Sustainability/ESG bulletin, Friday 5 May 2023

In this week’s Sustainability/ESG bulletin, read about Ireland’s Long-term Strategy on Greenhouse Gas Emissions Reductions, the Launch of Ireland’s Programme for the EU Just Transition Fund, and the publication of the report on Ireland’s progress against Goal 17 of the UN Sustainable Development Goal. Also covered is the EU’s 30 percent emissions reduction since 1990, the go-live of the European ‘environment and health atlas’ and news on the European Parliament’s position on corporate sustainability due diligence, as well as articles, a webinar recording and news.

Ireland publishes Long-term Strategy on Greenhouse Gas Emissions Reductions

Ireland’s Department of the Environment, Climate and Communications has published its Long-term Strategy on Greenhouse Gas Emissions (GHG) Reductions. GHG emissions are gases that trap heat in the atmosphere and cause the Earth's atmosphere to warm up. Examples of greenhouse gases include carbon dioxide (CO2) and methane.

The purpose of this Strategy is to deliver on Ireland’s 2030 climate targets and the long-term goal set by Ireland’s National Climate Objective and the European Climate Law. The Strategy looks at the next 30 years and covers:

• total GHG emission reductions and enhancements of removals by carbon sinks;
• emission reductions in individual sectors;
• expected progress on transition to a low GHG emission economy;
• the expected socio-economic effect of the decarbonisation measures;
• links to other national long-term objectives, planning and other policies and measures, and investment.

A wide range of stakeholders fed into a public consultation on the strategy, along with cross-departmental input. However, a second consultation will launch shortly given recent climate policy developments.  Outputs from this consultation will form the basis for preparing an updated Strategy by the end of 2023.

Launch of Ireland’s Programme for the EU Just Transition Fund

Ireland’s Programme for the EU Just Transition Fund, worth €169 million, has officially launched with the aim of supporting communities most negatively affected by the move away from fossil fuels (coal, oil and gas) and the cessation of commercial peat extraction. These communities - 'Designated Territories' - include the counties of Laois, Longford, Offaly, Westmeath, Roscommon, and the Municipal Districts of Ballinasloe (Co. Galway), Athy and Clane-Maynooth (Co. Kildare), and Carrick-on-Suir and Thurles (Co. Tipperary). The Programme for the EU Just Transition Fund sets out the investment priorities and proposed allocation of expenditure to address the negative impacts identified in Ireland’s Territorial Just Transition Plan, which was finalised in 2022.  The fund, which will be in place until 2027, will support training and upskilling for former peat workers, enable communities to benefit from new green jobs, the development of affordable green energy, the decarbonisation of local transport, and the roll-out of new tourism enterprises. It will also support investment in sustainable agriculture and forestry, the development of SMEs and start-ups, as well as support for vital research and innovation.

Also announced this week was a new research project exploring how AI can monitor Irish peatlands and boost biodiversity through targeted restoration. Peatlands cover roughly 17 percent of Ireland’s land surface, store vast amounts of carbon, are a source of biodiversity and protect nearby areas from flooding. Peatlands have been drained for decades for the purposes of farming, planting forests and as a source of fuel. The €200,000 project proposes using AI to monitor deteriorating peatlands, while using data gathered by drones, satellites and citizen scientists to develop an all-island map which will be used to identify peatland areas of high conservation value and those under threat from erosion, exploitation and the climate crisis. 

Ireland's UN SDGs - Goal 17 - Partnerships for the Goals 2022

The Central Statistics Office (CSO) has published a report on the actions Ireland has taken towards achieving Goal 17 – Partnership for the Goals – of the United Nations Sustainable Development Goals (SDGs).

The UN Sustainable Development Goals (SDGs) are a set of global development targets adopted by UN member countries in September 2015 to achieve a better and more sustainable future for all. The CSO is responsible for monitoring and reporting on the actions Ireland is taking against the targets under the goals.

The report on Goal 17 is the 17^th in a series of CSO reports which monitor and report on how Ireland is progressing towards meeting its targets under the 17 UN Sustainable Development Goals. This one focuses on data from 24 ‘indicators’ for Ireland divided across the chapters Finance; Technology; Capacity Building; Trade; Policy & Institutional Coherence; Multi-Stakeholder Partnerships; and Data, Monitoring & Accountability.  

VAT treatment of the supply and installation of solar panels

(From our colleagues in Tax)

Revenue has published a new Tax and Duty Manual to provide guidance on the new zero VAT rate for the supply and installation of solar panels.

