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  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s involvement in the business-led Green Pearse Street campaign, and how a sustainable future will be the focus for the 2023 National Economic Dialogue. Also covered is ISIF’s commitment to Just Climate's $1.5 billion fundraising to addresses the Net Zero challenge at scale, how Ireland is at risk of not meeting EU waste targets, and the increase in Northern Ireland’s use of renewable energy, as well as the usual useful resources, podcasts, articles and events. Chartered Accountants Ireland and business-led Green Pearse Street campaign  Chartered Accountants Ireland is a founding member of a new group, Green Pearse Street, which launched last week. Green Pearse Street comprises a diverse group of local businesses and organisations on and near Pearse Street, one of Dublin’s longest streets, stretching from Ringsend to College Green. The aim of the new campaign is to ‘green’ the street, improve the air quality, create a health and biodiversity corridor, and more social space for people. The campaign launch, covered by Independent.ie, Dublin Live and others, coincides with EU Green Week, the EU's annual event to showcase the bloc's climate projects and policies, which run from Saturday 3 June and Sunday 11 June. ‘A sustainable future’ the focus for 2023 National Economic Dialogue The discussions at the 2023 National Economic Dialogue are to focus around the theme of ‘enabling a sustainable future’ for all for the economy in 2030, it has been announced this week. A breakout session of the event - “Charting a sustainable path towards achieving our National climate action objectives”- is to be chaired by Minister for the Environment, Climate and Communications and Minister for Transport, Eamon Ryan T.D. The National Economic Dialogue, which will take place on 12 June, is the principal institutional forum for public consultation and discussion on the Budget. Hosted jointly by the Department of Finance and the Department of Public Expenditure and Reform, it provides a deliberative forum for stakeholders to participate in an open and inclusive exchange on the competing economic and social priorities facing the government. Representatives from Chartered Accountants Ireland will participate in the event. Ireland Strategic Investment Fund addresses the Net Zero challenge at scale The National Treasury Management Agency (NTMA) has reported that Just Climate, an investment business created by former US Vice President Al Gore’s Generation Investment Management, has announced the closing of its inaugural $1.5 billion fund, ‘Climate Assets Fund I’. The Ireland Strategic Investment Fund (ISIF) was a member of the fund’s founding investor group, which also include Microsoft Climate Innovation Fund and Harvard Management Company. The Fund, which exceeded its $1 billion target, will be part of Just Climate’s industrial climate solutions focus and will pursue investments which have the potential to deliver ‘transformational climate impact’ across some of the highest-emitting, hard-to-abate industries. Commenting, Paul Saunders, head of climate for ISIF, reportedly explained that “[t]he extent and urgency of the climate challenge require ISIF and other major investors to work together to drive innovation in climate action. We believe this initiative is a major step forward in sustainable investing and increasing the capital available to target high-impact areas in the shift to a low-carbon economy.” Ireland at risk of not meeting EU waste targets Ireland is one of 18 Member States identified in a report published this week by the European Commission as being at risk of not meeting the 2025 preparing for re-use and recycling targets for municipal and all packaging waste and the 2035 landfilling target. In the report the Commission presented recommendations to the Member States, building on continuous financial and technical support provided for improving performance on waste management, and covering a broad range of actions from reducing non-recyclable waste to increasing reuse, improving governance, deploying economic instruments and awareness-raising. The factsheet for Ireland states that while Ireland is on track to meet the 2025 recycling target for all packaging waste and is likely to meet the 2035 target for landfilling of municipal waste, it is at risk of missing the 2025 target for reuse and recycling of municipal waste. Increase in Northern Ireland’s use of Renewable Energy The percentage of total electricity consumption in Northern Ireland generated from renewable sources (48.5 percent) has increased by 4.6 percentage points in the 12-month period April 2022 to March 2023 compared to the previous year. This is according to a report, published this week by the Department for the Economy, which aids reporting on performance against the commitments in the Northern Ireland Energy Strategy ‘Path to Net Zero Energy’ and the Climate Change Act target which is to “ensure that at least 80% of electricity consumption is from renewable sources by 2030.” The full report is available on the Electricity Consumption and Renewable Generation Statistics page on the Department’s website.  