ensure reliability and accuracy is critical to the role. Automation – managing the changing role of technology and staff in traditional finance processes. Talent retention and acquisition – with a broader set of new challenges, it is essential to have the right skills in the team to leverage the opportunity presented by data and technology. Risk – managing risks posed by fraud and cybercrime. Expectation gap – managing the strategic role of the CFO versus the volume of traditional finance work. Leveraging technology, adding new skills to finance teams, and managing this change will allow CFOs to help companies become more agile and responsive to market changes.  The result will provide more value through greater insights on a broader range of topics and the ability to support faster data-driven decisions through automation and technology while simultaneously supporting business change and managing new risks posed by regulation toward sustainable, profitable growth.  The one constant that will remain for CFOs is change.

Ireland’s true gender pay gap will only emerge when SMEs begin reporting and now is the time for this crucial business cohort to start preparing, writes Padraic Hayes Dr BJ Fogg, a renowned behaviour scientist at Stanford University, postulates in his book Tiny Habits that small but frequent incremental changes are often the safest and most effective approach to delivering extraordinary results. One hopes this hypothesis will ring true for the SME sector when it comes to preparing for gender pay gap reporting.  The first gender pay gap reporting obligation came into force in 2022 for companies with over 250 employees.  This will extend to SMEs with over 150 employees next year and even further in 2025 when companies with over 50 employees will also be obligated to commence reporting their first gender pay gap. These milestones are very significant when you consider that, according to the most recent Central Statistics Office figures, SMEs with fewer than 250 employees make up 99.8 percent of active enterprises in Ireland and employ 68.4 percent of the workforce. Gender pay gap reporting thus far has only covered the other one percent of Irish enterprises. We can therefore infer that we have yet to see Ireland’s true gender pay gap figure.  As a result, SMEs are going to be in the full glare of both industry and the media once their first reports are published in 2024. This could be Ireland’s de-facto ‘silver bullet’ solution to truly move the needle on the gender pay gap.  What is the gender pay gap? There continues to be a lot of confusion surrounding what exactly the gender pay gap is. It is defined as the difference between the average hourly wage of men and women in the workplace.  The gender pay gap is an assessment of the gender representation of men and women at each level of an organisation characterised by the overall difference in their pay.  For example, how many males and females are in the top quartile of an organisation’s earners versus the lowest quartile – i.e. how well-represented are females by comparison to males?  It is important that the gender pay gap is not confused with “equal pay for equal work”, which is already a legal obligation for employers in Ireland.  The gender pay gap can be caused by a variety of factors such as unconscious bias, company policies or the division of caring responsibilities in the home. According to the United Nations, women worldwide earn 77 cents for every dollar earned by men.  This suggests that over their lifetime, women’s earning potential is significantly less, a staggering realisation in the modern age.  In Ireland, the gap stands at 11.3 percent, which is slightly more favourable than the EU average of 13 percent (Eurostat). This still equates to about one month a year when a woman essentially works for free. It is important to point out also that this is not just a ‘female’ issue, but an economic issue that affects us all. The reduced earning potential for females affects the overall household income.  It is common for women to find it more cost-effective to stay at home to offset childcare costs, for example, and this places downward pressure on household income in an escalating cost-of-living crisis, and thus the cycle repeats.  For this reason alone, we should all feel motivated to proactively figure out the root cause of this socio-economic issue and break the chain once and for all.  Who needs to report and when? Currently, the obligation to report remains solely on organisations with over 250 employees. The first gender pay gap reports were published in December 2022 and the second are due in December 2023. Next year, however, the obligation will extend to all employers with more than 150 employees. The employers will pick a ‘snapshot’ date in June 2024 and report their gender pay gap metrics for the previous 12 months.  Crucially, the employer will also be required to provide the underlying reason why the gender pay gap exists and, more importantly, what actions they are planning to take to rectify it.  Furthermore, they will need to publicly publish their report either on their website or on the government portal planned for introduction later this year.  As SMEs look ahead to this new landmark reporting requirement, they will be taking the steps needed to ensure they meet these first-time obligations. Here is my advice on the steps you should take and the pitfalls you will need to avoid. Challenges for SMEs  Data collection from disparate systems The gender pay gap report will require inputs from a range of data sources. It is rare for any organisation, no matter what size, to be in a position to extract the data they need from a single source. Finance, payroll and HR systems are disparate in nature and contain data of differing quality. This challenge is amplified where spreadsheets persist in place of systems as the book of record. It can be time-consuming and challenging for non-technical users to extract, organise combine and compare this data and significant effort may be required to cleanse existing datasets in preparation for reporting.  Resourcing The amount of time and effort required to complete the gender pay gap report will be significant – it should not be underestimated. For SMEs, this could prove especially challenging because they are more likely to need to divert attention away from regular activities in situations where there is no dedicated reporting team. This may be especially challenging for the leadership team, who will be required to input into the report and sign it off. All of this increases the risk of introducing ‘bias’, akin to someone correcting their own homework so to speak, which you should avoid at all costs. Availability of expertise  Smaller organisations are highly unlikely to have access to the broad range of expertise needed to complete the gender pay gap report. To create a detailed report requires independent expert skills from a range of disciplines such as data analytics, visualisation and organisational change specialists.  Navigating legislative nuances The guidance in relation to how to report has evolved since the initial introduction of gender pay gap reporting. While many issues have been ironed out through the FAQs available on the government website (gov.ie), there are still nuances in the preparation of the report. My advice is to carefully study the available guidance to ensure you are compliant.  Comparing results While many organisations will be tempted to compare and contrast how they ‘measure up’ against their peers, it is worth bearing in mind that there is no right or wrong answer per se. The gender pay gap is a broad, multifaceted and pervasive issue that goes far beyond the numbers. Focus instead on assessing and improving the aspects of your own company practices, policies and culture that influence the gender pay gap – and your gender pay gap result will follow.  Best practice recommendations for SMEs Fail to prepare, prepare to fail It is important to be prepared for the questions you may get from your employees once your gender pay gap report is published. It is critical that you communicate the result of the report and ensure they fully understand what the data is saying and, more importantly, what it is not saying. It is very common for people to misunderstand the metrics contained in the gender pay gap report. As they say, good news travels fast, but bad news travels twice as fast – lead the narrative. Action planning In your final report, you need to provide a list of actions that you are going to follow to improve your gender pay gap in the 12 months ahead. Set goals for the next year in your report using the SMART (Specific, Measurable, Attainable, Relevant and Time-Bound) technique. It is worth noting again here the importance of focusing on your company practices, policies and culture – and take advantage of the opportunity for a yearly reset. Remember, “what gets measured gets done”.   Get help early on I cannot overstate this enough: get help early on. The requirements of your gender pay gap report may look straightforward at the outset, but do not be fooled.  Preparing such a report can be a time-consuming and intricate process requiring expertise in both data analytics and visualisation and organisational psychology, which together provide a complete assessment.  Moreover, significant input from departments and teams across the organisation will also be needed – typically human resources, finance and payroll, and senior management.  Final word Numerous organisations have come to us seeking help having realised just how complex preparing a gender pay gap report can be.  The best approach is to view it as an in-depth reporting process akin to an annual audit of your workforce analytics, practices, policies and culture.  Padraic Hayes is an Associate Director on Grant Thornton’s digital transformation advisory team and heads the firm’s gender pay gap service offering