EU reduces emissions by 30 percent since 1990

Official data published by the European Environment Agency (EEA) has confirmed that the EU has reduced its emissions by 30 percent since 1990. The ‘Annual EU greenhouse gas inventory 1990-2021 and inventory report 2023’ – the EU’s official submission of greenhouse gas emission data to the United Nations Framework Convention on Climate Change (UNFCCC) – reported that the economic recovery in 2021 increased the EU’s greenhouse gas emissions but their level remained lower than before the COVID-19 pandemic. Read more.

European ‘environment and health atlas’ goes live

The European Environment Agency (EEA) has launched an online platform housing data on the quality of the environment. The European environment and health atlas presents data and information in a user-friendly way on how pollution and other environmental risks affect the health and well-being of Europeans, and how environmental assets protect the human population find out more here link. The interactive online tool, a first on such a scale for all of Europe, allows users to visualise how the environment around them affects their health and well-being via set of detailed maps. It covers topics like air quality, noise and quietness, green and blue spaces and climate change throughout the member and collaborating countries of the EEA. Closely aligned by many EU policy targets, the atlas is one of the tools by prepared and published the EEA with the aim to support monitoring the European Union's zero pollution ambitions.

Corporate sustainability: firms to tackle impact on human rights and environment

MEPs on the Legal Affairs Committee of the European Parliament have adopted their position on the so-called corporate sustainability due diligence, the proposal for which was introduced by the European Commission on 23 February 2022. Under the proposed legislation firms would be obliged to identify, and where necessary prevent, end or mitigate the negative impact of their activities, including that of their business partners, on human rights and the environment, including child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss. Once the Parliament adopts its mandate in the plenary, the negotiations with the Council on the final text of the legislation can start. According to the committee’s proposal, the new obligations would apply after 3 or 4 years depending on the company’s size and turnover. Read more here

Did you know?

Spanish team FC Barcelona’s players chose to take a train over a private jet when traveling to a recent match against Getafe CF, which plays on the outskirts of Madrid. “We decided to do this trip to state that the club wants to be a solution to climate change, and not a problem,” the club’s sustainability directory Jordi Portabella reportedly said.  “We want to increase the number of trips we make by train instead of plane.”

Articles

• Why restoring natural capital is good for business (McKinsey)
• Ireland has finally released its 30-year climate plan - here's what it says (The Journal)
• Five ways finance is trying to de-risk heat waves: some financial service providers have started to offer instruments aimed at reducing personal and economic risk associated with heat waves (Bloomberg Green)
• Empowering SMEs with carbon accounting tools is the key to reducing enterprise emissions across value chains (edie)
• 30 Per Cent club sets up new investor group to drive change and better gender balance (Business Post)
• Plastic packaging tax: detailed HMRC guidance on penalties - The penalties cover failing to register, submitting a late return, late payments and failing to meet other requirements of plastic packaging tax (ICAEW)

Congratulations to our Chartered Star!

Peter Gillen, Manager with the Sustainability Advisory Team, Grant Thornton, is the Chartered Accountants Ireland 2023 Chartered Star winner. Peter will attend the One Young World Summit in October, representing Chartered Accountants Ireland and Chartered Accountants Worldwide in Belfast.

Peter began his career training with PwC in their Risk Assurance department before his passion for sustainability led him to joining the Sustainability team in Grant Thornton. As part of his role supporting clients navigate their sustainability journeys, Peter has worked closely with the EU in drafting the European sustainability reporting standards for a number of key industries and has facilitated workshops on the Textiles sector standard to over 135 stakeholder organisations reporting companies, NGOs, and industry groups. Peter is involved with several initiatives which help further the SDGs including Chair of the Young Professionals Committee and Mentor for the Trinity Alumni Mentoring Programme and has been a vocal advocate and ambassador for the profession for many years. 

Watch Back - How 'green' is green electricty?

Killian Daly, General Manager with EnergyTag and global expert on science-based decarbonisation at scale discusses 'green electricity', what is truly 100% renewable electricity and what standards – if any – exist for renewable electricity. Watch back here. (24 mins)

Upcoming Events  

• Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD 
  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting.
  16 May, 14:00-16:00 CEST 

• Chartered Accountants Ireland Annual Conference, Focus on the Future
  18 May 

• Webinar on the Corporate Sustainability Reporting Directive (CSRD)

  Join Dee Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions.

  25 May,10-11, Zoom, register here.  

• Irish Environmental Network, National Biodiversity Week 2023
  19-28 May

• Business Post, ESG Summit, Croke Park, Dublin
  30 May

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 : 24 May, 2023
• 14.00-15.00/30
• Chartered Accountant House/Teams

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