In this week’s Sustainability/ESG bulletin, read about two public consultations now open: one on the Corporate Sustainability Reporting Directive and the other on sustainability-related consumer-rights legislation. Also covered is Ireland’s plans to report on its progress against the UN Sustainable Development Goals; a new funding rate allocation model for social enterprises; and how IAASA has for the first time raised climate change and sustainability matters in its Compendium of Financial Reporting Decisions. We also feature the usual articles, podcasts and upcoming events.   Corporate Sustainability Reporting Directive –  DETE consultation (From our colleagues in Professional Accountancy) Following on from its webinar on the Corporate Sustainability Reporting Directive (CSRD) it held last week, the Department of Enterprise, Trade and Employment (DETE) has this week issued a public consultation seeking the views of interested parties on the Member State options in the Directive. The speakers’ PowerPoint slides from DETE’s webinar are now available, and the consultation is open until 5pm on Thursday 9 March 2023. Irish Government opens consultation on consumer-rights Directive The Department of Enterprise, Trade and Employment and the Department of Environment, Climate and Communications have opened a consultation on a proposed EU Directive aimed at improving sustainable consumption. The Directive aims to ensure consumers have better information on the durability and reparability of certain products and to protect consumers against unfair commercial practices that prevent sustainable purchases. These practices include greenwashing (misleading environmental claims), early obsolescence (premature failures of goods) and the use of unreliable and non-transparent sustainability labels and information tools. The consultation is open until close of business on Friday, 17 February 2023. Ireland’s plans to report on progress against the UN Sustainable Development Goals The Department of Environment, Climate and Communications has announced that Ireland will present its second Voluntary National Review (VNR) of the UN Sustainable Development Goals (SDGs) to the UN High-Level Political Forum on Sustainable Development in July 2023. The report will review Ireland’s progress towards achieving the UN’s ‘Agenda 2030’, and the 17 Sustainable Development Goals, including the commitment to Leave No One Behind. Individuals and businesses can contribute to Ireland’s VNR by attending (online or in-person) the next SDG National Stakeholder Forum meeting in April 2023 or by submitting ideas as part of the online consultation for the 2023 VNR. Read more. Revised funding for Ireland’s social enterprises A new funding rate allocation model has been announced for the  Community Services Programme (CSP), an initiative designed to support social enterprises, community-based businesses, and organisations that provide local services and create employment opportunities for disadvantaged people. Up to 400 community organisations are likely to receive additional funding under the new model. In a further enhancement of the programme, organisations may draw down a full contribution based on 37.5 hours per week per worker, rather than 39 hours, as was previously the case. A new call for applications under the CSP is set to be announced. IAASA raises climate change and sustainability matters in Compendium of Financial Reporting Decisions From our colleagues in Professional Accountancy IAASA has published its latest Compendium of Financial Reporting Decisions. This compendium is published with the aim of assisting preparers to prepare high-quality financial reports. In the compendium, IAASA has published decisions relating to accounting treatments applied by three companies in their 2021 annual reports. While also addressing accounting treatments applied under various accounting standards, the publication raises, for the first time, some financial reporting decisions relating to climate change and sustainability matters. Nature and biodiversity finance – risk and opportunities for Ireland The International Sustainable Finance Centre of Excellence (ISFCOE) has released a scoping study into the burgeoning biodiversity agenda in line with Action 8 of Ireland’s Sustainable Finance Roadmap. Nature and biodiversity finance: Risks and opportunities for Ireland outlines how the biodiversity finance agenda is undergoing a global surge, one which is being driven by the risks and opportunities facing financial systems as a result of economic dependency on the natural world. Companies are recognising biodiversity risks but are not turning commitments into action; therefore, opportunities exist at a macro level to reverse the damage to biodiversity in recent years through policy reform and regulation, and for the private sector to provide nature positive customer solutions. More news from ISFCOE. New suite of green lease clauses for commercial leases A new suite of green lease clauses for use in commercial leases in Ireland has been published by The Chancery Lane Project (TCLP), a collaborative initiative of international legal and industry professionals whose vision is a world where every contract enables solutions to climate change. The clauses are named after children in recognition of how actions to combat the climate crisis will benefit future generations. The clauses are called Odhran’s Clause, Emily and Tom’s Clause and Amélie and Lauri’s Clause. Extension for the Temporary Business Energy Support Scheme From our colleagues in Tax Revenue has announced that claims under the Temporary Business Energy Support Scheme (TBESS) for the September 2022 claim period can be made by eligible businesses after the 31 January deadline. Read more. Ireland referred to CJEU for failure on biodiversity and water commitments Ireland is among six Member States being referred to the Court of Justice of the European Union (CJEU) for failure to prevent and manage invasive alien plant and animal species, one of the five major causes of biodiversity loss in Europe and worldwide, representing an estimated damage of €12 billion per year to the European economy. The Commission has also decided to refer Ireland to the CJEU for failing to correctly transpose into national law the Water Framework Directive (Directive 2000/60/EC) which protects waters from pollution. Separately, it has called on Ireland and 13 other Member States to respect their reduction commitments under Directive 2016/2284 on the reduction of national emissions of certain atmospheric pollutants, which is among the key factors negatively affecting human health. Articles How the UK’s push to reach net-zero could deliver key health benefits (Carbon Brief) Class action litigation risk rises on ESG claims (Bloomberg) UK accounting watchdog tightens scrutiny of ESG in company audits (Reuters) NTMA to sell €3bn of green bonds in early test of debt markets (Irish Times) Net zero: Next moves for CEOs (McKinsey & Co) – also available as a podcast CB Launches New Financed Emissions and Sustainable Finance Indicators to Track Climate Risk (ESG Today) Irish showdown shapes crucial EU climate goals legislation (The Irish Times)   Webinar recordings Scaling up the Circular Economy webinar (ClearStream Solutions/SustHub) How to save energy and be more sustainable at home (Chartered Accountants Ireland Leinster Society with SEAI - click here for password)   Competitions Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. This is a sustainable business learning and implementation programme designed specifically for senior finance professionals. The Academy includes live, flexible and interactive sessions designed to upskill participants by developing technical knowledge and leadership skills. Participants typically include VPs Finance, Investor Relations Directors, Divisional CFOs, Controllers, Treasurers, Internal Audit Directors and Heads of External Reporting. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, includingprogramme outline, eligibility and fees are on the A4S website or by email.   Events Practical Steps for Reducing Energy Consumption webinar – Northern Ireland (Invest NI) 13 February, 10:30 to 11:30am Resource Matching Workshop – Northern Ireland(Invest NI) 22 February, 09:00 – 13:00 National Sustainability Summit (Premier Publishing) 23 February 23 09:00 - 16:00 Demystifying Sustainability & ESG Reporting Webinar (Clearstream Solutions) 24 February 24, 12:00 – 13:00 Return on Sustainability Investment Webinar (Clearstream Solutions) 31 March 12:00 – 13:00 Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. 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 Wednesday of every month Next : 22 February, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

Following on from its webinar on the Corporate Sustainability Reporting Directive (CSRD) it held last week, the Department of Enterprise, Trade and Employment (DETE) has this week issued a public consultation seeking the views of interested parties on the member state options in the CSRD. More details can be found here and you can access the consultation here. Even though it is not consulting on direct effect/mandatory provisions, comments and questions on all aspects of the CSRD are invited to facilitate DETE’s work in the transposition of the CSRD. The consultation is open until 5pm on Thursday 9 March 2023. For reader’s information, the CSRD is a European directive requiring certain companies to disclose information on sustainability-related information. The directive aims to modernise and strengthen the rules about the type of social and environmental information that companies will have to report. The CSRD envisages the adoption of European Sustainability Reporting Standards which seek to ensure that investors and other stakeholders have access to the information they need to assess investment risks arising from climate change and other sustainability issues. They seek to create a culture of transparency about the impact of companies on people and the environment. The CSRD was approved by the European Parliament and the EU Council in late 2022 and was published in the EU Official Journal on 16 December. Following this publication, EU member states have 18 months to transpose the directive into their own national laws. Finally, readers may also be interested in accessing the speakers’ PowerPoint slides from the DETE webinar to get further information on the various presentations made. There was a presentation from DETE, PWC and EFRAG on the CSRD and a presentation by DETE on a Proposal for a Directive on Corporate Sustainability Due Diligence.

