Sustainability/ESG bulletin from Chartered Accountants Ireland, 8 November 2024
Susan Rossney
Sustainability Advocacy Manager with Chartered Accountants Ireland | Sustainability Leader | Peaceful Climate Activist
Ireland news
Accounting for Nature - the Biodiversity COP
Ireland attended COP16, the United Nations conference aimed at protecting and restoring biodiversity, which took place in Colombia from 22 Oct to 1 November. At the conference, Minister for Nature and Heritage Malcolm Noonan reportedly committed to continue to scale up nature restoration and protect its vulnerable ecosystems, while improving climate resilience. Chartered Accountants Ireland has written an explainer about COP16 ?and what it means for businesses.?
Ireland’s competitive advantage
The Department of the Taoiseach has published the Response to Ireland’s Competitiveness Challenge 2024 , outlining how the Government is addressing the priority areas and actions proposed by the National Competitiveness and Productivity Council (NCPC). Among other issues, the report highlights the promotion and delivery of sustainable development, and the measures taken to deal with expenditure pressures, including ageing, climate, digitalisation and other fiscal and economic shocks that may arise in future.
(See also our event Maintaining Ireland’s Competitive Advantage: FDI in 2024 and Beyond , taking place on 12 November in Chartered Accountants House).
New Heat Bill paves the way for district heating nationwide
The Irish Government has approved the General Scheme of the Heat (Networks and Miscellaneous Provisions) Bill 2024, which aims to facilitate the growth of a district heating industry in Ireland. District heating utilises a centralised heat source, such as a waste facility or data centre, to heat multiple buildings across a potentially wide geographical area. The development of such legislation would establish a regulatory model to ensure price protection for large and small heat network consumers.
Increase in approvals of Energy Efficiency Grant applications
Approval of applications for the Energy Efficiency Grant has nearly doubled since a series of revisions to its terms last July, according to a statement made by the Department of Enterprise, Trade and Employment . The grant, administered by the Local Enterprise Offices (LEOs), is for businesses investing in new energy efficient equipment, smart control systems, heat recovery and more. Welcoming the news, Minister for Enterprise, Trade and Employment, Peter Burke, T.D., encouraged interested businesses to contact their LEO, commenting: “Sustainability is good for business. By cutting energy costs, businesses will save money.”
Separately the Sustainable Energy Authority of Ireland (SEAI) has launched a new section on its website sign-posting businesses to technologies to enhance energy efficiency and move towards carbon neutrality. Smart Energy for Business also includes tips for staff interested in smart energy habits at home.
Significant projected gaps to energy targets
The Sustainable Energy Authority of Ireland (SEAI) has published its National Energy Projections 2024 report , which points to significant projected gaps in Ireland’s ability to meet all legally binding targets, including national carbon budgets and sectoral emissions ceilings, as well as EU obligations on renewable energy, energy efficiency and greenhouse gas emissions. The report goes on to state that “unprecedented technology change must be combined with strong policies and measures to limit growth in energy demand and disincentivise behaviours and practices that incur wasteful energy use in all parts of society”.?
Enterprise Ireland Approves Over €55 Million in Funding to Drive Decarbonisation in Irish Businesses
Enterprise Ireland (EI) has approved over €55 million in funding to support the decarbonisation of Irish businesses it was announced this week . Approved under the Environmental Aid scheme and EI’s Green Transition Fund, the funding has benefited more than 400 Irish companies since June 2022, reducing CO2 emissions by an estimated 130,000 tonnes. The Department of Enterprise, Trade and Employment also allocated a further €300 million in June this year under the Environmental Aid scheme to support EI’s broader commitment to advancing sustainable growth among Irish companies.
Public support for climate action remains high across Ireland
The Environmental Protection Agency (EPA) Ireland has announced that public support for climate action remains high across Ireland, according to national, regional, and county-level data about people’s climate change beliefs, attitudes, policy preferences and behaviours. There is majority support for all surveyed policies nationally, although an emerging divergence was noted between Dublin and other counties regarding support for taxing fossil fuel-powered cars. The data noted an increased awareness of the potential impacts of risks resulting from climate change among people in counties with a history of environmental risks such as flooding, water shortages or wildfires.
Businesses commit over €1 million to finance Irish farm biodiversity
A new national initiative has launched that aims to make farming for nature sustainable and scalable, while providing businesses with an opportunity to fund nature-positive actions on Irish farms in a way that can be reported on under new EU sustainability reporting directives. ReFarm , established by Dr Brendan Dunford, a founder of Burrenbeo Trust , and impact investor Anke Heydenreich , leverages private finance to complement public subsidies. A collaboration between Trinity College Dublin, Burrenbeo Trust and local and international organisations, ReFarm Ireland has already started to finance projects on Irish farms to address the biodiversity and climate crises. ?
