In this week’s Sustainability/ESG Bulletin read about a new report into Ireland’s energy vulnerabilities, the ‘climate protection gap’ in Ireland’s Action Plan for Insurance Reform, high-level ESG data evaluating Irish business, Ireland’s accession to the Equal Pay International Coalition, and a report showing strong motivation among SMEs to increase sustainability. Also covered is the consultation on Northern Ireland’s 4th Carbon Budget, the European Commission’s adoption of the ‘VSME’, a call for evidence on climate resilience, the future long-term EU budget, the ICJ’s ruling in one of the world’s largest climate cases, and the usual podcasts, articles, resources and upcoming events.
Chartered Accountants Ireland
Chartered Accountants Ireland has launched its Autumn/Winter programme offering, which includes sustainability-focused Specialist Qualifications:
IRELAND
NESC reports finds Ireland’s fossil fuel import-dependency ‘a strategic vulnerability’
A report from the advisory council of the National Economic and Social Council (NESC) is warning that Ireland’s fossil fuel import-dependency is a strategic vulnerability, and that cost-competitiveness challenges must be addressed if Ireland is to become a significant net exporter of renewable energy. The report, which examines how Ireland’s energy trade will evolve over the energy transition, recommends moving away from reliance on imported fossil fuels towards a more complex and interdependent European energy system based on renewables.
Department of Finance publishes Energy, Environmental and Vehicle Tax paper
The total yield from energy and vehicle taxes was €5 billion in 2024, representing 5.2 percent of overall tax receipts for 2024. This is according to the Energy, nvironmental and Vehicle Tax paper of the Tax Strategy Group (TSG), published by the Department of Finance ahead of this year’s Budget. The paper considers taxation as a lever for climate action and provides updates on energy and vehicle taxes across five chapters: Mineral Oil Tax, Carbon Tax, Electricity Tax, EU and International Measures, and Motor Vehicle Tax.
Ireland for Finance Strategy 2026-2030 - Consultation Paper
The Department of Finance has opened a public consultation on a new Ireland for Finance Strategy 2026-2030, in line with commitments under the Programme for Government, which includes a particular focus on the further development of the sustainable finance sector. Stakeholders are now invited to submit their views on how Ireland can maintain and grow its position as a leading global hub for specialist international financial services. The public consultation period will run until 19 September 2025.
The ‘climate protection gap’ in the Government’s Action Plan on Insurance Reform
The Government has published a new Action Plan on Insurance Reform with a range of priorities aimed at lowering insurance premiums. The Plan seeks to deepen reform across six key pillars, reflecting both long-standing structural issues and the new risks and opportunities facing today’s economy: transparency & affordability; competitiveness & availability; legal reform; fraud; climate protection; and innovation & skills. The Plan describes climate change as presenting a significant challenge, with increasing frequency and severity of extreme weather events highlighting the urgent need to reduce the ‘climate protection gap’. This is defined by the European Commission in reference to the share of non-insured economic losses in total losses after a climate-related catastrophe event. In recent years, it has also been used to refer to the notional gap between likely climate-related impacts and existing resilience measures.
Describing the need for the insurance sector to be “not just reactive to climate risk, but a proactive force for climate resilience and adaptation”, the new Action Plan on Insurance Reform commits the Government to working with the EU and international partners to align capital frameworks with climate resilience; and with all relevant stakeholders to increase access to coverage in vulnerable areas. It also commits to continuing to integrate climate-related risks into supervisory and consumer protection frameworks. Finally, it calls on insurers themselves to lead by developing new products, investing in green assets, and supporting nature-based solutions.
Business in Ireland 2023 - Environmental, Social, Governance of Enterprises
The Central Statistics Office (CSO) has published high-level ESG data evaluating business in Ireland in 2023 against Environmental, Social, Governance of Enterprises metrics. The release reports that Irish enterprises are making progress in terms of increasing the use of clean energy, but there is more to be done in reducing the use of fossil fuels to lessen environmental emissions. In 2023, transport fuels, solid fuels and petroleum fuels accounted for 54 percent of business energy use, meaning there is a significant journey to go to achieve Ireland's National Climate Ambition of a 51 percent reduction from the 2018 figure by 2030.
The release describes the regulatory landscape regarding sustainability reporting, in particular, but notes “What seems clear though is that the ‘science has not changed’” and states that enterprises will be expected to play their part in terms of sustainability, for reasons of market share, risk-management and the Government’s emphasis on the policy goal of decarbonisation.
Ireland joins the Equal Pay International Coalition (EPIC)
Minister of State for Small Business, Retail and Employment Alan Dillon has announced Ireland’s accession to the Equal Pay International Coalition (EPIC). This is a multilateral partnership working to reduce the gender pay gap at global, regional and national levels. EPIC is led by the International Labour Organization (ILO), UN Women, and the Organisation for Economic Co-operation and Development (OECD). It brings together governments, employer and worker organisations, academia, civil society and private sector entities to tackle the gender pay gap through coordinated action.