  In this week’s Sustainability/ESG bulletin, read about the Department of Enterprise, Trade and Employment’s webinar on the Corporate Sustainability Reporting Directive this week. Also covered are new resources for managing waste in Ireland and Northern Ireland, the Irish Climate Tech Opportunity, reform of the EU’s electricity market design, a new European Environmental Agency report on recycling, EU actions on food security and eco-system resilience, a new free resource to help business with biodiversity data, and the launch of a global Coalition of Trade Ministers on Climate, as well as articles, podcasts and events. Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive Over 500 stakeholders, including members of the EU Commission, the European Financial Reporting Advisory Group (EFRAG), Chartered Accountants Ireland and officials from the Department of Enterprise, Trade and Employment (DETE) attended a webinar this week on the Corporate Sustainability Reporting Directive (CSRD). Presentations covered topics from the overall goal of the Directive, the Sustainability Reporting Standards, how businesses can prepare, and the transposition process. DETE is leading the transposition of the Directive and will shortly launch a public consultation on Member State options contained within the Directive. New waste-related resources in Ireland and Northern Ireland My Waste, Ireland’s official guide to waste, has produced a range of free materials on waste-segregation to make it as easy as possible for Irish businesses to segregate their waste. By implementing simple practices and actions, businesses can achieve better waste management, more effective recycling and even prevent waste being created in the first instance. Visit www.mywaste.ie/business/ for more. In Northern Ireland, consumers will also be able to recycle their plastic and canned drink containers more easily through a new Deposit Return Scheme. The Scheme, which is set to be introduced in 2025, will incentivise people to recycle their drinks bottles and cans and redeem a small refundable deposit. DAERA is also introducing an Extended Producer Responsibility Scheme for packaging, which will mean packaging producers and manufactures will cover the costs of recycling and disposing of their packaging from 2024. This aims to drive higher collection and recycling rates of packaging, as it covers drinks containers not included in the Deposit Return Scheme, such as glass, cartons, or high-density polyethylene (HDPE) plastic, which is used for most fresh milk packaging. The Irish Climate Tech Opportunity SustainabilityWorks and PwC have published a report into ‘The Irish ClimateTech Opportunity 2023’. The report showcases 36 of Ireland’s innovative Climate Tech entrepreneurs whose solutions will help make net zero a reality. Climate Tech is defined as technologies aimed at reducing greenhouse gas emissions or addressing the impact of climate change. Climate Tech companies are distributed across all industries, including energy, the built environment, food, agriculture and land use (FALU) and transport. Reform of EU’s electricity market design The European Commission has opened a public consultation on the reform of the European Union's electricity market design. The goal of the reform is to protect businesses and households from excessive price volatility, increase their resilience, and support their access to secure energy from clean sources. The consultation focuses on the four main areas of making electricity bills less dependent on short-term fossil fuel prices, and boosting the deployment of renewables; improving market functioning to ensure security of supply, and fully utilise alternatives to gas; enhancing consumer protection and empowerment; and improving market transparency, surveillance and integrity. The consultation will run until 13 February. New report identifies market barriers to recycling – and how to overcome them A European Environment Agency (EEA) assessment published this week has found that out of the eight most common recyclable products, only three -  aluminium, paper and glass -  have well-functioning secondary markets. The report, titled Investigating Europe′s secondary raw material markets', found that lack of standardisation and competition with new materials are among the market barriers for the five other most common recyclables, such as wood, plastics, biowaste and textiles. Options to overcome these barriers, identified in the report, include incentives to include recyclability into product design, strengthening recycling targets, increasing recycled content in new products, establishing technical standards for recycled materials and using taxes to level price competition with primary raw materials. Improving markets for recycled raw materials is key to delivering a circular economy in the EU, reducing the need to extract natural resources and avoiding the associated environmental impacts. Food security and eco-system resilience The European Commission is aiming to boost action on pollinators to tackle the serious decline in wild pollinating insects in Europe. This week it proposed a revised EU Pollinators Initiative to better restore and protect species and habitats, mitigate the impact of pesticides use and enhance pollinator habitats in urban areas. Among its priorities, the Commission and Member States aim to help citizens and business to act, for example by raising public awareness and supporting citizen science. Free resources to help business help business with biodiversity data The World Wildlife Fund (WWF) has launched a new tool to help companies and financial institutions identify and take action on biodiversity-related risks across their operations, value chains and investments. The tool – called the Biodiversity Risk Filter (BRF) - provides businesses with access to a single, free-to-use platform that brings together over 50 biodiversity-relevant data sets. The WWF is running a free webinar on 31 January to explain the BRF in greater detail. Launch of Coalition of Trade Ministers on Climate The first Ministerial-level global forum dedicated to trade and climate and sustainable development issues launched last week.  The Coalition of Trade Ministers on Climate aims to build partnerships between trade and climate communities to identify the ways in which trade policy can contribute to addressing climate change. Members include more than 50 ministers from 27 jurisdictions, and membership is open to all interested countries.  The four co-leads are Ecuador, the EU, Kenya, and New Zealand.  Civil society, business, international organisations and climate and finance communities will participate in the Coalition's work, which aims to foster global action to promote trade policies that can help address climate change through local and global initiatives. Technical Roundup From our colleagues in Professional Accountancy The Chairperson of the European Banking Authority recently gave a speech on Financing transition to sustainability? What is the role of banking regulation? He said that the financial sector has an important role to play, both in terms of financing the transition to sustainability and for managing financial risks stemming from ESG factors. There was some discussion on the EBA roadmap which was adopted in December 2022 and that EBA are going to continue working to embed ESG considerations into their risk analysis and stress testing. Professional Accountancy Education Europe (PAEE), which is a collaboration between European accountancy bodies striving to provide a high-quality education framework at international level have issued some Q&As which explain why it is vital to further develop sustainability awareness among accountancy and auditing professionals. The International Sustainability Standards Board (ISSB) have issued their January 2023 update and podcast. This discusses recent developments including the rollout and adoption of Sustainability Standards S1 and S2. Articles IAASB Begins Work on Global Standards for ESG Assurance (ESG Investor) Athlone bus service going fully electric (RTE News) Electrical emissions reach highest level in over five years (Business Post) Global Low-Carbon Energy Technology Investment Surges Past $1 Trillion for the First Time (Bloomberg) Podcasts High-Octane Capitalism Meets Climate Change: Chamath Palihapitiya says in Episode 24 of Zero: “There is going to be trillions of dollars of value that will be redistributed over the next decade or two.” Events Launch Event – Biodiversity Risk Filter – World Wildlife Fund Jan 31, 2023 13:30, Dublin/London time This webinar introduces the Biodiversity Risk Filter tool - part of the WWF Risk Filter Suite -This project enables corporates and financial institutions to better understand and manage biodiversity-related risks and contribute to the development of nature-positive business models Resource Matching Workshop – Northern Ireland Hosted by Invest Northern Ireland's Resource Matching Service, a free in-person workshop from 9am–1pm on 22 February will allow businesses across Northern Ireland to find new, sustainable solutions to their waste resources and material needs, saving money and supporting Northern Ireland's green circular economy. (Find out more here.) Practical Steps for Reducing Energy Consumption webinar – Northern Ireland On Monday 13 February 2023 Invest NI will be hosting a free, online webinar specifically for NI businesses on Practical Steps for Reducing Energy Consumption. 10:30 to 11:30am Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. 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 Wednesday of every month Next : 22 February, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more 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 Sustainability/ESG bulletin, find out about Ireland’s ambitious EV charging strategy, and how you can register for the Department of Enterprise, Trade and Employment’s webinar on the Corporate Sustainability Reporting Directive next week. Also read about how wind energy displaced over €2 billion worth of both fossil gas and carbon credits in the wholesale market on the island of Ireland, Chartered Accountants Ireland’s new network for members working on ESG projects, and articles, jobs and events. Ambitious strategy announced to improve Ireland’s electric vehicle charging infrastructure Minister for the Environment, Climate and Communications and Minister for Transport Eamon Ryan T.D., has announced a €100 million strategy to improve Ireland’s electric vehicle (EV) charging infrastructure and ensure the continued uptake of EVs. The Electric Vehicles Charging Infrastructure Strategy 2022 – 2025 aims to ensure charging points are placed at 60km intervals along motorways, with charging systems also serving homes and apartment blocks and neighbourhoods. Currently, the majority of EV charging (c.80 percent) is done at home, and access to and installation of home charging infrastructure is relatively well established. The focus of this Strategy is the provision of publicly funded charging infrastructure for electric cars and light-duty vehicles, the demand for is anticipated to grow as EV uptake increases. Under its Climate Action Plans, the Government plans for nearly one-third of all private cars in the State to be EVs by 2030. There are currently only 73,500 EVs on State roads, although sales of EVs reportedly rose by 81 percent in 2022. Under the new strategy, charging stations will also be set up at leisure and tourist locations like sports clubs, parks, visitor attractions and hotels – so-called ‘destination charging’. The first practical roll-out of the strategy is the new €15 million Shared Island Sports Club Scheme, which will open on 30 January and will help sports clubs install electric vehicle charge points in local communities across the island of Ireland. This week also saw the UK government publishing its Electric vehicle smart charging action plan setting out the steps that government and the UK Office of Gas and Electricity Markets (Ofgem) will take to deliver energy flexibility from electric vehicle (EV) charging, providing affordable, green power. Registration available: Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive Registration is now open for a webinar by the Department of Enterprise, Trade and Employment (DETE) on Thursday 26 January (10am-12pm) to explain the new Corporate Sustainability Reporting Directive (CSRD). The Directive and accompanying mandatory reporting standards will apply to large companies whether listed or not, and to listed SMEs. Companies will have to report on their impact on the ESG matters and human rights, based on common standards, and the information companies provide will be audited.  Wind energy displaces over €2 billion on the island of Ireland Wind generation in Ireland and Northern Ireland displaced a total of €2,570 million worth of both fossil gas and carbon credits in the wholesale market, reducing the island’s CO2 emissions and its reliance on fossil fuels. This is according to analysis conducted by energy consultants, which found ‘avoided costs’ for fossil gas of €1,650 million and £410, and of €340 million and £90 for carbon credits in the respective jurisdictions due to the wind energy’s contribution. In a single day (8 March) a total avoided cost of €43 million resulted from a combination of high winds and extreme fossil gas prices. One-third of all electricity in Ireland was reportedly generated from wind in 2022. Net Zero Technology Centre 2023 Open Innovation Programme The Net Zero Technology Centre (NZTC) has launched its 2023 Open Innovation Programme aimed at developing and deploying data and digital technologies that will reduce offshore emissions, accelerate clean energy production, and enable delivery of the UK’s net zero ambitions. Businesses around the world can apply for up to £500,000 funding from NZTC, with the potential of additional match funding from industry to support their technology development and deployment projects. The projects must support the transition towards net zero with an obligation of trialling and deploying technology within the UK continental shelf.  