Tuesday's focus at COP28 was energy and industry, the just transition, and Indigenous Peoples.  While controversy still surrounds remarks made by COP President about fossil fuels, and reports of the host country’s own plans to increase its own oil production, there was also coverage of high-level agreements at this year’s global climate summit: The second report of the Independent High Level Group on Climate Finance has been released at COP28. 'A climate finance framework: decisive action to deliver on the Paris Agreement' was co-authored by Nicholas Stern and presents a framework which it says can mobilise the estimated $2.4 trillion a year in investment required by 2030. The UK, France and a number of other countries and banks - including the World Bank and European Investment Bank (EIB) – have agreed to include more climate-resilient debt clauses in their lending. Climate-resilient debt clauses (CRDCs) allow vulnerable countries to pause debt repayments when climate disaster strikes, affording them ‘breathing space’ to recover. Welcoming the announcement, Prime Minister of Barbados Mia Mottley stated “I want to thank you for the extraordinary courage to do the right thing.  We can always bring back our debt, but we cannot bring back our society.”   Bill Gates has praised innovation at this year’s COP when he was among those attending the Climate Innovation Forum. The former CEO of Microsoft attended alongside Arvind Krishna, CEO of IBM, Kate Brandt, Chief Sustainability Officer of Google and other world leaders in the technology sector, who convened to explore cutting-edge solutions to tackle the global climate crisis. Solutions discussed included artificial intelligence (AI), satellite technology, big data, clean energy, industrial decarbonization, low-carbon hydrogen, and more. The world’s largest independent carbon crediting standards have announced a collaboration to increase the impact of activities under their standards. The pledge, published by the non-profit organisation IETA, outlines a number of activities which will help amplify the impact of carbon markets. Separately, the US regulator, the Commodity Futures Trading Commission (CFTC), is expected to propose the first federal guidelines for voluntary carbon credit derivatives, in a bit to “bring order to a market for the offset of emissions described as the ‘wild west’”. The value of the carbon trading market worldwide could reportedly expand to $100bn by 2030, up from $2bn in 2022. COP28 in numbers 36.8 billion: the number of metric tons of carbon dioxide that will be emitted this year from burning fossil fuels. 1.1: the percentage increase in those emissions on 2022. 1.4: the percentage increase in those emissions on 2019, before the Covid-19 pandemic.  6: the percentage increase in those emissions since the year of the Paris Agreement, according to research by the Centre for International Climate Research (Cicero) 0: the number of new power plants that should be built anywhere in the world fired by coal (the world's ‘dirtiest fuel’) according to US climate representative, John Kerry. The US has now committed to closing its existing coal power plants and not building any more of them in the future, and have joined the Powering Past Coal Alliance along with seven other countries, although it had to defends its climate leadership despite record oil and gas production (Financial Times) 60: the percentage by which much oil companies must commit to reducing their Scope 1 and 2 emissions by 2030, according to the Executive Director of the International Energy Agency Fatih Birol says 94: the percentage of oil-producing countries to have no pledges on phase out oil exploration, according to a new report from the Net-Zero Tracker. 2,456: the number of fossil fuel representatives at COP28, the largest ever to have attend the climate summit. Quote of the day “Absolutely not.” — Saudi energy minister Prince Abdulaziz bin Salman, on whether he would be happy to see a COP28 agreement on a “phase-down” of fossil fuels (Financial Times)   Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre. 

Introduction The agri-food industry operates in a rapidly changing and dynamic business environment, where farmers and food producers, from multinational to artisan, are continually required to innovate and adapt. Events such as the COVID-19 pandemic and the war in Ukraine have increased complexity, disrupting food-supply chains and threatening food security. These circumstances have an impact on food production processes and consequently require a focus on sustainability. Sustainability is a key challenge facing all business sectors, not least the agriculture and food production industries. At a national and international level there is a huge focus on developing a sustainable food supply for a growing worldwide population. The United Nations (UN) forecasts a 34% increase in world population by 2050 and that an increase of 70% in food production will be required. Despite this, the UN reports that 30% of all food produced globally is lost or wasted. Greenhouse gases (GHG) emissions globally have increased by more than 60% between 1990 and 2022. The impact on climate change has been well documented, including increases in the frequency of flooding, droughts and wildfires. Such climate-change effects have serious consequences on food production and necessitate collaboration between all sectors of society to address the challenges presented. In Ireland, the economic importance of agriculture is clear. According to the Department of Agriculture, Food and the Marine, the agri-food sector accounted for 9% (€18.78 billion) of total exports in 2022 and 6.5% of total employment or 164,900 jobs, mostly in rural areas. Farms and farmers also provide valuable sources of environmental assets (e.g. hedgerows, wetlands and woodlands) and contribute to preserving natural habitats and biodiversity. However, from an environmental sustainability perspective there is much debate about the high level of GHG emissions generated by the Irish agricultural industry and how this issue needs to be addressed. In this article, I do not debate the extent to which the agricultural industry contributes to Ireland’s GHG emissions problem, but rather focus on acknowledging that farmers and food producers need to be included in determining a solution.  I also believe that the accounting profession has a key role to play in assisting farm enterprises, and small and micro agri-food businesses, to create more sustainable enterprises and to contribute to a sustainable food supply.  Environmental sustainability in agriculture Environmental sustainability is at the forefront of national and international policy development in agriculture and food production. This is primarily driven by the UN Sustainable Development Goals, as several of them relate to agriculture and food production.  At EU level, the European Green Deal, through its “Farm to Fork Strategy”, has set out plans on how to improve sustainability and the environmental impact of the agri-food industry. These are being incorporated into reform of the common agricultural (CAP).  At a national level, the Climate Action and Low Carbon Development (Amendment) Act 2021 introduced a framework of sectoral GHG emissions (‘carbon’) budgets, to be subsequently developed and proposed by the Climate Change Advisory Council (CCAC). In July 2022 (after much debate) the sectoral emissions ceiling for agriculture was set at a level requiring an ambitious 25% reduction by 2030. Stakeholders acknowledge the fundamental challenge that environmental sustainability presents for the industry. They also acknowledge the key role that the industry must play in addressing the national environmental sustainability challenge. A financial perspective on sustainability in agriculture Sustainability in agriculture is multidimensional and is broadly comprised of three main pillars:  environmental sustainability,  social sustainability, and economic sustainability. Environmental sustainability refers to how agriculture and food production processes impact our environment, and is the most widely discussed pillar of sustainability, the contribution of the industry to GHG emissions attracting significant debate.  Social sustainability in agriculture relates to farming communities, and the many challenges they face, and how the industry’s sustainability affects wider society.  Economic sustainability is generally viewed as economic viability, i.e. whether a farming system can survive financially in the long term in a changing economic context. It is perhaps to the economic sustainability of agriculture that the role and contribution of accountants is most relevant.  The National Farm Survey (NFS) is conducted annually by Teagasc, the Agriculture and Food Development Authority. Highlighting the economic vulnerability of many farm enterprises in Ireland, the 2022 report classes 43% of Irish farms as economically ‘viable’, 32% as ‘sustainable’, and 25% as ‘vulnerable’. At the root of this economic vulnerability is rising inflation and increases in the cost of farm inputs (e.g. fuel, fertiliser and feed), reducing the profit margins of food producers.  The challenge for farm and food production enterprises is to balance economic with environmental and social sustainability. A phrase used in the industry is “it’s hard to be green when in the red”. The NFS statistics reveal a situation of economic vulnerability for many farm enterprises. Therefore, financial viability may understandably be their top priority, with environmental and social sustainability of secondary importance.  However, despite the uncertainty of economic conditions in the short term, the long-term focus on environmentally sustainable food production and its positive social impact should not be forgotten. When a holistic perspective is brought to the concept of sustainability, we realise that the pillars of economic, environmental and social sustainability are intertwined and cannot be simply viewed in isolation.  While there are many scientific solutions (e.g. soil and grassland management, fertiliser use, changes to feed additives, alternative energy sources, shorter animal-to-slaughter periods, etc.) proposed to farmers on how to reduce GHG emissions, there appears to be little known about, or consideration of, the financial impact of such changes to farm practices.  The onus of identifying the changes required to farm practices to reduce GHG emissions on farms is placed on individual farmers, and farm advisory services are available to assist in this regard. However, many of the scientific solutions to reduce on-farm emissions require investment and involve a cost to farmers when making the transition. There appears to be little focus from the advisory services on assisting farmers to assess the economic cost or benefit for them when implementing such changes to farm practices.  Though many farmers want to adapt their work practices to contribute to a reduction in GHG emissions, many experience a knowledge gap regarding the financial impact on their livelihoods. This is an area where improvement in advisory services is required. Bringing a focused financial perspective to sustainability, accountants can contribute to bridging this knowledge gap. I contend that the accounting profession must collaborate with stakeholders in the agriculture industry and lead the way in helping to create sustainable farm and food production enterprises.  A financial management perspective acknowledges that economic sustainability cannot be sacrificed, and is crucial for the survival of farming and food production. Rather, work practices need to change to meet the ‘triple-bottom-line’ agenda of economic, environmental, social sustainability. Farmers and food producers need to be supported and advised to achieve this more complex and yet balanced objective. The role of the accountancy profession It is paramount that farmers and food producers are educated about what sustainability means and the financial implications for their business. Accountants are one of the primary sources of trusted advice for small business owners, including farmers. Therefore, the accounting profession has the potential, and an existing platform, to lead on how farmers and food producers can improve their sustainability, in the broadest sense.  Accountants are unique in having a wide range of knowledge about sustainable work practices from dealing with a varied client base across multiple industries. They can share this with farmers and small agri-business owners.  Accountants could assist farmers and food producers by: identifying the business opportunities for farmers presented by the sustainability transition; conducting cost–benefit analyses of implementing environmental sustainability initiatives (e.g. alternative energy sources); calculating the payback or return on investments that reduce the GHG emissions of enterprises;  helping business owners to avail of financial supports available to meet the cost of sustainability initiatives; advising farmers on how to develop sustainable work practices in a cost-efficient manner; sharing knowledge gained from SMEs and larger companies (e.g. on how to conduct sustainability audits).  Resources are available to support accountants to work with clients in this regard. For example, Chartered Accountants Ireland provide online resources in its Sustainability Centre, where free-to-access publications such as Sustainability for Small Businesses – A Guide provide practical insights. Conclusion There are many ways the accountancy profession can contribute to assisting farmers and food producers meet sustainability targets. These insights are not only important for food and agricultural businesses but are equally relevant and transferrable to how the accounting profession could rise to the challenge of assisting businesses in other sectors of the economy meet the increasing demand to strive for improved sustainability.  Dr Michael Hayden, FCA, is an Assistant Professor of Accounting at Maynooth University  

Monday at COP28 was both Finance Day and Gender Equality Day, with discussions on financing gender-responsive just transition and climate action. As Razan Khalifa Al Mubarak, UN Climate Change High-Level Champion said, “Climate change is not gender neutral. Women make up the majority of the world’s poor and despite and maybe because of this women and girls are at the forefront of climate action.” Some highlights: The Gender-Responsive Just Transitions & Climate Action Partnership was unveiled and endorsed by 60 countries contained a three-year package of measures to address the disproportionate impact of climate-related job loss on women.   A report titled "Feminist Climate Justice: A Framework for Action", was launched by UN Women. The report identified the climate crisis as threatening progress on gender equality and human rights, and hindering the achievement of the Sustainable Development Goals. The report describes how to achieve feminist climate justice and provides practical guidance on what countries need to do to transition to low-emission climate-resilient economies that, while recognizing the leadership of women, girls, and gender-diverse people in driving the change that is so urgently needed.   Hillary Clinton said in an interview that the absence of women in climate talks is a major worry (The Independent) Find more news on the global climate summit our our COP28 page on Chartered Accountants Ireland's sustainability centre. 