Strong motivation among SMEs to increase sustainability
A report from the Strategic Banking Corporation of Ireland (SBCI) reveals strong motivation among SMEs to increase the sustainability of their business. The research conducted for the SME Outlook Report 2025 found that costs, access to finance and tariffs are biggest worries for Irish SMEs, who are prioritising energy efficiency over other sustainable investments. Solar panels remain the most popular green investment among SMEs, but evidence that many businesses are shifting towards more complex investments (such as building-integrated systems for heating and ventilation) suggests that more SMEs are taking a strategic approach to sustainability, focusing on lowering energy costs and improving sustainability at an operational level.
UK/NORTHERN IRELAND
Consultation on carbon budgets to provide certainty to investors and business
DAERA has launched a consultation on Northern Ireland’s Fourth Carbon Budget which suggests an average annual reduction of 77 percent against a 1990 baseline across the budgetary period 2038-2042. A carbon budget is the maximum amount of greenhouse gases that can be emitted in a given 5-year period and is expressed as an annual average percentage reduction level over that period. The first three carbon budgets for Northern Ireland were published in December 2024, covering the period from 2023 to 2037. Commenting, Minister Andrew Muir MLA, said that "Whilst 2038 is 12 years away, it is important to set out a trajectory now, not only to meet the legal requirements set out in the Act, but to provide certainty to investors, businesses and to allow for gradual transition which can be delivered in a fair and just way as we work to reduce our emissions.” The 16-week consultation will run until 17 November 2025.
EUROPE
Commission adopts recommendation on voluntary sustainability reporting for SMEs
The Commission has adopted a recommendation on voluntary sustainability reporting for small and medium-sized companies (SMEs). The voluntary standard for SMEs - the VSME – was developed by EFRAG, the Commission’s technical advisory body for sustainability reporting. Designed for companies with fewer than 250 employees, the VSME standard aims to reduce administrative burden on SMEs by making it easier for them to respond to requests for sustainability information from large companies and financial institutions which are subject to mandatory reporting under the Corporate Sustainability Reporting Directive (CSRD), and which have such SMEs in their value chains. It also aims to help SMEs improve access to finance through better ESG transparency, managing sustainability risks and opportunities effectively, and contributing to a more sustainable and inclusive economy. EFRAG has created information modules, ready-to-use digital tools and templates, explainer videos, digital templates, and guidance, which is has published on the official EFRAG VSME webpage.
‘Climate factor’ to be introduced by European Central Bank
The Governing Council of the European Central Bank (ECB) has announced that it will add climate change considerations to its lending operations to better manage financial risks related to the climate crisis. In a press release, the ECB explained it will introduce a “climate factor” which could “reduce the value assigned to eligible assets pledged as collateral, depending on the extent to which an asset can be impacted by these uncertainties”. This, the ECB says, will act as a buffer against the possible financial impact of uncertainties related to climate change. The measure is due to be implemented in the second half of 2026.
EFRAG’s report finds low level of reporting on climate transition plans
Initial feedback on reports from the so-called ‘first-wave’ of companies in scope of the CSRD have been published in a report from EFRAG. The report found that, among other things, there is a low level of reporting on climate transition plans, with most omitting information on key elements like funding. Only 55 percent disclose a climate transition plan at all, while only 70 percent commit to 1.5°C targets for Scope 1 & 2 emissions, and only 40 percent for Scope 3 emissions. Over 90 percent considered just three topical standards to be material: Climate Change (E1), Own Workforce (S1), and Business Conduct (G1) and biodiversity remains underreported, with fewer than 30 percent of preparers including biodiversity metrics.
Call for evidence on European climate resilience and risk management initiative
The European Commission has published a Call for Evidence on climate resilience. Running until 4 September, the call is aimed at receiving input from stakeholders and citizens to fill knowledge and evidence gaps in areas such as climate risk assessments and disclosure, regulatory frameworks and standards, governance and oversight, incentives and enforcement, financial frameworks, cross-border cooperation and consistency, sector policy commitments and contributions, stakeholder engagement and participation, emerging socio-economic trends, and technological innovation. The responses will feed into the Commission’s preparations for a new European climate resilience and risk management integrated framework, which is due for publication by the end of 2026.
