In this week’s Sustainability/ESG bulletin, read about Ireland’s attempts to decouple economic growth from rising CO2e emissions, as predictions from the EPA indicate that Ireland will fall well short of its climate targets for 2030. Also covered is the Energy Efficiency Grant announced for small businesses, the funding announced for circular economy projects, the new Sustainability Handbook, details of Sustainability and ESG awards, new resources for accounting and finance professionals for enhancing Greenhouse Gas (GHG) reporting, and updates from Europe, as well as articles and events.
Economic growth and Ireland’s carbon emissions trajectory
New data has been published by Ireland’s Central Statistics Office (CSO) that for the first time focuses on the extent to which economic growth and emissions are linked in Ireland. The data reportedly indicates that in comparison with most EU countries, there has been only ‘modest decoupling’ of increased emissions in Ireland – particularly around transport – resulting from increased economic activity since 2010.
The news comes as the Environmental Protection Agency (EPA) published a report which predicts that Ireland will fall well short of its climate targets for 2030. In its assessment of Ireland’s total projected greenhouse gas (GHG) emissions out to 2040, the EPA found that Ireland is not on track to meet its 51 percent emissions reduction target (by 2030 compared to 2018) even if most of the 2023 Climate Action Plan measures are implemented. Further measures still need to be identified and implemented to achieve the targets.
Separately this week a Joint Declaration of Intent on cooperation in the field of green hydrogen - predicted to play a crucial role in decarbonising Ireland’s energy system - was signed between the Irish Department of the Environment, Climate and Communications and the German Federal Research Ministry. The Declaration was signed to formalise cooperation in respect of green hydrogen between Ireland and Germany. The Irish Government is currently developing a National Hydrogen Strategy, due to be finalised shortly, which will set out Ireland’s vision for how hydrogen will be produced and used in Ireland.
White Paper on Enterprise Implementation Plan 2023-2024 published
Minister for Enterprise, Trade and Employment, Simon Coveney T.D., has published an implementation plan to support delivery of the policy objectives outlined in the White Paper on Enterprise 2022-2030, published last December. The White Paper on Enterprise Implementation Plan 2023-2024 is the first in a series of consecutive two-year implementation plans to realise the Government’s vision for Irish-based enterprise. The first of the policy’s seven priority enterprise policy objectives – ‘Integrating decarbonisation and net zero commitments’ – includes a target to reduce emissions from industry by 35 percent by 2030, with a 45 percent reduction in emissions expected in the commercial built environment by 2030.
New Energy Efficiency Grant announced for small businesses
An Energy Efficiency Grant to help small businesses was announced this week by Minister for Enterprise, Trade and Employment, Simon Coveney, T.D. The new support, available through Local Enterprise Offices, will enable small businesses to invest in technologies and equipment to make their businesses more energy efficient. The grant will cover up to 50 percent of the costs to a maximum amount of €5,000.
Funding announced for innovative circular economy projects
Funding of €640,000 for 13 projects across Ireland was announced this week under the second Circular Economy Innovation Grant Scheme (CEIGS). The Circular Economy Innovation Grant Scheme is designed to help communities make the transition to a circular economy, and to a more sustainable future, by reducing and eliminating waste and keeping resources in use for as long as possible. The CEIGS complements other circular economy work being progressed, including the introduction of new environmental levies such as the new waste recovery levy, incentivization of commercial waste collection, the introduction of a Deposit Return Scheme for plastic bottles and cans, and the publication of the National Food Waste Prevention Roadmap.
‘Building Better Businesses’ event series continues
The Department of Enterprise, Trade and Employment (DETE) has announced the next in its series of Building Better Business events across the country. The events are aimed at helping businesses navigate their transition to a green economy and boosting business performance through digital transformation. The next event, on Friday, 23 June 2023, 8.30am – 1.30pm in the Osprey Hotel, Naas, Co Kildare, will feature panel discussions on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy, expert information on the range of government supports available to businesses, and an opportunity to network and connect with other businesses. It is open to businesses based in Kildare, Meath and Wicklow. Register and find out more about the event here.
New Sustainability Handbook
Business in the Community Ireland has published its 2023 Sustainability Handbook to help develop a common understanding of the role of business powerful agents for good in bringing about a low-carbon economy where everyone thrives.
Focusing on ‘Economic, Environment, Social Goals, underpinned by Governance’ (‘EESG’), the handbook aims to introduce readers to the depth and breadth of sustainability, support sustainability practitioners in setting and delivering strategic objectives relating to EESG topics, and facilitate anyone who wants to learn more how businesses can be powerful actors for positive change.