"Finance is the great enabler of climate action" This was the message of UN Climate Change Executive Secretary Simon Stiell in a speech at a Green Climate Fund event today “Scaling up Access and Impact”.  And it is a key message of this year’s COP, at which a record number of financial executives are attending. Many may be drawn to what Nikita Singhal, co-head of sustainable investment & ESG at Lazard Asset Management, describes as possibly “the greatest alpha-generation or investment-return” in a long time. Singhal  was speaking at the Bloomberg Business Forum at COP28, and was one of several investors who see opportunities for investment returns in action on the twin crises of climate change and biodiversity destruction. “Let's be clear,” said another such investor, Prudential Plc Chair Shriti Vadera, who reminded the Forum “The private sector only does things that are commercial and create a commercial return: they are to preserve the capital of their customers, savers, pensioners and depositors.” Highlights Chair of the IFRS Foundation Trustees, Erkki Liikanen addressed COP28 and reflected on progress since the IFRS Foundation announced the decision to establish the International Sustainability Standards Board at COP26 in 2021.   Export credit agencies, supporting a combined estimated US$120 billion in global trade in 2022, have formed a net-zero alliance. The UN-convened Net-Zero Export Credit Agencies Alliance will be the first net-zero finance alliance comprising public finance institutions. “Public finance has been the missing piece in the net-zero financial landscape,” said Inger Andersen, Executive Director of UNEP. “Export Credit Agencies are in a strong position to deliver more sustainable global trade and to complement the work already being undertaken by the private finance sector”.   Climate Trace the non-profit project has released data “of unprecedented granularity” that shows how countries have been dramatically under-reporting their greenhouse gas emissions;   An 18-month collaboration between leading climate researchers across more than 20 nations has produced a report titled 10 New Insights in Climate Science 2023/2024. The report aims to help inform policy implementation at COP28 and beyond. It warns that humans will increasingly be unable to live in and move from/to places where climate risks continue to rise, and also warns of compound risks which will amplify the climate crisis and increase in uncertainty. Podcast Tripling renewables is one of the goals under discussion at COP28. Find out where more investments are needed and why decarbonizing energy is easier than you think. (Zero)  

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

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

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

Today saw leaders from over 160 countries attend the opening of the 28th Conference of Parties, ‘COP’ in Dubai. The United Nation’s COP, or ‘Conference of the Parties’, is the most significant event on the global climate calendar. Attended by the 197 countries that signed the United Nations' Framework Convention on Climate Change (UNFCCC), the summit aims to monitor the world’s action to combat dangerous climate change. While the conference can come in for criticism as ‘talking shops’, previous COPs have led to momentous agreements. The most significant of those was the Paris Agreement in 2015.  This Agreement challenged the world to keep dangerous global warming to a level of 1.5° above pre-industrial levels. In 2021, at the Glasgow COP, the International Sustainability Standards Boards was announced. Under the auspices of the International Federation of Reporting Standards this board is now creating global standards for the reporting of comparable sustainability information by companies. 2021 also saw the formation of the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy. Last year, at COP27 in Egypt, a new loss and damage fund was set up for those countries most severely impacted by the effects of climate change (floods, drought, desertification, and land loss due to rising sea-levels). This year’s COP – COP28 – will take place over two weeks from 30 November. It begins with two days of talks among global leaders, followed by negotiations between representatives from over 190 countries.  It is the year of the ‘global stocktake’, required under the Paris Agreement to assess progress made since 2015 and show what needs to be done to address gaps by 2030. And the need for an effective COP has never been greater.  2023 saw record temperature rises, a worsening of extreme weather events and unprecedented global emissions. However, the hosting of COP in Dubia this year has led to controversy. Dubia’s economy is heavily dependent on the exploitation of fossil fuels. The President of this COP, Sultan Al Jaber, is also chief executive of Abu Dhabi National Oil Company (ADNOC), the world’s 12th largest oil company by production. Reports have emerged of fossil fuel companies and lobbyists planning to use the event to agree side deals about increasing fossil fuel production. This COP is also taking place against the backdrop of both the Israel-Gaza conflict and the ongoing invasion of Ukraine. What to expect at COP this year COPs generally open with a ceremonial meeting, followed by a leaders’ summit.  This year the opening address will be given by King Charles in place of Pope Francis, who can no longer attend due to illness. Following this, will be days of world leaders speaking about either their experiences of climate change and/or their planned or intended actions. The world’s biggest emitters, the US and China, will be represented by their climate envoys: the US by John Kerry and China by Xie Zhenhua. Ireland is also sending a large delegation, including Taoiseach Leo Varadkar, Tánaiste Micheál Martin, and Minister for the Environment, Climate and Communications, Eamon Ryan. Following the leaders’ summit, two weeks of negotiations will begin, culminating in the signing of the final agreement on how the world will collectively tackle the climate crisis. Each day of negotiations has a theme, including one day devoted to finance. New promises, pledges, coalitions, and projects are announced at those days. (Events Schedule for this year’s COP.) At this year’s COP, a strong focus will be on food production in a world where hunger levels have risen back up to 2005 level. Also discussed will be the management of methane emissions – an extremely polluting greenhouse gas - and a phasing down of the use of fossil fuels. Climate finance will feature, according to Minister Ryan, who is quoted as saying that “Radical reform of the global financial system will be needed if we are to provide the necessary climate finance for mitigation, adaptation, capacity building and loss and damage”. Chartered Accountants Ireland will keep members informed of all relevant updates from COP. There will be a daily update on the Sustainability News page, and a weekly round-up as part of the Sustainability Bulletin in Chartered Accountants Ireland’s weekly enews to members. Members will also find useful resources on climate – including Climate Essentials for Accountants - in the Sustainability Centre Resource page.