Large majority of Europeans consider climate action economically necessary and beneficial
A large majority of Europeans continue to view climate change as a serious global threat, with 85 percent of citizens identifying it as a major problem. This is according to the 2025 Eurobarometer report on climate change, the collection of cross-country public opinion surveys conducted regularly on behalf of the EU Institutions. The 2025 report found that support for EU climate policy remains strong across the EU, with 81 percent backing the EU-wide goal of climate neutrality by 2050. A growing share of Europeans (38 percent) reported feeing personally exposed to environmental and climate-related risks. Citizens also see climate action not only as necessary but beneficial—both economically and socially, with over three-quarters (77 percent) agreeing that the cost of damage caused by climate change outweighs the cost of transitioning to a climate-neutral economy. 88 percent support greater investment in renewables and energy efficiency, 75 percent believe reducing fossil fuel imports will enhance energy security and benefit the EU economically, and citizens see national governments (66 percent), the EU (59 percent), and business and industry (58 percent) as best placed to tackle climate change.
“Green is the defining color of China-EU cooperation” at EU-China Summit
The 25th EU-China summit took place in Beijing, China, last week at which the EU reiterated its commitment to deepen its engagement with China and to enhance cooperation in order to address joint global challenges. The parties issued a joint press statement on climate change in which they agreed that ‘green is the defining color of China-EU cooperation’, and that both parties would step up efforts to address climate change. Commenting, President of the European Commission Ursula von der Leyen described the statement as a ‘big step forward’: “We both see the opportunities to work closer together in sectors such as emissions trading, carbon capture and storage or the circular economy. And our cooperation can set a global benchmark. Together, the EU and China must uphold the Paris Agreement now more than ever.”
European Commission proposes new long-term EU budget
The European Commission has presented its proposal for a future long-term EU budget and revenue system. It is proposing a Multiannual Financial Framework (“MFF”) amounting to almost €2 trillion which aims to be more flexible, simpler, adaptable to local needs, and able to give a competitiveness boost to the region. Opinion is reportedly divided on certain elements of the proposal, for example, a proposal to pool a number of existing funding programs into a single "Competitiveness Fund", with fears of money previously ringfenced for climate and nature being redirected to industrial programmes instead. The decision on the future long-term EU budget and revenue system will be discussed by Member States in the Council, acting by unanimity, with the consent of the European Parliament, and where relevant, ratification by national parliaments for the revenue.
WORLD
International Court of Justice issues landmark opinion on climate change
In one of the world’s largest climate cases, the UN’s highest court, the International Court of Justice (ICJ) has ruled that States have an obligation to protect the environment from greenhouse gas (GHG) emissions and act with due diligence and cooperation to fulfil this obligation. Arguing that “a clean, healthy and sustainable environment is a precondition for the enjoyment of many human rights,” the Court found that countries that fail to meet their obligations under international climate treaties are in breach of international law. During his presentation of the opinion, ICJ President Yuji Iwasawa stated that "states must cooperate to achieve concrete emission reduction targets” and described climate change as “an existential problem of planetary proportions that imperils all forms of life and the very health of our planet.”
Commenting, United Nations Secretary-General António Guterres described the advisory opinion as “a victory for our planet, for climate justice, and for the power of young people to make a difference.” Although not legally binding, the case will have global implications for climate litigation, potentially opening the door for countries impacted by climate change to litigate against larger nations to force more climate action. It may also reportedly have consequences for businesses, if a call for states to take action to reduce emissions serves to reinforce climate policy measures already in motion.
Earlier this year, a paper published in the science journal Nature detailed the scientific and legal implications of an ‘end-to-end’ attribution linking fossil fuel producers to specific damages from warming. The paper offered, for the first time, a robust framework linking emissions from specific fossil fuel companies to extreme heat events and associated economic losses, potentially enabling courts to assign accountability for damages, something historically seen as too diffuse. Just 36 companies have reportedly been identified as responsible for half of global emissions.
SBTI launches Financial Institutions Net-Zero (FINZ) Standard
The Science Based Targets initiative (SBTi) has launched its Financial Institutions Net-Zero (FINZ) Standard, guiding banks and investors in setting net-zero targets across lending, investment, insurance, and capital markets. To align, institutions must commit to net-zero by 2050 or earlier and identify ‘in-scope’ financial activities representing at least 5 percent of revenue. The standard prioritises fossil fuels, requiring institutions to publish policies to end project finance explicitly linked to fossil fuel expansion by 2030. Despite scrutiny of net-zero efforts, the FINZ Standard reinforces SBTi’s commitment to helping financial institutions align with global climate goals. The Science Based Targets initiative (SBTi) is responsible for aligning corporate environmental sustainability action with global climate goals.
Earth Overshoot Day – 24 July
Earth Overshoot Day fell on 24 July this year, according to the international nonprofit Global Footprint Network. Earth Overshoot Day is the day on which when humanity’s demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year. Country Overshoot Days mark the date when the planet’s annual ‘biocapacity’ budget would be used up if everyone on Earth lived at the same level of consumption as the residents of that particular country. Ireland’s overshoot day was 17 May, the United Kingdom’s was 20 May.
