Sustainability/ESG bulletin, Friday 16 June 2023

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