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s involvement in Climate Finance Week Ireland 2023. Also covered is the endorsement by the European Commission of Ireland's revised recovery and resilience plan, carbon emissions intensity statistics from Northern Ireland, energy and climate developments in the UK, a €4 billion call for net zero technology proposals under the EU’s Innovation Fund, as well as proposals on pollution, packaging and the circular economy, news from the UN’s Emissions Gap Report, as well as Technical Updates, articles and upcoming events. Chartered Accountants Ireland at Climate Finance Week 2023 Chartered Accountants Ireland partnered with the International Sustainable Finance Centre of Excellence (IFSCOE) again this year for Climate Finance Week Ireland 2023. Now in its fifth year, this week-long summit comprises both in person and virtual events about advancing financial sustainability in Ireland. The Institute’s event – You’re in Scope because They’re in Scope’ demonstrated the impact of the Corporate Sustainability Reporting Directive (CSRD) on value chains in Ireland, regardless of whether companies – such as SMEs – are directly in scope of the new Directive. Institute’s Professional Accounting Lead Dee Moran outlined the CSRD and the related standards, the ESRSs, after which Institute’s Sustainability Officer Susan Rossney interviewed David Connolly - Senior Manager, EY Climate Change and Sustainability Services and Donna Wilson - Head of ESG Transformation, AIB. Watch back here Ireland's revised recovery and resilience plan endorsed by European Commission The European Commission has this week positively assessed Ireland’s revised Recovery and Resilience Plan. The plan, which is now worth €914 million in RRF grants, contains a broad scope of green measures in areas including energy renovation for public buildings, the decarbonisation of enterprises, and the promotion of sustainable transport. It will also continue to help strengthen economic and social resilience of Ireland through support for employment by the means of upskilling and an increase in the supply of social and affordable housing, among other things. DETE, Building Better Businesses Midlands Park Hotel, Portlaoise The next event in the Department of Enterprise, Trade and Employment (DETE) ‘Building Better Business’ events will take place on Thursday, 7 December in Dublin. These events aim to help businesses navigate the green journey and boost business performance through digital transformation. The event will take place in the Convention Centre Dublin from 8.30am – 1.30pm. Register here. Carbon emissions intensity in Northern Ireland The Statistics and Analytical Services Branch in the Department of Agriculture, Environment and Rural Affairs (DAERA) have published ‘carbon intensity indicators’ for Northern Ireland for 2023. Carbon intensity refers to the amount of the greenhouse gas carbon dioxide (CO2) emitted per unit of economic output or activity. Figures indicate that the ratio of total greenhouse gas emissions to gross-value add (GVA) in Northern Ireland decreased 66 percent from 1998 to 2021 and decreased 36 percent per capita from 1990 to 2021 (despite a 19 per cent increase in the population over the same period).  The publication seeks to among other things help Government track the effectiveness of carbon reduction policies. UK climate and energy developments The UK’s Energy Act 2023 passed last week, marking a pivotal moment in the country’s transformation to sustainable energy. The legislation aims to future-proof the UK’s energy system by strengthening energy security, delivering net zero and ensuring affordability for households and businesses. According to ICAEW Insights, however, while the Energy Act does provide businesses with a sense of direction and a level of certainty around the government’s investment in a net zero-aligned energy market, the appropriate policy mechanisms and detailed plans are yet to fall into place, and challenges to net-zero remain. This week also saw the publication of the UK Government’s Autumn Economic Statement. In this, Chancellor Jeremy Hunt described the importance of the green economy to the UK's long-term competitiveness, but climate experts were reportedly critical of the absence of references to energy efficiency or insulation, and less-than-optimal levels of investment in green technology in comparison to similar investments offered by the US and the EU.   The Innovation Fund The European Commission has opened a €4 billion call for proposals for net-zero technologies under the Innovation Fund. The Innovation Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge low-carbon technologies and support Europe's transition to climate neutrality. The call is funded by revenues from the EU Emissions Trading System (EU ETS), underlining the importance of carbon pricing for the green transition.  Pollution, packaging and ‘forever chemicals’ - EU “If you pollute, you will pay for your crimes.” This statement by EU Parliament’s chief negotiator Antonius Manders was about the provisional agreement reached last week between the EU Parliament and Council on the protection of the environment through criminal law. Under the new Directive, proposed in 2021, breaches of environmental obligations such as illegal trade and handling of chemicals or mercury, or illegal ship recycling will have to be treated as criminal offences in all EU Member States. Offending companies will be fined up to 5 percent of their global turnover and the worst polluters may face jail sentences of up to 10 years. Separately, the Parliament adopted its position on new EU-wide rules on packaging, to tackle constantly growing waste and boost reuse and recycling in responses to citizens’ expectations to build a circular economy, avoid waste, phase-out non-sustainable packaging and tackle the use of single use plastic packaging. In addition to the proposed ban on the sale of very lightweight plastic carrier bags (below 15 microns), MEPs are also proposing to heavily restrict the use of certain single-use packaging formats, such as hotel miniature packaging for toiletry products and shrink-wrap for suitcases in airports. To prevent adverse health effects, MEPs are also proposing a ban on the use of so called “forever chemicals” in food-contact packaging. The European Parliament has also adopted its position on a stronger “right to repair” for consumers,  complementing EU initiatives on Ecodesign and on Empowering consumers for the green transition. The right to repair proposal aims to encourage more sustainable consumption, by making it easier to repair defective goods such as washing machines, vacuum cleaners, smartphones and bicycles after the guarantee has expired, and reduce waste and support the repair sector. The Emissions Gap Report - UN The UN Environment Programme (UNEP) has issued its annual Emissions Gap Report, which assesses countries’ promises to tackle climate change compared with what is needed.  The report finds that the world is on track for a 3° temperature rise above preindustrial levels this century if governments do not boost climate action. Released ahead of the COP28 climate summit in Dubai this year, the report concludes that the current pledges by countries under the Paris Agreement are insufficient, and that “global low-carbon transformations” are needed to deliver required emissions cuts. Speaking about the report, Inger Andersen, UNEP Executive Director stated: “There is no person or economy left on the planet untouched by climate change, so we need to stop setting unwanted records on greenhouse gas emissions, global temperature highs and extreme weather”. Commenting, Ireland’s Minster for the Environment, Climate and Communications, Eamon Ryan, T.D., reportedly stated that while developed economies are collectively hard-wired to ignore the reality of climate change, we have to speed up and scale up our switch to an economy-wide, low-carbon future based on green energy, green jobs and green agriculture. GDP and climate risk Loss of labour due to heat stress wiped out the equivalent of 4 percent of Africa’s GDP in 2022, according to a new report from the Lancet Countdown on Health and Climate Change covered by Carbon Brief. Meanwhile, Europe and North America only saw labour losses equivalent to 0.1 percent and 0.2 percent of their GDP, respectively, according to the findings. Effective income losses in 2022 were due to heat stress in agriculture and other sectors. Technical updates (from our colleagues in Professional Accounting) EFRAG and CDP have announced that they will cooperate to maximise alignment of CDP’s global environmental disclosure platform with the EU’s environmental reporting standards. Global Reporting Initiative (GRI) has announced the launch of a Sustainability Innovation Lab to enable companies to meet their evolving sustainability disclosure requirements. ESG Governance – Questions Boards should ask to lead the Sustainability Transition (Accountancy Europe, ecoDa and ECIIA) aims to help boards with embedding sustainability into company strategy and business models, and to ensure that proper governance supports this. Did you know? Roughly 30 percent of all food produced for human consumption is wasted. A contributing factor to this is in feast-preparation for holidays like Thanksgiving yesterday in the US, and at Christmas. Online tools like the Guest-imator suggest how much of each dish to make based on who’s coming.  Articles A sector progress tracker for the net-zero transition (McKinsey) Global warming approaching 3 degrees this century with catastrophic implications, UN report warns (Irish Times) Ships Across the World Face Hefty $3.6 Billion Climate Bill - The EU’s Emissions Trading System for vessels kicks in Jan. 1 (Bloomberg) Watch Tomorrow Tonight, a scripted docu-drama (1hr, 11mins) set in 2050 and focusing on climate change, the Irish rural economy and a revitalised Amazon rainforest. Introduced by presenters Mark Little and Carla O’Brien, the programme aired on RTÉ One as part of a series of specials celebrating Science Week 2023. Upcoming events   Chartered Accountants Ireland: Elephant in the Room To mark this year’s Movember, Thrive, along with the Leinster Society, invites you to the unveiling of our Elephant sculpture as part of the mental health initiative, Elephant in the Room. In person: 29 November, 5pm, Chartered Accountant House – Reception Foyer Chartered Accountants Ireland CPD Blitz 2023 - NI: In Person Chartered Accountants Ireland’s 2023 NI CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin. In person: 30 November, 9:30-1:30pm, Grand Central Hotel, Belfast. Sustainable Energy Authority of Ireland (SEAI) SME Business Briefing A webinar to learn how your business can save money and energy this year. Virtual: 30 November, 10-11am Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December, Various Locations (See event listings) DETE, Building Better Business   During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation. In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.  Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin. In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin. Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 24 January 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  Chartered Accountants Ireland is partnering with Climate Finance Week Ireland to deliver a webinar on the Corporate Sustainability Reporting Directive (CSRD) and its implications for SMEs in value chains. With effect from financial year beginning on or after 1 January 2024, companies in Ireland will begin reporting under the CSRD (and as a result, the European Sustainability Reporting Standards ‘ESRS’). Drawing on our speaker’s expert knowledge, the webinar will first describe the CSRD and the ESRS.  This will be followed by a panel discussion, on how the financial services sector is transforming its own environment, social and governance profile, and the impact this will have on customers along the value chain. Building on the concept “you’re in scope because they’re in scope”, the speakers will discuss ways for SMEs to prepare for the potential impact of the Corporate Sustainability Reporting Directive. Speakers: Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB (Host) Susan Rossney – Sustainability Officer, Chartered Accountants Ireland Sign up here: https://www.climatefinanceweek.ie/agenda/thursday-23rd-november/

    In this week’s Sustainability/ESG bulletin, read about developments in Ireland’s sustainability energy as work commences on the Celtic Interconnector and the Government publishes its new energy strategy. Also covered are emergency rate reliefs for flood-affected businesses in Northern Ireland, a landmark new EU regulation on methane and fossil fuel operations emissions, a Critical Raw Materials Act, and information on the EU’s fight against human trafficking, resources from IFAC and the usual roundup of newsletters, podcasts, articles and events.   Developments in sustainability energy in Ireland The governments of Ireland and France have signed a Joint Declaration of Intent on ‘Energy Transition Cooperation’, providing a framework for the mutual willingness of both countries to accelerate the decarbonisation of energy systems. The governments also marked the commencement this week of construction work on the Celtic Interconnector, a high-voltage subsea power cable that will link the electricity grids of Ireland and France. It will include enough capacity to power 450,000 homes and will create a direct electricity link from Ireland to the EU. It will also form part of the Offshore Network Development Plan, intended to develop an integrated energy system for European energy markets. The Government also published the Energy Security in Ireland to 2030, outlining its a strategy for a more secure, sustainable, and affordable energy system for Ireland. The strategy focuses on four key pillars: reduced and responsive demand; a renewables-led system; a more resilient system; and robust risk governance in the energy sector. The report is part of an Energy Security Package, containing a range of supplementary analyses, consultations, and reviews, which have informed the recommendations and actions related to energy security. A follow-up to the Energy Security Package will be published in 2030, and every five years thereafter, with implementation monitored by the Government’s Energy Security Group. DETE, Building Better Businesses, Dublin The next event in the Department of Enterprise, Trade and Employment (DETE) ‘Building Better Business’ events will take place on Thursday, 7 December in Dublin. These events aim to help businesses navigate the green journey and boost business performance through digital transformation. The event will take place in the Convention Centre Dublin from 8.30am – 1.30pm. Register here. Emergency rate reliefs – Northern Ireland Emergency rate reliefs are being made available for businesses affected by recent flooding in Northern Ireland. The emergency rate relief measures include 100 percent relief for non-domestic rates on properties that have been flooded as well as support to help businesses temporarily relocate. Find out more. Methane and raw materials: EU legislation The European Parliament and Council have this week provisionally agreed on a landmark new EU Regulation to reduce energy sector methane emissions in Europe and in its global supply chains. Methane, a powerful greenhouse gas, is the second biggest contributor to climate change after carbon dioxide (CO2) and is also a potent air pollutant. The regulation will oblige the fossil gas, oil and coal industry to properly measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and to take action to reduce them. Pending formal adoption, the new legislation will be published in the Official Journal of the Union and will enter into force. Separately the European Commission has welcomed political agreement on the Critical Raw Materials Act. This sets out actions to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. The EU’s demand for base metals, battery materials, rare earths and more are set to increase exponentially as the EU divests from fossil fuels and turns to clean energy systems which necessitate more minerals. Adaptation Nature-based solutions, such as restoring wetlands in flood-prone areas or green infrastructure to reduce heat island effects in cities, need to be scaled up and expanded to help Europe better cope with the impacts of climate change. This is according to a recently published European Environment Agency (EEA) briefing which assesses the current state of such climate adaptation projects and how they can increase both society resilience and biodiversity. Human trafficking: the EU’s fight against exploitation The European Parliament has updated its information on how the EU is strengthening anti-trafficking rules to respond to changes in the way people are being exploited. Parliament agreed its position in October 2023, which forms the basis for negotiations with EU countries. MEPs are also working on rules aimed at keeping products made using forced labour out of the EU market. The draft regulation would put in place a framework to investigate the use of forced labour in companies’ supply chains. Over $6 Billion needed to strengthen US climate resilience, report finds The United States has released a substantial government report on climate change in the country, Fifth National Climate Assessment, in which it states that more than $6 billion is required to strengthen climate resilience across the country. The report, which was published following a comprehensive survey of climate impacts and risks around the US and runs to over 2,000 pages reportedly states that “How much more the world warms depends on the choices societies make today… “The future is in human hands.” Resources The International Federation of Accountants (IFAC) has released a Small Business Sustainability Checklist (the Checklist) that aims to help small- and medium-sized enterprises (SMEs) maximize the benefits of incorporating sustainability into their strategy and business operations. IFAC has also gathered together a page of resources from its conference with Accountancy Europe Preparing for High-Quality Sustainability Assurance Engagements, including recordings of presentations and discussion, slides, a list of key takeaways as well as plans for the future, and deep dive on ISSA 5000, views from key stakeholders, and other resources. Newsletter The London Business School has issued a new format newsletter as part of the Think at London Business School in which it looks at how important it is for businesses to strive for sustainability. The issue contains insights on COP28, technology solutions to ocean plastic pollution, private equity firms and ESG, and podcast and books. Articles How businesses can start the journey of taking climate action (Business Post) Make your corporate gifts sustainable in 2023 (Accountancy Ireland) How to Fathom Climate Change’s Unfathomable Numbers (Bloomberg Green) EU agrees nature restoration deal that will have far-reaching impact for Ireland (Irish Times) Office recycling bins turn us into monsters (Financial Times) Audit firms risk losing out in race for ESG assurance (ICAEW Insights) Upcoming events   🌟🌟IFSCOE, Climate Finance Week Ireland 2023 Week-long summit. In person and virtual: Monday, 20 November – Friday, 24 November includes: Corporate Sustainability Reporting Directive (CSRD) and Its Implications For SMEs In Supply Chains (Webinar) Thursday, 23 November, 10-11 Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB Virtual: 23 November, 10-11🌟🌟 Chartered Accountants Ireland: Elephant in the Room To mark this year’s Movember, Thrive, along with the Leinster Society, invites you to the unveiling of our Elephant sculpture as part of the mental health initiative, Elephant in the Room. In person: 29 November, 5pm, Chartered Accountant House – Reception Foyer Sustainable Energy Authority of Ireland (SEAI) SME Business Briefing A webinar to learn how your business can save money and energy this year. Virtual: 30 November, 10-11am Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December, Various Locations (See event listings) DETE, Building Better Businesses, Dublin During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation. In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.  Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 22 November 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

