The Minister of State with responsibility for Company Regulation at the Department of Enterprise, Trade and Employment, Dara Calleary TD has encouraged businesses to engage on new Corporate Sustainability Reporting Directive, the CSRD. Read more. Speaking at a recent webinar, Minister Calleary stated “The new rules for sustainability reporting may be challenging at the outset, however, the requirements have been sequenced, whilst still maintaining ambition, to allow companies, and the accounting and audit industry time to understand the new standards, start measuring the relevant data, and deepen the knowledge and skills necessary.” Minister Calleary went on to state his intention to establish and chair a new sub-group of the Enterprise Forum on Responsible Business that will act as a link with industry and relevant stakeholders and will provide a platform for regular interaction between the Department and its agencies on these important matters. A total of 34 responses were submitted by stakeholders and interested parties on the Member State options contained within the CSRD, ahead of its transposition into Irish law. (The response from Chartered Accountants Ireland can be found here and the Department’s published proposed policy response to the public consultation is here.)

Earlier this year the Dept. of Enterprise Trade and Employment (DETE) sought the views of stakeholders and interested parties on the Member State options contained within the Corporate Sustainability Reporting Directive (EU) 2022/2464, ahead of its transposition into Irish law. 34 responses were received by DETE including one from Chartered Accountants Ireland .A copy of each of the responses is now available on DETE’s website . This week DETE also published its proposed policy response to the public consultation on the Corporate Sustainability Reporting Directive and readers can access a copy of it here.

The latest KPMG Enterprise Barometer reveals a positive outlook among Ireland's indigenous businesses, with over a third planning workforce expansion. These entrepreneurial firms prioritise sustainability but seek clarity on costs and benefits, says Alan Bromell KPMG Enterprise Barometer 2023 highlights confidence among Ireland’s indigenous businesses, with over half (55 percent) expecting to increase turnover in the next 12 months.  The majority of survey respondents, 83 percent, support the need for more action on climate change, and 7 out of 10 are actively pursuing sustainable measures, demonstrating the proactive approach these entrepreneurial businesses are taking to incorporate environmentally friendly practices into their operations.   The research reveals overall optimism among Irish businesses, with over half (55 percent) expecting to increase turnover in the next 12 months and 38 percent expecting to expand their workforce, demonstrating a belief in their growth potential and job creation. Balancing the costs and benefits of sustainability While the majority of survey respondents support more action on climate change, two-thirds express concern about the need for more clarity on the costs and benefits of these measures, and three-quarters say no stakeholder groups are exerting pressure on them to develop decarbonisation strategies. This poses a significant challenge for companies as they strive to make informed decisions on sustainability measures and allocate resources effectively. The survey showed resilience and measured confidence in the future amongst Irish businesses and entrepreneurs. Notwithstanding the challenges in areas such as costs and interest rates, Irish entrepreneurs are resourceful and robust. Private Irish business and entrepreneurship are critical pillars of the Irish economy, providing employment, sustaining tax revenues and acting as role models for future entrepreneurs. In addition, their ingenuity and innovation can be instrumental in solving various challenges, from technology, health and nutrition to sustainability and environmental protection. The survey also shows that sustainability has become a fundamental aspect of business operations, and it’s encouraging to see businesses in Ireland actively pursuing sustainability measures. However, they need help understanding the costs and benefits of decarbonisation. Tax suggestions for Budget 2024 When asked for their views on the current tax regime, less than a quarter (24 percent) said they believe it encourages entrepreneurship and growth. At the same time, three-quarters feel that the Irish tax regime is more challenging for domestic businesses.  The top three tax changes businesses would like to see in Budget 2024 are introducing tax measures to encourage sustainable behaviour (83 percent), amending capital gains tax rates or rules to encourage investment in Irish companies (79 percent) and introducing a reduced tax rate for dividends for entrepreneurs (74 percent ). These highlight a desire for tax incentives and reforms that promote sustainable business practices, stimulate investment and reward entrepreneurship. Recruiting challenges Sixty percent of private Irish businesses and entrepreneurs face difficulties recruiting the right individuals to fill key company positions. Nearly half (45 percent) consider the current tax regime in Ireland a disadvantage to recruiting and retaining skilled employees. The availability of residential accommodation is another primary concern; over three-quarters (77 percent) say lack of accommodation is an issue, suggesting that the housing situation in Ireland could impact recruitment and competitiveness. Alan Bromell is Head of Private Enterprise at KPMG

The Climate Action Framework was approved by the Irish Government in August 2022. Sara McAllister, Partner and Head of Business Risk Services at Grant Thornton, sheds light on its origins and the obligations that organisations must fulfil In August 2022, the Irish Government approved the Climate Action Framework (the Framework) for the commercial semi-state sector. Developed by the New Economy and Recovery Authority (NewERA) in collaboration with the Department of Public Expenditure and Reform and the Department of Environment, Climate and Communications, the Framework applies to all commercial semi-state (CSS) companies.  CSS companies that sign up to or adopt the Framework are bound to a series of commitments for delivering on climate action. The Framework also outlines targeted approaches, informed by existing best practices, for implementing solutions that address the sector’s climate action objectives. What’s behind the Framework? CSS companies have an important role in achieving the Government’s 2030 climate action targets as set out in the Climate Action and Low Carbon Development (Amendment) Act 2021 and Climate Action Plan (CAP) 2021. A robust climate action strategy includes objectives for both mitigating and adapting to climate change. The public sector is uniquely positioned to lead by example, implementing changes that help Ireland achieve its climate action objectives and transition to a low-carbon and climate-neutral economy and society.  By taking charge, upholding commitments and successfully delivering on climate action strategies, public sector bodies can show other industries that meeting the Government’s climate action targets is achievable. CSS companies must fund the cost of meeting the commitments from their own resources. The Sustainable Energy Authority of Ireland’s (SEAI) public-sector monitoring and reporting system will measure the impact of their climate actions. Five commitments for CSS companies The five commitments within the Framework map onto the three pillars outlined in the Public Sector Leading by Example sections of the CAP 2019 and 2021 – measurement of carbon footprint, green public procurement and carbon pricing in capital evaluation.  The two additional commitments relate specifically to climate actions for corporate environments, focusing on the governance of climate action objectives and financial disclosures. Commitment 1: Governance of Climate Action Objectives What is it: Oversight at board level and integration of climate action objectives in the company’s strategic business planning. Why it matters: Having board-level oversight offers a clue about the importance of climate-related issues to an organisation as a whole. Buy-in and involvement at this level sends a signal to the entire company that meaningful climate action is integral to the company’s strategic direction. The board’s approval and monitoring of the resulting sustainability strategies ensures they are progressing appropriately, putting the organisation on track to meet its shorter-term climate-related benchmarks and ultimately achieve its long-term climate action objectives. Commitment 2: Emissions Measurement and Reduction Target What is it: Formal adoption of government emission reduction targets for the public sector and the SEAI measurement methodology. Why it matters:  Having a reporting structure to capture, compare and monitor carbon emissions over time is critical for driving accountability in reducing emissions.  At a minimum, organisations should be measuring their Scope 1 and Scope 2 emissions; however, the reporting requirements for Scope 3 emissions are set to increase, so companies can get ahead of the curve by beginning to report on these emissions now.   CAP 2021 requires that public sector bodies reduce their emissions by 51 percent. That’s an ambitious and challenging target, and the challenge will likely increase as the types of emissions included 'in scope' continue to expand. Commitment 3: Measuring and Valuing Emissions in Investment Appraisals What is it: Having investment decision-makers incorporate the value of carbon emissions in their decision-making parameters. Why it matters: Project appraisals for public capital investments need to consider fossil-fuel consumption to avoid any expenditures on long-term projects that have a commitment to or dependency on fossil fuels.  Greenhouse gas emission targets are legally binding and challenging to meet, so investment decision-makers need to take a project’s potential carbon emissions into account before they make a financial investment. Using carbon pricing during appraisals allows decision-makers to fully understand the cost that society will bear for a project’s emissions.  As a result, they can appreciate the climate consequences of their investment decisions and make better, more informed choices when presented with different options. The 2019 Public Spending Code sets out current carbon pricing; however, the Code is likely to be updated again to estimate the cost of achieving CAP 2021’s enhanced target of a 51 percent emission reduction. CSS companies must be in full compliance with this code year on year. Commitment 4: Circular Economy and Green Procurement What is it: The promotion of circular economy measures and implementation of green procurement processes. Why it matters: A circular economy reduces waste by maintaining the value of products and materials for as long as possible. Forty-five percent of carbon emissions come from the production of goods, so implementing a circular economy is a necessity for meeting emission reduction targets. The Whole-of-Government Circular Economy Strategy sets out Ireland’s transition plan to a circular economy. The public sector will play a leading role in this transition by implementing green procurement and circular economy practices. The Office of Government Procurement (OGP) has updated its procurement frameworks to align with these practices, providing guidance to public and semi-state bodies on how to meet their need for goods, services, works and utilities with solutions while simultaneously considering the total economic and environmental cost – from cradle to grave – of a solution. CSS companies should engage with the OGP and central purchasing bodies to facilitate their transition to green procurement practices. Commitment 5: Climate-related Disclosures in Financial Reporting What is it: Compliance with a relevant and appropriate climate-related disclosures framework within a defined time frame. Why it matters: Companies, including CSS companies, must become more transparent and aggressive about reporting climate-related information. Transparency is key for building and maintaining stakeholder trust and preventing reputational damage. Investors, regulators, purchasers and other stakeholders increasingly want access to this climate-related information because these insights often have implications for their own climate-related decision-making. Regulatory authorities and governments continue to update and strengthen their environmental reporting requirements. For instance, the new EU Corporate Sustainability Reporting Directive requires that companies operating in the EU report sustainability disclosures across several topics related to environmental and societal issues. CSS companies can keep pace with such regulations by adhering to a robust and appropriate climate-related disclosures framework.