UK Energy Bills Discount Scheme announced from 1 April 2023 The UK  government has announced a new energy scheme for businesses, charities, and the public sector, ahead of the current scheme ending in March 2023. The new Energy Bills Discount Scheme (EBDS) will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024. The EBDS will run for 12 months from 1 April 2023 to 31 March 2024.   Network for Chartered Accountants working in ESG 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 Wednesday of every month, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to attend please email sustainability@charteredaccountants.ie Articles How Eco-Friendly Is That Product? Four Ways to Spot Greenwashing (Bloomberg) Young scientists and sustainability (RTE News) Global action saved the ozone layer, so why not the climate? (RTE News) Most businesses believe rivals are greenwashing, new study finds (Irish Times) Companies parachute accountants in to fix flawed ESG data (Financial Times) Events Scaling up the Circular Economy Webinar - Jan 27, 2023 12:00 PM Circular at scale requires new thinking, new strategies, new tactics, new propositions. Business models and customer-supplier relationships need be reimagined. This webinar will focus on developing your ‘circular mindset at scale’ with input from circular champions who are embracing the circular economy at scale. The webinar is ideal for those, across leadership and boards, trying to figure out how to create value in their business through circular thinking. Ensure you design a secure circular value chain to future proof your organization. Jan 27, 2023 12:00 PM (Register here) Resource Matching Workshop – Northern Ireland Hosted by Invest Northern Ireland's Resource Matching Service, a free in-person workshop from 9am–1pm on 22 February will allow businesses across Northern Ireland to find new, sustainable solutions to their waste resources and material needs, saving money and supporting Northern Ireland's green circular economy.  Attendees will be asked provide information on what waste resources they have which could be sent to a new home for use instead of being disposed of - or what resources they want which others may have spare, saving costs on buying new. Resources can be anything from pallets and timber, steel offcuts to cardboard, vegetable mulch, used furniture, plastic containers. (Find out more here.) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 15 February Following sellout sittings in 2022, our Certificate in Sustainability Strategy, Risk and Reporting for accountants is back. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more 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 Sustainability/ESG bulletin, read about a webinar on the Corporate Sustainability Reporting Directive, NTMA’s sale of a new green bond, and updates to the TBESS and Cycle to Work schemes. Also covered is a public consultation on draft Circular Economy Strategy for Northern Ireland, the ‘polycrisis’ list from the World Economic Forum’s Global Risks Report 2023, Chartered Accountants Ireland’s new network for Chartered Accountants working in ESG, and articles, podcast and jobs. Save the date: Department of Enterprise, Trade and Employment Webinar on Corporate Sustainability Reporting Directive The Department of Enterprise, Trade and Employment (DETE) will hold a webinar on Thursday 26 January (10am-12pm) to explain the new Corporate Sustainability Reporting Directive (CSRD). The Directive and accompanying mandatory reporting standards will apply to large companies whether listed or not, and to listed SMEs. Companies will have to report on their impact on the environment, social and governance matters and human rights, based on common standards, and the information companies provide will be audited. Registration will be open soon, but in the meantime save the date, and email any other questions to csrd@enterprise.gov.ie.  NTMA raises €3.5 billion from the sale of a new 20-year green bond (From our Public Policy team) The National Treasury Management Agency (NTMA) has raised €3.5 billion through the syndicated sale of a new 20-year Irish Sovereign Green Bond (ISGB), maturing in October 2043. The funds were raised at a yield of 3.106 percent and generated a total order book of €35 billion from just under 300 investors. An increasingly popular form of sustainable finance, green bonds are a type of fixed income instrument the proceeds from which must be used for environmental and sustainable development projects. This is Ireland's second sovereign green bond, following the inaugural issue in October 2018. Updates on the TBESS and the Cycle to Work Schemes (From our Tax team) Revenue has updated the guidelines on the Temporary Business Energy Support Scheme (TBESS) with additional information following queries received by businesses wishing to avail of the scheme. A summary of the changes is outlined in the “What’s new” page at the beginning of the guidelines. Revenue has also updated the Tax and Duty Manual regarding the Cycle to Work Scheme to reflect the Finance Act 2022 amendments. The guidance now includes a definition of cargo bike for the purposes of availing of the higher exemption limit of €3,000, together with updated examples. Broader scorecard planned for National Competitiveness and Productivity Council (NCPC) Changes to the competitiveness indicators typically used by the for National Competitiveness and Productivity Council (NCPC) have been announced, following a review of potential additional benchmark data sources. Changes include the inclusion of sustainability and equality indicators. The NCPC Scorecard benchmarks the competitiveness of Ireland’s business sector against international peer countries. The change was reportedly prompted by ‘[g]lobal transformations, such as the twin digital and green transitions and the shift towards sustainability and equality’. In its bulletin, NCPC Secretariat announced that “it [was] timely to consider newly available indicators, including those on sustainability, skills, innovation and well-being, and to refresh the selection of comparator countries, in measuring Ireland’s performance against key competitors and the world’s best performers.”   Public consultation on draft Circular Economy Strategy for Northern Ireland The Department for the Economy in Northern Ireland has launched a public consultation on the draft Circular Economy Strategy for Northern Ireland. This draft strategy sets out a vision that by 2050, Northern Ireland will have an innovative, inclusive and competitive economy where business, people and planet flourish, with responsible production and consumption at its core. It will be a key enabler of Northern Ireland’s 10X Economic Vision for a decade of innovation. The overarching target of the Circular Economy strategy is to halve Northern Ireland’s annual material footprint per person to eight tonnes by 2050. The public consultation is open for 10 weeks until 20 March.   Find out more about the circular economy in the Resources section of Chartered Accountants Ireland’s Sustainability Centre. €169 million for a just climate transition in Ireland €169 million from the Just Transition Fund (JTF) will be invested in Ireland following the approval of its Territorial Just Transition Plan (TJTP).  The Fund will invest in economic diversification and job creation in green sectors, particularly in approximately 500 local micro, small and medium-sized businesses. The TJTP also allows for financing under InvestEU (a programme which supports sustainable investment, innovation and job creation in Europe) and the Public Sector Loan Facility for Just Transition, a new tool that combines €1.5 billion of Commission grants with €10 billion loans from the European Investment Bank to mobilise billions of public investment to meet the development needs of just transition territories. ‘The age of the Polycrisis’: the World Economic Forum’s Global Risk Report The World Economic Forum’s Global Risks Report published this week, and identified ‘natural disasters and extreme weather events’ and ‘failure to mitigate climate change’ in top 5 risks in both the near-term (2 years) and long-term (10 years). The report, which tracks global risks perceptions among risk experts and world leaders in business, government, and civil society, examines risks across five categories: economic, environmental, geopolitical, societal, and technological. While ‘cost of living crisis’ is the number one risk in the short term, in the long term climate-related risks occupied each one of the top five risks places, and included failure to adapt to – as well as mitigate – climate change, biodiversity loss and large scale involuntary migration with natural disasters and extreme weather events. Of these, large scale involuntary migration was the only newly identified risk. A new term emerging the year is ‘polycrisis’, where risks are more interdependent and reciprocally damaging than ever. Commenting, Saadia Zahidi, Managing Director, World Economic Forum warned that “Climate and human development must be at the core of concerns of global leaders, even as they battle current crises. Cooperation is the only way forward.” Network for Chartered Accountants working in ESG 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 Wednesday of every month, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to attend please email sustainability@charteredaccountants.ie Articles Batteries, hydrogen and storage: Flexibility is new frontier of zero-carbon electricity (Irish Times) Q&A: The EU Corporate Sustainability Reporting Directive: To Whom Does It Apply and What Should EU and Non-EU Companies Consider? (Skadden.com) Abu Dhabi oil chief appointed president of COP28 climate summit (Financial Times) Podcasts Welcome to the age of the polycrisis: the Global Risk Report 2023 (World Economic Forum) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Certificate in Sustainability Strategy, Risk and Reporting Find out more about Chartered Accountant Ireland's 8-week Certificate in Sustainability Strategy, Risk and Reporting programme designed to provide accountants with a strong foundation in sustainability and ESG issues and how they are relevant to their business, organisation, practice, and clients. Understand key reporting frameworks, tools, and metrics, and be equipped to address the sustainability opportunities and challenges already faced. You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

  In our first Sustainability/ESG bulletin of 2023 we bring you sustainability/ESG predictions for 2023 as well as news of Ireland’s 2023 Climate Action Plan, a major overhaul of the EU’s carbon market, and the agreement reached at the Biodiversity COP. Also covered is a new network for Chartered Accountants working in ESG/Sustainability, and articles, jobs and events. Sustainability in 2023 – ‘Just smart business’ 2023 is likely to see increased focus on sustainability reporting for businesses, with the transposition into Irish law of the Corporate Sustainability Reporting Directive (CSRD), and ongoing updates from the International Sustainability Standard Board (ISSB), the EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR). Also expected is an increased focus on biodiversity and business, an increase in the need for businesses to adapt to the impact of rising temperatures, more circularity and conscious use of resources, a greater awareness of greenwashing (and ‘green wishing’ and ‘green hushing’), and increased investment in renewables. Overall the ongoing integration of ESG into ‘business-as-usual’ is likely to continue. John Friedman, Managing Director of ESG at Grant Thornton, reportedly called for sustainability to be described as simply “business”, because “no matter what you call it, it is just smart business to understand and manage those things that are levers for attracting more customers and investments [and] engaging your workforce, which all drive profitability.” For more predictions on sustainability/ESG in 2023, here is what Reuters, the Economist and MSCI are saying. The Climate Action Plan 2023 The Irish Government has published its Climate Action Plan 2023 which aims to deliver new jobs and a thriving, green economy for current and future generations. Other benefits include warmer homes, cheaper electricity, better transport, vibrant and resilient communities, biodiversity-rich landscapes and improved health. Read more here. EU overhauls its carbon market Provisional agreement has been reached by the European Parliament and Council on the EU Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM) and a new Social Climate Fund. These are important legislative proposals of the ‘Fit for 55’ package that will further reduce emissions and address their social impacts: Read more here. Agreement reached at ‘Biodiversity COP’ A landmark agreement was reached at the ‘Biodiversity COP’, the United Nations Convention on Biological Diversity (‘COP 15’) which took place from 7-19 December in Montreal, Canada. Governments from around the world came together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. Find out more in our article Biodiversity - a look at the numbers. Consultations The Irish Government has launched a public consultation, open until Friday 17 February 2023, on the National Risk Assessment. This outlines proposed risks facing Ireland in the short, medium, and long term, categorised under the headings economic, geopolitical, social, environmental and technological. The Irish Government is seeking expressions of interest for participants – either individuals or groups – for the 2023 SDG Champions Programme, run by the Department of Environment, Climate and Communications. The goal of the programme is to raise public awareness of the UN Sustainable Development Goals. Deadline for receipt of submissions is Friday 20 January at 5pm. A meeting of the National Stakeholder Forum on the key principle of Agenda 2030 for Sustainable Development of ‘Leaving No One Behind’ will take place on Tuesday 17 January online and in the Aviva Stadium, Dublin from 10.30am – 4.30pm. Register here. 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 Wednesday of every month, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to join us please email the Institute’s Sustainability Officer susan.rossney@charteredaccountants.ie or sustainability@charteredaccountants.ie Articles Hiring rates decline but focus on 'green talent' - report (Irish Times) EU strikes deal to overhaul carbon market and cut Europe's emissions (Irish Independent) Climate action plan: Clear but painful path set out to cut Ireland’s emissions (Irish Times) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Events The Leinster Society kicks of the new year with a free Expert Series webinar on 11 January, from 12.30pm - 1.30pm on energy saving for your household. A representative from the Sustainable Energy Authority of Ireland (SEAI) will give advice and tips, and answer your questions on how to make your household more energy efficient and sustainable. Register here