In this week’s Sustainability/ESG bulletin, read about support measures to help businesses in Ireland and Northern Ireland impacted by recent flooding. Also covered is Ireland’s Fourth National Climate Stakeholder Forum, the sustainability skills identified by the National Skills Bulletin 2023, how sustainability is a priority for 90 percent of Ireland’s manufacturing industry, the Environmental Protection Authority (EPA)’s new National Air Quality Forecast, and updates from the EU and the UN, as well as the usual roundup of updates, podcasts, articles and events. Sustainability Award News! ✨🎉Congratulations to Bank of Ireland, winner of the Leinster Society’s Published Accountants Award Sustainability & ESG Reporting (Listed Entity) and to CIÉ - Córas Iompair Éireann, winner of the Sustainability & ESG Reporting (Unlisted Entity) Award! #PAA2023 ✨🎉 Emergency Business Flooding Schemes – Ireland and Northern Ireland The Minister for Enterprise, Trade and Employment, Simon Coveney, T.D. has extended two previously approved Emergency Business Flooding Schemes for small businesses, sports clubs, community, and voluntary organisations unable to secure flood insurance and affected by recent flooding in certain areas in Ireland. Due to the exceptional severity of the flooding in some areas, the Government has agreed to activate an Enhanced Emergency Business Flooding Scheme with higher levels of financial support for businesses severely affected in certain locations, as well making immediately available financial assistance by way of low-cost loans from Microfinance Ireland to small businesses that cannot get loan financing from other lenders.  Climate experts are warning that floods constitute the greatest hazard associated with global climate change. Separately, a number of support measures have been announced to help businesses in Northern Ireland impacted by recent flooding. The support measures include rates relief for flooded business premises and one-off grant payments for affected businesses. Proposals for further schemes to support the longer-term recovery of the affected towns are being considered by government departments and local government. More information on those schemes will be released in the coming weeks. Fourth National Climate Stakeholder Forum held The fourth National Climate Stakeholder Forum (NCSF) took place this week, hosted by the Minister for Environment, Climate and Communications, Eamon Ryan, T.D. The one-day workshop is a key pillar of the National Dialogue on Climate Action (NDCA), Ireland's national programme to engage, enable and empower stakeholders and citizens across society to take climate action.  Participants at the forum – among them representatives from Chartered Accountants Ireland – discussed sectoral engagement with climate action, identified where gaps in communication existed, and ways in which as many people as possible in society could be engaged in taking climate action. The output of this forum will be a roadmap for delivering the new Action Plan on Climate Communications and Engagement. ‘Sustainability Starts with a Plan’ – Enterprise Ireland Enterprise Ireland has launched a sustainability campaign, ‘Sustainability Starts with a Plan’, to build awareness across Irish business of the supports available to help them reduce carbon emissions and develop sustainability plans. The campaign, which will include an initial six-week advertising campaign across radio, print and social media, is designed to encourage take-up by businesses of the range of Enterprise Ireland supports to assist them on their sustainability journey. Supports include consultancy advice, capacity building supports and financial grants for projects that reduce carbon emissions. Local Enterprise Officers (LEO) have similar offerings for micro businesses. Further details can be found on the Enterprise Ireland website. Upskilling and reskilling essential across business and finance The National Skills Bulletin 2023 is reporting that the skills mix of Ireland’s workforce will need to evolve as industries in Ireland address issues such as sustainable sourcing, circular lifecycles, energy efficiency, and waste minimization. The report, which was launched this week, states that, “Upskilling and reskilling will be essential across the business and financial occupations in the coming years so as to successfully navigate changes resulting from digitalisation, automation and the increased focus on sustainable finance”. This is the nineteenth such report in an annual series and was prepared by the Skills and Labour Market Research Unit (SLMRU) in SOLAS on behalf of the National Skills Council. Sustainability a priority for 90 percent of Ireland’s manufacturing industry  IBEC’s 2023 Manufacturing in Ireland report has found that there is widespread participation in the manufacturing industry in sustainability (85 percent) and digitalisation (68 percent) initiatives. Commenting, Sharon Higgins, IBEC’s Executive Director, Membership and Sectors stated that “half of organisations involved in each of these expecting to save money as a result” and that “90% of companies agreed that sustainability, is a priority for their business. Given the priority attached to sustainability and impending reporting directives, 85% are introducing initiatives in the next 1-2 years that will lessen their environmental impact and address customer expectations.” EPA launches a National Air Quality Forecast The Environmental Protection Authority (EPA) has launched a national air quality forecast to provide greater information to the public regarding expected air quality in Ireland. The forecast will provide maps showing the predicted daily air quality for up to three days -"Today", “Tomorrow” and the “Day after Tomorrow”. The air quality forecast will help people plan their activities to follow public health advice, such as reducing physical activity when air pollution levels are predicted to increase and could affect their health. The forecast maps will be uploaded twice daily, once in the morning and once in the evening. The forecast and further information on air quality and the Air Quality Index for Health are available on airquality.ie. Funding opportunities in UK and Northern Ireland  Funding is being made available to eligible organisations through Small Business Research Initiative (SBRI) competitions for innovative solutions to challenges faced by the public sector in healthcare, circular economy, agriculture and more.  Under SBRI: Delivering a Net-Zero NHS for a Healthier Future, organisations can apply for funding for early-stage innovations to accelerate the development of greener innovation towards a more sustainable healthcare system.   Creative UK is accepting applications for the Creative Catalyst Challenge Fund, offering businesses an opportunity to access grant funding of up to £250,000. Supported by Innovate UK, this fund is designed to empower creative minds to channel their innovation towards addressing specific climate challenges within the industry. The focus of this grant is to support research and development that: combats waste, promotes decarbonisation or minimizes the creative industry's impact on the environment. European Commission adopts Carbon Market Report The European Commission has adopted the Carbon Market Report, which reviews the functioning of the EU’s Emissions Trading System (EU ETS) in 2022 and the first half of 2023. The EU ETS puts a cap on greenhouse gas emissions from power and energy-intensive sectors of industry and aviation operating in Europe (approx. 36 percent of all EU greenhouse gas emissions). The cap decreases every year to reduce emissions in line with the EU climate targets. The report also captures key outcomes of the 2023 EU ETS revision in the context of the European Green Deal, which aligns the system with the EU’s target of at least 55 percent emission reductions by 2030 below 1990 levels. To date, the EU ETS had helped bring down emissions from power and industry sectors to 37.3 percent below 2005 levels.  UN Climate Adaptation Gap Report publishes The United Nations Environment Programme (UNEP) has published its UNEP Adaptation Gap Report 2023, which looks at progress in planning, financing and implementing adaptation actions. The main finding for 2023 is that progress on climate adaptation is slowing when it should be accelerating to catch up with rising climate change impacts. The report also identifies seven ways to increase financing, including through domestic expenditure and international and private sector finance. Survey – Nature Based Solutions – World Research Institute Over half of global GDP - $44 trillion - relies on nature. Yet, only 17 percent of total investment in nature comes from the private sector. The World Resources Institute (WRI) is researching how businesses are deciding to finance Nature-based Solutions (NBS) in order to support their company’s efforts to increase investment in NBS and have made available this 9-minute survey for interested companies. Technical Update From our colleagues in Professional Accounting IAASB has published a set of Frequently Asked Questions on the recently proposed ISSA 5000, General Requirements for Sustainability Assurance Engagements. The FAQ addresses, among other things, double materiality and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement. EFRAG has welcomed the adoption and integration in the European Legal Framework of the 12 European Sustainability Reporting Standards (ESRS). To support their successful implementation EFRAG has launched a Q&A platform to encourage stakeholder dialogue, and announced the development of further standards for SMEs. Accountancy Europe, together with ECIAA and ecoDa, has released a publication entitled “ESG Governance: questions boards should ask to lead the sustainability transition”. It was announced that the International Sustainability Standards Board’s (ISSB) IFRS Sustainability Disclosure Standards will be incorporated into the Brazilian regulatory framework, setting out a roadmap to move from voluntary use starting in 2024 to mandatory use on 1 January 2026. The International Sustainability Standards Board has issued its ISSB Update, and the latest episode of the ISSB podcast. Accountancy Europe - Sustainability update – October 2023 (from our friends in Accountancy Europe) EC launched call for evidence to rationalise EU reporting requirements EC adopts final delegated act on adjusting SME thresholds Sector-specific ESRS postponed Council adopts EU green bond standard regulation Stakeholder Request Mechanism for EU Taxonomy Council conclusions for COP 28 And more Listen Niall Fitzgerald from Chartered Accountants Ireland is featured on the Carmichael Podcast to talk about sustainability and its effects on the non-profit sector. Articles Tourism Ireland to ‘weigh’ benefits of further growth with environmental damage (Irish Times) Workers will accept lower pay at environmentally sustainable firms (Irish Times) Upcoming Events   ICAEW Climate Summit Week-long summit Virtual: 13-17 November. Climate Finance Week Ireland 2023 Week-long summit. In person and virtual: Monday, 20 November – Friday, 24 November includes: Corporate Sustainability Reporting Directive (CSRD) and Its Implications For SMEs In Supply Chains (Webinar) Thursday, 23 November, 10-11 Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB Elephant in the Room To mark this year’s Movember, Thrive, along with the Leinster Society, invites you to the unveiling of our Elephant sculpture as part of the mental health initiative, Elephant in the Room. In person: 29 November, 5pm, Chartered Accountant House – Reception Foyer SEAI SME Business Briefing A webinar to learn how your business can save money and energy this year. Virtual: 30 November, 10-11am Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 22 November 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