Ireland’s urban growth demands sustainable development. As we transition to a green future, our focus must be on modernising regulations, energy resilience, R&D and public-private partnerships, says Robert Costello Ireland’s urbanisation has been rapid: in 1969, half of the population lived in rural areas, and urbanisation is expected to reach 75 percent by 2050. In recent decades, urbanisation combined with general population growth and an economic boom has dramatically increased the footprint of Ireland’s cities. Much of this growth occurred without due regard for sustainable development. As Ireland sets out on a green transition, we must focus on making our cities sustainable. Like the broader economy, Ireland’s cities run largely on fossil fuels. According to the United Nations, cities consume about 78 percent of the world’s energy, accounting for more than 60 percent of greenhouse gas emissions. Transport accounts for almost 18 percent of total emissions in Ireland, and nearly all (94 percent) of these emissions come from road transport. Ireland has among the longest commute times in Europe, with many commuting into and around cities. Ireland’s buildings are among the hardest to heat in Europe, with heat loss rates (U-values) three times those of Sweden. With poor heat retention and a relatively high reliance on solid fuels and oil, Irish buildings have the highest emissions in Europe. Net zero emissions commitments of Ireland and the EU The European Union is committed to achieving a 55 percent reduction in greenhouse gas emissions by 2030 and net zero emissions by 2050. Ireland has committed to reducing emissions by 50 percent by 2030 and achieving net zero emissions by 2050. Considering Ireland’s starting point relative to many of our European counterparts, significant action is required across the economy and society. By implementing initiatives across the following four pathways, Ireland’s urban areas can become more sustainable and resilient to climate change. 1. Modernise regulations Having the funding and finance to complete the green transition is necessary, but it is not sufficient: the regulatory environment must enable the required investment. Ireland’s regulatory regime has been slow to respond to the needs of those working towards Ireland’s net zero ambition. Green hydrogen (hydrogen produced from renewable energy) will have a key role to play in decarbonising the country’s hard-to-electrify sectors. This must be underpinned by a national hydrogen strategy that reviews existing regulations, considers where changes are required, and signals to the market the direction of travel in terms of the development of this vital sector. While the Government has consulted on a hydrogen strategy, the consultation report has yet to be published. An ambitious hydrogen strategy will go hand in hand with plans to develop offshore wind farms on Ireland’s west coast, allowing the country to become an energy exporter. 2. Plan for energy resilience and sustainability According to Engineers Ireland, Ireland faces an energy trilemma in which we must meet our energy needs while ensuring that we (i) increase sustainable energy production, (ii) keep our energy supply secure, and (iii) maintain affordability. Diversity of supply and investment in infrastructure, such as interconnectors and energy storage, are essential in overcoming this trilemma. 3. Invest in research and development We cannot build the world of tomorrow without research and development (R&D) today. We must therefore recognise the role of R&D within Ireland in making our green transition possible. As an international hub for technology firms, Ireland has the potential to make digitalisation a core part of how we decarbonise our economy, building smart cities and communities. Combined public and private investment in digitalisation R&D will transform our economy. 4. Rethink public-private partnerships Public-private partnerships (PPPs) are a very useful method of contracting to deliver infrastructure. In Ireland, they have been successfully deployed to develop our motorway network, build schools and now deliver much-needed social housing. They involve a lot of upfront work, de-risking projects and ensuring that the assets built are robust and well-maintained into the future. They also encourage more private sector involvement in infrastructure, bringing new technology and innovation into projects. In addition, PPPs allow governments and public bodies to retain ownership of the infrastructure assets, an essential feature for long-term public ownership. Rethinking PPPs involves broadening the areas in which this model can be deployed to help realise our net zero ambition. Areas where the model (or a variation of the model) can be deployed include district heating, battery storage, offshore grid infrastructure, bus and train fleets, electric vehicle (EV) charging, sustainable buildings and port infrastructure. On the (path)way to a better future Cities, big and small, can set out on clean-energy pathways. Each pathway requires working with various stakeholders, including some with competing needs. These stakeholders include regulators, power generators, power transmission and distribution companies, industry and consumers. Only by laying the proper groundwork can people be brought on board and positive outcomes maximised. Stakeholder engagement is all the more essential in the case of Ireland’s cities, which have less administrative and financial autonomy than cities such as Paris or Berlin – Ireland has the lowest level of local autonomy in the European Union. With a population that continues to grow rapidly and become more urban, Ireland must seize the opportunity to build more sustainable cities. A successful and sustainable green transition requires bringing people on board and embracing the technology that will enable shorter, cleaner commutes, warmer homes and a cleaner environment. Outlining and committing to clean energy pathways enables the public and private sectors to put the resources in place and build the necessary capacity to deliver the required investment in our cities and towns. Robert Costello is Leader in Capital Projects & Infrastructure Practice at PwC

  In this week’s Sustainability/ESG bulletin, read how environmental taxes in Ireland raised €4.5 billion in 2022 compared to capital taxes which raised €2.35 billion in the same period. In addition, we cover the launch of a multimillion pound project to explore the potential for geothermal energy in Northern Ireland, updates from Europe, new sustainability resources that are available for businesses, as well as the usual roundup of articles, podcasts and events. Environmental taxes bring in €4.5 billion in 2022 The Central Statistics Office (CSO) has published its latest release of environment taxes for 2022. The statistics indicate that environment-related taxes accounted for 4 percent of total taxes in 2022, amounting to €4.5 billion (compared to capital taxes which represented just under 2.9 percent in the same period amounting to €2.35 billion). Carbon taxes increased by 22 percent in 2022 compared to the same period in  2021, and amounted to €807 million. Energy taxes, which include transport fuels, accounted for 61 percent of all environment-related taxes in 2022. Transport taxes (including motor tax and vehicle registration tax) accounted for 39 percent of all environment-related taxes in 2022. Ireland’s progress on the UN Sustainable Development Goals Ireland has submitted its second Voluntary National Review (VNR) on the Sustainable Development Goals (SDGs) to the United Nations, assessing the country’s progress on actions to achieve Agenda 2030 and the SDGs. The VNR notes that while progress has been made, including fully achieving over 80 percent of the associated 169 targets, Ireland faces challenges in achieving the goals. A report published separately by Concern Ireland states that businesses, particularly SMEs, are a cohort in particular need of support in delivering on sustainability goals, and highlighted the tensions between the business sector’s drive for profit and the need to address the pressing climate and sustainability challenges. Separately, the  Minister for Transport, Eamon Ryan TD, announced the publication of the Renewable Transport Fuel Policy 2023-2025, which aims to bring Ireland closer to sustainable transport goals. Meanwhile, the EPA launched a new Food Waste Charter, calling on all businesses and State Agencies operating across the food supply chain to sign up and commit to reducing food waste to help Ireland meet its commitments to halve food waste by 2030 under UN Sustainable Development Goal 12.3. Further information about what the UN SDGs mean for accountants can be found in Chartered Accountants Ireland’s Sustainability for Accountants. Irish Government consultations on sustainability  The Department of the Environment, Communications and Climate Action (DECC) is inviting contributions to a number of consultations including: a call for expert evidence to support and inform the preparation of the Climate Action Plan 2024, which is due for publication later this year. The closing date for responses is 14 July, and submissions can be made online through a consultation platform.   a consultation on the Department’s Research and Innovation Strategy. The accompanying consultation document sets out the background and context for research and innovation in DECC, including an overview of current research and innovation activities supported. The closing date for receipt of submissions via the EU Survey website is 11 August. Climate Conversation 2023, an online questionnaire seeking views on how Ireland can secure a sustainable future and become a climate resilient society. Inputs will feed into ongoing work on Climate Action Plan 2024, and the closing date for responses is 8 September. Northern Ireland Geothermal energy potential project launches A new multimillion pound project from the Northern Ireland Department for the Economy is set to explore the potential for geothermal energy in Northern Ireland, it was announced this week. The project designed to ‘unearth the heat beneath our feet’ aims to support how the region will decarbonise the energy sector in pursuit of net zero carbon targets by 2050.  Geothermal energy is the heat generated and stored in the Earth and is a source of affordable, low-carbon, renewable energy. Air quality statistics - Europe The European Environment Agency (EEA) has published provisional data on CO2 emissions from new passenger cars and vans registered in Europe in 2022 which show that average carbon dioxide (CO2) emissions from new cars and vans in Europe dropped in 2022 for the third year running. The main driver of this trend was a continued growth in the share of electric car and van registrations. A separate report found that key air pollutants monitored under EU law continued to decline across most EU Member States, maintaining a trend since 2005. Separately the European Parliament’s Environment Committee adopted its position to improve air quality in the EU and to create a cleaner and healthier environment, setting stricter 2030 limit and target values for several pollutants to ensure that air quality in the EU is not harmful to human health, natural ecosystems and biodiversity. This news comes as the EU Commission this week adopted annual emissions allocations for Member States for 2023, 2024 and 2025, setting the maximum level of greenhouse gas emissions that each Member State can generate per year in the sectors covered by the European Union’s Effort Sharing legislation, aligning the allocations with the recently agreed, more ambitious national targets for 2030. These will collectively cut the EU’s greenhouse gas emissions in the Effort Sharing sectors by 40 percent when compared with 2005 levels (the previous 2030 target was a 30 percent reduction). Climate change, security and defence  - Europe The European Commission and the High Representative have adopted a Joint Communication laying out how the EU will address the growing impact of climate change and environmental degradation in the fields of peace, security, and defence. The communication sets out four main priorities around planning, operations and partnerships, and approximately 30 actions to deliver on them, making clear the connection between climate and environmentally induced instability and resource scarcity that can be instrumentalised by armed groups and organised crime networks, among others. Nature restoration law There was no majority amongst MEPs on the Environment Committee for the Commission’s proposal, as amended, for a Nature Restoration Law. The regulation on nature restoration was proposed by the Commission in 2022 as part of the European Green Deal to contribute to the long-term recovery of damaged nature across the EU’s land and sea areas and to achieve EU climate and biodiversity objectives. Separately the Commission is planning to mobilise an additional €430 million of EU funding for EU farmers, including €9.5 million for Irish farmers, impacted by adverse climatic events, high input costs, and diverse market and trade-related issues. New sustainability guidance for business Irish business group Ibec has launched ‘Climate Action: A toolkit for business’, in collaboration with Accenture. The toolkit provides businesses with the information they need for their climate action journey and provides practical guidance on how to develop an enduring climate action strategy.   Business in the Community Ireland has also recently published its 2023 Sustainability Handbook which aims to help develop a common understanding of the role of business as powerful agents for good in bringing about a low-carbon economy.   The Science Based Targets initiative (SBTi) has issued new supplier engagement guidance which aims to enable businesses to accelerate their decarbonisation efforts and support companies to engage their supply chains to set science-based targets.   The World Wide Fund For Nature (WWF) has issued a short explainer on the implications for business from recent climate science, describing how businesses can invest in solutions and innovations that can protect both the environment and nature, cut emissions and “unleash business ingenuity at every level with their customers, investors and employees”.   A summary has been published by the International Federation of Accountants (IFAC) of a recent 2023 EU Green Week event where global industry leaders, experts and finance professionals explored the crucial role of accountancy in driving sustainability. The event addressed the relevant skills and capacity building needed to empower accountants, and IFAC’s summary also includes useful resources and links to further information. Technical update (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) issued its inaugural standards - IFRS S1 and IFRS S2 - on 26 June 2023.The standards create a common language for disclosing the effect of climate-relates risks and opportunities in companies. See also webcasts on IFRS S1 and how IFRS S1 and IFRS S2 work together, ISSB’s an article “Ten things to know about the first ISSB Standards” responses from EFRAG and IFAC and the UK Endorsement Board (UKEB) draft comment letter relating to the ISSB’s recent Request for Information to inform its initial two-year work plan. Comments are requested by 23 July 2023. The Department of Enterprise, Trade and Employment is holding a webinar on the Corporate Sustainability Reporting Directive on Tuesday 4 July at 3pm. The webinar will provide an update on the policy decisions taken following the recent public consultation on member state options, and an update on its transposition plans.  Glossary update The Chartered Accountants Ireland sustainability glossary has been updated to include the All-Ireland Pollinator Plan, the Business for Biodiversity Platform, Business for Nature, ENCORE, the Wildlife Habitat Council (WHC) and the WWF – Biodiversity Risk Filter. Did you know? People around the world are preparing for Plastic Free July. Participants are taking their own small steps by looking at the plastics in their lives and choosing one or two items to switch. A free 31 Days of Plastic Free Choices calendar is available to download, with ideas for how to reduce single-use plastic waste at work, home, school, and in the community. Podcast The Explainer: What is hydrogen power, and could it replace coal, oil, and gas? James Carton, assistant professor in Sustainable Energy with DCU and an academic advisor to the United Nations on hydrogen, joins us on this week’s podcast to discuss this lesser spotted form of energy. How do you make it? Where could it be used instead of fossil fuels? Could it be part of a clean energy future, or does it amount to simply greenwashing? (27 mins) ‘You can’t decarbonize without digitization, you can’t increase digitization without data centres’  Ciaran Hancock is joined by Irish Times Business Reporter Ian Curran, Director of Cloud Infrastructure Ireland, Michael McCarthy and Energy Researcher at UCC, Paul Deane to discuss the impact of data centres on Ireland’s carbon emissions goals (32 mins) Articles   Accounting for Sustainability (A4S) has published a piece about bring finance mindset into sustainability reporting How to tell a good ESG story (ICAEW Insights) New rules aim to clamp down on corporate greenwashing (Reuters) The crucial role of auditors and accountants in the climate change fight (Accountancy Age) Five Takeaways From the Paris Summit to Fix Global Climate Finance (Bloomberg) EU Banks Expand Risk Scenarios They Face From Climate Change  (Bloomberg) Greenwashing firms and public entities face growing threat of litigation (Irish Times) EU regulators step up scrutiny on greenwashing (ICAEW Insights) CSRD: striving for consistent and quality sustainability assurance engagements across the EU. Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 26 July, 2023  14.00-15.00/30 Chartered Accountant House/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.  

