Sustainability/ESG bulletin from Chartered Accountants Ireland, 27 September 2024

Sep 26, 2024

Ireland news

Ireland’s Department of Finance Green Budgeting update

Ireland’s Department of Finance Ireland has published an update on?Green Budgeting , as part of Ireland’s whole-of-government approach to Climate Action. This approach aims to achieve the targeted reductions in overall greenhouse gas emissions by 2030 and reach net-zero emissions by no later than 2050, in line with Ireland’s strategic objective of supporting environmentally sustainable economic progress.

‘Green budgeting’ is the process of documenting the impact of budgetary measures and wider fiscal policy on the transition to a more sustainable and climate friendly economy. The update’s focus is on analysis of the tax system, and the work complements the green budgeting expenditure analysis undertaken by the Department of Public Expenditure NDP Delivery & Reform .

Carbon Tax Exchequer Revenue Projections 2024-2030 publish

The Department of Finance Ireland has published?Carbon Tax Exchequer Revenue Projections 2024-2030 , a report examining trends in carbon tax exchequer yields in Ireland over the last decade. It also provides forward projected estimates of carbon tax yields to 2030. Key findings highlight that overall environmental taxes as they currently exist, such as the carbon tax, excise duty and value added tax (VAT) on fuel, vehicle registration tax (VRT) and motor tax, account for a little under €6.8 billion annually of overall exchequer tax revenues in 2023, having risen from €5.1 billion of overall exchequer tax revenues in 2013.

Over the last decade (2013 – 2023), carbon tax yields in Ireland have generated revenues of over €6 billion for the Exchequer, rising from €388 million in 2013 to €935 million (this amounts to approximately 1 per cent of total exchequer tax receipts in 2023). Over the next six years (2024 to 2030), the report estimates, the tax will raise €8.8 billion in exchequer revenue, approximately €6.4 billion of which will be directly allocated to climate actions in this period on a no-policy-change basis.

SBCI and BVP launch €50m Green Transition Finance product

The (SBCI) Strategic Banking Corporation of Ireland and Business Venture Partners (BVP) have announced a partnership with the launch of a new?€50 million financing initiative . Designed to support the green and sustainable transition of Irish businesses, the ‘Green Transition Finance product’ is tailored to meet the needs of SMEs and Small Mid-Caps investing in sustainable and green projects and assets, as well as those already operating in a sustainable manner, subject to specific criteria. Loans range from €500,000 to €5,000,000 for terms up to 10 years, with competitive interest rates and flexible repayment terms tailored to support business growth.

Boards and climate change

The annual?FTSE 350 Boardroom Bellwether survey , recently published by the Chartered Governance Institute UK & Ireland, has reported that only 29% of boards in the UK see climate change as a very important driver of risk (compared with 45 per cent last year). Supply chain disruption was likewise only ranked as a very important risk by a third of board, despite, a?paper ?published in Nature in March 2024, concluding that heat stress alone will have impacts on supply chains of an estimated $25tn net losses by mid-century. The report did find that companies in the UK are performing well in making their boards more diverse and inclusive, with 76% of boards satisfied that their company policies and guidelines about ethnic minorities in the workplace are fit for purpose.

Climate Tech Opportunity in Ireland

A new report highlighting opportunities to unlock economic growth and simultaneously tackle climate change through the climate tech companies has published. ‘The Irish Climate Tech Opportunity 2024 ’ – the second such report published by SustainabilityWorks Ireland and PwC Ireland – showcases 22 entrepreneurs and companies from industries as diverse as construction, food, and transport. The report calls on the Irish government to recognise Climate Tech as a sector in its own right and to provide targeted funding and supports across this nascent ecosystem.

Europe News

• Accountancy Europe has published a factsheet to help the accountancy profession in its role in supporting companies enforce the new?Corporate Sustainability Due Diligence Directive (CSDDD) . This law introduces mandatory due diligence obligations to EU and non-EU large companies and establishes liability in case of non-compliance. Small and medium-sized businesses (SMEs) will also be affected as they are part of value chains.

• MEPs have?expressed deep concern? about increasing intensity and frequency of extreme EU and global weather events. In the past 30 years,?floods in Europe?have affected 5.5 million people, taking almost 3,000 lives and causing more than EUR 170 billion in economic damage. The summer of 2024 was the?hottest on record ?globally and in Europe. In a resolution on the devastating floods in Austria, Czechia, Germany, Hungary, Poland, Romania and Slovakia, approved on Thursday 19 September, MEPs express dissatisfaction with recent budget cuts to the EU’s Civil Protection Mechanism and have called for sufficient and upgraded funding to increase preparedness and improve capacity building.

World news

• It was?New York Climate Week? this week. Now in its 16th?year, this week-long event aims to inspire change in the mainstream of business and government.?Climate Week NYC’s overall message this year was “It’s Time”, highlighting the urgency of acting decisively now, rather than deferring bold climate action to the future. New York Climate Week takes place every year in partnership with the United Nations General Assembly (UNGA) and is run in coordination with the United Nations and the City of New York.?

