Sustainability/ESG bulletin from Chartered Accountants Ireland, Friday 22 March 2024

IRELAND

Expressions of Interest for Sustainable Development Goal (SDG) Champions Programme

The Department of the Environment, Climate and Communications (DECC) is seeking expressions of interest for its 2024-2025 Sustainable Development Goal (SDG) Champions Programme . The programme, established in 2019, aims to raise public awareness of the SDGs and to demonstrate that everyone in society can make a contribution to the 2030 Agenda for Sustainable Development. Over 30 organisations and groups have become SDG Champions so far, including Musgrave, The GAA, ECO-UNESCO, University of Galway, Ballyhoura Development and Chambers Ireland. Further information can be found on the DECC website and the deadline for applications is 5pm on Monday, 1 April 2024.

CSO publishes full set of ‘ecosystem accounts’ for first time

The CSO (Central Statistics Office Ireland) has published? Ecosystem Accounts – Forests and Woodlands 2012-2022 , the first time it has produced a full set of ecosystem accounts for one of Ireland's ecosystems. Published?as part of the CSO Frontier Series , the new release combines data from a range of sources to produce accounts for the extent and condition of Ireland’s forest and woodland ecosystems, and some of the ecosystem services they provide. The CSO notes, however, that particular care must be taken when interpreting the statistics in this release as it may use new methods which are under development and/or data sources which may be incomplete, for example new administrative data sources.?

NORTHERN IRELAND & UK

InterTradeIreland publishes report on businses opportunities in circular economy

InterTradeIreland , the all-island economic development agency, has published a report revealing new business opportunities available in the all-island circular economy across a wide range of sectors. The report, which was launched at the All-Ireland Sustainability Summit , highlights the potential for SMEs throughout the island to make significant cost savings and reduce carbon emissions. In contrast to the traditional economic model of 'take-make-waste', the circular economy keeps materials in circulation for as long as possible through strategies such as reuse, repurposing, and recycling. One of the key findings of the report underscores the huge potential of ‘industrial symbiosis’, in which outputs from one process serve as inputs for another. The report does note, however, that despite the opportunities available, barriers such as waste regulation and the lack of a joined-up approach can hinder companies.

Public consultation on UK carbon border adjustment mechanism

The UK government has launched a public consultation setting out proposals for the design and administration of a UK carbon border adjustment mechanism . Following the consultation “Addressing carbon leakage risk to support decarbonisation” in 2023, the government announced that it would introduce a carbon border adjustment mechanism (‘CBAM’) from 1 January 2027 on imports of certain carbon intensive imported goods from the following sectors: aluminium; cement; ceramics; fertilisers; glass; hydrogen; and iron and steel. Views on the design and administration of this mechanism are now invited from interested parties, including importers and their agents, other businesses, individuals, tax advisers, trade and professional bodies and other interested parties, including those overseas. Responses, either via the?response form ?or by email, will be shared between HMRC and HMT; participants are also invited to take part in a roundtable discussion or be added to the ‘CBAM mailing list’.

EUROPE

Approval of the Corporate Sustainability Due Diligence Directive

The European Council has voted to back the Corporate Sustainability Due Diligence Directive (CSDDD) which requires firms to mitigate their negative impact on human rights and the environment.

The rules will apply to EU and non-EU companies and parent companies with over 1000 employees and with a turnover of more than €450 million, and to franchises with a turnover of more than €80 million if at least 22.5 million was generated by royalties. Companies will also have to integrate due diligence into their policies and risk management systems and adopt and put into effect a transition plan making their business model compatible with the global warming limit of 1.5°C under the?Paris Agreement . The plans should include the company’s time-bound climate change targets, key actions on how to reach them and an explanation, including figures, of what investments are necessary to implement the plan. Firms will be liable if they do not comply with their due diligence obligations and will have to fully compensate their victims. They will also have to adopt complaints mechanisms and engage with individuals and communities adversely affected by their actions.

The vote concluded weeks of negotiations and revisions to the text after it failed to secure the Council’s approval at the end of February. Once formally approved by the European Parliament and the member states, the directive will enter into force on the twentieth day following its publication in the EU Official Journal.

