Sustainability/ESG bulletin from Chartered Accountants Ireland, 15 November 2024
Susan Rossney
Sustainability Advocacy Manager with Chartered Accountants Ireland | Sustainability Leader | Peaceful Climate Activist
Ireland news
COP29 – a finance focus for the global climate summit
COP29 – The 2024 global climate summit – is underway this week. Running until 22 November, with world leaders, policy-makers, diplomats and activists converging on Baku, Azerbaijan, the summit will discuss the world’s action on tackling climate change.
The most significant event on the global climate calendar, the summit’s focus this year is on climate finance. Negotiations will centre on the setting of a new finance target for tackling climate change, called the New Collective Quantified Goal, or NCQG. This will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries.
In the words of one commentator, Claire Jones, Partner and Head of Responsible Investment at LCP, “Climate change is one of the most financially material systemic risks that long-term investors face — rather than just impacting the value of one single stock, it has the potential to depress economies and even cause a financial market collapse”.
Minister Eamon Ryan, T.D., is leading the Irish the delegation, which will collaborate with EU partners and engage in climate diplomacy through various groups.
Government approves negotiations on the establishment of UNDP Project Office in Dublin
Minister Eamon Ryan has received government approval to enter negotiations on the establishment of a United Nations Development Programme (UNDP) Project Office in Dublin. This would be the first formal presence of the UNDP in Ireland, which is tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development. It is considered that locating the office in Dublin has the potential to build upon Ireland’s track record in international financial services, including sustainable finance, which is at the core of sustainable development and an integral part of tackling climate change.
Decarbonisation in third update to White Paper on Enterprise
The recently published third update report to the White Paper on Enterprise has identified a range of updates across 40 key initiatives progressed during 2024 to support enhanced competitiveness and decarbonisation across Ireland’s economy. These include the publication of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy and the Roadmap for Decarbonisation of Industrial Heat. The update also identifies wider enterprise support measures through a range of ongoing initiatives including the Bioeconomy Action Plan, the Growth and Sustainability Loan Scheme, and continued take up of the Environmental Aid/Green Capital Grant and Green Transition Fund. The White Paper Implementation Plan 2023-2024 was originally published in May 2023.
Expansion of Zero Emission Heavy Duty Vehicles Purchase Grant Scheme
Minister for Transport Eamon Ryan, T.D., has announced an expansion to the existing Zero Emission Heavy Duty Vehicle (ZEHDV) Purchase Grant Scheme. The scheme will now include purchase grants for charging infrastructure. The scheme expansion means successful applicants will be able to install their own depot charging points, and also facilitates public charging around logistics hubs, and in urban nodes.
€50 million retrofit scheme for SMEs
A new €50 million Business Energy Upgrades Scheme (BEUS) has launched to support small and medium sized businesses (SMEs) carry out energy efficiency upgrades. The scheme offers up to €120,000 for a range of common building upgrade measures as well as support to significantly enhance existing building management systems and for retrofit design activities. The scheme, which will be administered by the Sustainable Energy Authority of Ireland (SEAI) , is open to all businesses and small public bodies who are upgrading a building they own or occupy. A decision and grant offer can be generated within minutes of an application being made by an SME, addressing a key barrier for SMEs by allowing business owners to progress investments without delay and reducing the time spent accessing grant support. The scheme is reportedly one of several initiatives that will continue the scale-up of retrofit activity over the coming years.
Ongoing decarbonisation of Irish businesses
Enterprise Ireland has announced this week that it has approved over €55 million in funding to support the decarbonisation of Irish businesses. The funding has benefited more than 400 Irish companies since June 2022, reducing CO2 emissions by an estimated 130,000 tonnes. Ireland’s commitment to reaching net-zero greenhouse gas emissions by 2050, and by 51% reduction by 2030, means that the enterprise sector must reduce on-site industrial emissions by 35% by 2030.
Sustainability efforts intensify among businesses
Sustainability efforts have intensified among businesses in Ireland over the past two years, with 81% of respondents reporting a heightened focus on sustainability, a 19% increase from 2022. This is according to the EY State of Sustainability 2024, based on a survey of 200 sustainability decision-makers in Ireland. The report identifies customer demand, investor scrutiny, and regulatory frameworks as having a role in redefining corporate success.
