Sustainability/ESG bulletin, Friday 30 August 2024

In this week’s Sustainability/ESG bulletin, read how costs remain both a driver and an obstacle in SMEs taking action on sustainability. Also covered is Ireland’s B- in climate performance, sustainability in the Ireland For Finance Progress Report, funding available in Northern Ireland for SMEs and Women in Business, the All-Ireland Sustainability Awards, Earth Overshoot Day and reports into the effectiveness of climate policies and board-level climate knowledge, as well as the usual resources, articles and upcoming events.

Ireland

Costs still primary driver and obstacle to SMEs sustainability action

A survey commissioned by Uisce Éireann which published this week has found that cost remains both the primary driver and obstacle in SMEs taking sustainability action. Read more here.

The Chartered Accountants Ireland SME and SMP Sustainability Workshop

Chartered Accountants Ireland is running an online workshop for SMEs and small/medium accounting practices (SMPs) who want to get ahead of the sustainability curve. The interactive half-day session will cover the impact of ESG policies and trends on business. Also covered will be the impact of CSRD, the steps to create a sustainability small practice, opportunities to advise on ESG now and in the future, and sources of sustainable finance available. If you run or advise an SME, join us on Friday 13 September from 9.30am.

‘B-’  grade for Irish Government’s climate progress

Ireland has received a ‘B-’ from leading Irish academics for its progress on the climate and environmental commitments in its Programme for Government. The grade, an improvement on last year’s C+, was given as part of a project commissioned by the Friends of the Earth Ireland. In awarding the Government the B- grade, the report acknowledged that Ireland has ‘turned a corner’ away from its ‘climate laggard’ origins, but that momentum will have to accelerate over successive governments to make Ireland a genuinely sustainable economy.

Non-Domestic Electricity Consumption figures released

Figures released by the Central Statistics Office (CSO) show that restaurants/public houses consumed more than twice the electricity per square metre of offices in 2023. The figures included in the Non-Domestic Electricity Consumption by Building Energy Ratings 2023, show that the next highest consumption was by retail, followed by offices, primary health care, and community/day centres.

A revised and updated Sustainable Finance Roadmap

A ‘revised and updated Sustainable Finance Roadmap’ is among the achievements noted in the 2023 progress report of the Ireland for Finance strategy. The Progress Report 2023, which published this week, provides an update on the 12 measures that were due for reporting last year under the Ireland for Finance strategy. This strategy first published in 2019 and aims to further establish Ireland’s position as a global location of choice for companies operating in the financial sector. The five core themes of the strategy are fintech, sustainable finance, diversity and talent, regionalisation and promotion, and operating environment.

Online Survey for the next National Strategy for Women and Girls

The Department of Children, Equality, Disability, Integration and Youth has issued an Online Survey as part of its development of the next National Strategy for Women and Girls. This new strategy will expand on the progress made to date and aims to help advance the rights of women and girls. The survey will be open until 30 September, after which the Department will begin a series of in-person consultations to further inform the strategy’s development. Participants can submit their own views (anonymised) or those of an organisation they represent.

Separately, figures recently published by Central Statistics Office (CSO) how that Q2 2024 saw the highest participation rate for females since the series began in 1998, with females representing 61.4% of the labour force, up from 61% in the same quarter in 2023.

Northern Ireland/UK news

Funding and training available

A new programme has launched in Northern Ireland to support SMEs taking climate action and reducing their CO2 emissions. Developed by Business in the Community Northern Ireland (BITC) and partially funded by the British Business Bank, the programme will help participating businesses to build capacity, assist with net-zero planning, and increase levels of reporting and capacity-building to enable delivery of immediate and long-term climate action. More details.

Applications are also open for the Women in Business ‘Explore It’ programme for women at the pre-start (idea stage) or early stage of trading in their business. Training will address a wide range of business start-up issues and help to build confidence and grow business skills. The application deadline is midday on Friday 11 October 2024.

All-Ireland Sustainability Awards open

Applications are open for the All-Ireland Sustainability Awards, which celebrate organisations that have excelled in improving their environmental, social, and financial performance to create a more sustainable future and drive a greener economy.  Applicants can submit multiple projects across various categories, which include Tech for Good, Sustainable Tourism, Green Marketing, and Net-Zero Initiatives. The Awards are free to enter and the deadline for entry is 1pm on Friday 6 September.