  In this week’s Sustainability/ESG bulletin, read about Ireland’s climate projections and its rating as an attractive country for renewable energy investments. Also covered is the increased participation of women in senior roles in Ireland, the launch of Northern Ireland’s first ever consultation on Carbon Budgets at a time of rising emissions across almost all sectors in the region, updates from the European Commission, as well as the usual round-up of articles, podcasts and events. Met Éireann releases first climate projections from the TRANSLATE initiative Met Eireann, the Irish Meteorological Service, has this week released climate projections from a new climate resource for Ireland. Projects include a likelihood of drier summers, an increasing number of heatwaves, and wetter winters. The resource, TRANSLATE: One Climate Resource for Ireland, aims to standardise future climate projections and develop climate services that meet the information needs of decision makers. Data from TRANSLATE will be used to communicate climate science data/information for products such as indices, risk assessments, and uncertainty estimates, and provide information needed to build resilience to climate change across all locations, sectors and services. Ireland’s holds position in global renewable energy development attractiveness The latest edition of the EY Renewable Energy Country Attractiveness Index shows that Ireland has retained its 2022 position as the 13th most attractive country in the world for renewable energy investments. The index ranks the world’s top 40 markets on the attractiveness of their investment in renewable energy and deployment opportunities. Ireland’s Offshore Wind Auctions and increasing use of Corporate Power Purchase Agreements (CPPAs) have reportedly contributed to the position in the ranking. Also, this week, the Government approved the Terms and Conditions for the first offshore RESS auction, ORESS 1, with final auction results now confirmed and available on the EirGrid website. At least three offshore auctions are currently planned this decade. Irish businesses spent €8.6 billion on energy in 2021 Figures released by the Central Statistics Office (CSO) this week have revealed that the cost of energy purchases by enterprises in 2021 was €8.6 billion, of which 56 percent was paid for by firms in the services sector. The survey, using data from approximately  5,000 enterprises, showed that purchases of electricity and natural gas accounted for 62 percent of total energy costs incurred by enterprises in 2021, and the use of renewable energy purchased directly by enterprises increased by 59 percent between 2012 and 2021. The release was compiled during the COVID-19 pandemic, which impacted on the 2020 and 2021 data. Read more. Increase in proportion of women in senior roles The first annual report of the Women in Finance Charter published this week and found that female representation on executive committees in Ireland has increased from 32 to 35 percent since 2022. The Charter is a collaboration between industry and Government under the Ireland for Finance strategy. Established in 2022, it seeks to improve female representation in financial services firms operating in Ireland and is open to all financial services firms operating in Ireland. Northern Ireland launches first ever consultation on Carbon Budgets Northern Ireland’s first ever consultation on Carbon Budgets has been launched by the Department of Agriculture, Environment and Rural Affairs (DAERA). The 16-week consultation will run from 21 June to 11 October and seeks feedback on the proposed first three carbon budgets for 2023-2027, 2028-2032 and 2033-2037, as well on the interim targets that should be set for 2030 and 2040 for reductions in greenhouse gases. DAERA is also seeking views through the consultation on the recommendations of the UK Climate Change Committee (CCC) on the Path to Net Zero for Northern Ireland, and is keen to hear from individuals, businesses, communities, and other organisations from across the region. The consultation was launched the day after DAERA’s publication of a statistical bulletin on greenhouse gas emissions for Northern Ireland for the period between 1990 and 2021 which also shows that between 2020 and 2021 emissions increased in all sectors in the region, with the exception of waste management and public. The largest increases were in the transport, agriculture and energy supply sectors, respectively. Plastic packaging tax – monthly update from HMRC (From our colleagues in Tax) HMRC has begun sending a monthly email containing updates on the plastic packaging tax (“PPT”). This month’s email is available to read. HMRC has also sent an email with key reminders on the PPT. European Commission consults on Carbon Border Adjustment Mechanism The European Commission has published a call for feedback on the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its transitional implementation. To give time for businesses to prepare, during the phase, from 1 October 2023 until the end of 2025, traders will only have to report on the emissions embedded in their imports subject to the mechanism without paying any financial adjustment. Sustainable finance for SMEs and Green EU Trademarks on the rise (from our friends in Accountancy Europe) The European Commission has published a new sustainable finance package in which it states it will ask EFRAG to prioritise work on what it describes as “a voluntary standard for non-listed SMEs, which may use it to standardise the sustainability information they wish to report, and which can make it easier for them to participate in the transition to a sustainable economy.” It also emphasises the need to reinforce SMEs’ access to and opportunities in transition finance.   The EU’s Intellectual Property Office (EUIPO) has published its latest Green EU Trade Marks report, showing that SMEs account for 10 percent of environmentally friendly EU Trade Marks (EUTMs) and filed more green EUTMs than large companies between 2015 and 2021. The report argues this demonstrates the growing commitment of SMEs towards sustainable practices and their role in introducing eco-friendly goods and services into the EU Single Market.   Accountancy Europe support tools for SMEs’ sustainable transition include a paper on SME sustainability risk management and a 3-step sustainability checklist, with more to come. IFRS Foundation publishes educational material on effects of climate matters on SMEs’ Accounting Standard The International Federation for Reporting Standards (IFRS) has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. The material was developed in response to feedback suggesting that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. Glossary update The Chartered Accountants Ireland sustainability glossary has been updated to include the Carbon Border Adjustment Mechanism (CBAM), Carbon capture, utilisation and storage (CCUS), double materiality, and more.   Podcast Richard Curtis, writer of British comedies like Love Actually, Mr. Bean and Blackadder talks to Bloomberg Zero about Make My Money Matter, an initiative to make retirement funds and banks greener (35 mins) Articles Europe is 2.3 degrees hotter than before industrial revolution, climate report finds (The Journal) Much of the time growth strategies and green strategies don’t have to be so different -  You can make your business more sustainable, with an applied focus (Irish Independent) Where are leading Irish companies on decarbonising and embracing sustainability? (Irish Times) In the loop: tech and innovation in the circular economy - From manufacturers to consumers, tech is coming around to the ideals of the reuse and regeneration of existing materials and products (Business Post)   Upcoming events The UN Global Compact is organising a series of activities around the world for International SME Day on 27 June.  Small Business, Big Impact is a live regional in-practice exchange session to learn directly from SMEs on how they are integrating sustainability into their business strategy and operations. Speakers include Jess Fleischer, CEO, Son of a Tailor (Denmark) and Hanna Kalliomäki, Chief Sustainability Officer, Paptic (Finland). 27 June 2023, 14:30 (Dublin time). Register Here CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

  In this week’s Sustainability/ESG bulletin, read how the EU Commission has launched a public consultation following publication of their amendments to the mandatory European Sustainability Reporting Standards (ESRSs). Also covered is the launch of an inaugural All-Ireland Sustainability Awards, the new package of sustainable finance measures from the European Commission, developments in Europe around the circular economy, resources for SMEs to drive sustainability and business growth, as well as the usual round-up of articles, podcasts and events. Public Consultation - European Sustainability Reporting Standards (ESRSs) The EU Commission has published their amendments to the mandatory European Sustainability Reporting Standards (ESRSs) and draft delegated Act that will be used to adopt them into law. The standards cover environmental, social and governance matters which many Irish based companies will have to report on as a result coming within the scope of the Corporate Sustainability Reporting Directive. The Commission has now launched a 4-week call for public feedback until 7 July.  Find out more from our colleagues in Professional Accounting here. In other news of sustainability reporting, The World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards. All-Ireland Sustainability Awards 2023 launches The inaugural All-Ireland Sustainability Awards 2023 launched this week, with the aim of showcasing and celebrating Northern Ireland and Ireland’s best examples of sustainability among businesses and organisations. There are 14 award categories, ranging from Social Sustainability, Diversity & Inclusion Initiative of the Year; Green Marketing / Stakeholder engagement initiative of the Year; Net-Zero Initiative of the Year; Waste, Resource Management & Circular Economy Initiative of the Year; Consultant / Consultancy of the Year; Young Changemaker of the Year; to Biodiversity Initiative of the Year; and Overall Winner of the Year 2023. The awards are free to enter, and the deadline for entries is 1pm on Tuesday 15 August 2023. A network for young leaders – net zero, clean growth and sustainability, diversity & inclusion A new professional network, Leaders 2050, has launched for future leaders in all sectors who have an interest in net zero, clean growth and sustainability, with a focus on diversity and inclusion. The network is facilitated by KPMG Ireland with a mission to equip the next generation of young leaders with the skills, networks and purpose needed to drive towards a more sustainable future. Following the launch, KPMG will be running a series of events and publishing thought leadership for members, with the first in-person event taking place next month. The network is open to young professionals across every sector who have an interest in driving the ESG agenda. To sign up to receive Leaders 2050 Ireland newsletter, event invitations and subscribe to our mailing list, please see link here. Commission puts forward new package of sustainable finance measures The European Commission has put forward a package of measures to build on and strengthen the foundations of the EU sustainable finance framework. The aim of the package is to ensure the framework works for companies wishing  to invest in a sustainability transition and to make the framework easier to use, thereby continuing to contribute effectively to the European Green Deal objectives. The package adds additional activities to the EU Taxonomy and proposes new rules for Environmental, Social and Governance (ESG) rating providers, which will increase transparency on the market for sustainable investments. Europe and the Circular Economy This week saw several developments related to the circular economy in Europe: The EU parliament approved new rules to make batteries sustainable. The new rules, which will come into force once the European Council has formally endorsed the text, is particularly relevant to the 30 million electric vehicles (EVs) anticipated to be on EU roads by 2030. Speaking about the development, Rapporteur Achille Variati said: “For the first time we have circular economy legislation that covers the entire product life cycle — an approach that is good for both the environment and the economy.” The European Environment Agency (EEA) has published twobriefings that show how efficiency gains in production have reduced some environmental impacts, but are unlikely in of themselves to bring Europe’s consumption to a sustainable level. In another briefing -‘The benefits to biodiversity of a strong circular economy’ – the EEA explores how the circular economy can reduce and, in some cases, reverse the impacts of production and consumption on biodiversity, at a time when biodiversity loss and decline of ecosystems are occurring in Europe and globally due to unsustainable patterns of production and consumption. The EEA also announced a new web product produced to help prepare the public for the effects of climate change. ‘‘Extreme summer weather in a changing climate: is Europe prepared?’ aims to provide up-to-date information and data to raise awareness among decision makers and the public of the urgent need to address climate change and to support ongoing government efforts in putting in place climate mitigation measures and building societal preparedness. With it, users can explore interactive maps and charts information on heatwaves, floods, droughts and wildfires, and the rise of climate-sensitive diseases like dengue fever. Resources The UN Global Compact is inviting SMEs to join Small Business, Big Impact: A Six-Step Journey to Drive Sustainability and Business Growth. Designed specifically for SMEs, the resources comprise five short, on-demand courses, one day of virtual live peer exchange sessions, and a toolkit to help SMEs take action. It’s available in multiple languages and time zones (English, Spanish, French, Portuguese, and Arabic). Registration is open and free of charge to all SMEs. The UN Global Compact is a voluntary initiative based on CEO commitments to implement the universal sustainability principles and take steps to support the UN Sustainability Development Goals. Chartered Accountants Ireland joined the compact in 2021. Watch back On 8 June the Ulster Society hosted a webinar in partnership with British Business Bank addressing the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation by Julia Groves covered the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how the British Business Bank is involved. A recording of this webinar is available to view here.   Podcast With Ireland set to fail emissions targets again, Dr Tara Shine explains what businesses can do (4 mins) (Radio 1) Articles Nature and biodiversity ascend the ESG agenda –three new reporting requirements pushing nature and biodiversity up the ESG agenda (Accountancy Ireland) Nature-restoration law narrowly survives in European Parliament (Irish Times) The financial sector needs to take a leadership role in addressing climate change, the Deputy Governor of the Central Bank said (Business Post) How green are your pension funds? (ICAEW) Investors pull back support for green and social measures amid US political pressure (Financial Times)   Upcoming events   The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

