Sustainability/ESG bulletin from Chartered Accountants Ireland, Friday 31 May 2024

IRELAND

Ireland fails to meet national and EU climate targets

The Environmental Protection Agency (EPA) has published a report assessing how Ireland is progressing against its climate targets. The report – Monitoring & Assessment: Climate Change: Air emissions Publications – finds that Ireland is projected to exceed its national and EU climate targets, achieving a reduction of up to 29 percent in total greenhouse gas emissions by 2030, compared to a target of 51 percent. Even this reduction is only achievable – the report finds – if a wide range of policies and plans are fully implemented across all sectors. Currently, almost all sectors are on a trajectory to exceed their national sectoral emissions ceilings for 2025 and 2030, including Agriculture, Electricity and Transport, and the first two carbon budgets (2021-2030) will not be met, and by a significant margin of between 17 and 27 percent.

Climate ‘tipping points’

Minister for the Environment, Climate and Communications, Eamon Ryan, T.D., has informed Government that the climate is already reaching key tipping points . These are defined as critical thresholds that, when exceeded, can lead to a cascading impact that results in irreversible climate breakdown .

Local Enterprise Offices Policy Statements 2024-2023 publishes

The Department of Enterprise, Trade and Employment has published the first Local Enterprise Offices Policy Statement 2024-2030 , addressing the key White Paper on Enterprise priorities most relevant to LEOs: decarbonisation, digitalisation, increasing exports, helping locally traded businesses, and innovation. Among the policy developments being introduced are: climate-focused assessment criteria for capital grants for manufacturing and internationally traded services businesses, ex-post measurement of the impact of climate related supports, and commitments to deliver the LEO Customer Relationship Management System digitalisation project.

New National Biomethane Strategy

This week also saw the publication of the National Biomethane Strategy , Ireland’s first major policy statement on biomethane. The strategy sets out 25 key strategic actions that are key to addressing the challenges and opportunities for the industry, the implementation of which will drive growth across the biomethane industry. ?A newly formed Interdepartmental Biomethane Implementation Group will oversee implementation of the Strategy, measuring its impact and monitoring target delivery.

Are you an accountant in a small/medium practice? Can you please take our survey? This?7-minute survey?aims to discover if clients are asking accountants in small to medium practices about climate change (e.g. energy costs, solar panels, CSRD, supply chain questions, grants, etc.). The survey is part of research to identify supports that can be created for accountants now and in the future.        

Construction-related public procurement guidance

The Minister for Enterprise, Trade and Employment, Peter Burke, has announced that public bodies will shortly be advised of new guidance when designing public projects, and procuring cement and concrete products in particular. The guidance ensures a consistent approach to reducing the embodied carbon – emissions associated with extracting and producing construction materials – in construction projects procured by government departments and their agencies. The guidance for public bodies is based on an expert consultant’s report,?Reducing Embodied Carbon in Cement and Concrete Through Public Procurement in Ireland.

Critical Raw Materials Act comes into effect in Ireland

A new EU Regulation, the?Critical Raw Materials Act (CRMA), ?has come into effect in Ireland. It will ensure EU access to a secure and sustainable supply of critical raw materials, enabling Europe to meet its 2030 climate and digital objectives. Critical raw materials are of high economic importance for Europe while also being highly vulnerable to supply disruptions. The EU’s demand for Critical Raw Materials (CRMs) such as lithium, copper and cobalt is set to increase exponentially as the EU transitions to clean energy systems. Ireland has welcomed the Act’s focus on socially and environmentally responsible practices, identified as essential for the achievement of the EU’s Green Deal objectives, for supporting European competitiveness and ensuring consistency with Ireland’s?Policy Statement on Minerals and Mining .

Second phase of the Small-Scale Renewable Electricity Support Scheme (SRESS) launches

The second phase of the?Small-Scale Renewable Electricity Support Scheme (SRESS), ?the export phase, has now been launched . This phase of the electricity support scheme will be a significant improvement in market supports for Renewable Energy Communities and Small and Medium Sized Enterprises (SMEs), with fixed tariffs for these groups established for solar and wind projects between 50kW to 6MW. It complements the microgeneration supports for small projects and competitive auctions for larger projects under the RESS (Renewable Electricity Support Scheme).

