Sustainability/ESG bulletin from Chartered Accountants Ireland, Friday 19 April 2024

IRELAND

Congratulations to SustainabilityWorks!

The Institute is delighted to congratulate? SustainabilityWorks Ireland ?on winning the ESG Consultancy Awards at the Business & Finance Media Group ?ESG Awards ?yesterday.?? SustainabilityWorks was co-founded by FCA Laura Heuston and aims to help Ireland unlock the financial, economic and social opportunities that come from sustainability. Chartered Accountants Ireland was nominated for an award in the category of ESG Company Awards (SME).

Adoption of a sustainability assurance standard in Ireland

Chartered Accountants Ireland has?responded? to the?consultation? by IAASA on the adoption of a sustainability assurance standard in Ireland.? Read more from our Professional Accounting team.

Ireland’s Environment Goods and Services Sector’s gross output worth €8.8 billion

The Central Statistics Office (CSO) has today released statistics for the Environment Goods and Services Sector (EGSS) for 2021. Figures for the sector, sometimes called ‘eco-industries’, show that the gross output of the EGSS was €8.8 billion in 2021, 1.1 percent of national accounts output. The gross value added (GVA) was €3.9 billion and full-time equivalent employment in the sector was 40,300.

Report finds gender disparities in labour market across island of Ireland

A new study published by the Economic & Social Research Institute (ESRI) has highlighted persistent gender disparities in labour market participation and working conditions in Ireland and Northern Ireland. The report assesses barriers to employment and highlights significant differences in low pay, working from home, and hours of work between women and men in the two jurisdictions. Levels of labour market participation are lower for both women and men in Northern Ireland compared to Ireland,?with female labour force participation at 76 percent in Ireland and 72 percent in Northern Ireland.?According to the report, differences in education attainment account for much of the differences across jurisdictions.

NORTHERN IRELAND & UK

UK Export Academy’s sustainability month

The UK Export Academy is running a ‘sustainability month’ with a series of webinars in May covering key topics around becoming a sustainable business. Webinars are on topics including understanding key legislation, getting to grips with EU packaging rules and exploring how to use digital trade documentation. Find out more and register here .

New climate change reporting duties for specified public bodies

The Department of Agriculture, Environment and Rural Affairs (DAERA) Minister Andrew Muir has announced new regulations introducing climate change reporting duties on specified public bodies in line with duties under the Climate Change Act (Northern Ireland) 2022. The regulations will come into operation in early May 2024, 21 days after they are laid in the Assembly, but the first reports will not be due to be submitted until October 2025.

Tenford NetZero Accelerator programme seeks applications

Minister Andrew Muir has recently announced that the Tenfold NetZero Accelerator programme is taking applications from the UK’s technology startup and SME community. The programme aims to develop innovative methods that will help improve efficiency on-farm linked to feed management and usage, easy access to nutrient data; as well as help reduce waste during the production of dark glass bottles. ?Each successful technology provider will receive ￡20,000 in funding from the industry partners.??

EUROPE

European Commission commits funding to OECD’s carbon mitigation program?

(From our colleagues on the Tax Team )

The European Commission has signed an agreement with the OECD to provide financial support to the OECD’s Inclusive Forum on Carbon Mitigation Approaches (IFCMA). The IFCMA is a project which aims to optimise global emissions reduction efforts by better data and information sharing, evidence-based mutual learning, and inclusive multilateral discussions. The IFCMA was launched in February 2023 and has welcomed 58 members, including some from outside the OECD.?

Horizon Europe funding increase

The Commission has adopted an amendment to the 2023-24 Work Programme of Horizon Europe, the EU's research and innovation programme. The amendment mobilises previously unallocated Horizon Europe funding to increase the 2024 budget by nearly €1.4 billion to a total of €7.3 billion. It also includes an investment of nearly €650 million in the EU Missions aiming to contribute to solving some of the challenges facing Europe, for example, making more than 100 cities climate neutral.

Reforms to the EU gas and electricity markets

?MEPs have approved reforms for a more sustainable and resilient EU gas market , adopting plans to facilitate the uptake of renewable and low-carbon gases, including hydrogen. Along with a new directive will help decarbonise the gas sector to tackle climate change, MEPs also secured measures to protect vulnerable consumers and to ensure transparency, and to enable EU countries to restrict imports from Russia and Belarus. These measures will now have to be formally adopted by Council before publication on the Official Journal.

Separately the EU Parliament has adopted reforms of the EU electricity market to protect consumers against volatile prices and, among other things, prohibit suppliers from cutting the electricity supply of vulnerable customers, including during disputes between suppliers and customers. After Parliament’s approval, Council also needs to formally adopt the legislation to become law.

GLOBAL

Climate case to set benchmark for future litigation

In a decision that will set a benchmark for future climate litigation, the European Court of Human Rights (ECHR) last week ruled that insufficient action to tackle climate change was a violation of human rights. In delivering Grand Chamber rulings in three climate change cases , the ECHR ruled that inadequate action by Switzerland to reduce carbon emissions breached the rights to respect for family and private life of some of its most vulnerable citizens. That case was brought by a group of 2,000 Swiss women, mostly in their 70s.

Separately, India’s Supreme Court has reportedly expanded the “right to life” to include “protection against adverse effects of climate change”, adding that “climate change threatens ‘constitutional guarantees of equality and health’, impacting factors such as air pollution, disease, and food security”. The decision has been described as a “call to action”, adding that the significance of the ruling “cannot be overstated.

Similar cases related to governments’ liability to protect citizens from climate change are being deliberated this year by the International Court of Justice, the International Tribunal for the Law of the Sea and the Inter-American Court of Human Rights.