    In this week’s Sustainability/ESG bulletin, read about Ireland’s first national Bioeconomy Action Plan, and how studies show that Irish people are largely supportive of climate policies. Also covered is new funding available for solutions to bias and discrimination in AI systems, and a public consultation on zero emissions heavy goods vehicles in the UK, a report revealing the progress of climate action in the EU, the growth of climate risk assessments in national adaptation policies, and the usual roundup of updates, articles and events. Ireland’s first national Bioeconomy Action Plan publishes Minister for Agriculture, Food and the Marine Charlie McConalogue, T.D., and Minister for the Environment, Climate and Communications, Eamon Ryan, T.D., have announced the publication of Ireland’s first National Bioeconomy Action Plan for 2023-2025. The Action Plan will have a strong focus on bringing sustainable scientific practices, technologies, and biobased innovation into use on farms and by biobased industries in Ireland. The ‘bioeconomy’ is the production, utilisation, and regeneration of biobased materials to provide sustainable nature based and biobased solutions across all economic sectors. EPA finds Irish people largely supportive of climate policies Insight reports published this week by the Environmental Protection Authority (EPA) have found that Irish people are largely supportive of climate change policies. Opposition that arises appears to be driven by practical concerns, rather than by climate-change scepticism, according to the study. The youngest adults (18-24 years) consistently exhibit significantly higher levels of concern, with young women most concerned about climate change. The reports – ‘Climate Change in the Irish Mind - Support for Climate Policies’ and ‘Climate Change in the Irish Mind - Climate Risk Perceptions’ – are both from the EPA's study ‘Climate Change in the Irish Mind’ which focuses on the national responses to risk perceptions and policy support. The reports provide a detailed examination of some of the findings of the baseline study published in 2021. UK funding and public consultation Innovate UK is working with the Centre for Data Ethics and Innovation (CDEI), part of the UK’s Department for Science Innovation and Technology, to invest up to £400,000 to drive the development of novel solutions to address bias and discrimination in artificial intelligence (AI) systems. The deadline for applications is 13 December 2023.   Separately, grants from the Department of Transport are being made available to businesses seeking to provide solutions to some of transport’s most pressing issues, including decarbonisation. Applications will stay open until Monday 27 November 2023. The Department has also launched a public consultation seeking views sought to inform the development of a zero-emission heavy goods vehicle and coach infrastructure strategy. The call for evidence closes on 14 December 2023. State of the Energy Union 2023: Further action needed to accelerate climate action The 2023 State of the Energy Union report published this week and found that the EU’s net greenhouse gas emissions decreased by approximately 3 percent in 2022, continuing a 30-year downward trend (having fallen by 32.5 percent compared with 1990). The report also revealed an increase in the volume of carbon removed from the atmosphere in the EU compared to the previous year. However, based on Member States' projections, the EU is currently not on track to reach its 2030 objective of removing 310 million tonnes of CO2 from the atmosphere per year, and the EU and its Member States need to significantly step up their implementation efforts and accelerate emissions reduction to stay on track to reach the 2030 -55 percent net greenhouse gas reduction target and climate neutrality by 2050. Climate risk assessments in national adaptation policies Climate risk assessments that take account of threats like heatwaves, droughts, floods and wildfires are increasingly being used to inform and improve national adaptation policies. This is according to the latest European Environment Agency (EEA) assessment of national adaptation actions published this week. The briefing, ‘Is Europe on track towards climate resilience? Status of reported national adaptation actions in 2023’, presented the current status of national adaptation actions across Europe. It found a gradually evolving adaptation policy landscape, sub-national adaptation policymaking progressing in all countries, governance-related challenges It also found that EU funds play a major role in financing adaptation action for most Member States. ‘Adaptation’ to climate change means taking action to adjust to its present and future impacts. Examples of adaptation measures include large-scale infrastructure changes, such as building defences to protect against sea-level rise, as well behavioural shifts, such as individuals reducing their food waste. Inequality in Europe Ireland has been given an overall gender equality score of 73 in an EU index published this week by the European Institute for Gender Equality (EIGE). The score represents a drop of 1.3 points since 2020 – the largest decline among the EU’s 27 countries. Ireland has dropped two places to rank ninth place overall. The index reportedly found that that gender inequalities are more ‘pronounced’ in Irish workplaces than they were in the last decade and when compared with pre-pandemic (2020) levels, and that both women and men in Ireland are less likely to choose low-carbon modes of transport than their counterparts elsewhere in the EU. Separately, a report published by the European Union Agency for Fundamental Rights (FRA) has found that people of African descent routinely face racial discrimination, harassment and violence in all aspects of their lives. 45 percent of respondents said they experienced racial discrimination in the five years before the survey, and 34 percent felt racially discriminated against when looking for a job. The FRA is calling on EU countries to take urgent steps to tackle racial discrimination and harassment to ensure everybody is treated equally and with dignity. Did you know? A study has found that the power sectors in the Asia-Pacific, Europe and the US are “highly exposed” to stranded assets as stringent policies are implemented to limit global warming to 2C above pre-industrial levels. The study was part of a paper in the multidisciplinary journal Nature Communication. Articles High fossil fuel use putting UN climate targets out of reach: IEA (RTÉ) Advancing UN SDGs with Social Cost-Benefit Analysis (Institute of Project Management) ISSB standards: the right solution – article highlighting the benefits of the UK adopting IFRS Sustainability Disclosure Standards in response to TAC’s call for evidence (ICEAW) Carbon Capture Desperately Needs a Reality Check After Lost Decade (Bloomberg Green) Storm Babet floods show climate change is 'here and now' - Eamon Ryan (The Journal) Upcoming Events   Sustainable Finance Skillnet is offering funded training opportunities until October and November 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence). A series of short, deep dive training modules on key sustainable finance topics include  •           EU Taxonomy •            Net-Zero •            SFDR (Sustainable Finance Disclosure Regulation) Department of Enterprise, Trade and Employment, Building Better Business in the South-West Free business event in Cork, focusing on the opportunities and challenges presented by the green economy and digital transformation. In person: Thursday, 9 November iQuest & Business Post Events: The ESG Summit In person: Thursday, 9 November, Radisson Blu Royal Hotel, Golden Lane, Dublin ICAEW Climate Summit Week-long summit Virtual: 13-17 November. Climate Finance Week Ireland 2023 Week-long summit. In person and virtual: Monday, 20 November – Friday, 24 November Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 8 November Due to popular demand, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back again in November 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 22 November 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