  Provisional agreement has been reached by the European Parliament and Council on important legislative proposals of the ‘Fit for 55’ package, the European Union's package of policies to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050.  The agreement pertains to the EU's carbon market, and plans to further reduce emissions and address their social impacts. The proposals aim to: Strengthen the EU Emissions Trading System (ETS). The EU ETS is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. Introduced in 2005 it is the world's first major carbon market and remains the biggest one. It is a cap-and-trade system which requires, among other things, that energy-intensive industries and the power generation sector buy CO2 permits when they pollute. In 2021, installations covered by the EU ETS accounted for around 40% of the EU's total emissions. Negotiators have agreed to raise the overall target to cut emissions in the sectors covered by the ETS from 43% to 62% by 2030 from 2005 levels, and to apply of the ETS to heating, road transport and shipping for effective economy-wide climate action. Gradually phase out free emission allowances to certain enterprises and phase in the Carbon Border Adjustment Mechanism (CBAM) between 2026 and 2034 for the sectors covered. The CBAM is the EU’s tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. Establish a Social Climate Fund to protect and support vulnerable households, micro-enterprises and transport users from rising CO2 costs. The deal also includes shipping emissions in the EU ETS, making the EU the first jurisdiction to put an explicit carbon price on emissions from the maritime sector, and increases the size of the Innovation and Modernisation Funds. European Commissioner for Financial Services, Financial Stability and Capital Mairead McGuinness, described the provisional deal as "a really significant development” and “a massive transformation of the way we live, work and play.” On formal adoption by the European Parliament and Council, the new legislation can be published in the Official Journal of the Union and enter into force.

  The Irish Government has published its Climate Action Plan 2023 which aims to deliver new jobs and a thriving, green economy for current and future generations. Other benefits include warmer homes, cheaper electricity, better transport, vibrant and resilient communities, biodiversity-rich landscapes and improved health. The plan, which builds on previous Climate Action Plans sets out how Ireland will accelerate the action required to respond to the climate crisis, putting climate solutions at the centre of Ireland’s social and economic development. It is the framework through which the Government intends to meet the legally-binding emissions reductions targets set out in the Climate Action and Low Carbon Development Acts, and the economy-wide carbon budgets and sectoral ceilings agreed in July 2022 to set down limits on the amount of greenhouse gases that Ireland must not surpass over three five-year cycles. Changing the systems that shape how we live, work, get around and produce food is required to meet these targets, which are a key pillar of the Programme for Government. Key measures of the plan involve: a rapid scaling up of the transition to renewables, with enough renewable electricity to power every home and business in the country by 2030; a dramatic change to Ireland’s transport system with more buses, electric cars and active travel (walking, cycling and public transport); ambitious home and business retrofitting and climate-based construction, and 500,000 homes retrofitted to BER B2 by 2030; and innovative systems that will protect and support family farms to diversify their income streams, with tillage farming to cover up to 400,000 hectares by 2030. Industry is identified as one of the six vital, high-impact sectors which will have to reduce emissions. Industry accounted for 10.2 percent of Ireland’s greenhouse gas emissions in 2021. Under the Plan it is required to reduce its emissions by 35 percent, by changing how goods and services are produced, consumed and designed. Also required is a ‘decoupling’ of the links between fossil fuel use and economic progress. An Annex to the Climate Action Plan, outlining more detail on the Plan’s actions, will be published early in 2023.

  A landmark UN Agreement was reached on 19 December 2022 to protect biodiversity and create a shared future for all life on Earth. It is being called the 'Paris Agreement' of nature, likening it to similar agreement in 2015 which changed the world's direction on managing climate change. Biodiversity is the variety of life on earth. It includes all the different types of living things and habitats. It is often referred to as the ‘web of life’. Our societies and economies depend on it. It is rapidly rising up the corporate agenda as more and more companies understand the need to protect it. Here are some of the numbers for biodiversity now: 4 The number of goals included under the new landmark UN Agreement to protect biodiversity (i.e. the web of life on earth). 23 The number of targets under the new Agreement. 30 percent The percentage of Earth’s land and water that 195 nations have now agreed to protect and restore by 2030, making it the ‘30x30 goal’. $44 trillion The amount generated by industries dependant on nature, according to the World Economic Forum. $13 trillion/15 percent Amount generated by industries highly dependent on nature, and the percentage of global GDP this represents. $37 trillion/37 percent Amount generated by industries moderately dependent on nature and the percentage of global GDP this represents. 50 percent The agreed percentage reduction by 2030 of risk from pesticides. 50 percent The agreed percentage reduction by 2030 of nutrients lost to the environment. 50 percent The agreed percentage reduction by 2030 of new invasive species introduced and established. 30 The age of the Global Environmental Facility, which will now create a new Global Biodiversity Framework Fund through which rich nations will pay poor nations to support replacing biodiversity. $30 billion The amount rich countries have pledged to pay per year to poor countries to support biodiversity. $200 billion The amount of finance to be mobilised per year for biodiversity from all sources, domestic, international – both public and private. $500 billion The amount of subsidies harmful to biodiversity that will be eliminated per year by 2030. $700 billion The estimated annual financing gap that exists for the protection of natural systems. 8 billion The number of humans on the planet now, more than double since 1970. 69 percent The decline in animal population during that time. 75 percent The percentage of land fundamentally altered during that time. 66 percent The percentage of oceans negatively affected during that time. 80 percent The percentage of lost wetlands during that time – these act as both habitats and ‘sinks’ to store carbon and stop it doing harm. $3 trillion The combined asset value of a group of investors which launched a campaign to pressure the companies they own to do more to fight the decline in biodiversity. $650 million The amount investors have committed to two so-called natural capital funds backed by HSBC Asset Management. Zero The pricing of natural assets by Wall Street for the past 150 years, according to David Craig, co-Chair of the Taskforce for Nature-Related Financial Disclosures (TFND). Some announcements made during the Biodiversity COP The International Sustainability Standards Board (ISSB) announced it would define ‘sustainability’ as ‘inextricably’ linked to nature in its standards.   MSCI, the world’s largest ESG rating company, announced it would launch metrics for biodiversity similar to their environment, social and governance criteria.   A group of institutional investors announced the formation of a new global engagement initiative to mobilise investors to drive urgent action on the nature-related risks and dependencies in the companies they own. Nature Action 100 will identify the private sector actions that need to be undertaken to protect and restore nature and will seek to catalyse these actions via investor-company engagements.   A new Global Biodiversity Framework Fund will be established under the Global Environment Facility and will be open to financing from all sources to protect the most vulnerable countries and the most biodiverse. A recap on COP15 COP stands for ‘Conference of the Parties’. It refers to the meetings by signatories to United Nations conventions. The most famous COP is the ‘Climate COP’. This is the annual the summit attended by the countries that signed the United Nations Framework Convention on Climate Change (UNFCCC). The most recent ‘Climate COP’ was COP27, hosted in November 2022 in Egypt. ‘Biodiversity COPs’ are meetings of the signatories to the United Nations Convention on Biological Diversity. The fifteenth such meeting took place from 7-19 December 2022 in Montreal, Canada, hence the name ‘COP15’. At COP15 governments from around the world came together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. The catastrophic loss of nature has not received the same media attention as climate change, but it is equally critical and must be resolved. It is impossible to effectively tackle either climate change or biodiversity loss without tackling both at the same time. A quick look at biodiversity Biodiversity is the variety of life on earth. It includes humans, animals, plants and all the other lifeforms which interact and depend on each other to survive. Everything depends on nature, including business. Biodiversity on Earth is under enormous risk, mostly due to human activity. The loss of biodiversity must be halted and reversed so humanity can survive and thrive. What is the agreement called? The agreement made at COP15 is called the Montreal-Kumning Global Biodiversity Framework (or the ‘Montreal-Kumning Agreement’ for short), after the cities in which it took place.   COP15 was originally supposed to take place in Kumning in China but was delayed due to COVID-19. In the end it was co-hosted by Montreal and Kumning. What is in the Agreement? The ‘Montreal-Kumning Agreement’ contains global goals and targets to protect and restore nature for current and future generations. It aims to accelerate ambitious policies around the world and mobilise financing for biodiversity from all sources. It is seen as significant because it is seen by some as being as important for nature as the Paris Agreement’s 1.5°C goal was for climate. It also acknowledges the role of indigenous and local communities in achieving any nature-related goals. What’s next? Before the next COP in Saudi Arabia in 2024, all countries will have to prepare updated National Biodiversity Strategies and Action Plans as well as National Biodiversity Finance Strategies. What they said “At an institutional level, the train has left the station in any case because financial institutions are increasingly aware that nature risk is sitting on their balance sheets.” Tony Goldner, Executive Director of the Taskforce on Nature-Related Financial Disclosures describing how a number of countries and financial firms are already moving toward mandatory disclosure with greater ambition than the final text suggests, where it says that countries should “encourage and enable” businesses to monitor, assess and disclose how they affect and are affected by biodiversity without making this process mandatory. “The agreement reached at COP15 is a landmark deal to protect nature, restore ecosystems and keep our planet liveable. This is about our very survival: humanity has no future on a dead planet.” Frans Timmermans, Executive Vice-President for the European Green Deal Articles Why is Wall Street so hot for biodiversity right now? (Bloomberg) Cop15: Five key developments as significant biodiversity agreement reached: “Ultimately, major businesses will be expected to outline how they are contributing to a nature-positive world.” (Irish Times)   Find more on biodiversity and what it means for accountants at the Chartered Accountants Ireland Sustainability Centre resources page on Accounting for Nature.   