World Environment Day Monday 5 June was World Environment Day, the United Nations day which celebrates environmental action and the power of governments, businesses and individuals to create a more sustainable world. Led by the United Nations Environment Programme (UNEP) and held annually since 1973, this year’s World Environment Day focussed on global solutions to combat plastic pollution.             Resources Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards. In the second of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton demonstrated how to navigate the content and disclosures included in the first set of ESRSs, what undertakings should do to prepare for implementation, and how to understand more about the requirements of the CSRD. Watch the recording here.  The Sustainable Energy Authority of Ireland (SEAI) hosted a Business Briefing on 'Reduce Your Use' in May. The topics explored included the Climate Toolkit for Business, the benefits of an Energy Audit, Electric Vehicle supports and more. Watch the recording. Podcast ‘Green skills for all’ Five Degrees of Change, the Business Post's energy and environment podcast sponsored by PwC, interviewed Andrew Brownlee, chief executive of Solar, the Irish state agency responsible for further education and training (Listen) Articles Global greenhouse gas emissions at 'all-time high' (Irish Times) What exactly counts as a carbon credit? (Bloomberg) Singapore launches carbon exchange despite market’s greenwashing scandals (Financial Times) Green accountancy guide to aid 'investor-grade' greenhouse gas reporting (GreenBiz) ESG an “immense” market for mid-tier accounting firms to tap into (AccountancyAge) Upcoming Events   The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

In this week’s public policy bulletin, we take a look at the latest economic forecasts from both the Central Bank and OECD. In addition, we review a report on the increasing use of AI by Irish workers as well as new rules on the regulation of cryptocurrency marketing in the UK. We also examine the latest statistics on business birth and death rates in Northern Ireland over the past decade. Global financial system remains vulnerable to disorderly market adjustments after a decade of elevated risk-taking – Central Bank In its latest Financial Stability Review published this week, the Central Bank has outlined how risks to the global economy remain elevated - stemming from high inflation, a tightening of financial conditions and overall geopolitical fragmentation. Following what it labels as “a decade of elevated risk taking”, the bank forecasts that the global financial system will remain vulnerable to “disorderly market adjustments” and overall market volatility such as was evidenced by the recent turbulence in the global banking system. While domestically the bank forecasts that persistent inflation and higher interest rates could lead to slower growth, it does however acknowledge that households and businesses have largely proved resilient to inflationary shocks so far, owing in part to the significant reduction in private indebtedness over the past decade. OECD forecasts lowest annual rate of GDP growth since the global financial crisis Global GDP growth in 2023 is projected to be 2.7 percent, the lowest annual rate since the global financial crisis, with the exception of the 2020 pandemic period. In its latest Economic Outlook issued this week, the OECD notes that while the global economy is showing signs of improvement, the upturn remains weak amid significant downside risks. Lower energy prices are helping to bring down headline inflation and ease strains on household budgets, and the earlier-than-expected reopening of China (defined as a move away from lockdowns) has provided a boost to global activity. However, core inflation is proving persistent and the impact of higher interest rates is increasingly being felt across world economies. In the euro area, the OECD expects the ECB to keep raising rates in the face of still high core inflation, with a peak seen in the third quarter. It forecasts that the ECB will likely then leave its main rate at 4.25 percent through to the end of 2024. One in five Irish workers currently use AI in their jobs – report According to a new study conducted by Microsoft Ireland, 1 in 5 Irish workers (21 percent) reported using Artificial Intelligence (AI) tools in their job, while of those who do not use AI (67 percent), almost 1 in 4 say they would be interested in doing so. Moreover, while 82 percent of business leaders globally anticipate that employees will need new skills in the AI era, in Ireland skills availability has been identified as the most important obstacle to the adoption of AI. This, the report points out, is despite  data showing that the share of AI talent in Ireland grew by more than 500 percent between 2016 and 2022. You can download the full report here. UK’s Financial Conduct Authority introduces new rules to regulate the marketing of cryptoassets A package of new measures was announced this week by the UK’s Financial Conduct Authority (FCA) aimed at strengthening regulations around the marketing of cryptoassets to retail consumers. Under the new rules, British consumers buying cryptoassets will get a 24-hour "cooling-off" period for the first time from 8 October this year. In addition, the suite of new measures will also include a ban on ‘refer a friend’ bonuses as well as a requirement on those marketing cryptoassets to highlight clear risk warnings and ensure that adverts are clear, fair and not misleading.  