On 8 June the Ulster Society hosted a webinar in partnership with British Business Bank addressing the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation by Julia Groves covered the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how the British Business Bank is involved. A recording of this webinar is available to view HERE A pdf copy of Julia's slides is available HERE  

Three new reporting requirements are pushing nature and biodiversity up the ESG agenda. Orla Delargy explains why Environmental, Social and Governance (ESG) topics are currently top of mind in business and finance. Climate change has dominated under the ‘E’ of ESG, but nature and biodiversity are catching up. Three developments have helped drive the momentum: the Taskforce on Nature-related Financial Disclosures, the EU’s Corporate Sustainability Reporting Directive and the new Global Biodiversity Framework. Taskforce on Nature-related Financial Disclosures    The latest Taskforce on Climate-related Financial Disclosures (TCFD) status report found that over 3,800 organisations support the TCFD and are working towards TCFD-aligned reporting. The question is whether the newer Taskforce on Nature-related Financial Disclosures (TNFD) will follow the same path, and whether nature-related disclosures will become mandatory in certain jurisdictions.  Like the TCFD framework, the TNFD proposes disclosures across four pillars: Governance – the organisation’s governance around nature-related dependencies, impacts, risks and opportunities; Strategy – the actual and potential impacts of nature-related risks and opportunities for the organisation’s businesses, strategy and financial planning where such information is material; Risk & impact management – how the organisation identifies, assesses and manages nature-related dependencies, impacts, risks and opportunities; and Metrics & targets – the metrics and targets used to assess and manage relevant nature-related dependencies, impacts, risks and opportunities where such information is material. Relatively few organisations have started incorporating biodiversity into their broader ESG governance and strategy. However, over 200 organisations are piloting the TNFD guidance and there is a public consultation currently open, with the first full version of the framework expected in September 2023.  Corporate Sustainability Reporting Directive  Where the TNFD is a global, voluntary framework, the Corporate Sustainability Reporting Directive (CSRD) is EU-specific and mandatory. The CSRD significantly expands the existing rules on non-financial reporting, with close to 50,000 companies across Europe likely to be affected in the coming years.  The CSRD disclosure requirements on biodiversity go much further than the previous reporting directive, requesting information on biodiversity metrics, policies and targets. Again, organisations are asked to identify and assess material impacts, risks and opportunities that relate to biodiversity, and the TNFD is explicitly referenced.  Crucially, organisations are asked to disclose whether they have a transition plan in line with the new Global Biodiversity Framework, agreed during the UN conference in Montreal in December 2022. Global Biodiversity Framework  The overarching vision of the Global Biodiversity Framework (GBF) is no net loss of biodiversity by 2030, net gain from 2030 and full recovery by 2050. The GBF sets out a plan for the next decade, with four long-term goals and 23 targets, spanning a wide range of topics including spatial planning, nature restoration, invasive alien species, agriculture and climate change. Although almost all the targets are relevant to the private sector, Target 15 stands out. It asks countries to take measures to ensure that organisations assess and disclose their risks, dependencies and impacts on biodiversity. The question is how national governments will interpret this and what measures they will take.  How organisations can use the frameworks Organisations will be encouraged to see the degree of alignment and overlap between emerging frameworks such as the TNFD, CSRD and GBF. The challenge is to get familiar with these frameworks and, crucially, get started now.  As many of the frameworks discussed above are still in development, it is tempting to adopt a ‘wait-and-see’ approach. However, organisations can progress training and capacity building now. This is a new topic for many people but getting informed is the prerequisite for taking the right actions. Orla Delargy is an Associate Director with KPMG

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s involvement in the business-led Green Pearse Street campaign, and how a sustainable future will be the focus for the 2023 National Economic Dialogue. Also covered is ISIF’s commitment to Just Climate's $1.5 billion fundraising to addresses the Net Zero challenge at scale, how Ireland is at risk of not meeting EU waste targets, and the increase in Northern Ireland’s use of renewable energy, as well as the usual useful resources, podcasts, articles and events. Chartered Accountants Ireland and business-led Green Pearse Street campaign  Chartered Accountants Ireland is a founding member of a new group, Green Pearse Street, which launched last week. Green Pearse Street comprises a diverse group of local businesses and organisations on and near Pearse Street, one of Dublin’s longest streets, stretching from Ringsend to College Green. The aim of the new campaign is to ‘green’ the street, improve the air quality, create a health and biodiversity corridor, and more social space for people. The campaign launch, covered by Independent.ie, Dublin Live and others, coincides with EU Green Week, the EU's annual event to showcase the bloc's climate projects and policies, which run from Saturday 3 June and Sunday 11 June. ‘A sustainable future’ the focus for 2023 National Economic Dialogue The discussions at the 2023 National Economic Dialogue are to focus around the theme of ‘enabling a sustainable future’ for all for the economy in 2030, it has been announced this week. A breakout session of the event - “Charting a sustainable path towards achieving our National climate action objectives”- is to be chaired by Minister for the Environment, Climate and Communications and Minister for Transport, Eamon Ryan T.D. The National Economic Dialogue, which will take place on 12 June, is the principal institutional forum for public consultation and discussion on the Budget. Hosted jointly by the Department of Finance and the Department of Public Expenditure and Reform, it provides a deliberative forum for stakeholders to participate in an open and inclusive exchange on the competing economic and social priorities facing the government. Representatives from Chartered Accountants Ireland will participate in the event. Ireland Strategic Investment Fund addresses the Net Zero challenge at scale The National Treasury Management Agency (NTMA) has reported that Just Climate, an investment business created by former US Vice President Al Gore’s Generation Investment Management, has announced the closing of its inaugural $1.5 billion fund, ‘Climate Assets Fund I’. The Ireland Strategic Investment Fund (ISIF) was a member of the fund’s founding investor group, which also include Microsoft Climate Innovation Fund and Harvard Management Company. The Fund, which exceeded its $1 billion target, will be part of Just Climate’s industrial climate solutions focus and will pursue investments which have the potential to deliver ‘transformational climate impact’ across some of the highest-emitting, hard-to-abate industries. Commenting, Paul Saunders, head of climate for ISIF, reportedly explained that “[t]he extent and urgency of the climate challenge require ISIF and other major investors to work together to drive innovation in climate action. We believe this initiative is a major step forward in sustainable investing and increasing the capital available to target high-impact areas in the shift to a low-carbon economy.” Ireland at risk of not meeting EU waste targets Ireland is one of 18 Member States identified in a report published this week by the European Commission as being at risk of not meeting the 2025 preparing for re-use and recycling targets for municipal and all packaging waste and the 2035 landfilling target. In the report the Commission presented recommendations to the Member States, building on continuous financial and technical support provided for improving performance on waste management, and covering a broad range of actions from reducing non-recyclable waste to increasing reuse, improving governance, deploying economic instruments and awareness-raising. The factsheet for Ireland states that while Ireland is on track to meet the 2025 recycling target for all packaging waste and is likely to meet the 2035 target for landfilling of municipal waste, it is at risk of missing the 2025 target for reuse and recycling of municipal waste. Increase in Northern Ireland’s use of Renewable Energy The percentage of total electricity consumption in Northern Ireland generated from renewable sources (48.5 percent) has increased by 4.6 percentage points in the 12-month period April 2022 to March 2023 compared to the previous year. This is according to a report, published this week by the Department for the Economy, which aids reporting on performance against the commitments in the Northern Ireland Energy Strategy ‘Path to Net Zero Energy’ and the Climate Change Act target which is to “ensure that at least 80% of electricity consumption is from renewable sources by 2030.” The full report is available on the Electricity Consumption and Renewable Generation Statistics page on the Department’s website.  World Environment Day Monday 5 June was World Environment Day, the United Nations day which celebrates environmental action and the power of governments, businesses and individuals to create a more sustainable world. Led by the United Nations Environment Programme (UNEP) and held annually since 1973, this year’s World Environment Day focussed on global solutions to combat plastic pollution.             Resources Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards. In the second of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton demonstrated how to navigate the content and disclosures included in the first set of ESRSs, what undertakings should do to prepare for implementation, and how to understand more about the requirements of the CSRD. Watch the recording here.  The Sustainable Energy Authority of Ireland (SEAI) hosted a Business Briefing on 'Reduce Your Use' in May. The topics explored included the Climate Toolkit for Business, the benefits of an Energy Audit, Electric Vehicle supports and more. Watch the recording. Podcast ‘Green skills for all’ Five Degrees of Change, the Business Post's energy and environment podcast sponsored by PwC, interviewed Andrew Brownlee, chief executive of Solar, the Irish state agency responsible for further education and training (Listen) Articles Global greenhouse gas emissions at 'all-time high' (Irish Times) What exactly counts as a carbon credit? (Bloomberg) Singapore launches carbon exchange despite market’s greenwashing scandals (Financial Times) Green accountancy guide to aid 'investor-grade' greenhouse gas reporting (GreenBiz) ESG an “immense” market for mid-tier accounting firms to tap into (AccountancyAge) Upcoming Events   The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

