Sustainability/ESG bulletin, Friday 22 September 2023

In this week’s Sustainability/ESG bulletin, read about the release of the final recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) for reporting on nature and biodiversity-related risks and opportunities. Also covered is Ireland’s signing of a landmark UN oceans agreement, the publication of the Department of Transport’s Climate Action Roadmap, public sector funding for climate action, a €500 million Growth and Sustainability Loan Scheme, EU developments on greenwashing, and a webinar on the proposed International Standards on Sustainability Assurance, as well as the usual roundup of tax and technical updates, articles and events.

Taskforce on Nature-related Financial Disclosures (TNFD) releases final recommendations

The Taskforce on Nature-related Financial Disclosures (TNFD) has released its final recommendations for reporting on nature and biodiversity-related risks and opportunities. The publication of the 14 disclosure recommendations has been described as “key milestone in the relationship between nature, business and financial capital, positioning nature risk alongside financial, operational and climate risk and helping to shift capital flows to nature-positive outcomes.”  The TNFD will now begin the process of encouraging and supporting voluntary market adoption of the Recommendations and will track voluntary market adoption annually through an annual status update report beginning in 2024.

Tánaiste signs landmark UN oceans agreement

The Tánaiste, Minister for Foreign Affairs, and Minister for Defence, Micheál Martin TD, has signed a landmark international agreement on global ocean conservation at the United Nations in New York. The Agreement on Marine Biodiversity Beyond National Jurisdiction (BBNJ), which will provide for the creation of a global network of High Seas marine protected areas (MPAs), marks a significant milestone in international cooperation as the first dedicated global treaty on the conservation and sustainable use of marine biodiversity of the High Seas.

The news comes during the 78th session of the United Nations General Assembly, which marks a crucial milestone in the journey towards achieving the 2030 Agenda and putting the 17 Sustainable Development Goals (SDGs) back on track. It is also seen as a milestone in the lead-up to COP28, the international climate summit which this year takes place in Dubai in November and December. Ireland is expected to play a leading role at this summit in negotiating for accelerated action on climate and the transition to renewable energy.

Department of Transport publishes Climate Action Roadmap 2023 - 2030

The Department of Transport has published a Climate Action Roadmap setting out an analysis of its 2030 greenhouse gas emissions-reduction target and identifying current and planned actions to bridge any gaps between now and 2030. The roadmap, which was developed with the support of the Sustainable Energy Authority of Ireland (SEAI), reflects one of the goals of the Climate Action Plan 2021 (CAP21) that the public sector lead by example on climate action to reach the target of reducing Ireland’s greenhouse gas emissions by 51 percent by 2030 and becoming climate neutral no later than 2050.

Public sector funding for climate action in Ireland’s regions

The Minister for the Environment, Climate and Communications, Eamon Ryan TD, has committed to provide funding over the next six years for Ireland’s Climate Action Regional Offices (CAROs), including €2.97 million for the Dublin area, €3.09 million for the Eastern and Midlands region, and €2.97 million for the North-west region. The funding will help local authorities to deliver climate policies and behavioural change within their own organisations and to empower citizens, businesses and neighbourhoods to better understand the impacts of climate change and to embrace the need for climate action.

€500 million Growth and Sustainability Loan Scheme

Bank of Ireland has announced a €500 million Growth and Sustainability Loan Scheme, which will provide eligible SMEs, including farmers, fishers, and Small Mid-Caps, with competitively priced loans of between €25,000 and €3 million for terms of up to ten years. Loans of up to €500,000 will also be available unsecured, when investing in the growth and resilience of their business, and/or contribute to climate action and environmental sustainability. Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount.

EU developments: greenwashing, product durability, critical raw materials and air quality  

• The EU Parliament and Council have reached a provisional agreement on new rules to ban misleading advertisements and provide consumers with better product information. The agreement updates the existing EU list of banned commercial practices and adds to it several ‘problematic’ marketing habits related to greenwashing and early obsolescence of goods. MEPs are expected to vote in November for the provision deal to become law and member states will have 24 months to incorporate the new rules into their law once the directive comes into force.

   

• Separately, MEPs have adopted their position on boosting the supply of strategic raw materials, crucial to secure the EU’s transition to a sustainable, digital and sovereign future. The Critical Raw Materials Act is intended to make the EU more competitive and autonomous, cutting cut red tape, promoting innovation along the entire value chain, supporting SMEs and boosting research and the development of alternative materials and more environmentally friendly mining and production methods.

   

• The EU Parliament has also adopted its position on a revised law to improve air quality in the EU. The new rules would ensure air quality in the EU is not harmful to human health, natural ecosystems and biodiversity and would align EU rules with the most recent World Health Organization (WHO) Air Quality Guidelines. Parliament will next start negotiations with Council on the final shape of the law.

Webinar on the proposed International Standards on Sustainability Assurance

IAASB has announced it will hosting a deep dive webinar on 29 September about (ISSA) 5000. External assurance plays a key role in enhancing trust and confidence in financial and non-financial reporting, and the International Auditing and Assurance Standards Board (IAASB)’s proposed standard - International Standard on Sustainability Assurance (ISSA) 5000 - will serve as a comprehensive, stand-alone standard suitable for any sustainability assurance engagement. Read more from our colleagues in Professional Accounting.