The FCA has also launched a consultation on additional guidance setting out expectations of firms advertising cryptoassets to UK consumers. Those wishing to have their say will have until 10 August to respond. Business birth rate in NI has risen over the last decade but continues to lag behind UK Ulster University’s Economic Policy Centre (UUEPC) has this week published new research assessing business births and deaths in Northern Ireland over a decade, and the implications for productivity in region. According to the findings, the number of business births in NI rose by 45 percent between 2010 and 2021 (the highest in over a decade), compared to a 55 percent rise in the rest of the UK. By contrast, while the number of business deaths in NI during the same period decreased, the rest of the UK saw a 10 percent increase in the number of business deaths. UUEPC’s analysis suggests that business churn in NI (measured as the business birth rate plus the death rate) has risen from 16.6 percent in 2010 to 18.3 percent in 2021 whereas the UK has a higher churn rate at 23.5 percent in 2021. The report suggests that the combination of a lower business birth rate and a lower business death rate indicates that NI’s economy is less dynamic than other regions of the UK. The largest number of business births and deaths annually was recorded in the construction sector while the lowest has been largely in the education sector.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s attempts to decouple economic growth from rising CO2e emissions, as predictions from the EPA indicate that Ireland will fall well short of its climate targets for 2030. Also covered is the Energy Efficiency Grant announced for small businesses, the funding announced for circular economy projects, the new Sustainability Handbook, details of Sustainability and ESG awards, new resources for accounting and finance professionals for enhancing Greenhouse Gas (GHG) reporting, and updates from Europe, as well as articles and events. Economic growth and Ireland’s carbon emissions trajectory New data has been published by Ireland’s Central Statistics Office (CSO) that for the first time focuses on the extent to which economic growth and emissions are linked in Ireland. The data reportedly indicates that in comparison with most EU countries, there has been only ‘modest decoupling’ of increased emissions in Ireland – particularly around transport – resulting from increased economic activity since 2010. The news comes as the Environmental Protection Agency (EPA) published a report which predicts that Ireland will fall well short of its climate targets for 2030. In its assessment of Ireland’s total projected greenhouse gas (GHG) emissions out to 2040, the EPA found that Ireland is not on track to meet its 51 percent emissions reduction target (by 2030 compared to 2018) even if most of the 2023 Climate Action Plan measures are implemented. Further measures still need to be identified and implemented to achieve the targets. Separately this week a Joint Declaration of Intent on cooperation in the field of green hydrogen - predicted to play a crucial role in decarbonising Ireland’s energy system -  was signed between the Irish Department of the Environment, Climate and Communications and the German Federal Research Ministry. The Declaration was signed to formalise cooperation in respect of green hydrogen between Ireland and Germany. The Irish Government is currently developing a National Hydrogen Strategy, due to be finalised shortly, which will set out Ireland’s vision for how hydrogen will be produced and used in Ireland. White Paper on Enterprise Implementation Plan 2023-2024 published Minister for Enterprise, Trade and Employment, Simon Coveney T.D., has published an implementation plan to support delivery of the policy objectives outlined in the White Paper on Enterprise 2022-2030, published last December. The White Paper on Enterprise Implementation Plan 2023-2024 is the first in a series of consecutive two-year implementation plans to realise the Government’s vision for Irish-based enterprise. The first of the policy’s seven priority enterprise policy objectives – ‘Integrating decarbonisation and net zero commitments’ – includes a target to reduce emissions from industry by 35 percent by 2030, with a 45 percent reduction in emissions expected in the commercial built environment by 2030. New Energy Efficiency Grant announced for small businesses An Energy Efficiency Grant to help small businesses was announced this week by Minister for Enterprise, Trade and Employment, Simon Coveney, T.D. The new support, available through Local Enterprise Offices, will enable small businesses to invest in technologies and equipment to make their businesses more energy efficient. The grant will cover up to 50 percent of the costs to a maximum amount of €5,000.  