  In this week’s Sustainability/ESG bulletin, read about Ireland’s attempts to decouple economic growth from rising CO2e emissions, as predictions from the EPA indicate that Ireland will fall well short of its climate targets for 2030. Also covered is the Energy Efficiency Grant announced for small businesses, the funding announced for circular economy projects, the new Sustainability Handbook, details of Sustainability and ESG awards, new resources for accounting and finance professionals for enhancing Greenhouse Gas (GHG) reporting, and updates from Europe, as well as articles and events. Economic growth and Ireland’s carbon emissions trajectory New data has been published by Ireland’s Central Statistics Office (CSO) that for the first time focuses on the extent to which economic growth and emissions are linked in Ireland. The data reportedly indicates that in comparison with most EU countries, there has been only ‘modest decoupling’ of increased emissions in Ireland – particularly around transport – resulting from increased economic activity since 2010. The news comes as the Environmental Protection Agency (EPA) published a report which predicts that Ireland will fall well short of its climate targets for 2030. In its assessment of Ireland’s total projected greenhouse gas (GHG) emissions out to 2040, the EPA found that Ireland is not on track to meet its 51 percent emissions reduction target (by 2030 compared to 2018) even if most of the 2023 Climate Action Plan measures are implemented. Further measures still need to be identified and implemented to achieve the targets. Separately this week a Joint Declaration of Intent on cooperation in the field of green hydrogen - predicted to play a crucial role in decarbonising Ireland’s energy system -  was signed between the Irish Department of the Environment, Climate and Communications and the German Federal Research Ministry. The Declaration was signed to formalise cooperation in respect of green hydrogen between Ireland and Germany. The Irish Government is currently developing a National Hydrogen Strategy, due to be finalised shortly, which will set out Ireland’s vision for how hydrogen will be produced and used in Ireland. White Paper on Enterprise Implementation Plan 2023-2024 published Minister for Enterprise, Trade and Employment, Simon Coveney T.D., has published an implementation plan to support delivery of the policy objectives outlined in the White Paper on Enterprise 2022-2030, published last December. The White Paper on Enterprise Implementation Plan 2023-2024 is the first in a series of consecutive two-year implementation plans to realise the Government’s vision for Irish-based enterprise. The first of the policy’s seven priority enterprise policy objectives – ‘Integrating decarbonisation and net zero commitments’ – includes a target to reduce emissions from industry by 35 percent by 2030, with a 45 percent reduction in emissions expected in the commercial built environment by 2030. New Energy Efficiency Grant announced for small businesses An Energy Efficiency Grant to help small businesses was announced this week by Minister for Enterprise, Trade and Employment, Simon Coveney, T.D. The new support, available through Local Enterprise Offices, will enable small businesses to invest in technologies and equipment to make their businesses more energy efficient. The grant will cover up to 50 percent of the costs to a maximum amount of €5,000.  Funding announced for innovative circular economy projects Funding of €640,000 for 13 projects across Ireland was announced this week under the second Circular Economy Innovation Grant Scheme (CEIGS). The Circular Economy Innovation Grant Scheme is designed to help communities make the transition to a circular economy, and to a more sustainable future, by reducing and eliminating waste and keeping resources in use for as long as possible. The CEIGS complements other circular economy work being progressed, including the introduction of new environmental levies such as the new waste recovery levy, incentivization of commercial waste collection, the introduction of a Deposit Return Scheme for plastic bottles and cans, and the publication of the National Food Waste Prevention Roadmap.   ‘Building Better Businesses’ event series continues The Department of Enterprise, Trade and Employment (DETE) has announced the next in its series of Building Better Business events across the country. The events are aimed at helping businesses navigate their transition to a green economy and boosting business performance through digital transformation. The next event, on Friday, 23 June 2023, 8.30am – 1.30pm in the Osprey Hotel, Naas, Co Kildare, will feature panel discussions on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy, expert information on the range of government supports available to businesses, and an opportunity to network and connect with other businesses. It is open to businesses based in Kildare, Meath and Wicklow. Register and find out more about the event here.  New Sustainability Handbook Business in the Community Ireland has published its 2023 Sustainability Handbook to help develop a common understanding of the role of business powerful agents for good in bringing about a low-carbon economy where everyone thrives. Focusing on ‘Economic, Environment, Social Goals, underpinned by Governance’ (‘EESG’), the handbook aims to introduce readers to the depth and breadth of sustainability, support sustainability practitioners in setting and delivering strategic objectives relating to EESG topics, and facilitate anyone who wants to learn more how businesses can be powerful actors for positive change. Sustainability and ESG Reporting Awards – Chartered Accountants Ireland Leinster Society The Chartered Accountants Ireland Leinster Society’s Published Accounts Awards 2023 has now been launched, and is welcoming entries from across all types of reporting bodies – whether they are large listed companies, or small not-for-profit organisations. The competition will focus on annual reports in respect of financial years ended on or before 31 March 2023. There are two Sustainability and ESG Reporting Awards this year, one for Listed entities and one for Unlisted entities. The deadline for entries is Friday 14 July 2023 and winners will be announced on 9 November at an event in The Shelbourne Hotel, Dublin. Funding for UK businesses to capitalise on offshore wind The Offshore Wind Growth Partnership (OWGP) has issued its next funding call, with a total funding pot of £2 million for projects that will lead to a step-change in company growth within the offshore wind sector. Grants of £50,000 to £500,000 are available to UK businesses for projects that align to identified scope areas, and the call is open to a wide range of proposals across the existing offshore wind supply chain and new market entrants. The deadline for Stage 1 applications is 5pm on Friday 21 July 2023 and details are available here. European State of the Climate report published The 2022 release of the European State of the Climate (ESOTC) report has published, providing detailed analysis of the past calendar year and giving updates on the long-term trends of key climate indicators. The report found that 2022 was the second warmest year on record in Europe, at 0.9°C above average. Summer was the warmest on record, at 1.4°C above average, and 0.3–0.4°C above the previous warmest summer, in 2021. European Parliament adopts position on rules to tackle companies’ impact on human rights and the environment The European Parliament has adopted its position for negotiations with member states on rules to integrate human rights and environmental impact into companies’ governance. Companies will be required to identify, and where necessary prevent, end or mitigate the negative impact of their activities on human rights and the environment such as on child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss. They will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas. Parliament also adopted recommendations for the EU strategy for sustainable and circular textiles, for textile products sold in the EU to be more durable, easier to reuse, repair and recycle, the production of which should respect human, social and labour rights, the environment and animal welfare throughout the supply chain. MEPs also want EU and national measures to put an end to “fast fashion”. New resources for accounting and finance professionals -  enhancing Greenhouse Gas (GHG) reporting New resources are now available to help CFOs, accountants and finance professionals undertake or enhance cost-effective and investor-grade GHG reporting. The guidance, designed to be built on existing systems and processes, is divided into two parts: 8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals – a guide for finance and accounting professionals to engage with others across their business to prepare for GHG emissions reporting requirements aligned to financial reporting processes. GHG Reporting Building Blocks for Accountants – technical guidance necessary for accountants to collect and enhance the quality of data related to all scopes of GHG emissions at individual entity and group levels. The guidance was released by the International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA), and World Business Council for Sustainable Development (WBCSD). Institute interview - Corporate Sustainability Reporting Directive Last week, Dee Moran, Professional Accounting Lead with Chartered Accountants Ireland, interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations. Watch webinar. (This interview was the first in our series on EU sustainability reporting. For the second event, Dee will be joined next week (June 8) by Orla Carolan, Director in Grant Thornton, to discuss the proposed European Sustainability Reporting Standards (ESRSs). Find out more and register here.) Newsletters The June edition of Accountancy Europe’s Sustainability Update The May edition of the International Sustainable Finance Centre of Excellence Newsletter Articles Bank of England Governor Andrew Bailey vows to press ahead with work to assess climate-related risks to the economy, brushing off criticism that officials have been distracted from their fight against inflation. (Bloomberg) UK regulator probes sustainable loans market (Financial Times) What dirty laundry? The problem with greenwashing (Accounting for Sustainability (A4S)) New Zealand manages climate impacts. The government will help to buy out the owners of cyclone and flood-damaged houses in areas deemed susceptible to severe weather events, beginning a process of managed retreat in the face of climate change.  (Bloomberg)    Rich nations say they're spending billions to fight climate change. Some money is going to strange places. (Reuters)  Upcoming Events    Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition  In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition.  8 June, 15:00 - 16:15 (Dublin time) Ulster Society, Chartered Accountants Ireland - Advising on Net Zero for clients: the opportunities and the threats This free webinar in partnership with British Business Bank and featuring Julia Groves, will address the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation will cover the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how British Business Bank is involved.   8 June, 12:00 - 13:30 Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. 8 June, 10:00 - 11:00 Northern Ireland Healthy Working Lives Conference 2023  This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