  The two-week long international climate summit has at last concluded in Egypt, with the gavel going down on a final agreement  on Sunday, 20 November 2022. The ‘Sharm el-Sheikh Implementation Plan’ creates a loss and damage fund for countries vulnerable to the effects of climate change.  Seen as an important win for climate justice, the plan was described as a landmark moment in global climate politics, one that acknowledges that the world’s richer countries – and biggest carbon emitters – are responsible to the developing world for the harm caused by global warming. Speaking about the agreement,  Ireland’s Minister for Transport, the Environment, Climate and Communications, Eamon Ryan, TD, who led the loss and damage negotiations for the EU, admitted that while the outcome was not perfect, it was both historic and progressive: “This is not perfect. The EU would have liked it to have gone further and faster. However, what makes this a good deal is that it is an agreed deal. It is a signal of trust between the 198 parties to the UNFCCC that we are serious about climate change and that we are serious about protecting the most vulnerable countries and communities.” The wording in the agreement is that countries will “establish new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, in responding to loss and damage”. A transnational committee with representatives from over 24 countries will be established to decide which countries are vulnerable, where the money is to come from (i.e. which countries, and which sources - existing funding arrangements like debt relief or ‘innovative sources’ like taxes on fossil fuels). The committee, which have a co-chair from a developing country and a co-chair from a developed country, will report back at COP28, and the Santiago Network will provide technical assistance on how loss and damage can be addressed. “We have struggled for 30 years on this path and today, in Sharm El-Sheikh, this journey has achieved its first positive milestone,” said Pakistan Climate Minister Sherry Rehman. “The establishment of a fund is not about dispensing charity. It is clearly a down-payment on the longer investment in our joint futures.” Pakistan suffered monsoon flooding in 2022 that left more than 1,700 dead and caused at least $30 billion in losses. The disaster prompted Pakistan’s Prime Minister Shehbaz Sharif to warn world leaders at the UN General Assembly in September 2022 that “what happened in Pakistan will not stay in Pakistan,” a stark acknowledgement that climate change will not spare other countries the sort of disaster that left up to one third of his country underwater and millions of its citizens at risk from water-borne diseases. Although attempts at a row-back of commitments made at Glasgow at COP26 last year were resisted, a phase down of fossil fuels was not included in the agreement, much less a ‘phase out’, as had been called for. No new targets on emissions reduction targets were introduced in the agreement. Nor did the text include any references to IMF relief to fund carbon-reduction projects to help fund the $4 trillion required for investment in renewable energy annually until 2030, or the $5.6 trillion needed by developing countries to meet their climate goals, or any credible roadmap to double adaptation finance.  The latter would require changing the business models of multilateral development banks and international financial institutions, according to UN secretary general António Guterres. “They must accept more risk and systematically leverage private finance for developing countries at reasonable costs.” However, the agreement included the statement “[The world’s nations] call on the shareholders of multilateral development banks (MDBs) and international financial institutions to reform practices and priorities, align and scale up funding ... and encourage MDBs to define a new vision that [is] fit for the purpose of addressing the global climate emergency.” The agreement also created a two-tier carbon market, which has drawn criticism from campaigners who accuse it of creating a risk of greenwashing by countries wishing to purchase credits to fulfil net zero pledges but without making any substantial reductions to their own emissions. Further criticism centres around the fact that governments can designate as ‘confidential’ any information about carbon trades between countries. The agreement also made official that a decision on a new climate finance goal will be delayed until 2024. Rich countries have delayed delivering the $100 billion promised by 2020 to help developing countries reduce emissions and adapt to the effects of climate change.   Countries agreed to develop a work programme on the global goal of adaptation set out in the Paris Agreement. This goal specified enhancing capacity, strengthening resilience and reducing vulnerability to climate change and ensuring an adequate adaptation response. However, there was concern felt at the low levels of finance available for adaptation. Round-Up of COP27 Achievements High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities: launched first report, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions: focusing on greenwashing and weak net-zero pledges; roadmap to bring integrity to net-zero commitments by industry, financial institutions, cities and regions and to support a global, equitable transition to a sustainable future.   CDP (formerly the Carbon Disclosure Project) the not-for-profit which runs the global environmental disclosure platform for corporations, will incorporate the International Sustainability Standard Board’s (ISSB) IFRS S2 Climate-related Disclosures Standard [IFRS S2] into its global environmental disclosure platform. This is a major step towards delivering a comprehensive global baseline for capital markets through the adoption of ISSB standards.   Executive Action Plan for the Early Warnings for All initiative: calls for initial new targeted investments of $3.1 billion between 2023 and 2027, equivalent to a cost of just 50 cents per person per year.   Climate TRACE Coalition: new independent inventory of greenhouse gas emissions, combining satellite data and AI to show the facility-level carbon and methane emissions of over 70,000 sites around the world, including companies in China, the United States and India.   The Breakthrough Agenda: a ‘master plan’ to accelerate the decarbonization of five major sectors – power, road transport, steel, hydrogen, and agriculture – through 25 new collaborative actions to be delivered by COP28.   Food and Agriculture for Sustainable Transformation initiative or FAST: to improve the quantity and quality of climate finance contributions to transform agriculture and food systems by 2030. This was the first COP to have a dedicated day for Agriculture, which contributes to a third of greenhouse emissions and should be a crucial part of the solution. The Sharm El-Sheikh Adaptation Agenda: outlines 30 Adaptation outcomes to enhance resilience for 4 billion people living in the most climate vulnerable communities by 2030.   Action on Water Adaptation and Resilience Initiative (AWARe): an initiative that will champion inclusive cooperation to address water-related challenges and solutions across climate change adaptation.   African Carbon Market Initiative (ACMI): aims to support the growth of Africa’s voluntary carbon markets and create jobs in Africa.   The Insurance Adaptation Acceleration Campaign: part of the Race to Resilience, this is a campaign to an effort to mobilise 3,000 insurance companies (equal to 50 percent of the market) by COP28 in 2023.   The Global Renewables Alliance: an alliance to help accelerate the uptake of renewables globally by industry bodies and associations representing key low-carbon technologies such as hydrogen, energy storage, wind and solar.   The First Movers Coalition (FMC) Cement & Concrete Commitment: a collection of global companies committing $12bn to decarbonize the heavy industry and long-distance transport sectors. What’s next? COP15 Part 2 will take place 7-19 December. At this COP – officially titled Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) – the parties will review the achievement and delivery of the CBD’s Strategic Plan for Biodiversity 2011-2020. Articles of interest COP27 closes with deal on loss and damage: ‘A step towards justice’, says UN chief (UN News)   What was decided at Cop27 climate talks in Sharm el-Sheikh? (Climate Home News)   UN Adopts Historic Pact on Payments for Climate Damages (Bloomberg)   Cop27: Deal reached to set up fund for developing countries hit by climate crisis (Irish Times)   Cop27 scores on cutting carbon and aiding climate-vulnerable states (Irish Times)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  The two-week long international climate summit was due to end on Friday 18 2022, but will continue on Saturday November 19, to allow delegates extra time to negotiate on divisive aspects of the draft agreement – greenhouse gas emissions and loss and damage. The draft agreement calls on the World Bank and other multilateral development banks “to reform their practices and priorities”, align their spending with climate goals and “significantly increase climate ambition using the breadth of their policy and financial instruments for greater results”. It also calls for $4 trillion of annual investment in renewable energy by 2030, with an aggregate $5.6tn in additional funding to enable developing countries to meet their climate-related goals this decade. Speaking about the draft decision, Laurence Tubiana, chief executive officer of the European Climate Foundation, reportedly commented: “The moment is right. Climate impacts are beginning to be understood as a macroeconomic risk.” The draft text also describes a new finance goal for November 2024 to provide the $100 billion annual in climate-related assistance to vulnerable countries, acknowledging that “substantive progress” is still needed for this ambition to be realised. While most attention is on the intergovernmental negotiations on the draft agreement, other initiatives have been launched including four ‘solution-cantered’ initiatives for Africa: Friends of Greening National Investment Plans in Africa and Developing Countries initiative: aims at factoring in the impact of climate change when designing economic policies, quantifying mitigation and adaptation efforts, identifying the gaps and support needed, and proposing a set of essential guidelines, criteria, and policy advice, to expedite the implementation of the UNFCCC, Paris Agreement and the NDCs.   Low Carbon Transport for Urban Sustainability (LOTUS) initiative: aims to activate systemic change to improve and decarbonize the urban mobility landscape, and will focus on improving access to low carbon and resilient urban mobility solutions and strengthening the foundational enablers of change as the first-order priorities.   Sustainable Urban Resilience for the next Generation (SURGe) initiative: aims to reduce urban greenhouse gas emissions, adapt urban systems to climate change, and build urban system resilience. The initiative will track buildings and housing, urban water, urban mobility, urban waste and consumption, and urban energy.   Global Waste Initiative 50 by 2050: aims to holistically address all solid waste types and contribute to an ambitious target at the scale of the African continent with a view to treating and recycling at least 50 percent of the solid waste produced in Africa by 2050.   