Circular economy and emissions in Europe

The European Environment Agency this week published a?comprehensive analysis?into the EU’s progress in transitioning to a more circular economy. ?The report – “Accelerating circular economy in Europe? —?state and outlook 2024 – finds that decisive action is essential to drastically reduce waste, prioritise reduction of resource use, improve recycling rates and improve the introduction of products that are designed for circularity from the outset. Other key findings suggest that Europe alone cannot curb unsustainable resource use occurring at global scale, and that a robust?global governance?framework on resource use and circular economy will be essential.

Separately, the European Environment Agency published monitoring data which shows that the average CO2 emissions of new cars registered in Europe fell further in 2022 to a new low of 27 percent below 2019 levels. Vans emissions have also seen a decrease of some 10 percent over the same period. Only one manufacturer was found to have exceeded its target in 2022 and will be required to pay an excess emissions premium.

GreenData4All call to deliver on Europe's green and digital transformation

The European Commission has published a call for evidence on a ‘GreenData4All’ initiative to help deliver on Europe’s green and digital transformation by updating EU rules on environmental geospatial data and on public access to environmental information. The aim is to enable greater sharing of data between the public and private sectors and with the general public and unlock the full benefits of data sharing for data-driven innovation and evidence-based decisions. The closing date for submissions is March 25.

GLOBAL

• Carbon Brief has reported that research published in the journal Nature estimates that global economic losses from heat stress could reach 0.6-4.6 percent by 2060, with major losses coming from health impacts, lower labour productivity and disruptions to supply chains.

• The International Federation of Accountants (IFAC ) has included the following resources in its newsletter on 19 March: Global Reporting Initiative (Global Reporting Initiative) CSRD. Implications for companies outside the EU (Global Reporting Initiative)Sustainability assurance resources (CPA Canada)Sustainability in transactions (ACCA)

Technical Roundup

(From our colleagues in Professional Accounting )

• EFRAG?has announced ?the addition of three new entities to the “Friends of EFRAG – Sustainability Reporting” community. Greenomy, osapiens and SISB have joined the group, demonstrating their commitment to sustainability reporting and supporting EFRAG’s mission.
• Accountancy Europe has issued its?March Sustainability Update .

Last chance to apply: The A4S Academy

The Accounting for Sustainability (A4S) Academy?is a unique implementation and learning programme. It has been designed with CFOs to bridge the gap between what organizations need to do to meet their sustainability targets and the skills and capacity their finance teams currently have to offer.?We are proud of the feedback we've received, with 89% of participants reporting that the programme made an impact on sustainability integration in their organizations within one year, while 93% said they felt empowered to drive the change.

Applications for the Academy?close on 29 March 2024, so there isn't much time left to apply. Please go to our webpage for further information, or email [email protected] if you have any questions.

Watch

• The End Of The World With Beanz: Comedian, writer and traveller Martin Warde jumps head first into the sustainability and climate action challenges facing Ireland in the hopes of demystifying them for all (RTé Player ) (30 mins)

• Short interview with director of the SME Climate Hub about the role of small and medium firms worldwide in the net zero transition (BusinessGreen ) (9 mins)

Listen

• How SMEs may be our biggest hope for Net Zero (Podcast ) (42 mins)

Articles

• Forget Offsets. What If Companies Had Carbon Swear Jars? (Bloomberg )
• Sustainability reporting is coming into mainstream, by Paul Druckman (Accountancy Daily )
• Only one in seven Irish people think climate change will impact them (Business Post )
• Tomás Sercovich: Ireland has right size and right culture to drive corporate sustainability (Five Degrees of Change – Business Post )

Upcoming Events

• A4S Sustainability In Action Webinar: Capitals Accounting An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts. 28 March, 08:00?
• Accountancy Europe and others How can company boards lead the sustainability transition? The event will also draw on the recent Accountancy Europe, ecoDa and ECIIA publication? ESG Governance: questions boards should ask to lead the sustainability transition which sets out practical questions that boards should consider in their efforts on ESG, sustainability transition planning, delivery on sustainability objectives and limiting greenwashing risks. 10 April, 10:30-12:00 CET, Virtual?
• 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. 18 April, 08:30 – 13.00, Virtual?
• 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.?
• National Sustainability Summit 2024 Dates: May 28-29 Locations: RDS

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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, 27 March, 14:00-15.30
• 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 .