  In this week’s Sustainability/ESG bulletin, read about Ireland Strategic Investment Fund’s €68m investment in international decarbonisation funds, the Department of Enterprise Trade and Employment’s responsible business webinar, and Ireland’s request to the EU for a modification to Ireland’s recovery and resilience plan. Also covered is the decrease in Northern Ireland’s business sector emissions, the EU’s progress towards socio-economic Sustainable Development Goals and the usual as articles, podcasts and events.  Ireland Strategic Investment Fund invests €68m in international decarbonisation funds The Ireland Strategic Investment Fund (ISIF), part of the National Treasury Management Agency (NTMA), is investing €68m in two leading international decarbonisation funds as part of its €1bn 5-year climate action investment programme. The funds are managed by Energy Impact Partners LP (EIP), which plans to invest in emerging Ireland-based decarbonisation and energy technology companies. Commenting, Paul Saunders, Head of Climate with ISIF said “This investment demonstrates clear intent around the strength and scope of ISIF’s climate investment plans. It shows how we can leverage our investment capability to build a deeper, stronger network with climate investors from all over the world - and ultimately attract more international capital to Ireland while supporting emerging Irish businesses in this space.” Department of Enterprise, Trade and Employment’s ‘Responsible Business’ resources Over 300 delegates registered for the Department of Enterprise, Trade and Employment’s webinar on Responsible Business initiatives, which took place on 23 May. The event opened with remarks from Minister Simon Coveney, T.D., who stated that the event was part of a series of initiatives planned by the Department to provide guidance to businesses on new wide-ranging initiatives being developed to address increasing stakeholder demand for businesses to act responsibly and with accountability. The event included presentations from officials on three initiatives with implications for Irish businesses: the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct; the EU Corporate Sustainability Reporting Directive (CSRD); and the proposed EU Directive on Corporate Sustainability Due Diligence (CSDDD). Further details can be found on the Department’s website on Responsible Business. Ireland requests modification to recovery and resilience plan Ireland has submitted a request to the European Commission to modify two measures within its recovery and resilience plan. The measures include one aimed at encouraging private investment in energy efficiency through a guarantee scheme, and another aimed at increasing the supply of social and affordable housing. First published in 2021, Ireland’s recovery and resilience plan outlines how Ireland intends to utilise grants from the EU’s Recovery and Resilience Facility to support economic and social recovery, and address green and digital issues, as the country emerged from the COVID-19 pandemic. The Commission has up to two months to assess whether the modified plan still fulfils the assessment criteria in the Recovery and Resilience Facility (RRF) Regulation, after which it may make a proposal for an amended Council Implementing Decision to reflect the changes to the Irish plan. Report notes decrease in Northern Ireland’s business sector emissions Northern Ireland’s 2020 greenhouse gas emissions reduced by 24 percent since 1990, according to the 15th annual Northern Ireland Environmental Statistics Report. The report, published by the Department of Agriculture, Environment and Rural Affairs (DAERA), found that businesses accounted for 13 percent of all greenhouse gas emissions in the region in 2020, compared to agriculture (27 percent), transport (16 percent) and energy supply (14 percent). According to the report, the largest decreases were in the energy supply, waste management and business sectors, a reduction driven by improvements in energy efficiency, fuel switching from coal to natural gas, and the introduction of methane capture and oxidation systems in landfill management. Tax Update (From our colleagues in the Tax Team) HMRC has recently updated its plastic packaging tax guidance as the tax is now more than 12 months old. HMRC has also published a consultation seeking views on draft legislation amending the Plastic Packaging Tax regulations. Report finds EU’s socio-economic Sustainability Development Goals show most progress The statistical office of the European Union, Eurostat, has published an overview of progress towards the Sustainable Development Goals (SDGs) in the EU. Findings from the report indicate that the EU has made most progress towards ensuring decent work and economic growth (SDG 8), with the EU's employment rate in 2022 reaching a new record high of 74.6. The report is published together with the European Semester Spring Package, in order to increase its relevance for policy, and for the first time included analysis of the short-term impact of current crises on the SDGs, such as the energy crisis in the context of Russia's war against Ukraine and the aftershocks of the COVID-19 pandemic. Technical Sustainability Accounting Updates From our colleagues in Professional Accountancy  The European Financial Reporting Advisory Group (EFRAG) is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023. The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has  published its 2022 Annual Report, which provides an account of its joint work completed over the past year.  It focused on issues of cross-sectoral relevance, such as joint risk assessment, sustainable finance, digitalisation, consumer protection, securitisation, financial conglomerates, and central clearing. IAASA, Ireland’s accounting enforcer, has published a Paper “Transparency Regulations – information requests”. This Paper lists some information requests that IAASA has made to companies as part of its financial statement examinations. Podcasts By 2050, almost 70 percent of the world’s population will live in cities — and nearly 1,000 cities will see their average high temperatures hit 35C (95F) during summer months. This episode of Bloomberg’s podcast Zero, interviews UN Habitat’s first ‘global chief heat officer’ about what urban centres, including businesses, can do to prepare.  Institute interview - Corporate Sustainability Reporting Directive This week, Dee Moran, Professional Accounting Lead with Chartered Accountants Ireland, interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations. Also in the webinar was an overview of the proposed European Sustainability Reporting Standards (ESRSs) and an update on the assurance of sustainability reporting, followed by a questions and answers session. Watch webinar. (This interview was the first in our series on EU sustainability reporting. For the second event, Dee will be joined by Orla Carolan, Director in Grant Thornton. Find out more and register here.) Recording A recording, slides and report from Accountancy Europe’s webinar - Towards digital corporate reporting with CSRD  - are now available. The webinar, which took place on 16 May, covered the role of different parties for an effective CSRD implementation, lessons learnt from the European Single Electronic Format (ESEF), the interconnectivity between financial and sustainability information via digitalisation, and current activities and plans of EU authorities for supporting digital sustainability reporting. Articles Five steps to improved ESG reporting  (Accountancy Ireland - Briefly) Prioritising ESG a struggle in current climate (ICEAW) France bans short-haul flights to cut carbon emissions (BBC News) “Greenhushing” is the new greenwashing (Bloomberg) UK students pledge ‘career boycott’ of insurers over fossil fuels (The Guardian) Upcoming Events   Business Post, ESG Summit, Croke Park, Dublin 30 May Dublin Chamber, 2050 Series, Urban Planning: What will Dublin look like in 2050? Dublin Chamber's series of events focusing on sustainable mobility, flexible working practices, a focus on renewable energy, circular economy adoption, and urban density. Dublin Chamber, 7 Clare Street, Dublin 2, D02 F902, Free. 8.30-10.00 1 June Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition. 8 June, 15:00 - 16:15 (Dublin time) Ulster Society, Chartered Accountants Ireland - Advising on Net Zero for clients: the opportunities and the threats This free webinar in partnership with British Business Bank and featuring Julia Groves, will address the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation will cover the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how British Business Bank is involved.   8 June, 12:00 - 13:30 Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. 8 June, 10:00 - 11:00 Northern Ireland Healthy Working Lives Conference 2023  This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

Environmental, social and governance reporting is now considered paramount for many organisations. Derarca Dennis outlines five essential steps for getting it right. Irish organisations of all sizes will be affected by an ever-increasing volume of environmental, social and governance (ESG) reporting requirements. Even businesses that fall outside the scope of the regulations and reporting standards are likely to be required to align with them to meet customer and stakeholder expectations and requirements. The EY Ireland CFO Survey 2023 points to ESG still being perceived as a compliance and regulatory issue rather than an opportunity. Only six percent of the respondents say increasing the sophistication of non-financial reporting is one of the top strategic areas of focus over the next five years, down from 15 percent in 2022. Irish finance leaders will, therefore, need to increase the sophistication of their non-financial reporting and prepare for the advent of new and more exacting regulations in the coming years. They must also put in place the systems that will enable them to move the dial from compliance to value-creating opportunities for their organisations. Improved reporting It is vitally important for every Irish organisation to assess their current and potential obligations under both existing and upcoming regulations and reporting standards. To prepare for what will be an ever-increasing compliance burden, Irish organisations need to take the following steps. Gap assessment Organisations should carry out an assessment of any gaps between their current disclosures and existing and future reporting requirements to ensure compliance with the reporting regime as it stands and identify measures required to meet the requirements of upcoming regulations and standards. It will also build internal competencies to assess any gaps that might emerge. Governance Adopting a clear governance structure for sustainability reporting and management across the business is vital for ensuring accountability of key performance metrics and targets. Engagement at board level through the establishment of a sustainability reporting sub-committee is an important element of such a structure. Data and controls The creation of a centralised data management system for ESG data owners to feed into will simplify the reporting process and establish internal controls surrounding ESG data. Assurance readiness Irish organisations should keep future compliance in mind when conducting changes to their systems and controls to avoid having to make further changes later. Early involvement of organisations’ audit committees can assist in this process. Double materiality assessment A requirement under the Corporate Sustainability Reporting Directive, double materiality can allow an organisation to map the impact their business has on stakeholders and the environment, as well as the financial impact that sustainability issues will have on cash flows. Training Organisations should provide training to employees on ESG matters and regulations to engender a broader understanding of these matters and their importance across the business. Integration The ESG agenda is evolving at pace. New regulations and reporting standards along with market pressure will require CFOs to integrate non-financial reporting into their existing systems. This will place a heavy burden on finance teams, but it will also present opportunities for value creation through increased efficiencies, enhanced risk management and improved competitiveness. Derarca Dennis is Assurance Partner at EY Ireland

The European Financial Reporting Advisory Group (EFRAG) has released a series of 20 educational videos on the first set of draft European Sustainability Reporting Standards (ESRSs). These videos provide some useful guidance in the form of short "glimpses" and longer "educational sessions" which will help viewers gain an understanding of the requirements as set out in the ESRSs. The ESRSs , which were subject to public consultation in 2022 set out the sustainability reporting requirements which will be phased in over time for different kinds of companies, with the first reporters doing so for years commencing on or after 1 January 2024.

The FRC Lab has published a report entitled "Net zero disclosures". This report, which highlights examples of current practice, discusses some of the key considerations for investors who use net zero disclosures and the elements of net zero disclosures that investors want to understand. The report builds on three key elements of net zero disclosures (commitments, impacts and performance) and discusses areas of consideration and challenge within these topics. The report provides some useful guidance for preparers seeking to navigate the difficult area of reporting on their greenhouse gas emission reduction commitments.

In this week’s sustainability/ESG bulletin, we bring details of Cabinet’s approval of Ireland’s new Circular Economy Bill. Also covered are EU developments, the release of sustainability-related strategies in both the Republic and Northern Ireland, technical updates, and a link to listen back to our interview with Sustainability Expert Rosie Dunscombe. In the news Ireland’s Circular Economy Bill receives Cabinet approval  In what has been described as a landmark Bill that will introduce world-leading moves to reduce waste and influence behaviour, the Circular Economy Bill received Cabinet approval this week. The new legislation will underpin Ireland’s shift from a ‘take-make-waste’ linear model to a more sustainable pattern of production and consumption that will instead minimise waste to help significantly reduce our greenhouse gas emissions. Click here for details of the Bill, particularly what it will mean for businesses. EU Commission to empower consumers for the green transition The EU has also taken action on the circular economy this week. The European Commission is proposing new consumer rights and a ban on greenwashing. It announced proposals to amend the Consumer Rights Directive to oblige traders to provide consumers with information on the durability and reparability of products, and is also proposing several amendments to the Unfair Commercial Practices Directive (UCPD). The rules will strengthen consumer protection against untrustworthy or false environmental claims, banning ‘greenwashing’ (a form of corporate misrepresentation where a company will present a green public image and publicise green initiatives that are false or misleading) and banning practices misleading consumers about the durability of a product.  Sustainability-related strategies Sustainability-related strategies were in the news last week in both Ireland and Northern Ireland: The first ever Further Education and Training (FET) Green Skills Summit in Ireland took place last week, led by SOLAS, the Further Education and Training Authority in collaboration with Education and Training Boards Ireland (ETBI). The summit addressed the green economy as an area of opportunity, and pointed to the key challenge of upskilling and reskilling for changes to existing roles. Speaking at the summit, Minister for Further and Higher Education, Research, Innovation and Science Simon Harris described it is “an important step in our response to the challenge of climate change and the targets we have set for ourselves at a national level.”   Northern Ireland’s first overarching Environment Strategy was given approval by Northern Ireland’s Environment Minister Edwin Poots . The strategy sets out Northern Ireland’s environmental priorities for the coming decades and forms part of the Executive’s Green Growth agenda. Commenting, Minister Poots said the Strategy “will provide a coherent response to the global challenges of biodiversity loss and climate change.” The draft strategy, which will have to be formally approved by an incoming Executive before it can be published, can be found here.   Technical Updates The European Commission’s advisory Platform on Sustainable Finance has published its final report on how to bring investments in line with four environmental priorities of the EU’s taxonomy of green investments which are: Ensuring a sustainable use of water and marine resources Protecting and restoring biodiversity and ecosystems Transitioning to a circular economy; and Preventing and controlling pollution. Recommendations made in the report include giving a green label to activities that meet specific environmental criteria (additional criteria are expected to be recommended by the Platform in May). The Commission is expected to publish a Delegated Act later this year.   The International Sustainability Standards Board (ISSB) has launched a consultation on its first two proposed standards. One sets out general sustainability-related disclosure requirements and the other specifies climate-related disclosure requirements. Find out more here.   Our colleagues in Professional Accounting tell us that the IFRS Foundation and Global Reporting Initiative (GRI) have announced a collaboration agreement under which their respective standard-setting boards, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB), will seek to coordinate their work programmes and standard-setting activities. Resources ESG? Sustainability? ISBB? Net zero? Drowning in the ‘alphabet soup’ of sustainability terminology? You’re not alone! Listen back to our ‘Ask the Expert’ short interview that took place on Wednesday 30 March to hear Rosie Dunscombe FCA explain the key terms you're likely to hear as a finance professional.   British technology firm Dyson has reportedly created headphones designed to help people avoid polluted air in cities. The headphones come with a visor that delivers filtered air and were created in response to growing concerns about air and sound pollution in urban areas. The World Health Organisation (WHO) estimates that nine in 10 people globally breathe air that exceeds its guidelines on pollutant limits, and approx. 100 million people in Europe are said to be exposed to long-term noise exposure above its recommended level.     You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.   