New resources

Chartered Accountants Worldwide has published a list of frequently asked questions (FAQs) that businesses often encounter when navigating the complexities of calculating their company’s carbon footprint. This is accompanied by a helpful selection of global software providers that may offer suitable solutions to businesses grappling with an ever-increasing demand from regulators, customers, and suppliers for organisations to measure and report their carbon footprint. ?Find out more on the Chartered Accountants Worldwide website’s sustainability centre .

The International Federation of Accountants (IFAC) has released a new publication setting out four key areas where accountants need to update their knowledge to meet the growing demand for high-quality sustainability-related information. Equipping Professional Accountants for Sustainability: What's New and What Hasn't Changed speaks to the vital role that accountants play in producing reliable sustainability-related data, reporting and assurance, as well as the importance of education and training in ensuring professional accountants are able to meet society’s needs.

Certificate in Sustainability Strategy, Risk and Reporting

Chartered Accountants Ireland hugely popular Certificate in Sustainability Strategy, Risk and Reporting is now accepting registrations for its next sitting, start on 8 May. Register here .

Technical Round-Up

(From our colleagues in Professional Accounting )

• In the first episode of its new podcast series entitled “the ISSB Implementation Insights podcast ” the IFRS Foundation discuss the recent Transition Implementation Group meeting on IFRS S1 and IFRS S2.
• EFRAG is preparing guidance to help companies disclose their transition plans in line with the ESRS standards and are?seeking assistance from European companies ?to provide input on a variety of practices and challenges in relation to this. Interested entities can apply by 23 April 2024.
• The Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD)?have announced ?their collaboration to support the corporate reporting needs of market participants globally. In doing so they have announced some plans for further joint publications.

Articles

• ‘Two years to save the world’: UN climate chief calls for faster action and more finance (EuroNews )
• The role of tax in CSRD double materiality assessments: Tax must be considered as part of the Corporate Sustainability Reporting Directive’s double materiality assessment (Accountancy Ireland – Briefly )
• There’s no net-zero without SMEs – but they need more support (SME Climate Hub/Edie )
• KPMG: Majority of U.S. CEOs Expect Significant Returns from Sustainability Investments Within 3-5 Years (ESG Today )
• [Mary] Robinson calls for implementation of climate policies (RTé News )
• Fossil fuel lobbyists spending $4bn a year to undermine climate justice movement, Mary Robinson warns (Irish Independent )

Upcoming Events?

• ICAEW, Sustainability for Business Gain insights on integrating sustainability into business operations, going beyond just carbon to consider the broader impacts and dependencies on people and planet. In person, 23 April, 08:15 - 12:00, Chartered Accountants Hall, One Moorgate Place, London, EC2R 6EA, UK?
• Chartered Accountants Ireland, Ulster Society Sustainability Reporting & the Public Sector The Chartered Accountants Ireland Ulster Society is hosting a free?in-person event Sustainability in the Public Sector,?where we will delve into the crucial realm of Sustainability Accounting and Reporting (SAR) across the island of Ireland.? Speakers include Dr. Elaine Stewart &?Professor, Ciaran Connolly, Queen’s Business School and?Gareth Martin, Deloitte.In person, 24 April, Chartered Accountants Ireland, 32-38 Linenhall Street, Belfast BT2 8BG, 12.30pm - 2pm. Lunch from 12.30pm with presentations from 1pm, followed by Q&A
• CAW Network USA: Beyond Accounting – Sustainability in Transactions Understand the issues of sustainability, including environmental, social and economic impacts of the transition to a net-zero economy, the challenges facing most organizations, the interrelationship between mergers and acquisitions and divestment, and how to identify appropriate sustainability related considerations during investment and divestment workflows. Virtual: 23 APRIL – 7pm – 8.30pm EASTERN / 24 APRIL – 11am NEW ZEALAND / 9am SYDNEY

• ICAS Sustainability Summit This event, hosted in association with Accounting for Sustainability (A4S), will bring together sustainability experts and forward-thinking business leaders to explore how we can accelerate the vital business changes needed to save our planet. A specialist line-up of speakers and panellists will delve into the future of sustainable business, the role of technology in the climate transition and the evolving sustainability reporting landscape. The summit also marks the launch of ICAS’ sustainability business network – a collaborative community where professionals can share and benefit from sustainability-related insights. In person, Edinburgh, 25 April 2024.

• European Commission Supporting companies in applying the European Sustainability Reporting Standards (ESRS) ” In-person and virtual: 16?May , 09:00 - 13:00 CET Half-day event to showcase ongoing initiatives and discuss ideas for further mechanisms to support companies that apply the new European Sustainability Reporting Standards.

• iQuest & Business Post, ESG Summit 2024 ? In person, Dublin (Croke Park), April 30th ?
• European Commission Supporting companies in applying the European Sustainability Reporting Standards (ESRS) ” In-person and virtual: 16?May , 09:00 - 13:00 cet Half-day event to showcase ongoing initiatives and discuss ideas for further mechanisms to support companies that apply the new European Sustainability Reporting Standards.
• ICAEW, Preparing your business for the green workforce ,?(time to be confirmed) This webinar will provide an overview of the latest trends on green skills in the UK economy and the key steps businesses are to take to develop an inclusive green talent pipeline. The speakers will feature case studies of UK businesses that have implemented green skills development initiatives and key recommendations. 21 May, Virtual

• National Sustainability Summit 2024 In person (RDS, Dublin), May 28-29 ?
• 1Business World, 2024 Global Natural Capital Conference Virtual, June 3-4, 2024,?
• 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, 24 April, 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 .