Northern Ireland/UK news
(From the Institute’s Tax News)
UK Government publishes response to UK CBAM consultation
The UK Government has published its response to the March 2024 consultation on the introduction of a UK Carbon Border Adjustment Mechanism ‘CBAM’. (The Institute responded to the consultation earlier this year .) The response confirms that the UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods at risk of ‘carbon leakage’ that are imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron and steel sectors. Read more here .
DAERA opens consultation on draft environmental principles policy statement
The Department of Agriculture, Environment and Rural Affairs (DAERA) is consulting on a draft environmental principles policy statement (EPPS). The statement sets out how five internationally recognised environmental principles should be interpreted and proportionately applied to policy making. When fully in force, all Northern Ireland government departments and United Kingdom government ministers making policy for NI will have a statutory duty to have due regard to the statement. The consultation close on Monday, 9 December.
UK SME Climate Hub launches new platform of climate action tools
The UK SME Climate Hub has launched its Action Space , a new platform of climate action tools, created for SMEs to understand the steps needed to achieve their net zero goals. The SME Climate Hub is a non-profit global initiative that empowers small to medium sized companies to take climate action and build resilient businesses for the future.
London Stock Exchange warns of risks to 49 cities
The COP29 Net Zero Atlas report by LSEG (London Stock Exchange Group) has called for G20 countries to set ambitious new 2035 targets to accelerate the pace of the transition and limit warming to well below 2°C by the end of the century. ?The report, which aims to provide investors with analysis of physical and transition climate risks across the G20, points to the need for clear policy signals among companies and investors taking steps to mobilise long-term investment in greening the global economy. Highlighting the cost of inaction and the need for large scale adaptation measures and financing, the report points to physical effects of climate change intensifying across the globe, showing that 49 cities accounting for nearly 20% of global GDP, will be particularly affected.
Separately, the Business Breakthrough Barometer report from the WBCSD – World Business Council for Sustainable Development (WBCSD) has emphasised the need for government action to unlock private sector investment at scale, upon which hinges the ability of countries to achieve plans to halve emissions by 2030 and meet the 1.5°C climate target. Notably, 91% of business leaders surveyed view the transition to net zero as an investment opportunity, but that without long-term, investment-positive policies, the next wave of large-scale investments are at risk.
Europe news
Copernicus confirms a new milestone in global temperature records
2024 is virtually certain to be the warmest year on record, and the first year above 1.5°C, ?according to Copernicus Climate Change Service (C3S) , the European Centre for Medium-Range Weather Forecasts on behalf of the European Commission. Commenting, Samantha Burgess, C3S Deputy Director, said:?“This marks a new milestone in global temperature records and should serve as a catalyst to raise ambition for the upcoming Climate Change Conference, COP29.”
Sustained progress needed to meet ambitious Climate Law targets
Total net greenhouse gas emissions in the European Union dropped by 8% last year, according to the European Environment Agency ’s recently published Energy Trends and Projections report . The drop was led by a significant decline in coal use and growth of renewable energy sources and supported by reduced energy consumption across Europe. The report cautions that sustained progress will be needed towards 2030 and beyond to meet ambitious targets set by the EU Climate Law.
World news
The Institute of Singapore Chartered Accountants (ISCA) has issued an illustrative sustainability report based on ISSB’s and GRI’s standards. The main objective of this report is to provide a glimpse of how a sustainability report could look like when a company adopts both the IFRS Sustainability Disclosure Standards and GRI at the same time.
The Global Capacity Building Coalition (GCBC) , which launched during September’s New York Climate Week, has released the beta version of their global capacity building platform . The platform will act as a ‘one-stop shop’ with a suite of resources, tools, and training on climate finance and related topics, for financial institutions and finance professionals seeking to develop their organisational capacity and individual knowledge and skills to accelerate and scale climate finance.
The World Business Council for Sustainable Development (WBCSD) has published the twelfth edition of its ‘Reporting Matters’ series, aimed at enhancing the effectiveness of corporate sustainability reporting. Changing Gears: How are companies navigating higher expectations and demands in sustainability reporting offers insights into how effective reporting adds value and provides strategic direction. It includes latest reporting trends and data?gathered from an?in-depth review of 181 reports.