  In this week’s Sustainability/ESG bulletin, read how business leaders are increasingly looking to Chartered Accountants as trusted advisors on ESG issues. Also covered is increased funding for projects in Ireland under the Just Transition Fund; CSO statistics showing one-third of Irish office buildings received an ‘E’ energy rating or lower; new national End-of-Waste Criteria for Ireland’s largest waste stream; how the European Banking Authority is revising capital rules to include ESG risks; and the usual roundup of technical updates, articles and events.   Trust in Chartered Accountants as ESG leaders Business leaders increasingly look to Chartered Accountants for guidance on environment, social and governance (ESG) issues. This was among the key findings from an Edelman research report that measures trust with Chartered Accountants among financial decision makers globally. Now in its fourth wave, the study focused on topical themes to the business world, including economic uncertainty, the cost-of-living crisis, combatting misinformation, digitalisation, automation, and the importance of ESG. The report was launched at a panel event run by Chartered Accountants Ireland, alongside a Chartered Accountants Worldwide research paper Trust: Making the Difference. Increased funding for projects in Ireland under the Just Transition Fund Minister for the Environment, Climate and Communications, Eamon Ryan, T.D., has announced a further €24 million for the Midlands region under Ireland’s EU Just Transition Fund (JTF) programme. Targeted at the wider Midlands region as it transitions away from peat extraction for energy use, the JTF programme provides funding to projects that invest in the development of local communities, create employment and help diversify the local economy. Further information is available on the website of Pobal, which is administering the scheme. One-third of office buildings in Ireland received 'E' energy rating or lower Figures released from the CSO this week on energy ratings of non-domestic buildings in Ireland for Quarter 3 of 2023 has found that over one-third (35 percent) of office buildings in Ireland received a Business Energy Ratings (BER) certificate of ‘E’ or below between 2009-2023.  BER audits were conducted for 1,754 non-domestic buildings constructed between 2020 and 2023. Almost two-fifths (38 percent) of these buildings received an ‘A’ rating, compared with 22 percent of non-domestic buildings constructed during 2015 to 2019. While the most energy efficient building types audited during 2009-2023 were schools and colleges (40 percent of these were awarded an ‘A’ rating), at least 14 percent of office buildings were among the least energy efficient building types, scoring the lowest rating (‘G’), with only 2 percent receiving an ‘A’ rating. EPA publishes national end-of-waste criteria The Environmental Protection Agency (EPA) has today published national End-of-Waste Criteria for elements of construction waste, which is Ireland’s largest waste stream. The criteria apply to ‘aggregates’ recycled from construction and demolition waste, including soil and stone, concrete, bricks and ceramics. The implementation of new criteria aims to reduce construction waste going to landfills and increase current low recycling rates. Further information on the criteria and other initiatives of the circular economy programme are available on the EPA website.   Green Agreements guidance launched by Competition and Markets Authority The UK Competition and Markets Authority has launched new Green Agreements Guidance for businesses. The guidance explains how competition law applies to environmental sustainability agreements between firms operating at the same level of the supply chain, to help them act on climate change and environmental sustainability. The guidance includes additional practical examples that businesses can use to inform and shape their own decisions when working with competitors on environmental sustainability initiatives. EBA revising capital rules to include ESG risks The European Banking Authority (EBA) has published a report on the role of environmental and social risks in the prudential framework of credit institutions and investment firms. The report recommends targeted enhancements to accelerate the integration of environmental and social risks across ‘ Pillar 1’ (one of the three areas of focus of the Basel Framework which sets out capital requirements and risk measurements for global banks). The proposed enhancements aim to support the transition towards a more sustainable economy, while ensuring that the banking sector remains resilient. Commission adopts new ETS Auctioning Regulation The European Commission has adopted a new ETS Auctioning Regulation that sets out technical elements necessary for good organisation of auctions of greenhouse gas emission allowances under the EU’s Emissions Trading Scheme (ETS). The action follows the revision of the ETS Directive in the context of REPowerEU plan and the ‘Fit for 55’ legislative package to reduce Europe’s net greenhouse gas emissions by at least 55 percent by 2030. The main elements introduced in the new Regulation include the extension of the ETS scope, changes related to improvements regarding market oversight and transparency, and changes related to the rules regarding the notification of the voluntary cancellation of allowances by Member States under the ETS Directive. After a period of scrutiny by the European Parliament and Council the new regulation will be published in the Official Journal and enter into force thereafter. Accountancy bodies publishes report for public sector sustainability Three global accountancy bodies, ACCA, IFAC and IDI, have launched a publication on preparing for sustainability reporting in the public sector. The report, Preparing for Sustainability Reporting and Assurance - An introduction for the public sector globally, was launched at the World Investment Forum in Abu Dhabi, and outlines what sustainability reporting and assurance mean for the public sector, why they are important, and key principles for governments, SAIs and other public sector bodies to consider in this journey. Asset owners and investor engagement The Net-Zero Asset Owner Alliance (NZAOA) has released its third annual progress report. Increasing Climate Ambition, Decreasing Emissions. For the first time, the report by the 2019-founded alliance of global asset owners committed to ensuring their investment portfolios are carbon neutral by 2050, provides data on the membership’s absolute financed greenhouse gas emissions. It also reportedly shows a 3.5 percent decrease from 2021 to 2022 (from 221.2 mtCO2e to 213.4 mtCO2e) despite membership growth over that period. Separately, however, Climate Action 100+, the world’s largest investor engagement initiative on climate change, has found that of the most companies it assessed against its newly updated ‘Net Zero Company Benchmark’ are not moving fast enough to align with the goals of the Paris Agreement and reduce investors’ risk. The results, a summary of which can be found here, reveal that while there is long-term ambition among the companies it surveyed, there is a lack of detailed plans of short-term actions. These include targets to reduce greenhouse gas emissions, CAPEX allocation and climate policy engagement.   Technical Updates (From our colleagues in Professional Accounting) The European Parliament has voted to adopt the European Sustainability Reporting Standards (ESRS), paving the way for the standards to become effective, depending on a company size and nature, on a phased basis financial periods beginning on or after 1 January 2024. Several accounting standards boards, including in the UK and Australia, have jointly issued a letter to the International Sustainability Standards Board (ISSB) regarding its recent Agenda Consultation. The letter highlights common concerns, which include connectivity with accounting standards; strategic roadmap; and implementation priority. The Financial Stability Board (FSB) has published its annual progress report on climate-related disclosures, delivered to G20 Finance Ministers and Central Bank Governors for their 11-12 October 2023 meeting. The Financial Conduct Authority (FCA) has welcomed the publication of the Transition Plan Taskforce (TPT) Disclosure Framework. Resources (From our friends in Accounting for Sustainability) New guidance has been published for pension fund chairs and trustees on managing nature-related risks and seizing opportunities for pension chairs and trustees: Managing Nature Risks and Investing in The Opportunities: Top Tips for Pension Fund Chairs and Trustees. Out now This month’s SustainabilityWorks Newsletter has issued, with news, top reads, videos, and sustainability jobs (subscribe here). Did you know? 77 countries had their hottest September on record, according to climate science initiative Berkeley Earth. Read more. Watch: Sustainable Supply Chains In this 15-minute chat, Institute's Sustainability Officer Susan Rossney chatted to Shane Faulkner,  KPMG's Sustainability Manager, about what why sustainable supply chains are important for SMEs, what questions SMEs might be asked by their customers and clients, and what they can do to prepare. Watch back here. Listen The cost of climate change: ‘almost like driving another budget through public finances’ (Irish Times, Inside Business Podcast) 38:51 Articles New electric car sales up 52% so far this year – CSO (RTÉ) UK boards prioritised experience over diversity last year, says headhunter (Financial Times) EU climate ministers back ‘polluter pays’ principle in agreed declaration for Cop28 negotiations (Irish Times) California requires companies to report carbon emissions (BBC News) New World Bank president signals that time is up on billion euro subsidies for fossil fuels (Euronews) More than 50,000 companies to report climate impact in EU after pushback fails (Financial Times) Green Fees Overtake Fossil Fuels for Second Straight Year (Bloomberg) Upcoming Events   SustainExchange: What can you and your organisation do to help avert the climate crisis? Panel discussion: Hybrid (in person/virtual): Tuesday 24 October. Women in Business (Northern Ireland) Women in Finance A session on women in finance which will focus on work in finance departments, small scale accountancy or working for yourself. Members and non-members are welcome to join this online event. Part of Women in Business wide-ranging programme of female entrepreneurship events over the upcoming months, including sectoral networking, webinars, and training courses for essential skills. Virtual: Wednesday, 25 October, 10-11.30am. Sustainable Finance Skillnet is offering funded training opportunities until October and November 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence). A series of short, deep dive training modules on key sustainable finance topics include  •           EU Taxonomy •            Net-Zero •            SFDR (Sustainable Finance Disclosure Regulation)   Chartered Accountants Ireland: ESG Masterclass: Take your Sustainability Knowledge to the Next Level A 3-hour online masterclass providing a high-level overview of the key global, European and national regulations, standards and developments impacting sustainability governance, reporting and assurance, with an emphasis on areas highly relevant to accountants. Virtual: Thursday, 26 October, 8.30-13.30, €206.25 (€165.00 Chartered Accountants Ireland Member Price) Climate Finance Week Ireland 2023 Week-long summit. In person and virtual: Monday, 20 November – Friday, 24 November iQuest & Business Post Events: The ESG Summit In person: Thursday, 9 November, Radisson Blu Royal Hotel, Golden Lane, Dublin ICAEW Climate Summit Week-long summit Virtual: 13-17 November. Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 8 November Due to popular demand, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back again in November 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 25 October 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

  In this week’s Sustainability/ESG bulletin, read about the green measures announced in Budget 2024; how cost remains the main barrier to sustainability in Irish businesses; updates on the Circular Economy; the issuance of ESB’s third green bond; developments in Europe, and the usual roundup of technical updates, articles and events. Green measures announced in Budget 2024 Budget 2024 was announced this week on Tuesday 10 October. The Chartered Accountants Ireland team of experts analysed, interpreted and prepared informed, reliable commentary on the impact of this year's Budget on business in Ireland. Among the measures announced was the establishment of two funds to support climate-related initiatives over the medium and long term. Described as a ‘a gamechanger’ in addressing monetary gaps up to 2030, and a way of ‘firewalling’ major climate investment projects well into the next decade, these are: a Future Ireland Fund: a long-term savings fund with forecasted levels of contributions of c. €70 billion, or c. €6 billion per year (0.8 percent of GDP) up to 2035, to deal with future recognised expenditure pressures including ageing, climate and the digital transitions an Infrastructure, Climate & Nature Fund: a fund due to reach €14 billion by 2030, of which the climate and nature component is worth over €3 billion, to ensure that the State would have resources to support capital expenditure for projects between 2026-2030 in the event of a future downturn. The General Scheme for the funds has now been published. Further measures announced in Budget 2024 include €380 million for residential and community energy upgrades, including the Solar PV Scheme, measures related to microgeneration of electricity, reliefs related to battery electric vehicles (EVs), and the annual increase in carbon tax up from €48.50 to €56.00 (Read more) Research finds cost remains barrier to sustainability for Irish businesses The Green Business Sentiment Index, published by SSE Airtricity this week, has found that only half of businesses surveyed say that sustainability and climate change impact decision-making, down from 71 percent in 2021. The research, which was carried out among a national representative sample of 359 business owners in Ireland, aims to measure and track any change in attitude among businesses towards sustainable practices and decarbonisation since the Index was last published in 2021. The research found that cost remains the main barrier for businesses in reducing carbon footprint, and just 25 percent of Irish businesses agree that being ‘greener’ attracts more customers, down from 42 percent in 2021. 11 percent state that climate change is not at all important for businesses, whereas just 7 percent stated this in 2021, and at least 90 percent believe that it is primarily the responsibility of the Government to tackle climate change. More positively, 19 percent of businesses have incorporated solar panels into their business practices, 38 percent have incorporated smart metering into their environmental practices and the use of electric vehicles (EVs) by businesses is at its highest to date, at 15 percent. EPA publishes Circular Economy Programme Annual Report for 2022 The EPA has published a report setting out its key activities related to implementing, regulating and measuring the circular economy and waste in 2022. The Circular Economy Programme Annual Report for 2022 noted that of the €322 million spent on contracts in 2020 over €25,000, only 17 percent (€53 million), included green criteria. The EPA noted that this is “a missed opportunity to purchase more resource-efficient, less polluting goods, services and works within the marketplace.” ESB Raises €1 Billion Funding in Bond Market – including its third Green Bond The ESB Group has announced it raised €1 billion in bonds which will be used to fund its capital investment programme to deliver a net-zero future. The funds were raised through the issuance of two €500m benchmark bonds. These include a 12-year 4.25 percent fixed-rate green bond which will be allocated exclusively to finance eligible green projects, and a 5-year 4.00 percent fixed-rate bond. The issuance of the third Green Bond in five years follows on from the publication of ESB’s updated Green Bond Framework in September 2023, which reflects changes in sustainable finance best practice including aligning with the EU Taxonomy Regulation (a classification system for environmentally sustainable economic activities). Supports for women-led businesses – Northern Ireland A programme has been launched by Invest Northern Ireland (Invest NI) that aims to support women-led businesses to access support, create jobs and sell innovative products or services outside Northern Ireland. The Ambition to Grow | Supporting Women programme, supported by Women in Business Northern Ireland, will provide grant support of up to £30,000 to eligible small and medium-sized businesses that have a woman in a key decision-making position. The funding is aimed at helping to create new employment within the business and assisting with the costs of targeting markets outside Northern Ireland, technical development activities, and upskilling existing and new employees. The deadline for applications Friday, 10 November 2023. Completion of EU ‘Fit for 55' legislative package The two final pillars of the ‘Fit for 55' legislative package to deliver the EU's 2030 climate targets were adopted this week. With the adoption of the revised Renewable Energy Directive and the ReFuelEU Aviation Regulation, the EU now has legally binding climate targets covering all key sectors of the economy. The 'Fit for 55' package was tabled in July 2021 to respond to the requirements in the EU Climate Law to reduce Europe’s net greenhouse gas emissions by at least 55 percent by 2030. The final legislative package is expected to reduce EU net greenhouse gas emissions by 57 percent by 2030. The Commission also published Questions and Answers on the EU's Effort Sharing Regulation and boosting natural carbon sinks, and on Making our energy system fit for our climate targets. Separately, the European Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI) has adopted its proposals to lower pollutant emissions and set battery durability requirements for passenger cars, vans, buses and trucks. Speaking about the proposals, Rapporteur Alexandr Vondra (ECR, CZ) said: “We have successfully struck a balance between environmental goals and the vital interests of manufacturers. It would be counterproductive to implement environmental policies that harm both Europe’s industry and its citizens.” Technical Updates (From our Professional Accounting team) EFRAG has announced it is recommencing the drafting of sector-specific ESRS standards. The ESRS standards are the standards s and are inviting external participants to interact with them as it commences drafting. The sectors where it is seeking participants are as follows: Agriculture, Farming and Fishing Food and Beverage Services Mining, Coal and Quarrying Motor Vehicles Oil and Gas Power Production and Energy Utilities Road Transport Textiles, Accessories, Footwear and Jewellery The International Sustainability Standards Board has congratulated the Task Force on Nature-related Financial Disclosures (TNFD) on the publication of its recommendations during New York Climate Week 2023.  The TNFD recommendations can help companies communicate nature-related risks and opportunities to investors and other stakeholders. The ISSB September 2023 Update has been issued, highlighting preliminary decisions of the International Sustainability Standards Board (ISSB). Projects affected by these decisions can be found on the work plan. The ISSB have also released their September 2023 podcast. The UK Endorsement Board has published two reports as a result of its Climate-related Matters Research Project: Climate-Related Matters: Summary of Connectivity Research A Study in Connectivity: Analysis of 2022 UK Company Annual Reports Accountancy Europe - Sustainability update – October 2023 (from our friends in Accountancy Europe) Accountancy Europe’s response to ISSB’s Agenda Consultation Ongoing trilogue negotiations on CSDDD EC seeks to adjust EU SME definition for inflation EC adopts DA on ESRS IAASB proposes a global standard for sustainability assurance IOSCO endorses ISSB standards Watch: Sustainable Supply Chains In this 15-minute chat, Institute's Sustainability Officer Susan Rossney chatted to Shane Faulkner,  KPMG's Sustainability Manager, about what why sustainable supply chains are important for SMEs, what questions SMEs might be asked by their customers and clients, and what they can do to prepare. Watch back here. Articles Less Than 1 in 3 Boards Have a Strong Understanding of ESG Risks Affecting Their Companies: PwC Survey (ESG Today) European sustainability reporting developments: what do they mean for UK companies? (ICAEW) Lego’s ESG dilemma: Why an abandoned plan to use recycled plastic bottles is a wake-up call for supply chain sustainability (The Conversation) ESG's . . . OK (The Financial Times) Why America Trails the World on Climate Fund Investing - The US has fallen far behind Europe, as well as China. But it may be waking up (Bloomberg)  Upcoming Events   Cork Student Society/Young Professionals event – Sustainability and Networking on the Apple Campus The Cork Branch of the Chartered Accountant Student Society (CASSC) is collaborating with Young Professionals Cork Society to a sustainability and networking evening in the Apple Headquarters in Cork on Thursday, 19 October. Attendees will have the opportunity network, learn about sustainability and get a tour of the Apple campus. In person: 19 October, 6pm. Women in Business (Northern Ireland) Women in Finance Women in Business is running a wide-ranging programme of female entrepreneurship events over the upcoming months. The events include sectoral networking, webinars, and training courses for essential skills. On 25 October 2023, 10am to 11:30am, a specific session on women in finance will focus on work in finance departments, small scale accountancy or work for yourself, both members and non-members are welcome to join this online event. Sustainable Finance Skillnet is offering funded training opportunities until October and November 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence). A series of short, deep dive training modules on key sustainable finance topics include  •           EU Taxonomy •            Net-Zero •            SFDR (Sustainable Finance Disclosure Regulation) Book launch! Doing Good Business: How to Build Sustainable Value by Sheila Killian In Person: 19 October, 6pm, O’Mahony’s Booksellers, O’Connell St, Limerick. To celebrate the publication of Doing Good Business: How to Build Sustainable Value by Sheila Killian, Professor Finbarr Murphy, Executive Dean of the Kemmy Business School, University of Limerick will launch guide to responsible business. Wine and refreshments will be served and all are welcome. Chartered Accountants Ireland ESG Masterclass: Take your Sustainability Knowledge to the Next Level A 3-hour online masterclass providing a high-level overview of the key global, European and national regulations, standards and developments impacting sustainability governance, reporting and assurance, with an emphasis on areas highly relevant to accountants. Virtual: 26 October, 8.30-13.30, €206.25 (€165.00 Chartered Accountants Ireland Member Price) iQuest & Business Post Events The ESG Summit In person: Thursday, 9 November, Radisson Blu Royal Hotel, Golden Lane, Dublin Climate Finance Week Ireland 2023 In person and virtual: Monday, 20 November – Friday, 24 November ICAEW: ICAEW Climate Summit Virtual: 13-17 November Innovate UK:  Innovate UK's showcase for climate tech event in Northern Ireland Series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 25 October 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