• Women climate leaders, including former Canadian environment minister Catherine McKenna and the German government’s special climate envoy, Jennifer Morgan, together with women from business, politics and non-profits, have launched the “women leading on climate network ” at Climate Week NYC.?Part of the group’s mandate is to empower women business leaders to step up and speak out on climate action.?

• Top leaders in global sustainability standard setting, regulation, and accounting, including IFAC , the IFRS Foundation , and International Organization of Securities Commissions - IOSCO , attended?Accelerating Climate and Sustainability-Related Disclosures: A Global Perspective, on September 23 as part of Climate Week NYC. The objective of the event was to advance global adoption and implementation of the ISSB Standards and build an understanding of sustainability assurance in its early days. A compilation of a recording of the event will be made available in due course. For more information and to be notified of the release of the recording, please reach out to?[email protected]

• A report by the Cambridge Institute for Sustainability Leadership says there is a “very real risk” that corporate action to address sustainability issues is negatively impacting the climate and nature crisis. The report,?Survival of the Fittest: From ESG to Competitive Sustainability , calls for ESG to be replaced with a “competitive sustainability” agenda, with, with business leaders focusing on how their company can “compete and win” within a whole-of-economy transition, rather than setting sustainability targets.

• The Hague has become the?first city in the world to pass legislation that bans the advertising of fossil fuel related products . The ban takes effect from 2025 and will see publicly and privately funded advertising for petrol and diesel, aviation and cruise ships banned from appearing in areas such as bus shelters and billboards.?

Have your say on AI

Chartered Accountants Worldwide is bringing together its member Institutes to undertake an?important study on the impact of Artificial Intelligence (AI)?on the future of the global Chartered Accountancy profession. Please support this research which aims to understand your views, experience and expectations regarding AI technologies in your professional role. (FYI: Watch the Chartered Accountants Ireland webinar on?Socially Conscious AI and CSRD .)

A4S International Case Competition ?- corporate decarbonization and a fair and just climate transition

Accounting for Sustainability (A4S) haslaunched the 2025?A4S International Case Competition (A4SICC) . This year’s case challenge asks students to focus their business skills on corporate decarbonization within the broader context of a fair and just climate transition. This year’s competition will again offer students a transformative and practical learning experience with the unique opportunity to travel to Toronto, Canada, win a cash price of CA$10,000, access internships and cultivate critical skills and connect with industry leaders.?

Places still available on Sustainability Reporting and Assurance Diplomas

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.?Tthe 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).

Articles

• We are incredibly vulnerable to an energy shock, so cutting fossil fuel dependence is a must (Irish Times )
• Research reveals challenges facing female SME owners (RTé )
• Materiality: The five steps that will get you on track (Business for Biodiversity Ireland )

Podcasts

Sustainable Views (FT): Can female leadership accelerate climate action??There was barely a woman to be seen in the official photograph of the world's climate leaders at COP28. This is a problem when half of the world's population is female. We spoke to former Canadian environment minister Catherine McKenna and Aron Cramer, CEO and president of sustainability consultancy BSR, about how they believe more women can be brought into the climate space and how this can change the dynamics around climate action (Listen )

Did you know?

Publishers?are working to bring down the carbon footprint of books . ‘Sustainable Typesetting’ a project called from a Danish typesetting company has been developing fonts that reduce the number of pages while still prioritising readability.?A typical paperback book ?accounts for around 1kg of carbon dioxide, and with 767 million paperback books being sold in the US last year alone, innovative initiatives are key to reducing emissions.

Upcoming Events

Ireland’s third?SDG (Sustainable Development Goals) Week ?takes place this year from 20 – 29 September. 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.

Trinity College Dublin,?What does economics have to do?with nature? What does economics have to do with nature? What is the natural capital approach? Why do we need an economic approach to climate change risks?? Come and hear answers to these questions and more from?Ece Ozdemiroglu , environmental? economist, founder & CEO of EFTEC (Economics for the Environment) In person, Oct 14, 2024 at 6:00 PM

UN Global Compact Network Ireland,?Virtual Open House: Exploring the UN Global Compact & the Network for Ireland Are you interested in learning more about the world’s largest corporate sustainability initiative? Curious about how your company can play a role in advancing the UN SDGs and driving impactful change? Join the Virtual Open House on 16th October for a unique opportunity to connect with like-minded leaders and explore how we can work together to create a more sustainable and responsible future. At this webinar you’ll gain insights into the value of engaging with the UN Global Compact and the soon-to-be-launched Network for Ireland. - Overview of the UN Global Compact and its Ten Principles - Benefits of joining the UN Global Compact for your business - Introduction to the new Ireland Network and how it can support your sustainability goals Online, 16 October, 3:30- 4:30pm

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? (WAIT LIST)

Accountancy Europe,?Unpacking CSRD transposition across Europe This webinar will take stock and share insights into the Corporate Sustainability Reporting Directive (CSRD) transposition across EU Member States. Join us for this overview with experts.?Speakers to be confirmed. Programme coming soon. Virtual, October 8 October 2024 (12:00 - 13:15) Brussels time

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. In person, 1 November, Maynooth University

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 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, 23 October, 14:00-15.30
• Zoom

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 .