Calls for lobbying to be included in companies’ climate reports

The University of Oxford’s Smith School of Enterprise and the Environment, in association with the non-governmental Exponential Roadmap Initiative have stated that current climate standards must be expanded to include a company’s broader influence on climate action in order  to deliver net zero. The report further states that current reporting standards fail to incentivise broader climate action and can even discourage it.

Calls for a just transition and investor action in the mining industry

The London School of Economics’ Grantham Research Institute on Climate Change and the Environment has published a report setting out the importance of a just transition in the mining sector and presenting a framework for investor action. Included in the report’s eight recommendations is a call for investors to “deepen their engagement efforts” with mining companies and state-owned enterprises around a just transition, and to inform governments of their expectations for just transition policies.

World news

Earth Overshoot Day – 1 August 2024

Earth Overshoot Day fell on 1 August this year. This is the date on which humanity’s demand on nature’s resources surpasses Earth’s capacity to regenerate them for the given year. The date is calculated by the international sustainability organisation Global Footprint Network. For the remainder of this year humanity lives on overuse, further depleting the biosphere, and increasing pressure on the planet.

Heat-related impacts study

A new modelling study in the Lancet using data on 854 European cities has found that heat-related deaths could triple in Europe by 2100 under current climate policies, as climate change expected to exacerbate heat-related morbidity and mortality presents unprecedented challenges to public health systems.

Effectiveness of climate policies

A new study on climate policies has found that just 63 policies were effective at reducing emissions. The study, which examined 1,500 climate policies implemented over the past 25 years, found that ‘effective but rarely studied’ policy combinations highlight the important role of price-based instruments in well-designed policy mixes and the policy efforts necessary for closing the emissions gap.

Board-level climate knowledge

A study by ESG-rating-provider MSCI has found that investors’ assessments of how prepared a company is to deal with climate-related financial risks is being made difficult by a lack of stringent criteria setting out exactly what it means if corporate board members claim to have climate expertise. The study also found that few boards had multiple climate experts, and 65% had no climate experts at all.

‘Accounting for a Better World’

The International Federation of Accountants (IFAC) has published an article on the pivotal position it says accountants occupy in driving sustainable business practices. Accounting for a Better World: Insights from IFAC’s Professional Accountants in Business Advisory Group outlines multiple opportunities where professional accountants can have an impact. These include ensuring sustainability and excellence as a CFO, driving integrated thinking through strong corporate governance, harnessing the transformative opportunities of AI,  and nature-related accounting and financial disclosure.

Sustainability Reporting and Assurance Diplomas starting 26 September

With the mandatory corporate Sustainability Reporting and Assurance in the EU starting this year, Chartered Accountants Ireland’s Sustainability Diplomas are back for the Autumn Schedule of our Professional Development courses. Starting on 26 September 2024, the Diplomas are:

• Diploma in Sustainability Reporting, designed for chartered accountants and others leading the implementation of the new European Sustainability Reporting Standards (ESRS). 

   

• Diploma in Auditing and Assuring Sustainability Reporting, tailored for Chartered Accountants and others seeking to conduct sustainability assurance and become licensed as Sustainability Assurance Service Providers (SASPs).

• Ireland’s nature in focus - Valiant efforts give cause for hope (Irish Times)

   

• The new EU deforestation regulations businesses should know about (Accountancy Ireland – Briefly)

   

• The uninsurable world: rethinking how to cover for climate damage (Financial Times)

   

• Fighting Greenwashing: The Role of Strong Corporate Governance in Reliable High-Quality Sustainability Information (IFAC)

   

• The case for standardised social impact reporting measurements (CPA Australia)

   

• Frame climate policies as economic not environmental benefits (New York Times)

   

• Accountants key to accelerating energy transition (ICAEW Insights)

   

• Cost- and climate-conscious companies are swapping business class for economy as they return to air travel (The Times)

   

• Northern Ireland Shoppers Confused About Product Sustainability (Business Eye)

   

• BlackRock’s support for ESG measures falls to new low (Financial Times)

   

• EU faces lawsuits over emissions rules, 'green' label for planes (RTÉ)

Did you know?