Separately the SEAI Energy Awards 2024 are now open for applications. Applications can be submitted by individuals, community groups, SMEs and large businesses from both the?public and private sector across the island of Ireland.?Register and apply using the SEAI’s online application portal by?5pm, Friday 21 June.

New Employment and Youth Engagement Charter

The Government has launched an Employment and Youth Engagement Charter to support new pathways to employment among young people. The Charter is a key measure under the Government’s Pathways to Work objectives to engage companies in delivering activities to support people looking to enter or re-enter the workplace. Employers are invited to engage with the Charter and sign up to some or all of the six listed commitments.

UK/Northern Ireland

“Tremendous economic opportunity” – Minister Hargey on the path to net zero for Northern Ireland

Northern Ireland’s Interim Economy Minister Deirdre Hargey MLA has said that has said embracing the path to net zero is both “a moral necessity and a tremendous economic opportunity ”. Speaking at the recent opening of ‘Energy Ireland’, Minister Hargey presented an economic vision for the North that prioritises decarbonisation and creates a just transition to net zero that delivers economic prosperity, increases productivity, and addresses regional imbalances.

Separately, on 17 May Minister Hargey launched a three-month Call for Evidence seeking information and views from key stakeholders on developing a sustainable biomethane sector for the region, following the publication of research indicating that this region has significant biomethane potential due its large agricultural sector.

Findings of Renewable Energy in Northern Ireland inquiry published

The Northern Ireland Affairs Committee has published the findings of its Renewable Energy in Northern Ireland inquiry . Northern Ireland is committed to generate 80 percent of its energy consumption from renewable energy by 2030, but the Committee noted that it was unlikely to meet the target in a letter to interim Economy Minister Deirdre Hargey. Three themes were identified as obstructing Northern Ireland’s energy transition as inadequate infrastructure to support Northern Ireland’s net zero transition, an unsupportive policy environment, including a disjointed planning system “weighed down with delays,” and a lack of consumer awareness.

UK Emissions Trading Scheme expansion consultation

The United Kingdom Emissions Trading Scheme (ETS) Authority has published a package of consultations on expanding the UK ETS to include the energy from waste and waste incineration sectors . It is also consulting on how engineered greenhouse gas removals, such as direct air carbon capture, could be integrated, and on whether high-quality nature-based removals could be suitable for the scheme. The closing date for responses is Thursday 18 July 2024.

Separately, the UK government has published a consultation covering how UK-based engineered greenhouse gas removal technologies such as Direct Air Carbon Capture, where carbon dioxide is removed from the air and permanently stored, could be integrated into the UK ETS. It also asks whether carbon stored by the creation of new UK woodland could be integrated into the UK ETS. The closing date for responses is Thursday 15 August 2024.

Europe

• The Corporate Sustainability Due Diligence Directive has received approved from the EU Council. The Directive, which goes by various acronyms, including ??‘CSDDD’ and ‘CS3D’, can help ensure more sustainable and responsible corporate behaviour throughout global value chains. It applies to companies with over 1,000 employees and a turnover of more than €450 million and introduces obligations for large companies regarding the adverse impacts of their activities on human rights and the environment. Following approval by the European Parliament, the directive will be published in the Official Journal of the European Union, after which Member States have two years to transpose the directive into national law.

• The European Commission has welcomed the final adoption of the Net-Zero Industry Act (NZIA) , which aims to put the?EU on track to strengthen its domestic manufacturing capacities of key clean technologies. By creating a unified and predictable business environment for the clean tech manufacturing sector, NZIA aims to increase the?competitiveness and resilience of the EU’s industrial base?and support quality jobs creation and a skilled workforce.

• The first European Climate Risk Assessment (EUCRA) provides a comprehensive assessment of the major climate risks facing Europe now and in the future has published. The report is a comprehensive assessment of the major climate risks facing Europe today and in the future. It identifies 36 climate risks that threaten our energy and food security, ecosystems, infrastructure, water resources, financial systems, and people's health. Many of these risks have already reached critical levels and can become catastrophic without urgent and decisive action.