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

  In this week’s Sustainability/ESG bulletin, read about the trial phase of the EU Carbon Border Adjustment Mechanism (CBAM), the launch of a UN Charter promoting gender equality in sustainable finance, a public consultation on Ireland’s EV Charging Network Plan and the first meeting of the Just Transition Commission. Also covered is the launch of the annual Low Carbon Pledge report by BITCI, reports by the EPA into Ireland’s commercial waste and air quality, calls by the European Commission for Ireland to review its flood risk management plans and a new programme in Northern Ireland to support women-led businesses, as well as the usual roundup of technical updates, articles and events. Trial phase of EU carbon border adjustment mechanism (CBAM) The trial phase of new EU carbon border adjustment mechanism (CBAM) will begin on Sunday 1 October, and will be phased in fully from 2026 until 2034. CBAM aims to incentivise non-EU countries to increase their climate ambition and to ensure that EU and global climate efforts are not undermined by production being relocated from the EU to countries with less ambitious policies. Importers of the goods covered by CBAM would have to pay any price difference between the carbon price paid in the country of production and the price of carbon allowances in the EU Emissions Trading System (EU ETS). It will initially apply to imports of certain goods whose production is carbon intensive and at most significant risk of carbon leakage; namely cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. 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. The CBAM will be phased in at the same speed as the free allowances in the EU ETS are being phased out. According to the European Commission’s estimates when the levy was first proposed, CBAM was estimated to generate about €1.5 billion (2018 prices) per year as of 2028. More information can also be found on revenue.ie Launch of UN charter promoting gender equality in sustainable finance A new United Nations Charter aimed at promoting gender equality in the area of sustainable finance was launched in Ireland this week. The Gender Finance Charter, which defines 10 fundamental principles offering a “pragmatic and actionable framework”, was launched by the Financial Centres for Sustainability (FC4S) network, a global network of 40 financial centres, working together to achieve the objectives set by the 2030 Agenda and the Paris Agreement. Speaking at the launch Minister of State at the Department of Finance of Ireland, Jennifer Carroll MacNeill, T.D., stated “This Gender Finance Charter is of global significance in financial services …[and] has the potential to significantly advance gender equality, not just in financial services, but more broadly across the globe.” EPA reports on commercial waste and air quality The Environmental Protection Agency (EPA) has published its latest National Municipal Waste Characterisation Project, which reveals that Ireland’s commercial, as well as household, waste management practices have seen little change since 2018, with businesses and householders still putting the majority (over two-thirds) of their waste into the general waste bins instead of recycling and organic bins. The report found that urgent action is needed to improve Ireland’s segregation and recycling performance to achieve municipal recycling rate targets and transition to a circular economy. Separately, the Environmental Protection Agency (EPA) has also published its annual air quality report Air Quality in Ireland 2022. The report shows that while air quality in Ireland is generally good and compares favourably with many European countries, there are localised issues which lead to poor air quality. An estimated approximately 1,300 premature deaths annually in Ireland are due to poor air quality from fine particulate matter (PM2.5), the report stated. The EPA continually monitors air quality across Ireland and provides the air quality index for health and real-time results, updated hourly on the website. Public Consultation on the National En-Route EV Charging Network Plan opens The Minister for Transport, Eamon Ryan, T.D., has launched a public consultation on the National En-Route EV Charging Network Plan. Developed by Zero Emission Vehicles Ireland (ZEVI), a dedicated office of the Department of Transport, the Plan identifies the level of charging infrastructure required for the national road network to keep ahead of the needs of the quickly growing EV driver population. Aiming to see chargers installed every 60km on major roads, the Plan is an important step in delivering the National Electric Vehicle Charging Infrastructure Strategy 2022-2025, which launched earlier this year. The closing date for responses is 5.00pm on 10 November. First meeting of Ireland’s Just Transition Taskforce The first meeting of the Just Transition Taskforce has taken place this week. The establishing of a Just Transition Taskforce in order to provide advice to the government was recommended by the Climate Action Plan 2023, the ‘roadmap for meeting Ireland’s climate targets. The Taskforce will engage with representatives of business and employers’ organisations, trade unions, and other organisations, in order to develop recommendations regarding the role and structure of the Just Transition Commission to the Minister of the Minister for the Environment, Climate and Communications, Eamon Ryan, TD. Just Transition refers to the need to have a fair transformation to a low-carbon economy and to ensure that employment and jobs in the new economy are as decent and as well-paid as those left behind. Need for all sectors to work collectively to address climate change The annual PwC report on the Business in the Community Ireland (BITCI) ‘Low Carbon Pledge’ which published this week, has found that more businesses are escalating their focus on sustainability and prioritising decarbonisation across all areas of their operations. The report, which is now in its fifth year, found that 80 percent of companies are on track to setting science-based targets for decarbonisation, although there is an urgency on some to be more proactive in setting their targets and reducing their emissions, particularly around scope 3 emissions and in taking action on the nature crisis. Speaking at the launch of the report, Minister for the Environment, Climate and Communications, Eamon Ryan, T.D. stated “[i]f we are to address climate change and start to turn the tide on the devastating scenes we have seen across the globe recently, we need to work collectively, across all sectors, including business”. Programme launched to support women-led businesses in Northern Ireland Invest Northern Ireland (Invest NI) is launching a programme to support women-led businesses to access support, create jobs and sell innovative products or services outside Northern Ireland. The Ambition to Grow - Supporting Women programme will provide grant support of up to £30,000 to eligible small and medium-sized businesses that have a woman in a key decision-making position. The funding is aimed at helping to create new employment within the business and assisting with the costs of targeting markets outside Northern Ireland, technical development activities, and upskilling existing and new employees. European Commission calls on Ireland to review flood risk management plans The European Commission has announced it is calling on eight Member States, including Ireland, to finalise the review of their river basin management plans as required under the Water Framework Directive (Directive 2000/60/EC) and/or the flood risk management plans as required under the Floods Directive. EU water legislation must be fully implemented to reach the EU's circular economy, biodiversity, zero pollution and climate change ambitions. Ireland has two months to respond and take the necessary measures, or the Commission may decide to refer the Member States to the Court of Justice of the European Union. The damage flooding can cause to businesses and infrastructure, such as transport or utilities like electricity, gas and water supply, can have significant detrimental impacts on individuals and businesses and local and regional economies. Net zero commitments and transition finance The US Treasury has released new principles for financial institutions making voluntary net-zero commitments. The news comes as the first-ever Climate Resilience Summit is announced by the White House, with the United States releasing it National Climate Resilience Framework. The Framework is described as a vision for a ‘climate resilient nation’, “to guide and align climate resilience investments and activities by the Federal government and its partners”. Among the actions also announced this week was the awarding or availability of more than $500 million in dedicated funding to achieve the vision. According to the International Energy Agency, fossil fuel demand must reportedly fall by a quarter by the end of this decade if governments want to limit the rise in global warming to 1.5C since the pre-industrial period. Separately, the Glasgow Financial Alliance for Net Zero (GFANZ) has announced the launch of a public consultation on, among other things, its work to refine the definition of ‘transition finance’. GFANZ, the global coalition of leading financial institutions committed to accelerating the decarbonization of the economy, was set up during the Climate Summit ‘COP26’ in Glasgow in November 2021. IFAC’s Sustainability & Accountancy Education Survey  The International Federation of Accountants (IFAC) held an event during Climate Finance Week in New York last week to demystify GHG reporting and to help accounting and finance professionals take immediate steps to ensure their organization’s data is in order and ready to report robust information when the new standards and rules go into effect. Panellists shared insights from finance, reporting, audit and assurance and data perspectives. Watch the recording and access related resources. Separately, IFAC is surveying professional accountants on sustainability and accounting education. The survey by the International Panel on Accountancy Education aims to gather insights on what is needed to ensure current and future professional accountants are equipped to play their part in in the sustainability discussion. What is a sustainable supply chain? On 12 October, Institute's Sustainability Officer Susan Rossney will interview Shane Faulkner, KPMG's Sustainability Manager, about what a sustainable supply chain looks like, what questions SMEs might be asked by their customers and clients, and how they might respond. Click here to register for free . Did you know? Around the world, there are reportedly more than 2,300 pending or decided climate cases. In one case, nine small island states have taken a case to the UN maritime court to seek protection for the world’s oceans against climate change, and six young people, represented by Irish lawyers, are taking 32 countries to court over climate inaction. Articles How will the EU carbon border adjustment mechanism affect UK businesses? (ICAEW) Business braced for red tape from EU carbon border tax (Financial Times)  Adopting the TNFD framework needn’t be a challenge (ICAEW) Law to tackle human trafficking in company supply chains proposed  (Business Post) Sustainable Beer? Breweries Where Great Taste, Eco-Friendliness Go Together (Newsweek) Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 5 October Following four sellout sittings, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back again in October 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Upcoming events   Dublin Chamber – Sustainability Academy Workshops Dublin Chamber has announced it will offer Sustainability Academy workshops in Autumn. Beginning with a workshop on Sustainability/ESG 101 in September, the 3-hour Zoom workshops includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor. Find out more here. Online, September 2023  ESDN: European Sustainable Development Week (ESDW) 2023 18 September – 08 October. 113 initiatives in 10 countries.  Women in Business (Northern Ireland) Women in Finance Women in Business is running a wide-ranging programme of female entrepreneurship events over the upcoming months. The events include sectoral networking, webinars, and training courses for essential skills. A specific session on women in finance will focus on work in finance departments, small scale accountancy or work for yourself, both members and non-members are welcome to join this online event. Virtual: 25 October, 10.00-11.30am Sustainable Finance Skillnet is offering funded training opportunities until October 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence). Virtual: September-October 2023  Accountancy Europe: Preparing for high-quality sustainability assurance engagements In person: 3 October, 14.00-17.00, ACE events - Av. d'Auderghem 22, 1040 Brussels Chartered Accountants Ireland: Ask the Expert, Supply chain sustainability (ROI/NI) In this 15-minute chat, Institute's Sustainability Officer Susan Rossney will talk to Shane Faulkner,  KPMG's Sustainability Manager, about what a sustainable supply chain looks like, what questions SMEs might be asked by their customers and clients, and how they might respond. Virtual: 12 October, 12:45-13.00 Climate Finance Week Ireland 2023 In person and virtual: Monday, 20 November – Friday, 24 November Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 25 October 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