Funding announced for innovative circular economy projects Funding of €640,000 for 13 projects across Ireland was announced this week under the second Circular Economy Innovation Grant Scheme (CEIGS). The Circular Economy Innovation Grant Scheme is designed to help communities make the transition to a circular economy, and to a more sustainable future, by reducing and eliminating waste and keeping resources in use for as long as possible. The CEIGS complements other circular economy work being progressed, including the introduction of new environmental levies such as the new waste recovery levy, incentivization of commercial waste collection, the introduction of a Deposit Return Scheme for plastic bottles and cans, and the publication of the National Food Waste Prevention Roadmap.   ‘Building Better Businesses’ event series continues The Department of Enterprise, Trade and Employment (DETE) has announced the next in its series of Building Better Business events across the country. The events are aimed at helping businesses navigate their transition to a green economy and boosting business performance through digital transformation. The next event, on Friday, 23 June 2023, 8.30am – 1.30pm in the Osprey Hotel, Naas, Co Kildare, will feature panel discussions on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy, expert information on the range of government supports available to businesses, and an opportunity to network and connect with other businesses. It is open to businesses based in Kildare, Meath and Wicklow. Register and find out more about the event here.  New Sustainability Handbook Business in the Community Ireland has published its 2023 Sustainability Handbook to help develop a common understanding of the role of business powerful agents for good in bringing about a low-carbon economy where everyone thrives. Focusing on ‘Economic, Environment, Social Goals, underpinned by Governance’ (‘EESG’), the handbook aims to introduce readers to the depth and breadth of sustainability, support sustainability practitioners in setting and delivering strategic objectives relating to EESG topics, and facilitate anyone who wants to learn more how businesses can be powerful actors for positive change. Sustainability and ESG Reporting Awards – Chartered Accountants Ireland Leinster Society The Chartered Accountants Ireland Leinster Society’s Published Accounts Awards 2023 has now been launched, and is welcoming entries from across all types of reporting bodies – whether they are large listed companies, or small not-for-profit organisations. The competition will focus on annual reports in respect of financial years ended on or before 31 March 2023. There are two Sustainability and ESG Reporting Awards this year, one for Listed entities and one for Unlisted entities. The deadline for entries is Friday 14 July 2023 and winners will be announced on 9 November at an event in The Shelbourne Hotel, Dublin. Funding for UK businesses to capitalise on offshore wind The Offshore Wind Growth Partnership (OWGP) has issued its next funding call, with a total funding pot of £2 million for projects that will lead to a step-change in company growth within the offshore wind sector. Grants of £50,000 to £500,000 are available to UK businesses for projects that align to identified scope areas, and the call is open to a wide range of proposals across the existing offshore wind supply chain and new market entrants. The deadline for Stage 1 applications is 5pm on Friday 21 July 2023 and details are available here. European State of the Climate report published The 2022 release of the European State of the Climate (ESOTC) report has published, providing detailed analysis of the past calendar year and giving updates on the long-term trends of key climate indicators. The report found that 2022 was the second warmest year on record in Europe, at 0.9°C above average. Summer was the warmest on record, at 1.4°C above average, and 0.3–0.4°C above the previous warmest summer, in 2021. European Parliament adopts position on rules to tackle companies’ impact on human rights and the environment The European Parliament has adopted its position for negotiations with member states on rules to integrate human rights and environmental impact into companies’ governance. Companies will be required to identify, and where necessary prevent, end or mitigate the negative impact of their activities on human rights and the environment such as on child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss. They will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas. Parliament also adopted recommendations for the EU strategy for sustainable and circular textiles, for