Sustainability reputation improves among Irish firms
A report carried out by the Dublin communications and PR agency, The Reputations Agency , has revealed that organisations have improved their reputation in sustainability overall, despite global setbacks; scores in Ireland have reportedly improved since 2023. The report, Ireland RepTrak® Sustainability Index 2024, now in its thirteenth year, tracks the perceptions of 5,500 members of the public on 100 prominent organisations in Ireland. The Index measures 16 sustainability factors which reflect the European Sustainability Reporting Standards (ESRS).
Irish electricity costs identified as threat to business viability
Failure to address these costs of electricity in Ireland could threaten business viability, future investment, and decarbonisation efforts, according to a new energy paper published by business group Ibec . The report, which highlights the impact of high electricity costs on Irish businesses, includes recommendations for an annual subvention to support renewable generation and network investment, as well as a long-term national energy and industrial strategy required to deliver an effective net zero transition.
Going for Growth development programme – female entrepreneurs
Places remain available for a limited time only on Going for Growth, the programme for female entrepreneurs in any sector across the country interested in growing their business. The programme, which is supported by Enterprise Ireland and KPMG, aids female business owners as they seek to increase revenue, create employment, and export into new markets. Recognised by the EU, OECD, and European Institute of Gender Equality as a key initiative in helping to foster greater ambition among female entrepreneurs and to support their growth aspirations, the programme is free to selected participants, with the new six-month cycle, which is due to begin with a one-day Launch Forum on January 14, 2025.
Northern Ireland/UK news
Consultation on establishment of Just Transition Commission in Northern Ireland
Minister for Agriculture, the Environment and Rural Affairs (DAERA) Andrew Muir, MLA, has launched a consultation on establishing a Just Transition Commission for Northern Ireland. The commission is designed to ensure the transition to a net zero society is fair and that no-one is left behind or disproportionately affected. Its purpose will be to oversee the implementation of the just transition elements set out in the Climate Change Act, and to provide independent advice to all government departments on how to ensure that proposals, policies strategies and plans required to tackle climate change take account of the just transition principle. The consultation is open for responses for 9 weeks and closes on 13 January 2025.
Europe news
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Congratulations!
Congratulations to the Bank of Ireland and to CIÉ - Córas Iompair Éireann for their success in sustainability categories at the Chartered Accountants Ireland Leinster Society Published Accounts Awards.
Bank of Ireland took home the Arachas Sustainability and ESG Reporting Award for Listed entities, while the CIÉ Group won the award for Sustainability and ESG Reporting Award Unlisted entities. The awards, sponsored by Euronext and Arachas, and in partnership with the Business Post, highlight companies across the island of Ireland for excellence in corporate reporting. The awards have evolved over the years to include categories reflecting the changing nature of business and reporting requirements, going beyond just the scope of financial reporting.
Technical update
(From our Professional Accounting Team)
The International Auditing and Assurance Standards Board (IAASB) has published the much anticipated ISSA 5000 International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements. This standard is a comprehensive, stand-alone standard suitable for any sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession agnostic, supporting its use by both professional accountants and non-accountant assurance practitioners. The draft standard was subject to a public consultation in 2023 and Chartered Accountants Ireland's response can be read here.
Event – Chartered Accountants Ireland - Access to sustainable finance by SMEs
Join experts Laura Heuston , John McGeown , Gordon Naughton and Orla O'Gorman Gorman for a discussion on the landscape of finance and other support options available for SMEs and entrepreneurs to facilitate businesses taking action. Part of the Sustainable Finance Week Ireland 2024, this seminar will be in person on Wednesday, 27 November 2024 at 17.00-18.00 in Chartered Accountant House, and be hosted by Sustainability Advocacy Manager, Susan Rossney .
Register here or through the Sustainable Finance Week Ireland platform
Webinar
In the third of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Derarca Denis from EY reviewed some of the practical challenges that companies have faced in preparing to comply with the CSRD. Watch back here.
Articles
Upcoming Events
Date: Nov 11-22 Location: Azerbaijan Host: CBD, UN
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
ADViCE, Net Zero Manufacturing: Navigating AI for efficiency This webinar will cover the practical application of AI to improve manufacturing efficiency focusing on optimising energy use and reducing emissions. Virtual, 26 November 2024, 12:00 - 13:30
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 sustainability@charteredaccountants.ie
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.