Article of interest Summit President Says Talks to Last Until Saturday (Bloomberg)   The key points from COP27 (The Financial Times)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  Solutions Day at COP27 was the  last of the thematic days at the two-week long international climate summit. The day aimed to bring together government representatives, businesses and innovators; however, the closing of Solutions Day on Thursday 17 November Cop27 seemed to present more problems that solutions. With the publication of a draft climate deal, concerns rose over the reaching of a final agreement. The draft contained no details of the critical issue of a fund for loss and damage, nor did it call for a phasing down of all fossil fuels to build on the inclusion of the wording from last year’s COP in Glasgow which introduced ‘phasing down’ of coal. Irish Minister for Transport, Environment, Climate and Communications, Eamon Ryan, is leading loss and damage negotiations for the EU. Commenting, Minister Ryan stated: “We’re serious about providing the greatest support for particularly the most vulnerable countries. The key task is to turn that intent into a common text that people can rally behind.”   With the summit due to close on Friday 18 November, UN Secretary-General António Guterres has urged governments to ‘act – and act quickly’ to overcome their differences and deliver meaningful results. Elsewhere at COP27, the UN Climate Change High-Level Champions held their closing event ‘COP27 Action Agenda: Progress & Priorities’, at which they focused on accountability, fairness, and an assessment of non-State progress at COP27. The Champions wrapped up a two-week programme of over 50 events, including the launch of the Sharm-El-Sheikh Adaptation Agenda, a comprehensive two-year Glasgow–Sharm el-Sheikh work programme on adaptation (2022-2023). It also included a number of major African-led initiatives to cut emissions and build climate resilience, and significant work on the mobilisation of finance. Ireland’s former President, Mary Robinson, Chair of The Elders, was among the keynote speakers. Article of interest   Getting rid of fossil fuels at a climate summit is harder than you’d think (The Guardian)   Cop27 deadlocked over loss and damage issue with developing countries digging in (The Irish Times)   Eamon Ryan appointed lead EU negotiator on crunch Cop27 climate loss and damage issue (The Irish Independent)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  16 November was Biodiversity Day at COP27, and headline news was the arrival of Brazilian President-elect Luiz Inacio Lula da Silva (Lula) at the summit. In his speech, President-elect Lula said that climate change will have the highest profile in his government, and that he will prioritize efforts to fight deforestation in the Amazon rainforest. In a separate statement the architects of the Paris Agreement urged leaders to step up action to address the accelerating loss of nature by delivering an ambitious and transformative global biodiversity agreement at COP15, with the necessary finance and technical support to drive immediate action on the ground. The theme of Biodiversity Day echoes an event from Finance Day, which took place during the first week of the international climate summit. The International Finance Corporation (IFC) issued the world's first guidance to help investors, financiers, companies, and governments identify investments that protect and rehabilitate biodiversity and ecosystems. The Biodiversity Finance Reference Guide is a market framework for biodiversity finance, a fast-growing domain of green finance that aims to support activities that conserve and restore biodiversity and ecosystem services. The guide was described by Makhtar Diop, IFC's Managing Director as “a compass for businesses and investors seeking to align their activities with the goals of sustainable growth and a healthy planet.” Look beyond COP27, the impacts of climate change on biodiversity is also the topic of another COP, COP15 Part 2, on 7-19 December. At this COP – officially titled Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) – the parties will review the achievement and delivery of the CBD’s Strategic Plan for Biodiversity 2011-2020. Did you know about…biodiversity and accounting for nature? Biodiversity is the variety of life on earth on which our societies and economies depend on it. It is rapidly rising up the corporate agenda as more and more companies understand the need to protect it. Every business relies on biodiversity, which, for businesses, means everything from clean air and water, fuel, food, raw materials, minerals, fibers, pollination of crops, climate regulation for a stable climate, and much more. For example, agribusiness relies on the diversity of wild relatives of major food crops, as a resource to ensure crop resistance to disease and pests. Business also rely on biodiversity for the wellbeing of their staff, their consumers, in their own operations and along their supply chains. Biodiversity is increasing in importance to business, and businesses will be expected to know about biodiversity action and to engage with it. They are also coming under increasing pressure to support protection of biodiversity. Biodiversity and Chartered Accountants Ireland On March 3, 2022, Chartered Accountants Ireland joined a profession-wide commitment to reverse nature loss. Working together as part of the Global Accounting Alliance (GAA), the CEOs of 10 of the world’s leading accountancy institutes signed the call to action ‘Nature is Everyone’s Business’ to signal the important role the profession plays in this crisis. You can find out more about biodiversity and natural capital and resources for accountants at the Chartered Accountants Ireland website’s Biodiversity - Accounting for Nature   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

    Day 15 of COP27 was dedicated to Energy, and to ‘ACE and Civil Society’. At the opening session of the Energy thematic day, the COP27 Presidency launched the Africa Just & Affordable Energy Transition Initiative (AJAETI). The initiative will engage the International Energy Agency (IEA) and International Renewable Energy Agency (IRENA) to provide possible pathways and scenarios for African countries for the most rapid and sustainable achievement of access. Elsewhere, coal was very much in the news, with the announcement of what was described the largest climate transaction in history: a $20 billion of climate finance to end the use of coal in Indonesia. The deal will allow Indonesia’s emissions to peak 7 years earlier than had been planned. Less positive coal news involved India and China, who at last year’s COP26 in Glasgow were responsible for a last-minute intervention to water down the language of the final agreement, changing the commitment to “phase down” rather than “phase out” coal power. Coal reportedly accounts for 70 percent of electricity generation in India, while renewables count for only about 12 percent. Coal is the most polluting of the fossil fuels, and climate scientists insist that it must to be phased out by 2040 to avoid the worst effects of climate change. However, India has put forward the argument that Europe and the US turned back to fossil fuels as the energy crisis deepened and remained unsanctioned, whereas developing countries which rely on coal are unduly pressured to transition from it, at their economic expense. China has also come under criticism for its plans to build more coal plants this year as a short-term measure to address electricity shortages in the country. A different type of energy was the topic of a panel on Offshore Wind as a Key Solution to the Climate and Energy Security Crises, featuring the  Global Offshore Wind Alliance. Ireland’s Minister for Transport, Climate, Environment & Communications Eamon Ryan TD, who is leading Ireland’s delegation to COP27 for the second week joined speakers on the panel. Finally the European Commission’s Vice President Frans Timmermans has told delegates that the European Union will be able to cut greenhouse gas emissions by 57% from 1990 levels by 2030, instead of the 55% originally planned. Did you know about … ACE ACE is a term adopted by the United Nations Framework Convention on Climate Change (UNFCCC). It stands for Action for Climate Empowerment. It aims to integrate civil society into decision-making processes, and its inclusion in the COP27 programme builds on the momentum of COP26 where a work programme specifically focussing on this engagement. Its over-arching goal to empower all members of society to engage in climate action, through the six elements: Education Public awareness Training Public participation Public access to information International cooperation. Why ACE matters? Implementation of all six ACE elements is crucial to the global response to climate change. Sustainable lifestyles, sustainable patterns of consumption and production, are fundamental to reducing greenhouse emissions and enhancing resilience to the inevitable effects of climate change. Success will require broad collaboration between all levels of government and all sectors of society. Read more here https://unfccc.int/ace   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

    The second week at COP27 opened with Water Day and Gender Day. Discussions as part of Water Day covered topics from sustainable water resource management, water scarcity and drought, to cross boundary cooperation and improvement of early warning systems. Gender Day, on the other hand, focused on how a disproportionate burden from the adverse impacts of climate change falls on women, and aims to bring this reality into the processes of formulating and implementing policies and actions on the ground.    