textile products sold in the EU to be more durable, easier to reuse, repair and recycle, the production of which should respect human, social and labour rights, the environment and animal welfare throughout the supply chain. MEPs also want EU and national measures to put an end to “fast fashion”. New resources for accounting and finance professionals -  enhancing Greenhouse Gas (GHG) reporting New resources are now available to help CFOs, accountants and finance professionals undertake or enhance cost-effective and investor-grade GHG reporting. The guidance, designed to be built on existing systems and processes, is divided into two parts: 8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals – a guide for finance and accounting professionals to engage with others across their business to prepare for GHG emissions reporting requirements aligned to financial reporting processes. GHG Reporting Building Blocks for Accountants – technical guidance necessary for accountants to collect and enhance the quality of data related to all scopes of GHG emissions at individual entity and group levels. The guidance was released by the International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA), and World Business Council for Sustainable Development (WBCSD). Institute interview - Corporate Sustainability Reporting Directive Last week, Dee Moran, Professional Accounting Lead with Chartered Accountants Ireland, interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations. Watch webinar. (This interview was the first in our series on EU sustainability reporting. For the second event, Dee will be joined next week (June 8) by Orla Carolan, Director in Grant Thornton, to discuss the proposed European Sustainability Reporting Standards (ESRSs). Find out more and register here.) Newsletters The June edition of Accountancy Europe’s Sustainability Update The May edition of the International Sustainable Finance Centre of Excellence Newsletter Articles Bank of England Governor Andrew Bailey vows to press ahead with work to assess climate-related risks to the economy, brushing off criticism that officials have been distracted from their fight against inflation. (Bloomberg) UK regulator probes sustainable loans market (Financial Times) What dirty laundry? The problem with greenwashing (Accounting for Sustainability (A4S)) New Zealand manages climate impacts. The government will help to buy out the owners of cyclone and flood-damaged houses in areas deemed susceptible to severe weather events, beginning a process of managed retreat in the face of climate change.  (Bloomberg)    Rich nations say they're spending billions to fight climate change. Some money is going to strange places. (Reuters)  Upcoming Events    Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition  In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition.  8 June, 15:00 - 16:15 (Dublin time) Ulster Society, Chartered Accountants Ireland - Advising on Net Zero for clients: the opportunities and the threats This free webinar in partnership with British Business Bank and featuring Julia Groves, will address the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation will cover the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how British Business Bank is involved.   8 June, 12:00 - 13:30 Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. 8 June, 10:00 - 11:00 Northern Ireland Healthy Working Lives Conference 2023  This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

In this week’s public policy bulletin, we take a look at a report published this week by the Irish Fiscal Advisory Council on Ireland’s top corporation taxpayers. We also review the latest unemployment rate estimates from the CSO, the state of consumer confidence in May and the latest Labour Force statistics for Northern Ireland. A third of Irish corporation tax estimated to have been paid by just 3 companies – report New research published this week by the Irish Fiscal Advisory Council (IFAC) estimates that just three corporate groups accounted for around a third of all corporation tax revenues collected between 2017 to 2021. The research paper, titled “Understanding Ireland’s Top Corporation Taxpayers”, seeks to better understand this concentration of Ireland’s corporation tax receipts amongst a handful of large, foreign-owned multinationals. The report’s estimates were arrived at using publicly available financial statements with a number of different approaches employed to calculate the level of corporation tax paid by the companies analysed. However, in doing so, the report concedes that there are “several limitations” to its analysis, particularly because most large groups “are not required to disclose the amount of corporation tax they pay in Ireland”. Unemployment rate falls to record low according to latest CSO estimate Ireland’s unemployment rate reached a record low of 3.8 percent in May, falling below the previous record of 3.9 percent last seen in April 2001. Unemployment had stood at 4.2 percent the same month last year. According to its estimates, the CSO recorded