The International Public Sector Accounting Standards Board (IPSASB) has announced? the release of SRS ED 1, a new draft climate-related disclosure standard for governments and other private sector entities. This would be the first sustainability reporting standard for the public sector. SRS ED 1 is open for public comment until February 28, 2025.?
Over 20 organisations have founded Nature Positive Matters , recognising the importance of nature positive action to economies and communities. A government-backed initiative, Nature Positive Matters is a network of leaders who recognise the growing international importance and economic value of looking after nature. Members of the network announced they will work together to support business uptake of nature-related reporting and data collection, pilot programs to inform policies and investment decisions that are good for nature, and develop tools to help investors understand whether an economic activity is environmentally sustainable.
The United Nations Environment Programme (UNEP) has published a report that finds that nations must deliver dramatically stronger ambition and action in the next round of Nationally Determined Contributions (NDCs). The report, Emissions Gap Report 2024: No more hot air … please!, now in it’s 15th edition, brings together many of the world’s leading climate scientists to examine future trends in and provide potential solutions to the challenge of global warming. Updated NDCs are to be submitted early next year ahead of the COP30 climate talks in Brazil.?
Did you know
The Deposit Return Scheme, which launched on 1 February 2024, has collected over 635 million containers , refunding €110 million in deposits to consumers.?Every month, over?100 million containers are collected and last month 73% of plastic bottles were returned. €70,000 has been collected for the Return for Children charity.
Podcast
International Sustainability Standards Board (ISSB) Chair Emmanuel Faber and Vice-Chair Sue Lloyd discuss the latest ISSB developments ?(Podcast -22 mins )
Articles
Upcoming Events
COP29 Climate Summit: Nov 11-22 Location: Azerbaijan Host: CBD, UN
Accountancy Europe, Shaping the future of sustainability assurance engagements Join Accountancy Europe and the International Federation of Accountants (IFAC) to discuss the latest developments in the world of sustainability assurance. In this webinar, you will hear insights from the International Auditing and Assurance Standards Board (IAASB), the Committee of European Auditing Oversight Bodies (CEAOB) and the Nordic Federation of Accountants. Virtual, 12 November, 15.00-16.45 (Brussels Time)
Business for Biodiversity, Business & Biodiversity 101 Broaden your understanding of your business relationship with nature and get to grips with where to start on credible nature action and legislative compliance for your organisation. Topics include risks businesses are facing in this nature crisis, how they can address these risks and how can the Nature Positive approach bring opportunities to businesses. Virtual, 14 November, 13:00-14:00
Dublin Chamber, Sustainable Business Practices - Strengthening Customer Connections Designed for professionals in customer-facing roles, this workshop will provide the tools to incorporate sustainability into customer engagement strategies, leading to improved satisfaction and loyalty. Virtual, 15 November, 9.30-12.30
iQuest & Business Post, ESG Autumn Summit Date: Nov 20th Location: Croke Park
Chartered Accountants Ireland (part of Sustainable Finance Ireland Week 2024), Access to sustainable finance by SMEs Part of Sustainable Finance Week Ireland, this seminar will describe the landscape of finance and other support options available for SMEs and entrepreneurs which can facilitate businesses taking action. It aims to debunk the concept of ‘green finance’ for SMEs and paint a clear picture of the steps and the commercially viable – scalable – actions SMEs could take to improve their impact and their ability to source finance for projects. Commercial financial products will be discussed, alongside the grants available from local enterprise offices (LEOs), Enterprise Ireland, the Sustainable Energy Authority of Ireland (SEAI). In person, Chartered Accountant House, Wednesday, 27 November, 17.00-18.00
Dublin Chamber, Internal Sustainability Integration - Building a Sustainable Workplace Culture Are you a professional in an internal facing role such as finance, operations, or HR? Our upcoming workshop at The Sustainability Academy is designed specifically for you. This session will guide you in integrating sustainability practices within your organisation’s internal mechanisms, demonstrating how these practices can improve employee engagement, operational efficiency, and the overall workplace environment. Virtual, 29 November, 09:30-13.00
Belfast Harbour Commissioners, Responsible Innovation Conference This conference will bring together business leaders, technology experts, and academics to discuss the ethical implications of technology. Participants will learn about managing the social and environmental impacts of technology while driving growth and innovation. The event will also include networking opportunities, allowing attendees to exchange ideas and collaborate on responsible business practices. In person, Belfast Harbour Commissioner, 29 November 2024, from 8:15 am
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.
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 .