In advance of COP27, the European Investment Bank (EIB) and partners had called for ‘urgent action’ at the summit in order to enshrine gender equality into climate finance. At the summit today the topic of Gender Responsive Climate Financing (GRCF) was discussed at a Women and Climate Change Finance event. GRCF addresses the need for resource mobilizations strategies and financing policies to clearly reflect women’s needs and realities within climate action plans and governing instruments, and turn them into numbers that can be of benefit to women. In headline news, it was announced that the world’s two largest economies — and two biggest emitters of greenhouse gases — will restart talks on the climate crisis. In a meeting described as a breakthrough in the effort to avert catastrophic global warming, US President, Joe Biden and Xi Jinping, President of China, met for several hours before the Group of 20 summit in Indonesia, and agreed to restart climate negotiations. Also reported is that Brazil, Indonesia and the Democratic Republic of Congo have signed a strategic alliance to coordinate discussions on forest conservation at the G20 talks, which will begin in Indonesia on Tuesday 15-16 November. As much as 52 percent of the world’s remaining primary tropical forests are in these three countries, which are crucial to avoiding climate catastrophe. The newly elected President of Brazil, Luiz Inácio Lula da Silva, will attend COP27 on Wednesday where he is expected to discuss efforts to save the Amazon and other forests around the world. Also in the news was the Global Shield Against Climate Risks initiative, an initiative coordinated by G7 president, Germany, and which is being developed in collaboration with the 'V20' group of 58 climate vulnerable economies. First proposed in July 2022, the Global Shield aims to provide rapid access for climate-vulnerable countries to insurance and disaster protection funding after floods or drought. It was announced that Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal will be some of the initial recipients of Global Shield packages, which would be developed in the coming months. On Day 3 of the COP27 proceedings, Taoiseach Michael Martin announced that Ireland will donate €10m to the financing structure. Finally, retailers including H&M, Stella McCartney and Kering have also announced that they will purchase over half a million tonnes of low-carbon, low footprint alternative fibres – fibres made from waste textiles and agricultural residues instead of forest fibres – for clothing and packaging to help reduce global emissions. It is hoped that this will avoid almost 1Gt of CO2 emissions between now and 2030. Over the weekend at COP27 Late on Friday evening, the United Kingdom signed up to the joint declaration from energy importers and exporters on reducing GHG from fossil fuels. In doing so, the UK joined the United States, European Union, Japan, Canada, Norway and Singapore in a commitment to take “rapid action to address the dual climate and energy security crises that the world faces”. Saturday saw a full day devoted to agriculture for the first time at a COP: Adaptation & Agriculture Day. A Food and Agriculture for Sustainable Transformation initiative was launched, promising to boost climate finance for transitioning agrifood systems. Food systems currently receive only 3 percent of climate finance despite accounting for about a third of all emissions. India also published its plan for net zero by 2070 and Mexico announced an improved greenhouse gas emissions target to cut emissions by 35 percent by 2030, up from an earlier target of 22 percent. Find out more Official full agenda for the conference’s thematic days here. Find a summary of last week’s headlines from Bloomberg here. Find out about the ISSB’s announcements last week at COP27 in this podcast  Read more about the ISSB’s progress it has since being established at COP 26 here You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  The US dominated COP27 today as US President Joe Biden visited the two-week-long international climate summit in Egypt for ‘Decarbonisation Day’. “Folks, it’s going to take all of us”, President Biden announced in his speech, saying that every nation had to do its part in order to permanently bend the emissions curve, and announcing new US support of $100m for adaptation. The Inflation Reduction Act, the landmark US climate bill passed earlier this year would “unleash a new era of clean energy and economic growth”, the president went on to say, echoing comments of US national climate advisor Ali Zaidi who described in an interview with Bloomberg that “100s of millions of metric tonnes  of opportunity” would result from the transition. “We are proving that good climate policy is good economic policy”, President Biden stated, describing how the US is the first government to require that major federal suppliers disclose their emissions and climate risk and set targets for themselves that are aligned with the Paris Agreement. Elsewhere at the summit countries launched a package of 25 new collaborative actions under a ‘Breakthrough Agenda’, a masterplan to accelerate decarbonisation of five major sectors - power, road transport, steel, hydrogen and agriculture. Under the agenda, governments representing over half of global GDP set out 12-month action plan to help make clean technologies cheaper and more accessible everywhere. In other news signatories to the Fashion Industry Charter for Climate Action agreed to a set of targets including halving emissions by 2030, switching to low-carbon materials and scaling renewable energy across their supply chain. COP27 continues with Adaptation & Agriculture Day on 12 November, and will resume on Monday 14 November with Gender Day. You can find the full agenda for the conference’s thematic days here. Chartered Accountants Ireland will continue to bring you updates for the event.   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  'Youth' is the theme of Day 5 at COP27, the second of the 11 'themed days' in the two-week-long international climate summit taking place this year in Sharm el-Sheikh, Egypt. Among the stark warnings about the future of the planet, news also broke that more than 600 fossil fuel lobbyists were in attendance at the conference, an increases of more than 25 per cent from last year, reportedly outnumbering any country’s delegation with the exception of the UEA. The previous day – ‘Finance Day’ – had been dominated by news of a possible warming in the relations between the US and China, although China did bring forward its date for peaking carbon emissions for building materials from 2030, reportedly disappointing the building materials sector as a whole, which wants to reach peak emissions by 2025. John Kerry’s carbon credit plan to drive climate finance in developing nations was also met with criticism, but the US climate envoy pointed out that private finance is required to pay for the transition as no government can afford to. Staying with the US, former Vice President Al Gore continued to stress that the markets are more powerful than any attempts by the US Republican party to bring about what he terms a ‘sustainability revolution’: “whatever politicians in different countries want to opine on, we’re seeing business and investors and markets move towards solutions for the climate crisis.” Although much coverage around this COP is devoted to the resistance by the developed economies to paying ‘loss and damage’ to developing countries, there have been some positive announcements such as France and Germany signing €600 million loan agreements with South Africa to assist the country in its efforts to reduce reliance on coal and transition to cleaner energy sources. Leading global experts from the natural and social sciences also presented a report on the latest climate change-related research this year and responds to clear calls for policy guidance during this critical decade. A key focus of the report -  10 New Insights in Climate Science  - was the limits of humankind to adapt to the inevitable impacts of climate change, which include ever more frequent and severe drought, storms and floods. Some useful resources An overview of the last 30 years of COPs by Guardian reporter Fiona Harvey (YouTube) The Minister for Foreign Affairs Simon Coveney emphasised the “moral obligation” on the world to act on climate (The Journal)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  Wednesday, 9 November 2022, and Day 4 of the international climate summit COP27, was Finance Day.  As the focus at this year’s conference is on adaptation to climate change, the role of private finance in building resilience to physical climate change impacts is key, as this short video explains.  The previous day, Tuesday 8 November, closed with the launch of the Sharm-El-Sheikh Adaptation Agenda – a comprehensive, shared agenda to rally global action around 30 adaptation outcomes that are needed to address the adaptation gap and achieve a resilient world by 2030.   The day also saw the publication of a UN report launched to crack down on corporate ‘greenwashing’ around net-zero claims. The report, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions, was published by a UN-convened high-level expert group that was set up in March 2022 to develop stronger standards and scrutiny of net-zero pledges from non-state entities such as businesses and investors, as well as cities and regions. In laying out ‘red lines’ to prevent “dishonest climate accounting”, the report recommended that non-state actors should no longer be able to claim to be net zero while engaging in deforestation or funding new fossil fuel supply, or lobbying to undermine ambitious government climate policies either directly or through trade associations or other bodies.  It was also announced that CDP, the not-for-profit which runs the global environmental disclosure platform for corporations will incorporate the International Sustainability Standard Board’s (ISSB) IFRS S2 Climate-related Disclosures Standard [IFRS S2] into its global environmental disclosure platform. This is a major step towards delivering a comprehensive global baseline for capital markets through the adoption of ISSB standards.  The US also announced for the first time a roadmap for nature-based solutions to fight climate change, strengthen communities, and support local economies.  Ireland was one of nine new countries which signed up to the  Global Offshore Wind Alliance, pledging to a rapid ramp up of offshore wind in order to tackle the climate and energy security crises. The alliance was initiated by the International Renewable Energy Agency (IRENA), Denmark and the Global Wind Energy Council. It aims to  bring together governments, the private sector, international organisations and other stakeholders to accelerate the deployment of offshore wind power.  Some useful resources  Coverage of the new report to crackdown on corporate ‘greenwashing’ around net-zero claims in Reuters and the Irish Times  “There is a growing pressure for governments to force some universal standards and accounting rules on net zero targets” (The Times)  Debunked: Five common climate myths and why they're wrong: The Journal   Did you know….about the Capacity-building Hubs at COP27?  As far back as 1994, the UNFCCC knew it had to build and enhance relevant capacity to implement climate-mitigation (reducing emissions) and adaptation (adapting to climate change).   To do this, it began establishing ‘Capacity-building Hubs’ at the international climate summits (COPs). Capacity-building hubs are spaces for representation, collaboration, and knowledge sharing, allowing those involved climate change mitigation and adaptation a platform to work together for higher ambition and greater action. Friday 11 November will be the 'Just Transition & Sustainable Economies Day' hub day.    You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  Finance, and how it is to be channelled to the developing world, dominated the agenda of COP27 again on Tuesday 8 November, the third day of the international climate summit. On Monday, Former President of Ireland, Mary Robinson had called for “solidarity funding”  from the World Bank and the IMF for developing countries. Tuesday began with reports of record temperatures in October in parts of Europe, as delegates gathered in the Egyptian city of Sharm el-Sheikh for the second day of the World Leaders Summit and heard first-hand accounts from nations devastated by or at severe risk from climate change, including from Shehbaz Sharif, the prime minister of Pakistan: “An estimate of damage of loss has exceeded 30 billion dollars” he stated “and this all happened despite our very low carbon footprints. We became a victim of something with which we had nothing to do, and of course it was a manmade disaster.” The president of South Africa, Cyril Ramaphosa called on multilateral development banks to change their approach to climate finance, stating that more funding must come in the form of grants and concessional loans without the costs associated with existing funding. Botswana’s President Mokgweetsi Masisi called for direct contributions to national treasuries rather than project-based climate adaptation funding. It is clear that scale of the finance required is enormous. A report co-written by the climate economist Lord Nicholas Stern showed that $2 trillion a year is needed by developing countries to enable them to transition from fossil fuels, invest in renewable energy and other low-carbon technology, and cope with the impacts of extreme weather. As a huge proportion of this finance will come from private-sector businesses, there are calls for reform in the finance sector to allow for easier access to capital for renewable projects, which tends to be harder to acquire than funding to finance for fossil fuel projects.   