an unemployment rate for men of 4.1 percent in May, compared to a rate of 3.4 percent for women in the same period. Meanwhile, the youth unemployment rate eased to 6.9 percent in May, down from a revised rate of 7.7 percent in April. According to the estimate, the seasonally adjusted number of people unemployed stood at 103,300 in May, compared with 106,500 in April of this year. You can read the full statistical release here. Consumer confidence at highest level in over a year – Irish League of Credit Unions Irish consumer confidence improved further in May (reaching a 14-month high) and signalling “a continuing easing in concerns about the economic outlook” according to the latest Consumer Sentiment Index from the Irish League of Credit Unions. This, the report points out, contrasts with significantly weaker US sentiment as the general consumer mood here has evidently been impacted by a “stronger Irish economy and buoyant Budget outlook”. However, consumers are still cautious on spending plans with a majority planning to curtail spending in coming months due to a prevailing feeling that “the worst of the cost-of-living crisis is not behind them at this point”. Nonetheless, the index is now at 62.4, showing the trend of improving sentiment that has been underway since last year is now well established and stronger than elsewhere in the euro area. Latest Northern Ireland NEET statistics released (young people who are not in education employment or training)   According to the latest Labour Force Survey released by the NI Statistics and Research Agency, there were an estimated 18,000 young people aged 16 to 24 years in Northern Ireland who were not in education, employment or training (NEET) in January to March 2023. This was equivalent to 9 percent of all those aged 16 to 24 years in the region. By comparison, the proportion of young people who were NEET in the UK during the same period was 10.6 percent. In January to March 2023 there were an estimated 13,000 young people aged 16 to 24 years in Northern Ireland who were NEET and who were not looking for work and/or not available to start work (economically inactive).

  In this week’s Sustainability/ESG bulletin, read about Ireland Strategic Investment Fund’s €68m investment in international decarbonisation funds, the Department of Enterprise Trade and Employment’s responsible business webinar, and Ireland’s request to the EU for a modification to Ireland’s recovery and resilience plan. Also covered is the decrease in Northern Ireland’s business sector emissions, the EU’s progress towards socio-economic Sustainable Development Goals and the usual as articles, podcasts and events.  Ireland Strategic Investment Fund invests €68m in international decarbonisation funds The Ireland Strategic Investment Fund (ISIF), part of the National Treasury Management Agency (NTMA), is investing €68m in two leading international decarbonisation funds as part of its €1bn 5-year climate action investment programme. The funds are managed by Energy Impact Partners LP (EIP), which plans to invest in emerging Ireland-based decarbonisation and energy technology companies. Commenting, Paul Saunders, Head of Climate with ISIF said “This investment demonstrates clear intent around the strength and scope of ISIF’s climate investment plans. It shows how we can leverage our investment capability to build a deeper, stronger network with climate investors from all over the world - and ultimately attract more international capital to Ireland while supporting emerging Irish businesses in this space.” Department of Enterprise, Trade and Employment’s ‘Responsible Business’ resources Over 300 delegates registered for the Department of Enterprise, Trade and Employment’s webinar on Responsible Business initiatives, which took place on 23 May. The event opened with remarks from Minister Simon Coveney, T.D., who stated that the event was part of a series of initiatives planned by the Department to provide guidance to businesses on new wide-ranging initiatives being developed to address increasing stakeholder demand for businesses to act responsibly and with accountability. The event included presentations from officials on three initiatives with implications for Irish businesses: the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct; the EU Corporate Sustainability Reporting Directive (CSRD); and the proposed EU Directive on Corporate Sustainability Due Diligence (CSDDD). Further details can be found on the Department’s website on Responsible Business. Ireland requests modification to recovery and resilience plan Ireland has submitted a request to the European Commission to modify two measures within its recovery and resilience plan. The measures include one aimed at encouraging private investment in energy efficiency through a guarantee scheme, and another aimed at increasing the supply of social and affordable housing. First published in 2021, Ireland’s recovery and resilience plan outlines how Ireland intends to utilise grants from the EU’s Recovery and Resilience Facility to support economic and social