Susan Rossney, Public Policy Officer, writes: It seems that everyone is talking about sustainability nowadays. Accountants in SMPs are watching the news and listening to the debate. You may well be asking questions like: “What can I do in the face of a global issue?” “How will this affect my practice and my clients’ businesses?” “What questions will my clients ask me next?” “ What expertise should I be developing now?” “How will sustainability work for me?” The sense of urgency to address climate change across the world is intensifying. Droughts, floods and wildfires are increasing, ecosystems are collapsing, and in response people are calling for change. But climate change is part of a broader sustainability challenge – one that can be summed up as ‘environment, social and governance’, or ESG. The responsibility to meet this challenge falls on all businesses and firms, including small ones. As ESG continues its rise up the political and corporate agenda, smaller businesses now more than ever need to meet certain ESG criteria so they can access finance, win contracts or be part of larger companies’ value chains. Clients and consumers also expect businesses to have a positive impact on the environment and to be doing their part to contribute to change. Companies that want to prosper in the future will have little choice but to become sustainable. Small businesses have a crucial role in the transition to more sustainable economies and societies. Accountants are key financial advisors for those businesses, but also need to understand and implement sustainability practices for their own businesses. This article discusses the opportunities for small businesses – and their advisors – in embracing sustainability. “Practices who want to engage particularly with the next generation of staff and clients need to be able to take sustainability seriously and need to be able to demonstrate that” Conal Kennedy, Head of Practice Consulting, Chartered Accountants Ireland Environmental, social and economic issues present huge risks for businesses. Examples include: losing out to competitors; having reduced access to capital; developing weaknesses in supply chains; developing succession risks; and failing to meet the requirements of stakeholders, including consumers, clients, banks, business partners, staff and regulators. Accountants can identify and quantify these risks for their own practices, and develop policies for themselves and their clients to address them. But managing risks against ESG factors can also benefit businesses directly. As this article will show, if properly addressed, it impacts employee welfare, improving employee experience and leading to greater output; it affects ability to access finance; it enhances an organisation’s reputation, helping to attract new business and staff; and it can help companies comply with supply chain requirements of their larger clients. Preparers and auditors of financial statements will also need to consider these issues going forward. Generating new business Many accountants are now adding “sustainability consulting” to their services to clients. As trusted advisors, they can play a key role in helping SME clients think about their potential sustainability risks, and leverage opportunities offered by the sustainable transition. For example - Accountants can help clients to: assess sustainability impact and risks improve efficiencies reduce costs avail of grants acquire finance identify opportunities to expand their range navigate the changes Sustainability is also an increasingly important factor in tendering for contracts with larger organisations which have stricter sustainability goals. Some of these large organisations perform assessments of potential suppliers. Others also carry out regular risk screenings of existing supply-chain suppliers, and/or conduct internal audits and onsite supplier audits to verify that their supply chain suppliers are conforming to their policies. Accountants have a huge role to play in helping companies prepare this information, and in doing so themselves if they are part of these supply chains or are tendering for contracts. Accessing Finance Embracing sustainability is working towards ensuring the financial future of accountants’ businesses or their clients’ businesses. Investors are actively looking to invest in sustainable projects, and are screening out certain sectors or companies (like those heavily reliant on fossil fuels, for example). Businesses seeking this investment benefit from being able to collect and report on their sustainability-related activities against a recognised standard. Many banks are also adopting sustainability criteria and may require proof of sustainable practices from companies looking to avail of finance. There are also business grants as well as support schemes and tax incentives available for organisations looking to transition to more sustainable practices. Again, accountants have a huge role to play in guiding clients through this. Savings Operating in a sustainable manner saves costs. While there may be short-term costs associated with transitioning to a sustainable business model, businesses can recoup the investment they make and can also reduce their business costs by introducing more sustainable ways of working. According to the Sustainable Energy Authority of Ireland (SEAI), the average SME can save up to 30% on its energy bill by becoming more energy efficient. A business with an engaged and motivated team is also less likely to experience high employee-turnover and associated costs. In a drive to decarbonise Ireland’s economy, the rate of carbon tax increased by €7.50 in October 2020 from €26 to €33.50 per tonne/CO2. Reducing your carbon emissions will reduce your cost. Ultimately, though, any costs associated must be reframed as the cost of compliance or risk management. The greater costs are the costs of not being sustainable. Reputation With social media increasing access to companies, there are very few places to hide for organisations which are falling short of sustainability-related expectations. Staff expect it, and customers demand it. Companies not being transparent about their sustainability achievements, or their goals, will be called out by their customers and staff. Likewise, there is little patience for companies that are ‘green-washing’, i.e. presenting a false or misleading green public image. “64 percent of customers are ‘belief-driven buyers’ who will choose, switch, avoid or boycott a brand based on its stand on societal issues.” 2019 Edelman Trust Barometer Special Report: In Brands We Trust? Mobile Survey Attracting clients On the flip side, though, organisations that do embrace sustainability are in a strong position to attract clients. They can do this by becoming more visible in their community. Supporting local literacy or numeracy projects, participating in local charities or sports clubs, or engaging in local-tree planting initiatives not only increases brand awareness of a firm or business: it builds trust with a community. Remember – not everyone may be doing this, so you will have a first-mover advantage if you do. As a greater number of large companies are either required to or decide to report on human rights, diversity and climate-related policies, a greater number of local businesses supplying those companies will also be obliged to disclose their own sustainability practices, and will need help from a financial advisor to do so. Accountants who are experienced in offering clients this support may attract more clients looking to comply with the sustainability requirements of large organisations. Attracting & retaining talent Candidates are actively seeking jobs in companies with strong ESG credentials and are rejecting jobs in those companies not aligned with their own values. What was identified by McKinsey in 1997 as the ‘war for talent’ is as fierce as ever within the professional services sector, and organisations are going to great lengths to recruit talent. These same companies are now including their commitment to ESG values as a competitive differentiation. This is a trend seen by Karin Lanigan, Head of Member Experience in Chartered Accountants Ireland: “I have worked in recruitment for more than 20 years and in recent years, I have noticed a growing trend whereby candidates have become more and more discerning about types of organisations they’ll work for. They are not just considering salary and package; they are looking at the sector, at the reputation of an organisation, and asking themselves ‘will I feel proud if I’m out with my friends on a Friday night to say that I work with whatever the organisation is or whatever the sector is that they are in?’ They want to have sense of pride in their place of work.” Remember: a commitment to ESG does not have to mean having a large sustainability department or running an eco-business. It can also mean being a firm or company that looks after its employees, provides good training and promotion opportunities, and is active in its local community. “With ‘measurements’ everyone thinks of ‘carbon footprint’. But it doesn’t have to be. You can measure staff satisfaction through surveys. You can measure employee-turnover and retention or absenteeism. Encourage staff to measure the number of hours they spend giving back to others in the community.” Teresa Campbell, PKF FKM Impact on Financial Statements Preparers and auditors of financial statements should consider the impact on sustainability and climate change on every entity. Quoted companies, and some categories of larger companies have defined obligations to report on the impact of environmental matters on the companies’ businesses. These specific reporting requirements do not apply to private limited companies reporting under FRS 102. However, climate change and sustainability are major and developing issues that cannot be ignored by anyone. Both IAASA and the FRC have recently commented on matters that they expect to see considered in financial statements. Whilst their comments were largely made in the context of the IFRS framework, much of what they have said is directly applicable to financial statements prepared under FRS 102. Accountants should consider and report on how climate change has impacted on the assets and liabilities of the company, what additional risks have emerged and whether new or increased provisions are necessary. How has climate change impacted on the estimates and judgements applied, and do these need to be disclosed? Consider such matters as the useful lives of property, plant and equipment. Consider also the impact on impairment assumptions. Does the entity have an obligation to remediate environmental damage caused by any of its activities? Have any of its contracts become onerous, or are they likely to? The financial statements, taken as a whole, should contain sufficient information to be useful to stakeholders, and preparers should avoid the use of non-specific boilerplate. See IAASA’s recent observations on published financial statements. The Institute will cover these areas in more detail in future issues of Practice Matters, broadcasts of Practice News, and CPD courses. Some member resources Find more on the Institute’s Sustainability Hub with resources from articles, podcasts and webinars to a glossary explaining the acronyms and terms. You can also find tips in the Institute’s guide on Sustainability for Accountants. This free guide for accountants describes what to do – and where to start – to operate sustainably, successfully and cost-effectively.  

Dr Michael Hayden provides the accounting practitioner with some food for thought.The COVID-19 pandemic brings a realisation of the importance of certain sectors in our society. While many businesses cease operations, food producers and farm enterprises are acknowledged as essential services.The economic significance of the Irish agricultural industry is well documented. However, in these unprecedented times, the focus has turned to its social importance. This provides an opportunity for the accounting profession to reflect on how it can best assist and support farming businesses, not only in the current circumstances but in the future.A question worth considering is: does the agricultural community reap the full benefit of the extensive knowledge and skills the accountancy profession has to offer? While acknowledging that challenges exist for accountants in delivering their services to farm clients, there are significant opportunities for accountants and farmers to work more effectively together to develop sustainable farm enterprises.Industry contextThe agricultural industry is an integral part of our economy and society. After the economic crisis of 2008, the government primed the agricultural sector to stimulate economic growth and set out ambitious goals for it in the Food Harvest 2020 and subsequent Foodwise 2025 strategy documents. The Department of Agriculture, Food and the Marine’s 2019 Annual Review and Outlook report outlines the importance of the industry. It claims that food produced in Ireland was exported to over 180 markets worldwide and was valued at €13.7 billion in 2018, which represents 10% of merchandise exports. Additionally, the sector contributed 7.5% of gross national income (GNI) and employed 173,000 people (7.7% of total employment) in 2018.Despite the importance of the industry, when average farm size, farm incomes and dependency on farm subsidies are examined, as well as the average age and training levels of Irish farmers, a picture of economic vulnerability emerges. The National Farm Survey (NFS) is published annually by Teagasc and highlights this vulnerability. The 2019 NFS highlights that 34% of Irish farms were deemed viable, 33% sustainable, and 33% vulnerable. It also reports that the average family farm income (FFI) in Ireland was €23,933 in 2019, which varies significantly across farm types (for example, dairy generated €66,570, tillage generated €34,437 and beef generated €9,188). Furthermore, farming in Ireland remains reliant on subsidies which, on average, accounted for 77% of FFI in 2019.Experts warn of another economic crisis post-COVID-19, and there is no doubt that our agricultural industry will attract renewed focus. Furthermore, Brexit represents a significant external risk for Irish agriculture with potentially far-reaching economic, social and cultural consequences. In this context, it is perhaps more important than ever that the accounting profession supports the agricultural community in developing sustainable farm enterprises by assisting farmers in making informed financial decisions based on sound financial management information.Challenges in providing services to farm clientsBefore exploring the opportunities for accountants to provide support to the agricultural community, it is important to acknowledge some challenges that exist in assisting farmers in managing their enterprise.Despite the economic vulnerability of many farms, research shows that most farmers spend little time on financial management. A dislike of conducting financial management activities exists in the farming community. Indeed, they are often viewed as a necessary evil and do not always fit well with the identity of what farmers see as important farm management activities. There are other identity-related issues: many farmers are quite secretive about their financial affairs; some are naturally reluctant to seek farm management advice; many tend to rely on intuition and experience in managing their business as opposed to relying on financial information.As a result of the lack of engagement by farmers with financial management in the day-to-day management of their business, book-keeping systems can be relatively unsophisticated. There is a tendency to monitor bank balances (cash flow), and only a minority maintain management accounting records.The average age of a farmer in Ireland is 59 years. This high age profile is a well-documented concern for the industry. In terms of financial management, older farmers are less likely to invest in their farm and are less likely to strive for innovation and efficiencies.Historically, farmers view accountants as providing a statutory and compliance role, such as filing annual tax returns, with little focus on value-added services. Also, the cost of such value-added services is a barrier as quite often, farmers are unwilling to pay for such services.This profile of the farming community suggests that there are limited opportunities for accountants to provide value-added services to farmers. However, there are ‘green shoots’ that give cause for optimism.Green shoots to exploreIn recent years, there has been a considerable shift in the industry. This shift is transforming the Irish agricultural landscape and providing opportunities for accountants and farmers to work more effectively together to develop sustainable farm enterprises.Policy changes have resulted in some fundamental structural reforms, which have provided opportunities for growth. For example, milk quota abolition under the Common Agricultural Policy (CAP) has resulted in considerable investment and expansion in the dairy sector. While it is acknowledged that farmers tend not to engage extensively and/or dislike financial management, the mindset of many farmers in this respect is changing. In my research, I discovered that where farmers are making strategic farm expansion decisions, there is a considerable degree of engagement with their accountants.Many traditional farm enterprises are diversifying and exploring new markets for their produce. For example, there is an increase in the production of artisan food products directly by farmers, alternative supply chains where farmers sell their produce directly from farm-to-market, and an increased focus on organic food production. These trends and the movement from the traditional farm production system often bring a renewed focus on profit margins, cost management and overall financial management.Farm partnerships and the incorporation of farm enterprises are becoming more widespread in the industry. Such changes in legal structure provide additional opportunities for accountants who have expert knowledge in terms of tax, legal, and succession planning advice.As a result of the above developments, younger farmers are being enticed into the industry. Agricultural courses in colleges and universities have seen strong demand in the past decade, which is very positive. Numerous policy measures have also been enacted to encourage generational renewal, including changes to land leasing arrangements, while tax reliefs/incentives have been developed to facilitate younger farmers entering the industry.These transformations to the Irish agricultural landscape have encouraged farmers to be more open to engaging the value-added services of accountants. This provides opportunities for accountants to develop successful working relationships with farmers, whereby farmers could significantly benefit from the expert knowledge and skills that accountants have to offer.ConclusionThere is vast potential for accountants and farmers to work more effectively together to develop sustainable farm enterprises. Navigating the financial challenges of COVID-19 and Brexit are just two reasons why each farmer should look to his or her trusted accountant for support and expertise as the farming community strives to meet the critical societal demands for a sustainable food supply.Dr Michael Hayden FCA is Assistant Professor of Accounting at Maynooth University.