Sustainability and ESG Reporting Awards – Chartered Accountants Ireland Leinster Society
The Chartered Accountants Ireland Leinster Society’s Published Accounts Awards 2023 has now been launched, and is welcoming entries from across all types of reporting bodies – whether they are large listed companies, or small not-for-profit organisations. The competition will focus on annual reports in respect of financial years ended on or before 31 March 2023. There are two Sustainability and ESG Reporting Awards this year, one for Listed entities and one for Unlisted entities. The deadline for entries is Friday 14 July 2023 and winners will be announced on 9 November at an event in The Shelbourne Hotel, Dublin.
Funding for UK businesses to capitalise on offshore wind
The Offshore Wind Growth Partnership (OWGP) has issued its next funding call, with a total funding pot of £2 million for projects that will lead to a step-change in company growth within the offshore wind sector. Grants of £50,000 to £500,000 are available to UK businesses for projects that align to identified scope areas, and the call is open to a wide range of proposals across the existing offshore wind supply chain and new market entrants. The deadline for Stage 1 applications is 5pm on Friday 21 July 2023 and details are available here.
European State of the Climate report published
The 2022 release of the European State of the Climate (ESOTC) report has published, providing detailed analysis of the past calendar year and giving updates on the long-term trends of key climate indicators. The report found that 2022 was the second warmest year on record in Europe, at 0.9°C above average. Summer was the warmest on record, at 1.4°C above average, and 0.3–0.4°C above the previous warmest summer, in 2021.
European Parliament adopts position on rules to tackle companies’ impact on human rights and the environment
The European Parliament has adopted its position for negotiations with member states on rules to integrate human rights and environmental impact into companies’ governance. Companies will be required to identify, and where necessary prevent, end or mitigate the negative impact of their activities on human rights and the environment such as on child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss. They will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas.
Parliament also adopted recommendations for the EU strategy for sustainable and circular textiles, for textile products sold in the EU to be more durable, easier to reuse, repair and recycle, the production of which should respect human, social and labour rights, the environment and animal welfare throughout the supply chain. MEPs also want EU and national measures to put an end to “fast fashion”.
New resources for accounting and finance professionals - enhancing Greenhouse Gas (GHG) reporting
New resources are now available to help CFOs, accountants and finance professionals undertake or enhance cost-effective and investor-grade GHG reporting. The guidance, designed to be built on existing systems and processes, is divided into two parts:
- 8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals – a guide for finance and accounting professionals to engage with others across their business to prepare for GHG emissions reporting requirements aligned to financial reporting processes.
- GHG Reporting Building Blocks for Accountants – technical guidance necessary for accountants to collect and enhance the quality of data related to all scopes of GHG emissions at individual entity and group levels.
The guidance was released by the International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA), and World Business Council for Sustainable Development (WBCSD).
Institute interview - Corporate Sustainability Reporting Directive
Last week, Dee Moran, Professional Accounting Lead with Chartered Accountants Ireland, interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations. Watch webinar.
(This interview was the first in our series on EU sustainability reporting. For the second event, Dee will be joined next week (June 8) by Orla Carolan, Director in Grant Thornton, to discuss the proposed European Sustainability Reporting Standards (ESRSs). Find out more and register here.)
Newsletters
Articles
- Bank of England Governor Andrew Bailey vows to press ahead with work to assess climate-related risks to the economy, brushing off criticism that officials have been distracted from their fight against inflation. (Bloomberg)
- UK regulator probes sustainable loans market (Financial Times)
- What dirty laundry? The problem with greenwashing (Accounting for Sustainability (A4S))
- New Zealand manages climate impacts. The government will help to buy out the owners of cyclone and flood-damaged houses in areas deemed susceptible to severe weather events, beginning a process of managed retreat in the face of climate change. (Bloomberg)
- Rich nations say they're spending billions to fight climate change. Some money is going to strange places. (Reuters)
Upcoming Events
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Ulster Society, Chartered Accountants Ireland - Advising on Net Zero for clients: the opportunities and the threats
This free webinar in partnership with British Business Bank and featuring Julia Groves, will address the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation will cover the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how British Business Bank is involved.
8 June, 12:00 - 13:30
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Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards
In the second of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation.
8 June, 10:00 - 11:00
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Northern Ireland Healthy Working Lives Conference 2023
This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture.
8 June
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The Northern Ireland Energy Summit
Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion.
21 June
Network for Chartered Accountants working on ESG projects
Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?
Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.
- 3rd or 4th Wednesday of every month
- Next: 28 June, 2023
- 14.00-15.00/30
- Chartered Accountant House/Teams
If you would like to attend please email sustainability@charteredaccountants.ie
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.
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