recovery, and address green and digital issues, as the country emerged from the COVID-19 pandemic. The Commission has up to two months to assess whether the modified plan still fulfils the assessment criteria in the Recovery and Resilience Facility (RRF) Regulation, after which it may make a proposal for an amended Council Implementing Decision to reflect the changes to the Irish plan. Report notes decrease in Northern Ireland’s business sector emissions Northern Ireland’s 2020 greenhouse gas emissions reduced by 24 percent since 1990, according to the 15th annual Northern Ireland Environmental Statistics Report. The report, published by the Department of Agriculture, Environment and Rural Affairs (DAERA), found that businesses accounted for 13 percent of all greenhouse gas emissions in the region in 2020, compared to agriculture (27 percent), transport (16 percent) and energy supply (14 percent). According to the report, the largest decreases were in the energy supply, waste management and business sectors, a reduction driven by improvements in energy efficiency, fuel switching from coal to natural gas, and the introduction of methane capture and oxidation systems in landfill management. Tax Update (From our colleagues in the Tax Team) HMRC has recently updated its plastic packaging tax guidance as the tax is now more than 12 months old. HMRC has also published a consultation seeking views on draft legislation amending the Plastic Packaging Tax regulations. Report finds EU’s socio-economic Sustainability Development Goals show most progress The statistical office of the European Union, Eurostat, has published an overview of progress towards the Sustainable Development Goals (SDGs) in the EU. Findings from the report indicate that the EU has made most progress towards ensuring decent work and economic growth (SDG 8), with the EU's employment rate in 2022 reaching a new record high of 74.6. The report is published together with the European Semester Spring Package, in order to increase its relevance for policy, and for the first time included analysis of the short-term impact of current crises on the SDGs, such as the energy crisis in the context of Russia's war against Ukraine and the aftershocks of the COVID-19 pandemic. Technical Sustainability Accounting Updates From our colleagues in Professional Accountancy  The European Financial Reporting Advisory Group (EFRAG) is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023. The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has  published its 2022 Annual Report, which provides an account of its joint work completed over the past year.  It focused on issues of cross-sectoral relevance, such as joint risk assessment, sustainable finance, digitalisation, consumer protection, securitisation, financial conglomerates, and central clearing. IAASA, Ireland’s accounting enforcer, has published a Paper “Transparency Regulations – information requests”. This Paper lists some information requests that IAASA has made to companies as part of its financial statement examinations. Podcasts By 2050, almost 70 percent of the world’s population will live in cities — and nearly 1,000 cities will see their average high temperatures hit 35C (95F) during summer months. This episode of Bloomberg’s podcast Zero, interviews UN Habitat’s first ‘global chief heat officer’ about what urban centres, including businesses, can do to prepare.  Institute interview - Corporate Sustainability Reporting Directive This week, Dee Moran, Professional Accounting Lead with Chartered Accountants Ireland, interviewed Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Corporate Sustainability Reporting Directive (CSRD) and what future developments might mean for Irish organisations. Also in the webinar was an overview of the proposed European Sustainability Reporting Standards (ESRSs) and an update on the assurance of sustainability reporting, followed by a questions and answers session. Watch webinar. (This interview was the first in our series on EU sustainability reporting. For the second event, Dee will be joined by Orla Carolan, Director in Grant Thornton. Find out more and register here.) Recording A recording, slides and report from Accountancy Europe’s webinar - Towards digital corporate reporting with CSRD  - are now available. The webinar, which took place on 16 May, covered the role of different parties for an effective CSRD implementation, lessons learnt from the European Single Electronic Format (ESEF), the interconnectivity between financial and sustainability information via digitalisation, and current activities and plans of EU authorities for supporting digital sustainability reporting. Articles Five steps to improved ESG reporting  (Accountancy Ireland - Briefly) Prioritising ESG a struggle in current climate (ICEAW) France bans short-haul flights to cut carbon emissions (BBC News) “Greenhushing” is the new greenwashing (Bloomberg) UK students pledge ‘career boycott’ of insurers over fossil fuels (The Guardian) Upcoming Events   Business Post, ESG Summit, Croke Park, Dublin 30 May Dublin Chamber, 2050 Series, Urban Planning: What will Dublin look like in 2050? Dublin Chamber's series of events focusing on sustainable mobility, flexible working practices, a focus on renewable energy, circular economy adoption, and urban density. Dublin Chamber, 7 Clare Street, Dublin 2, D02 F902, Free. 8.30-10.00 1 June Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition. 