Imelda Hurley has had a challenging start to her role as CEO at Coillte, but her training and experience have proved invaluable in dealing with the fallout from COVID-19, writes Barry McCall.Imelda Hurley’s career journey to becoming CEO of Coillte in November 2019 saw her work on every continent for a range of businesses spanning food to technology. That varied background has helped prepare her for the unprecedented disruption caused by the COVID-19 pandemic.“We have been working remotely since March, and the business has kept going throughout the pandemic,” she says. “We closed the office straight away and have had 300 people working remotely since then. Our primary focus since has been on the health, safety and wellbeing of our colleagues, and against that backdrop, on ensuring that a sustainable, viable and vibrant Coillte emerges from the crisis.”A diverse challengeThis has not been as straightforward as she makes it sound. “Coillte is a very diverse business,” she adds. “We are the largest forestry business in the country, the largest outdoor recreation provider, we enable about one-third of Ireland’s wind energy, and we have our board manufacturing business as well. We needed to continue operating as an essential service provider. That remit to operate was both a challenge and an opportunity.”The company’s timber products are essential for manufacturing the pallets required to move goods into and out of the country. “Some of our board products were used in the construction of the Nightingale Hospital in London,” she adds. “And the wind energy we enable provides electricity for people’s homes and the rest of the country.”Organisationally, the task has been to enable people to continue to do their jobs. However, the challenge varied depending on the nature of the operation involved. “In forest operations, people usually work at a distance from each other anyway, so they were able to keep going. That said, we did suspend a range of activities. We needed to continue our factory operations, but we had to slow down and reconfigure the lines for social distancing. And we kept the energy business going.”Those challenges were worsened by an ongoing issue associated with delays in the licensing of forestry activities and by the unusually dry spring weather, which created ideal conditions for forest fire outbreaks. “Even a typical forest fire season is very difficult,” she notes. “But this one was particularly difficult. In one single weekend, we had 50 fires which had to be fought while maintaining physical distancing. Very early on, we put in place fire-fighting protocols, which enabled us to keep our colleagues safe while they were out there fighting fires, and to support them in every way possible.”The lure of industryHer interest in business dates back to her childhood on the family farm near Clonakilty in Cork. “I was always interested in it, and I enjoyed accountancy in school and college at the University of Limerick. I did a work placement in Glen Dimplex and that consolidated my view that Chartered Accountancy was a good qualification that would give me the basis for an interesting career.”She went on to a training contract with Arthur Andersen in Dublin. “The firm was one of the Big 6 at the time,” she recalls. “I availed of several international opportunities while I worked there and worked in every continent apart from Asia. I really enjoyed working in Arthur Andersen, but I always had a desire to sit on the other side of the table. Some accountants prefer practice, but I enjoy the cut and thrust of business life.”That desire led her to move to Greencore. “I wanted to be near the centre of decision-making and where strategy was developed. I stayed there for ten years, learning every day.”And then she moved on to something quite different. “Sometimes in life, an opportunity comes along that makes you pause and think, ‘if I turn it down, I might regret it forever’. The opportunity was to become CFO of a Silicon Valley-backed business known as PCH, which stood for Pacific Coast Highway, which was based in Hong Kong and mainland China with offices in Ireland and San Francisco. It was involved in the supply chain for the technology industry and creating, developing and delivering industry-leading products for some of the largest brands in the world.”The experience proved invaluable. “It changed the way I thought. It was a very fast-moving business that was growing very quickly. I got to live and work in Asia and understand a new culture. I took Chinese lessons and the rest of the team took English lessons. There were 15 nationalities on the team. It was remarkably diverse in terms of demographics, gender, culture, you name it. That diversity means you find solutions you would not have found otherwise.“I spent three years with PCH and ran up half a million air miles in that time. It had a very entrepreneurial-driven start-up culture. The philosophy is to bet big, win big or fail fast. It was a whole new dynamic for me. I also got to spend a lot of time in San Francisco, the hub of the digital industry, and that was a wonderful experience as well.”Returning to IrelandImelda then returned to Ireland to become CFO of Origin Enterprises plc. “As I built my career, I always had the ambition to become CFO of a public company. And I always believed that with hard work, determination and a willingness to take a slightly different path, you will succeed. Greencore and Origin Enterprises gave me experience at both ends of the food and agriculture business; they took me from farm to fork. A few more years in Asia might have been good, but Origin Enterprises was the right opportunity to take at the time.”Her next career move saw her take up the reins as CEO of Coillte on 4 November 2019. “I always wanted to do different things, work with different organisations and with different stakeholder groups,” she points out. “Coillte is a very different business. It is the custodian of 7% of the land in Ireland, on which we manage forests for multiple benefits including wood supply. It is a fascinating company. It is an outdoor recreation enabler, with 3,000km of trails and 12 forest parks. We get 18 million visits to forests each year. We also have our forest products business – Medite Smartply. We operate across the full lifecycle of wood. We plant it and it takes 30-40 years to produce timber.”Imelda’s varied career has given her a unique perspective, which is helping her deal with the current challenges faced by Coillte. “Throughout my career, I have worked in different ownership structures and for a variety of stakeholders. I worked for public companies, a Silicon Valley-backed business, and have been in a private equity-backed business as well. Now, I am in a commercial semi-state. That has taken me across a very broad spectrum and I have learned that a business needs to be very clear on a set of things: its strategy, its values, who its stakeholders are, and how it will deliver.”Entering the ‘new’ worldWhile Coillte has kept going during the COVID-19 pandemic, it is still affected by the economic fallout. “We are experiencing a very significant impact operationally, particularly so when building sites were closed,” she says. “There has been some domestic increase in timber requirements since then, and there has been an increasing demand for pallet wood. That has had a significant financial impact and it’s why I’m focused on delivering a sustainable, vibrant and viable Coillte. We remain very focused on our operations, business and strategy. In the new post-COVID-19 world, we will need a strategy refresh. We must look at what that new world looks like, and not just in terms of COVID-19. We still have a forestry licensing crisis and Brexit to deal with.”The business does boast certain advantages going into that new world. “Our business is very relevant to that world. The need for sustainable wood products for construction is so relevant. Forests provide a carbon sink. The recreation facilities and wind energy generated on the land we own are very valuable. It may be a difficult 12-18 months or longer, but Coillte is an excellent place to be. In business, you manage risk. What we are managing is uncertainty, and that requires a dynamic and fast-paced approach. Time is the enemy now, and we are using imperfect information to make decisions, but we have to work with that.”Coillte will begin the first phase of its office reopening programme in line with Phase 4 of the Government’s plan. “We have social distancing in place and it’s quite strange to see the floor markings in the offices. We are doing it in four phases and carried out surveys to understand employee preferences. We then overlaid our office capacity with those preferences. Our employees have been fantastic in the way they supported each other right the way through the crisis.”Words of wisdomDespite the current challenges, she says she has thoroughly enjoyed the role since day one. “It would be wrong to say it’s not a challenge to walk into a business you were never involved in before and take charge, but I have a very good team. None of us succeeds on our own. We need the support of the team around us. The only way to succeed is to debate the best ideas and when there isn’t alignment, I make the final decision, but only after listening to what others have to say. You are only as good as the people around you. You’ve got to empower those people and let them get on with it.”Imelda believes her training as a Chartered Accountant has also helped. “It facilitated me in building a blended career. The pace of change is so incredibly quick today and if we do not evolve and learn, we lose relevance. Small pieces of education are also very valuable in that respect. Over the years, I did several courses including at Harvard Business School and Stanford. I love learning and I’m not finished yet. I’m a firm believer in lifelong learning.”Her advice to other Chartered Accountants starting out in their careers is to seek opportunities to broaden their experience. “Learn to be willing to ask for what you want,” she says. “Look for opportunities outside finance in commercial, procurement or operations. Look through alternative lenses to bring value. Make sure you are learning and challenging yourself all the time. Keep asking what you have added to become the leader you want to be someday.”And don’t settle for what you don’t want. “Be sure it is the career you want, rather than the one you think you want or need. It’s too easy to look at someone successful and want to emulate them. You have to ask if that is really for you. This role particularly suits me. I love the outdoors and I get to spend time out of the office in forests and recreational areas. That resonates particularly well with me.”

  On June 23 IFAC responded to the European Commission’s review of the Non-Financial Reporting Directive (NFRD). In this review IFAC urged the Commission to adopt a global mindset by engaging input from a broad range of international stakeholders in determining the best way forward.  Steps taken must “fit within” a global system and avoid regional regulatory fragmentation.  Non-financial reporting answers the call from investors and other providers of capital for better, broader information about company performance and prospects for value creation, while also helping identify opportunities to support sustainable—and less carbon-reliant—business models. In the post-COVID world, corporate reporting that reflects the needs of a broad range of stakeholders will be particularly important to communicate on an organization’s performance and priorities.     As a Network Partner of the B20, IFAC calls on global bodies—including the G20—to encourage policy-makers, standard-setters, and regulators to facilitate harmonization towards a globally-acceptable approach to reporting ESG metrics and disclosures.