The International Auditing and Assurance Standards Board (IAASB) has issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. This proposed standard will now undergo a consultation period running until 1 December 2023 and stakeholders are encouraged to respond and share their feedback to the proposed standard. ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. It is intended to work with various sustainability reporting frameworks (including the European Sustainability Reporting Standards and the IFRS Sustainability Disclosure Standards). The standard is drafted as a profession agnostic standard and should be suitable for use by accountant and non-accountant assurance practitioners. With the sustainability reporting requirements for certain entities set to increase over the coming years, a standalone sustainability standard is seen as a key piece of the framework to help ensure that users of sustainability information can place greater trust in the information they are consuming on an entities Environmental, Social and Governance impacts. In launching the consultation, IAASB Chair Tom Seidenstein commented “Our proposed ISSA 5000 is a crucial step in enhancing confidence and trust in sustainability reporting. This proposal directly responds to the International Organization of Securities Commissions recommendations and complements the work of other standard setters, including the International Ethics Standards Board for Accountants,”. The comment period remains open until 1 December and the IAASB are seeking a broad range of views on the standard to gather the views and insights needed to finalise it.

Recent European heatwaves have highlighted the impact climate change has on society and the economy. Susan Rossney explores the challenges facing Irish businesses when taking steps to tackle the crisis Recent severe heatwaves in continental Europe have shown how the effects of global warming are coming ever closer to home. Forced migration, drought, forest fires and biodiversity loss are some of the many ways climate change will impact Irish society.  Its impact on the economy will be acute, affecting everything from the health and wellness of employees to the cost of raw materials, scarcity of resources and supply chain disruption.  Ireland and climate change Climate change poses risks to humans, nature and Ireland as a nation.  Ireland is legally bound to meet ambitious national and international climate targets. According to the Climate Change Advisory Council (CCAC), an independent advisory body, Ireland will not meet the climate targets it has set for itself in the first and second carbon budget periods. The Environmental Protection Agency’s (EPA) provisional estimates on 2022 greenhouse gas emissions show that Ireland already used 47 percent of the carbon budget for 2021–2025 in the past two years.  An annual reduction of 12.4 percent is now required for each of the remaining years if Ireland is to stay within budget.  However, as emissions fell only 1.9 percent in 2022, this has been described as “extremely challenging” by the EPA.  It is clear that action is required across all sectors of the economy and society, including: Mitigation: reducing activity that causes climate change, like burning fossil fuels (coal, oil and gas); and Adaptation: making changes to deal with the effects of climate change, from operational changes to cope with rising summer temperatures or winter flooding to factoring in the risk of developing stranded assets and increased carbon tax liabilities. Ireland’s perception of climate change According to Climate Change in the Irish Mind, EPA research conducted in 2021, most Irish citizens share a desire for action on the climate crisis.  However, other EPA research has found that our emissions of greenhouse gases (GHGs) continue to rise.  Environmental Indicators Ireland 2022, published by the Central Statistics Office (CSO), shows that Ireland’s 2022 emissions were 11 percent higher than in 1990.  Enterprises contributed an estimated 12.7 percent to Ireland’s overall emissions in 2018, according to the Climate Action Plan 2023. Although this is less than the contributions of other sectors, there remains a need for Ireland’s enterprises to take action to reduce their emissions.  However, a 2022 national survey of 380 SMEs and larger enterprises across industry and service sectors by Microsoft and University College Cork found that Irish businesses are underprepared to make the necessary changes to transition to a net zero future. According to the study, 86 percent have no commitments or targets to decarbonise.  Barriers to action  In the face of evidence of climate change – and Ireland’s willingness to take action – what is preventing Irish businesses from responding to the crisis?  As an issue, climate change is complicated, abstract and overwhelming. Multiple interdependent factors cause it, and it is nearly impossible to avoid contributing to it in our daily lives. Buying products, driving a car or taking a flight for a foreign family holiday (full disclosure: I’m just back from one) all add to the overall problem. The solutions to the climate crisis are also interdependent and complicated. The positive changes we can make as individuals can feel insignificant, especially compared with large countries’ continued pollution.  The European Commission’s Annual Report on European SMEs 2021/22 – SMEs and environmental sustainability identified access to finance, limited expertise and skills, and regulatory and administrative barriers among the challenges facing SMEs in particular. Businesses that want to take climate action often have limited time, cash flow, resources and support (both financial and non-financial) to take action.  Knowledge is also a barrier. Many professionals qualified at a time when climate change was not identified as a business risk. They now find themselves having to skill up mid-career in an area that is famous for changing frequently.  Finally, many citizens and businesses are still struggling with crises related to COVID-19, inflationary pressure, supply chain disruption and high energy costs. Staying afloat is a crisis in itself.  Firms, particularly SMEs, focusing on the practicalities of running a business, paying staff and grappling with cash flow and costs are more likely to see climate action as the responsibility of governments or, at the very least, large corporations rather than them.  On top of that, climate discussions are often politicised. They are regularly reduced to a ‘them vs us’ polarised debate in mainstream media rather than discussing how everyone can work together to deliver solutions.  Threats and opportunities  For businesses, climate change presents both threats and opportunities.  Threats The threats have been categorised as physical risks (both ‘acute’ and ‘chronic’) and transitional risks.  Opportunities  Taking action on the climate crisis enables businesses to restore lost ecosystems, improve air quality, community health and well-being, and avail of the opportunity to make a lasting positive impact. There are additional advantages to consider: Reduced costs – the Sustainable Energy Authority of Ireland (SEAI) estimates that the average SME can save up to 30 percent on its energy bill by becoming more energy efficient (improved heating and lighting, lower maintenance of electric vehicles, efficient water and materials management and using recycled materials with a lower climate impact all contribute to lower costs);  Reduced reliance on exposure to fluctuating oil and gas prices from switching from fossil fuels (coal, oil and gas) to renewable energy sources; Reduced exposure to carbon tax, which is increasing €7.50 per tonne to €100 per tonne in 2030; Access to grants, allowances and tax reliefs; Improved access to capital and finance from investors and lending looking to ‘green’ their portfolios; and A competitive edge in attracting talent, clients and customers. Steps to climate action Businesses looking to take action on the climate crisis can take several steps: Build your knowledge. There are many resources out there, several provided by the Government and Chartered Accountants Ireland. Begin measuring emissions with tools like the Government’s Climate Toolkit for Business.  Consider an internal energy audit to find ways of reducing your carbon footprint. SEAI maintains a list of registered energy auditors and offers SMEs a €2,000 voucher towards the audit cost. Consider setting up an internal environment and climate impact team to devise a decarbonisation plan.  See also the Sustainability Glossary in the Sustainability Centre of the Chartered Accountants Ireland website.  For more, see www.charteredaccountants.ie/sustainability-centre/sustainability-home Susan Rossney is Sustainability Officer at Chartered Accountants Ireland Reporting and climate change The Corporate Sustainability Reporting Directive (CSRD) is an EU Directive requiring certain companies to disclose information on sustainability-related impacts. It proposes significant changes to how entities report on their business’s environmental, social and governance (ESG) impacts. These changes will affect many enterprises – directly and indirectly.  Businesses ‘in scope’ of the CSRD are required to consider their supply chain when reporting on sustainability matters. This will mean that companies not in scope that form part of a supply chain may be asked to provide climate-related information by companies in scope. Small companies should prepare for this and have a mechanism to measure and disclose their carbon emissions. For more on the CSRD, see the Chartered Accountants Ireland Technical Hub. Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland  

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

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.