The number of plastic bags found on UK beaches has dropped by an average of 80%,  according to the charity which runs the Great British Beach Clean each September. The charity reportedly credits the reduction to charges on single-use carrier bags, and has stated it hopes for similar bans on other plastic items will result in cleaner beaches in the future.

Ireland’s third SDG (Sustainable Development Goals) Week will take place this year from 20 – 29 September. Last year, almost 200 events were held across Ireland, with 5,000 events taking place across Europe for the wider European Sustainable Development Week (ESDW). The SDGs work towards ambitions such as an end to poverty, access to decent work, sustainable consumption, protection of nature, better health and wellbeing, universal access to education, gender equality, climate action, and peaceful societies.

A4S (Accounting for Sustainability) Pensions Deep Dive: Using a narrative scenario approach for asset allocation
Mirko Cardinale, Head of Investment Strategy, USS Investment Management, will share insights on using a narrative scenario approach within investment decision-making processes, and how this affected USS's thematic investment outlook and strategic asset allocation review. There will also be a Q&A discussion on the practical implementation of narrative scenarios to support the asset allocation process.
In person/virtual: 5 September, 16.00–17.30 BST

A4S (Accounting for Sustainability) Sustainability in Action Webinar: Net zero – Scope 3 for the real economy
Register for this webinar to receive practical advice for measuring and reducing your scope 3 emissions and find out about the pivotal role that finance teams can play in addressing scope 3 emissions. Practical examples shared during the webinar will help you translate the experience and learnings of others to your work.
In person, 10 September, 16:00 BST

Premier Publishing & Events, Northern Ireland Sustainability Summitl
The 2024 Northern Ireland Sustainability Summit is being held in the TEC, Belfast on the 12 of September with an impressive line-up of Sustainability leaders, academics and government agencies who will engage in a stimulating blend of keynote addresses and debates. The theme is ‘Creating an Innovative and Sustainable Manufacturing & Supply Chain Ecosystem’
In person, Titanic Exhibition Centre Belfast, Sept 12th

Chartered Accountants Ireland, The SME and SMP Sustainability Workshop
A workshop for SMEs and small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve.
Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points. 

Chartered Accountants Ireland, Advance your knowledge on the Corporate Sustainability Reporting Directive
Join Dee Moran, Professional Accountancy Lead, and Mike O’Halloran, Technical Manager, both from Chartered Accountants Ireland to understand more about the Directive, the transposition into Irish law and what it might mean for your organisation.
Virtual, Chartered Accountant House, 18 September, 10.00 – 11.00 (Free)

Chartered Accountants Ireland, Advance your knowledge about the European Sustainability Reporting Standards
In the second of our series on EU sustainability reporting, join Mike O’Halloran, Chartered Accountants Ireland and guest 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.
Virtual, Chartered Accountant House, 25 September, 10.00 – 11.30 (Free)

EPA, Circular Economy Conference 2024
Online and in-person (Aviva Stadium, Dublin), 25 September

Dublin Chamber, The Sustainability Academy
Dublin Chamber is running its Sustainability Academy again this year with workshops offering a unique opportunity to gain a comprehensive and well-rounded understanding of sustainability. This course fee includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor.
Virtual, starting 27 September

ESG Summit Europe, ESG Summit Europe 2024
In person, Madrid, October 1-2 

ICAEW, Annual Conference 2024
Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future.
In person, Convene, London UK, 4 October, 08:00 - 17:00 BST   

Environment Ireland, Environment Conference
Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield.
In person, Croke Park, 17 October

Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI)
Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape.
24 October, 08:30 – 12.00, Virtual

IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference
The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore:

• Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance,
• Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education,
• Future skills for sustainability reporting and assurance,
• Strategies for enhancing accounting education and student skills development.

In person, 1 November, Maynooth University

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.

• Next meeting: Wednesday, 25 September, 14:00-15.30
• Zoom

If you would like to attend, please email sustainability@charteredaccountants.ie