Sustainability/ESG bulletin from Chartered Accountants Ireland, Friday 23 June 2023

Met éireann releases first climate projections from the TRANSLATE initiative

Met éireann , the Irish Meteorological Service, has this week?released?climate projections from a new climate resource for Ireland. Projects include a likelihood of drier summers, an increasing number of heatwaves, and wetter winters. The resource,?TRANSLATE: One Climate Resource for Ireland,?aims to standardise future climate projections and develop climate services that meet the information needs of decision makers. Data from TRANSLATE will be used to communicate climate science data/information for products such as indices, risk assessments, and uncertainty estimates, and provide information needed to build resilience to climate change across all locations, sectors and services.

Ireland’s holds position in global renewable energy development attractiveness

The latest edition of the?EY Renewable Energy Country Attractiveness Index?shows that Ireland has retained its 2022 position as the 13th most attractive country in the world for renewable energy investments. The index ranks the world’s top 40 markets on the attractiveness of their investment in renewable energy and deployment opportunities. Ireland’s Offshore Wind Auctions and increasing use of Corporate Power Purchase Agreements (CPPAs) have reportedly contributed to the position in the ranking.

Also, this week, the Government approved the Terms and Conditions for the?first offshore RESS auction, ORESS 1, with?final auction results?now confirmed and available on the EirGrid website. At least three offshore auctions are currently planned this decade.

Irish businesses spent €8.6 billion on energy in 2021

Figures released by the?Central Statistics Office?(CSO) this week have revealed that the cost of energy purchases by enterprises in 2021 was €8.6 billion, of which 56 percent was paid for by firms in the services sector. The survey, using data from approximately?5,000 enterprises, showed that purchases of electricity and natural gas accounted for 62 percent of total energy costs incurred by enterprises in 2021, and the use of renewable energy purchased directly by enterprises increased by 59 percent between 2012 and 2021. The release was compiled during the COVID-19 pandemic, which impacted on the 2020 and 2021 data. Read more.

Increase in proportion of women in senior roles

The first?annual report of the Women in Finance Charter?published this week and found that female representation on executive committees in Ireland has increased from 32 to 35 percent since 2022. The?Charter?is a collaboration between industry and Government under the Ireland for Finance strategy. Established in 2022, it seeks to improve female representation in financial services firms operating in Ireland and is open to all financial services firms operating in Ireland.

Northern Ireland launches first ever consultation on Carbon Budgets

Northern Ireland’s?first ever consultation on Carbon Budgets?has been launched by the Department of Agriculture, Environment and Rural Affairs (DAERA). The 16-week?consultation?will run from 21 June to 11 October and seeks feedback on the proposed first three carbon budgets for 2023-2027, 2028-2032 and 2033-2037, as well on the interim targets that should be set for 2030 and 2040 for reductions in greenhouse gases. DAERA is also seeking views through the consultation on the recommendations of the UK Climate Change Committee (CCC) on the Path to Net Zero for Northern Ireland, and is keen to hear from individuals, businesses, communities, and other organisations from across the region.

The consultation was launched the day after DAERA’s publication of a statistical bulletin?on greenhouse gas emissions for Northern Ireland?for the period between 1990 and 2021 which also shows that between 2020 and 2021 emissions increased in all sectors in the region, with the exception of waste management and public. The largest increases were in the transport, agriculture and energy supply sectors, respectively.

Plastic packaging tax – monthly update from HMRC

(From our colleagues in Tax)

HMRC has begun sending a monthly email containing updates on the plastic packaging tax (“PPT”). This month’s email is available to?read. HMRC has also sent an?email?with key reminders on the PPT.

European Commission consults on Carbon Border Adjustment Mechanism

The European Commission has published a call for feedback on the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its?transitional implementation. 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.

Technical Round Up

(From our colleagues in Professional Accounting)

• The International Sustainability Standards Board (ISSB) has announced that it will issue its sustainability standards?IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information?and?IFRS S2 Climate-related Disclosures?on 26 June 2023.
• Accountancy Europe have made available?some working documents?which compare the first set of European Sustainability Reporting Standards (ESRS) proposed in the recent Delegated Act to the European Financial Reporting Advisory Group’s original drafts.
• The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a?Call for Evidence (CfE)?on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II.
• The objective of this Call for Evidence (CfE) is to gather industry feedback that will help better understand the evolution of the market and provide answers as to how firms apply the new MiFID rules on sustainability.
• The FRC has?issued its response?to the ISSB consultation on the methodology for enhancing the international applicability of the SASB Standards and SASB Standards Taxonomy updates.

Sustainable finance for SMEs and Green EU Trademarks on the rise

(from our friends in?Accountancy Europe)

• The European Commission has published a new sustainable finance package in?which?it states it will ask EFRAG to prioritise work on what it describes as “a voluntary standard for non-listed SMEs, which may use it to standardise the sustainability information they wish to report, and which can make it easier for them to participate in the transition to a sustainable economy.” It also?emphasises?the need to reinforce SMEs’ access to and opportunities in transition finance.
• ?The EU’s Intellectual Property Office (EUIPO) has?published its latest Green EU Trade Marks report, showing that SMEs account for 10 percent of environmentally friendly EU Trade Marks (EUTMs) and filed more green EUTMs than large companies between 2015 and 2021. The report argues this demonstrates the growing commitment of SMEs towards sustainable practices and their role in introducing eco-friendly goods and services into the EU Single Market.
• ? Accountancy Europe support tools for SMEs’ sustainable transition include a?paper?on SME sustainability risk management and a?3-step sustainability checklist, with more to come.

IFRS Foundation publishes educational material on effects of climate matters on SMEs’ Accounting Standard

The International Federation for Reporting Standards (IFRS) has?published educational material?to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements.?The material was developed in response to feedback suggesting that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements.

Glossary update

Chartered Accountants Ireland 's?Sustainability Glossary?has been updated to include the Carbon Border Adjustment Mechanism (CBAM), Carbon capture, utilisation and storage (CCUS), double materiality, and more.?

Podcast

• Richard Curtis, writer of British comedies like?Love Actually,?Mr. Bean and?Blackadder?talks to 彭博资讯 's Zero?about Make My Money Matter, an initiative to make retirement funds and banks greener (35 mins)

Articles

• Europe is 2.3 degrees hotter than before industrial revolution, climate report finds (The Journal)
• Much of the time growth strategies and green strategies don’t have to be so different -?You can make your business more sustainable, with an applied focus (Irish Independent)
• Where are leading Irish companies on decarbonising and embracing sustainability? (Irish Times)
• In the loop: tech and innovation in the circular economy - From manufacturers to consumers, tech is coming around to the ideals of the reuse and regeneration of existing materials and products (Business Post)??

Upcoming Events??

• The UN Global Compact is organising a series of activities around the world for International SME Day on 27 June.??Small Business, Big Impact?is a live regional in-practice exchange session to learn directly from SMEs on how they are integrating sustainability into their business strategy and operations. Speakers include Jess Fleischer, CEO, Son of a Tailor (Denmark) and Hanna Kalliom?ki, Chief Sustainability Officer, Paptic (Finland). 27 June 2023, 14:30 (Dublin time).?Register Here

• CSRD: striving for consistent and quality sustainability assurance engagements across the EU. Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact?[email protected]. 5 July

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?[email protected]

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You can find information, guidance and?supports to understand sustainability and meet the challenges it presents in our online?Sustainability Centre.