Technical updates

(From our colleagues in Professional Accounting)

• Accountancy Europe, in collaboration with the European Sustainable Business Federation, has issued ‘5-step starting guide to a sustainable transition for SMEs. This paper has five first steps an SME can take to begin its sustainable journey.

   

• EFRAG and the Global Reporting Initiative (GRI) have issued a joint statement confirming that they have achieved a high level of interoperability between their respective standards in relation to impact reporting.

   

• EFRAG has published its final comment letters on the ISSB consultation on Agenda Priorities and SASB methodology.

Tax updates

(From our colleagues in Tax)

The Platform for Collaboration on Tax (PCT) – a joint initiative of the IMF, OECD, UN and World Bank Group – released a new report on carbon pricing metrics. The purpose of the report is to help policymakers, businesses and other stakeholders strengthen the understanding of different carbon pricing metrics of the largest international organisations.  In the report, the PCT Partners concur on a crucial message: “Energy prices are poorly aligned with climate, environmental and health costs. Carbon pricing signals to date are insufficient.”  A definition of carbon pricing can be found in the Chartered Accountants Ireland Sustainability Glossary.

Articles

• Q&A: How sustainable is Ireland as a data centre hub? (Irish Times)

• ‘B Corp’ status vital for firms keen to mark sustainability credentials, says environmental consultant (Irish Times)

• Helping to make SMEs smarter, leaner and greener (Irish Independent)

• What Sunak’s net zero pivot means for UK climate goals and the next election (Financial Times)

• No 'urban-rural divide' on environmental protection, committee told (RTÉ)

Certificate in Sustainability Strategy, Risk and Reporting

Upcoming events  

Dublin Chamber – Sustainability Academy Workshops
Dublin Chamber has announced it will offer Sustainability Academy workshops in Autumn. Beginning with a workshop on Sustainability/ESG 101 in September, the 3-hour Zoom workshops includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor. Find out more here.
Online, September 2023 

ESDN: European Sustainable Development Week (ESDW) 2023
18 September – 08 October. 113 initiatives in 10 countries.

Irish Museum of Modern Art: EARTH RISING
Four-day festival of free events and experiences aimed at addressing the climate crisis and aiming to provoke, empower and inspire collective action in audiences to become agents of change for a sustainable and hopeful future.~
In person: 21–24 September, IMMA site, Royal Hospital Kilmainham, Dublin 8, D08 FW31.

EPA: Circular Economy Conference
This hybrid event will be an opportunity to learn about recent developments in the circular economy and the opportunities and challenges in implementing a circular economy in Ireland. There will be opportunities to network and participate in polling and Q&A sessions.
In person: 27 September, The Aviva Stadium, Dublin.

Green Team Network: ESG Networking Breakfast
An intensive session tailored for Ireland's industry leaders seeking to understand and act upon the financial implications of climate change, this event aims to bridge the gap between climate financial risk and sustainability education.
In person: 27 Sept, 08:00 – 9:45, Dean Hotel, 33 Harcourt St, Saint Kevin's, Dublin 2, Ireland.

Chartered Accountants Ireland: Integrating sustainability into information systems and decision making
This course will deliver core knowledge about how to integrate sustainability data into the decision-making process.
Virtual: 27 September, 09:30 – 12:30

Women in Business (Northern Ireland) Women in Finance
Women in Business is running a wide-ranging programme of female entrepreneurship events over the upcoming months. The events include sectoral networking, webinars, and training courses for essential skills. A specific session on women in finance will focus on work in finance departments, small scale accountancy or work for yourself, both members and non-members are welcome to join this online event.
Virtual: 25 October, 10.00-11.30am

Sustainable Finance Skillnet is offering funded training opportunities until October 2023 to Irish employees in the financial services sector at 30 percent of course fees (with 70 percent funding available for members of the International Sustainable Finance Centre of Excellence).
Virtual: September-October 2023

IAASB: Webinar of Proposed International Standard on Sustainability Assurance (ISSA) 5000 to the IAAS
Join the Irish Auditing & Accounting Supervisory Authority (IAASA) and IAASB webinar to hear about ISSA 5000 Proposed International Standards on Sustainability Assurance
Webinar: 29 September, 14.00 Dublin time

Accountancy Europe: Preparing for high-quality sustainability assurance engagements
In person: 3 October, 14.00-17.00, ACE events - Av. d'Auderghem 22, 1040 Brussels

Chartered Accountants Ireland: Ask the Expert, Supply chain sustainability (ROI/NI)
Under the Corporate Sustainability Reporting Directive (CSRD), many SMEs will form part of the supply chains of companies that are required to report on their supply chain’s sustainability. In this interview, Shane Faulkner, Sustainability Manager at KPMG Ireland, will answer your questions on supply chain sustainability, questions SMEs might be asked and how they might respond.
Virtual: 12 October, 12:45-13.00

Climate Finance Week Ireland 2023
In person and virtual: Monday, 20 November – Friday, 24 November

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.

• 3rd or 4th Wednesday of every month
• Next: 27 September 2023 
• 14.00-15.00/30
• Teams

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.