The CSRD & Ireland

As a Law student from the US studying in Madrid, I was excited to be given the opportunity to learn more about how the CSRD applies to the Irish context in a recent research report with Colectivo. Below are some key takeaways from the research, which suggest impactful systems change in Ireland over the coming years.

Colectivo has focused efforts to build transformation programmes based not only on close understanding of client's business activities but also the law. Legal foundations create a demand for the ESG consulting, especially related to reporting and compliance. In many ways, the innovation consulting provided by Colectivo closely links to - and expands on - the ambitions of the Corporate Sustainability Reporting Directive.??

Why does the CSRD exist?

The purpose of the CSRD is to provide transparency in the business activity for the public. The more specific purpose of the CSRD is to allow for investors and stakeholders to have a full glimpse into the practices and ongoings of their investments, and promote green investing. This directive has no behavioural requirements or modifications, rather the EU is promoting a sort of “see it for yourself” model, where the data will allow stakeholders to determine where their investments are best spent.

What does it mean for Ireland?

Since Colectivo is established in Ireland and works with? companies on the island, we thought it could be helpful for others to know a little more about how this EU legislation is propelled by? key stakeholders and institutions in the country. These are organisations, institutions or bodies who may soon deal with pieces of the CSRD, corresponding? legislation and general applicable aims which may be considered by the government when transposing the CSRD into Irish legislation. ?

The Environmental Protection Agency (EPA) Ireland

The EPA in Ireland is the administrative body, established in order to monitor, analyse, and report on the current state of affairs in Ireland regarding environmental issues; including water, waste, air pollution, etc. The agency holds the ability to create regulation on certain areas regarding environmental protection, such as waste management and promoting the circular economy which may be relevant for the purposes of the CSRD.

The ESRS are not created in order to enforce a certain behaviour in companies, in a direct manner, but regulations designed by the EPA may well do so. Regulations will require a certain action which will aim to improve the areas on which companies will be reporting.?

The Circular Economy Programme (#CEP)

The Circular Economy Programme, building off of the previous National Waste Prevention Programme,? is a new, more comprehensive design which may implement “strategic programmes to prevent waste and drive the circular economy in Ireland.” In connection with E5 of the ESRS, the CEP will be implemented through advocacy, data, innovation and demonstration, delivering through partnerships, and creating a new regulatory framework for circularity.?

The Strategic Environmental Assessments (SEA)

SEA ’s have a special place in the CSRD process, as they will affect the incoming legislation and regulations which different sector agencies may try to implement. Any new programme or plan which will be implemented by Irish authorities in order to improve the Reports of companies inside Ireland will be subject to this assessment.?

The National Planning and Development Bill 2022?

This Bill outlines the new legislative framework for “the proper spatial planning and sustainable development of the State, to operate at national, regional and local levels”. The design of the bill is to ensure that the planning system will support and regulate the development of the land and infrastructure in a way to preserve and protect the environment. The essence of this Bill is about redesigning the process by which regulation will be written and enacted to best fit with the environmental objectives of the State.

The Department of Agriculture, Food and the Marine (DAFM)

DAFM is the Irish Government lead for all agricultural programmes and policy. For the purposes of the CSRD, DAFM will be responsible for creating the sector policy framework regarding sustainable development in the Agri-Food sector, optimising social, economic and sustainable action.?

A new DAFM Common Agriculture Policy is planned for 2023-2027, and is much different in its conception as compared to previous CAPs; as the new policy has been drawn up using a ‘food systems approach’ which acknowledges the link between policies for food, climate, the environment, and health, thereby highlighting again the circular element to these policies.

Final thoughts

The Irish approach focuses on improving upon existing frameworks in order to promote a more comprehensive and harmonised system of reporting and improvement in the areas in which data will be collected. As seen across the above stakeholders and changes, many of the regulations for the coming years focus on how to integrate the circular economy, and data collection practices with new frameworks and regulations.? Part of the national strategy is to rely on sectors which are large in Ireland first, to improve upon these areas which are supported by a) national landscape and environment (grass, legumes, beef production, land use by industry, water use, waste management, etc.) b) current economic significance.?

The transformation of systems in Ireland looks promising thanks to future policy and regulation, not only on a European but also on a national level. For this, actors from the private sector will also need to assess their organisations and put resources and processes in place to enable the scaling of positive impact.?

About the Author:

Lauren is a law student at IE University in Madrid. While working at Colectivo she has learned more about the business side of environmentalism and the great impact business has in improving the climate crisis. Her research to date has been on the CSRD and potential changes in Irish law in accordance with this EU level shift. In addition she is researching non-financial reporting.

References:

Gov IE. “Public consultation on the Corporate Sustainability Reporting Directive.” Government of Ireland, 30 January 2023, https://www.gov.ie/en/consultation/6fd8e-public-consultation-on-the-corporate-sustainability-reporting-directive/. Accessed 15 April 2023.?

EPA. “Circular economy.” Environmental Protection Agency, 22 September 2022, https://www.epa.ie/our-services/monitoring--assessment/circular-economy/. Accessed 15 April 2023.?

Gov IE. “DRAFT PLANNING AND DEVELOPMENT BILL 2022.” (Part 1, 1A)? gov.ie, 2022, https://www.gov.ie/pdf/?file=https://assets.gov.ie/245627/be71aebe-a594-4b3c-bffb-89ddf8e1ed95.pdf#page. Accessed 10 April 2023.