Resources

• The recordings of the recent 2024 conference at Dublin City University’s annual climate conference are now available to watch. Watch the business panel discussion on ‘How can the business world embrace a long-term perspective in its decision-making?’

• Chartered Accountants Ireland is running a workshop for SMEs and small to medium accounting practices (SMPs) on how to get ahead of the sustainability curve . This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands.

Did you know?

???? The annual RHS Chelsea Flower Show in London this year required some designers to complete the Green Garden Audit at the pre-selection stage to assess sustainability factors such as carbon footprint and waste generated. The audit provided a feedback mechanism for how the sustainability of gardens could be improved.

In Ireland, the European Commission’s “In Perspective” garden at Bord Bia Bloom 2024 aims to inspire sustainable change, in line with the EU’s Green Deal, which seeks to make Europe the first carbon-neutral continent by 2050.? ?????????

Articles

• From noble ambition to corporate tokenism: the rise and fall of ESG (Irish Times )?
• Companies see sustainability as integral to long-term value creation Morgan Stanley ?
• Many Irish firms still unaware some single use plastics banned (RTé )?
• “Every day, the equivalent of 2,000 garbage trucks full of plastic are dumped into the world's oceans, rivers, and lakes.” From “Plastic Pollution”, United Nations Environment Programme (UNEP )?
• Global milestone: 30% of the world's electricity was produced from renewables (CNN )?
• ?‘Wall Street analysts are totally amoral’ on climate – Barack Obama’s former energy secretary discusses the forces and technologies slowing the energy transition (Financial Times )?
• EU election 2024: What the manifestos say on energy and climate change (CarbonBrief )

Upcoming Events

• 1Business World, 2024 Global Natural Capital Conference Virtual, June 3-4, 2024

• IFRS, with the UN Sustainable Stock Exchange initiative: free half-day virtual training events on the ISSB Standards Virtual, June 6, 2024.

• Accountancy Europe, CSRD readiness: building trust through sustainability assurance In-person event, by invitation only, Brussels, 14 June 2024 (10:00 - 14:30)

• Chartered Accountants Worldwide Navigating the sustainability reporting landscape Join the first webinar hosted by the?ICAS Sustainability Business Network ?as we delve into the practicalities of adopting the various new sustainability reporting frameworks with two organisations who are leading the way on sustainability disclosures. Virtual, June 13 @ 11:00 am?-?12:00 pm?UTC+1
• Chartered Accountants Ireland, Socially Conscious AI and CSRD (ROI/NI) Chartered Accountants Ireland is hosting a webinar on AI and sustainability, showcasing how finance professionals are leveraging AI to meet their sustainability reporting obligations. Speakers David Connolly?and Madeline Parkinson in EY’s Climate Change and Sustainability Services team will examine how to navigate these emerging and converging areas, what pitfalls to avoid, and questions to ask of AI providers. Virtual, June 18 at 12.00-12:45.
• IFRS, with the UN Sustainable Stock Exchange initiative: free half-day virtual training events on the ISSB Standards Virtual, June 20, 2024. Half-day event?
• Chartered Accountants Ireland, The Small/Medium Practice Sustainability Workshop A workshop for small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands. In person, Chartered Accountant House, 25 June, 9.30- 12.30; €60 members; 3 hours CPD points.

• A4S, Accounting for Sustainability (A4S) Summit The annual A4S Summit is a unique global online gathering for the finance and accounting community. The sessions throughout the day focus on your role and how to embed sustainability into your work. Speakers during the sessions will highlight the finance leadership that’s making a difference now, and look at ways we can fast-track to a just, nature-positive and net-zero emission economy. Registration is open for all and will include access to the recordings from the day. Virtual, Wednesday 3 July (sessions throughout the day)

• EPA Circular Economy Conference 2024 Online and inperson (Aviva Stadium, Dublin), 25 September,

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, 25 June, 14:00-15.30
• Teams

If you would like to attend, please email [email protected]

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