8 June, 15:00 - 16:15 (Dublin time) Ulster Society, Chartered Accountants Ireland - Advising on Net Zero for clients: the opportunities and the threats This free webinar in partnership with British Business Bank and featuring Julia Groves, will address the issue of sustainability, and the responsibilities upon businesses and their advisers in meeting sustainability targets. This presentation will cover the basics of net zero and carbon accounting, the broader consideration of environmental, social and governance factors in business decision, why SMEs should take action, what they can do and how British Business Bank is involved.   8 June, 12:00 - 13:30 Chartered Accountants Ireland - Further your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. 8 June, 10:00 - 11:00 Northern Ireland Healthy Working Lives Conference 2023  This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June 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 Accountant 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: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/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.  

Environmental, social and governance reporting is now considered paramount for many organisations. Derarca Dennis outlines five essential steps for getting it right. Irish organisations of all sizes will be affected by an ever-increasing volume of environmental, social and governance (ESG) reporting requirements. Even businesses that fall outside the scope of the regulations and reporting standards are likely to be required to align with them to meet customer and stakeholder expectations and requirements. The EY Ireland CFO Survey 2023 points to ESG still being perceived as a compliance and regulatory issue rather than an opportunity. Only six percent of the respondents say increasing the sophistication of non-financial reporting is one of the top strategic areas of focus over the next five years, down from 15 percent in 2022. Irish finance leaders will, therefore, need to increase the sophistication of their non-financial reporting and prepare for the advent of new and more exacting regulations in the coming years. They must also put in place the systems that will enable them to move the dial from compliance to value-creating opportunities for their organisations. Improved reporting It is vitally important for every Irish organisation to assess their current and potential obligations under both existing and upcoming regulations and reporting standards. To prepare for what will be an ever-increasing compliance burden, Irish organisations need to take the following steps. Gap assessment Organisations should carry out an assessment of any gaps between their current disclosures and existing and future reporting requirements to ensure compliance with the reporting regime as it stands and identify measures required to meet the requirements of upcoming regulations and standards. It will also build internal competencies to assess any gaps that might emerge. Governance Adopting a clear governance structure for sustainability reporting and management across the business is vital for ensuring accountability of key performance metrics and targets. Engagement at board level through the establishment of a sustainability reporting sub-committee is an important element of such a structure. Data and controls The creation of a centralised data management system for ESG data owners to feed into will simplify the reporting process and establish internal controls surrounding ESG data. Assurance readiness Irish organisations should keep future compliance in mind when conducting changes to their systems and controls to avoid having to make further changes later. Early involvement of organisations’ audit committees can assist in this process. Double materiality assessment A requirement under the Corporate Sustainability Reporting Directive, double materiality can allow an organisation to map the impact their business has on stakeholders and the environment, as well as the financial impact that sustainability issues will have on cash flows. Training Organisations should provide training to employees on ESG matters and regulations to engender a broader understanding of these matters and their importance across the business. Integration The ESG agenda is evolving at pace. New regulations and reporting standards along with market pressure will require CFOs to integrate non-financial reporting into their existing systems. This will place a heavy burden on finance teams, but it will also present opportunities for value creation through increased efficiencies, enhanced risk management and improved competitiveness. Derarca Dennis is Assurance Partner at EY Ireland