Taoiseach Michael Martin interviewed here, in turn called for new tools to help countries deal with weather disasters:  “Along with all of the measures we must take to reduce emissions, we also now have to look at adaptation, and create financial instruments in terms of dealing with catastrophic risk,” he said. Earlier on Tuesday, the Taoiseach announced that Ireland will donate €10m to the Global Shield Against Climate Risks initiative, a new financing structure that was first proposed in July 2022 and which aims to channel capital to protect vulnerable nations against climate and disaster risks, tailoring support to countries and match them with finance, insurance and technical mechanisms.  In his later address to the World Leaders Summit,  the Taoiseach stated that “If this generation does not step up urgently, future generations will not forgive us.” “This generation of leaders cannot say that we didn’t know…The science is clear.  Every tonne of carbon warms the world.  Every delay makes our task that bit bigger. Let us not waste a second more.” The Taoiseach referred to Ireland’s international climate finance roadmap and announced that Ireland is more than doubling our finance to at least €225 million at year by 2025. Other headline items include the call for an international fossil fuel non-proliferation treaty, so far by only two countries: the small Pacific Islands nations of Tuvalu and Vanuatu. Another was the proposal by the US for carbon credits which it says could be purchased by major companies to fund clean energy projects in poorer countries. However, the UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities has called for “red lines” to stop support for new fossil fuel exploration and overuse of carbon offsets. The group, created in March by the UN secretary general, António Guterres, aims to crack down on the greenwashing of net zero pledges by industry and governments. It stated that carbon offsets should be used only sparing, if at all, and then only after immediate cuts are made in absolute emissions. (Offsets are an often controversial practices whereby companies and governments pay for cuts elsewhere instead of reducing their own pollution.) The market for offsets continues, however, and on Tuesday a group of African countries including Kenya, Malawi, Gabon, Nigeria and Togo are backing a new initiative to “dramatically expand” the use of carbon offsets, aiming to produce 300 million credits annually by 2030 with each representing a metric ton of reduced, removed or avoided greenhouse gas emissions. The UK Transition Plan Taskforce (TPT) also launched its Disclosure Framework and Guidance for the private sector, emphasising the need for concrete, short-term action by companies and financial firms across the economy. The TPT was announced in 2021 at COP26 as part of the UK’s plan to become the world’s first net zero financial centre. It has a two-year mandate from HM Treasury to provide financial institutions and companies with the tools they need to create rigorous transition plans to fulfil their net zero commitments. Loss and damage continued to dominate speeches, with criticisms levelled at the US which, like most of the EU, has consistently resisted paying compensation to countries most severely impacted by climate change. There are exceptions to this resistance to pay, though: New Zealand announced a $20m climate fund for land and resources lost by developing countries to the effects of the climate crisis., and five European countries - Austria, Scotland, Belgium, Denmark and Germany - have committed to fund the loss and damage finance mechanism. Some useful resources Summary of loss and damage by Pilita Clark in The Financial Times This article in the Examiner, by UCC Professor Hannah Daly discusses the valuation of the damage climate change and as well as the best outcome we can hope for from the negotiations. Podcast from Bloomberg Green’s Akshat Rathi’s on Loss and Damage, direct from COP: Zero Did you know….about the Global Stocktake? The ‘Global Stocktake’ is the UN’s way of taking stock of the implementation of the Paris Agreement. It assesses progress towards achieving the pact’s goal to limit global warming to 1.5 degrees celsius above pre-industrial levels, and to scale up climate finance. The stocktake has three components Collecting and preparing information. This is currently underway at COP27. Technical assessment component, which will end in June 2023. Consideration of the outputs. This will take place at COP28 in November in Dubai next year. The global stocktake will provide critical information for countries and stakeholders to see what progress has been made on meeting the Paris Agreement goals, as well as identify any remaining gaps and opportunities for increased action.  You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

The FRC Lab has published a report entitled "Net zero disclosures". This report, which highlights examples of current practice, discusses some of the key considerations for investors who use net zero disclosures and the elements of net zero disclosures that investors want to understand. The report builds on three key elements of net zero disclosures (commitments, impacts and performance) and discusses areas of consideration and challenge within these topics. The report provides some useful guidance for preparers seeking to navigate the difficult area of reporting on their greenhouse gas emission reduction commitments.

In this week’s sustainability/ESG bulletin, we bring details of Cabinet’s approval of Ireland’s new Circular Economy Bill. Also covered are EU developments, the release of sustainability-related strategies in both the Republic and Northern Ireland, technical updates, and a link to listen back to our interview with Sustainability Expert Rosie Dunscombe. In the news Ireland’s Circular Economy Bill receives Cabinet approval  In what has been described as a landmark Bill that will introduce world-leading moves to reduce waste and influence behaviour, the Circular Economy Bill received Cabinet approval this week. The new legislation will underpin Ireland’s shift from a ‘take-make-waste’ linear model to a more sustainable pattern of production and consumption that will instead minimise waste to help significantly reduce our greenhouse gas emissions. Click here for details of the Bill, particularly what it will mean for businesses. EU Commission to empower consumers for the green transition The EU has also taken action on the circular economy this week. The European Commission is proposing new consumer rights and a ban on greenwashing. It announced proposals to amend the Consumer Rights Directive to oblige traders to provide consumers with information on the durability and reparability of products, and is also proposing several amendments to the Unfair Commercial Practices Directive (UCPD). The rules will strengthen consumer protection against untrustworthy or false environmental claims, banning ‘greenwashing’ (a form of corporate misrepresentation where a company will present a green public image and publicise green initiatives that are false or misleading) and banning practices misleading consumers about the durability of a product.  Sustainability-related strategies Sustainability-related strategies were in the news last week in both Ireland and Northern Ireland: The first ever Further Education and Training (FET) Green Skills Summit in Ireland took place last week, led by SOLAS, the Further Education and Training Authority in collaboration with Education and Training Boards Ireland (ETBI). The summit addressed the green economy as an area of opportunity, and pointed to the key challenge of upskilling and reskilling for changes to existing roles. Speaking at the summit, Minister for Further and Higher Education, Research, Innovation and Science Simon Harris described it is “an important step in our response to the challenge of climate change and the targets we have set for ourselves at a national level.”   Northern Ireland’s first overarching Environment Strategy was given approval by Northern Ireland’s Environment Minister Edwin Poots . The strategy sets out Northern Ireland’s environmental priorities for the coming decades and forms part of the Executive’s Green Growth agenda. Commenting, Minister Poots said the Strategy “will provide a coherent response to the global challenges of biodiversity loss and climate change.” The draft strategy, which will have to be formally approved by an incoming Executive before it can be published, can be found here.   Technical Updates The European Commission’s advisory Platform on Sustainable Finance has published its final report on how to bring investments in line with four environmental priorities of the EU’s taxonomy of green investments which are: Ensuring a sustainable use of water and marine resources Protecting and restoring biodiversity and ecosystems Transitioning to a circular economy; and Preventing and controlling pollution. Recommendations made in the report include giving a green label to activities that meet specific environmental criteria (additional criteria are expected to be recommended by the Platform in May). The Commission is expected to publish a Delegated Act later this year.   The International Sustainability Standards Board (ISSB) has launched a consultation on its first two proposed standards. One sets out general sustainability-related disclosure requirements and the other specifies climate-related disclosure requirements. Find out more here.   Our colleagues in Professional Accounting tell us that the IFRS Foundation and Global Reporting Initiative (GRI) have announced a collaboration agreement under which their respective standard-setting boards, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB), will seek to coordinate their work programmes and standard-setting activities. Resources ESG? Sustainability? ISBB? Net zero? Drowning in the ‘alphabet soup’ of sustainability terminology? You’re not alone! Listen back to our ‘Ask the Expert’ short interview that took place on Wednesday 30 March to hear Rosie Dunscombe FCA explain the key terms you're likely to hear as a finance professional.   British technology firm Dyson has reportedly created headphones designed to help people avoid polluted air in cities. The headphones come with a visor that delivers filtered air and were created in response to growing concerns about air and sound pollution in urban areas. The World Health Organisation (WHO) estimates that nine in 10 people globally breathe air that exceeds its guidelines on pollutant limits, and approx. 100 million people in Europe are said to be exposed to long-term noise exposure above its recommended level.     You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.