Resources
- The ISSB Update has published, summarising the July 2025 International Sustainability Standards Board (ISSB) meeting.
- A second post from sustainability consultancy SustainabilityWorks explores what the EU’s Clean Industrial Deal really means for business
- Nature intelligence company Natcap has published interviews with 13 sustainability leaders show what’s really driving action on nature in 2025, how nature is no longer a compliance exercise but a core business risk, and where the roadblocks remain, from data gaps to “framework fatigue.”
Podcasts
- ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd share insights (16 min, 47 seconds)
- Outrage + Optimism: The ICJ Climate Opinion Explained (53 minutes)
“And it was unanimous!”
The International Court of Justice has just delivered a landmark advisory opinion on climate change and human rights - could this transform global climate action and accountability?
Articles
ESG Mid-Year Update: Who Still Cares, and Why You Should (FTI Consulting)
Why business won’t abandon sustainability as a long-term play (Reuters)
ESG assets surpass $3.5tn globally for the first time amid challenges (FT – Sustainable Views - Subscription)
Are we underestimating progress on climate action? (Blog - Institute for Human Rights and Business)
EU and China say ‘green is the colour of co-operation’ in climate leadership pledge (FT)
Major nations agree on first-ever global fee on greenhouse gases with plan that targets shipping (Associated Press)
Voluntary carbon market turns corner amid behind-the-scenes reform (Sustainable Views - Subscriber)
One Pacific Nation’s Court Case Opens New Era for Climate Lawsuits (Bloomberg Green)
EU budget plan would deal ‘devastating blow’ to nature (Politico.eu)
Action needs to be taken to reverse recent decline in women securing leadership roles in Irish business (Irish Times)
Events
Business for Biodiversity Ireland, Webinar: Introducing the Nature-Based Enterprise
This webinar on new market opportunities in nature-based solutions will bring together communities of nature-based enterprises, working with and for nature, delivering nature-based solutions helping to address business dependencies and risks from nature loss and climate change. Whether you are interested in benefiting from nature-based solutions to climate adaptation, developing new products and services, you are a start-up business in this area, or you will have businesses like these in your supply chain, this webinar provides a good understanding of how your business can participate in the nature positive economy and go nature positive!
Virtual (Teams), 20 August, 12-1pm
UN Global Compact (Swiss Network) Managing Risks in Supply Chains: When On-Demand Labour Becomes Forced Labour
How does your business model and sourcing strategy cause or contribute to social and environmental risks along your value chain; and how exposed are your business activities to risks embedded in your purchased goods and services? This series of webinars (convened by the UNGC’s Swiss Network) will take you through innovative approaches to conducting risk assessments and gaining actionable insights that can then be addressed through collaborative, data-driven approaches with measurable results. Using a case study approach the Equiception team will share their experiences in multiple economic sectors and regions of the world with a special focus on decent working conditions, forced labour and child labour.
Webinar, 28 August 2025 | 12:30-14:00
Business in the Community, Accredited carbon literacy training
This Accredited Carbon Literacy Training session event is hosted by Business in the Community Northern Ireland, and aims to equip participants with the knowledge and skills to understand and act on climate change, helping organizations reduce their carbon footprint. The training is certified and designed to support sustainability leadership across sectors.
In person, Wednesday, 3 September 9:00 - 17:00, Craigavon Civic Centre, 66 Lakeview Rd, Craigavon BT64 1AL,
ICAEW, Sustainability in Practice
A morning of expert-led discussion, practical exercises, and peer learning—all focused on helping you build and deliver impactful sustainability services.
In person, 3 September, 8.30-12.00, Chartered Accountant Hall, Moorgate Place, London, EC2R6EA
UN Global Compact (Swiss Network) Managing Risks in Supply Chains: Does High Quality Equal Compliance? The case of surgical goods made by children
This is the third and last session of our three-part webinar series on 'Managing Risks in Supply Chains: A Series for Data-Driven Action'. This last session focuses on the case of surgical goods made by children. Are high-quality goods more likely to be produced in high-quality facilities? The value chain of surgical instruments proves otherwise. Children can be found grinding "Made in Germany" scalpels in informal sector workshops in Pakistan. Worse, this situation has been repeatedly exposed over three decades. What can companies learn from this case and how can public and private procurement and sourcing professionals avoid similar risks?
Webinar, 18 September 2025 | 12:30-14:00
Diversity Mark, Diversity Mark Annual Summit 2025
This event will explore how diversity and inclusion can drive sustainable business growth, gathering over 300 business leaders, executives, and inclusion advocates for a full-day programme featuring keynote speakers and breakout sessions. It aims to equip attendees with practical strategies to create more inclusive workplaces and foster meaningful change across sectors.
In person, October 2025, Titanic Belfast
Sustainability Centre
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.
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