Sustainability/ESG bulletin from Chartered Accountants Ireland, Friday 19 May 2023
Susan Rossney
Sustainability Advocacy Manager with Chartered Accountants Ireland | Sustainability Leader | Peaceful Climate Activist
In this week’s Sustainability/ESG bulletin, read about Ireland’s Public Sector Climate Action Mandate, the European Parliament’s backing of new rules for sustainable products and eliminating greenwashing, and how Europe needs to step up its circular economy efforts. Also covered is the launch of the UK’s Local Industrial Decarbonisation Plans competition, the invitation to Northern Ireland businesses to apply for the King's Awards for Enterprise, the first meeting of the UK government's Net Zero Council, and articles and upcoming events.
Public Sector Climate Action Mandate receives Cabinet approval
The Public Sector Climate Action Mandate 2023, which highlights the main climate action objectives for Ireland’s public bodies, received Cabinet approval this week.
The mandate sets out a range of actions for the public sector to lead by example. These include removing disposable cups, plates and cutlery from public sector canteens, promoting the use of bicycles and shared mobility options, and phasing out parking facilities in buildings that have access to good public transport and active or shared mobility options.
The Public Sector Climate Action Mandate was first outlined in Climate Action Plan 2023, with some of the actions contained in the Programme for Government. The Department of the Environment, Climate and Communications has also developed a Public Sector Climate Action Strategy 2023-2025, which acknowledges the leadership role of the public sector in the broader nationwide net-zero transition.
Environmental subsidies in Ireland rose to €1.5 billion in 2021
In 2021, environmental subsidies and similar transfers in Ireland were €1.5 billion, an increase of €327 million, or 29 percent compared with 2020. The figures were outlined in a CSO statistical publication last week, which reported that the increase in environmental subsidies in 2021 was mainly due to an increased level of Public Service Obligation (PSO) Levy support to electricity generation from renewable sources. This rose from €130 million in 2020 to €415 million in 2021. 58 percent (€836 million) of total environmental transfers went to environmental protection activities such as wastewater management, protection of biodiversity, and protection of air and climate, while 42 percent, or €617 million, went to resource management activities, such as production of energy from renewable resources, heat/energy saving, and management of forest resources.
Local Industrial Decarbonisation Plans competition for £5 million funding – opening June 2023
The UK’s Department for Energy Security and Net Zero (DESNZ) has announced it will be launching the Local Industrial Decarbonisation Plans (LIDP) competition in June 2023. The LIDP offers grant funding of £5 million funding to support the development of strategic decarbonisation plans for industrial manufacturers located in dispersed sites to kickstart their journey towards a low-carbon future. LIPD will be open to collaborative local cluster project teams formed of industrial manufacturers and other key stakeholders, such as local authorities and Local Enterprise Partnerships (LEPs). Prior to the competition window opening, engagement sessions are being held on the LIDP to support stakeholders interested in forming a local cluster project team.
Northern Ireland businesses are invited to apply for the UK's most prestigious business award
Northern Ireland businesses are invited to apply for the King's Awards for Enterprise, which recognises and encourages the outstanding achievements of UK businesses in the fields of international trade, innovation, sustainable development, and promoting opportunity through social mobility. Businesses of all sizes and from all sectors can apply, the awards are free to enter and businesses can apply for more than one award. Applications close at midday on Tuesday 12 September 2023.
UK government holds first meeting of Net Zero Council
Last week saw the first meeting the UK’s Net Zero Council, a high-level government forum which aims to support industry to help cut emissions and develop greener practices. The key objectives of the Council, which is co-chaired by Energy Minister Graham Stuart and Co-op Group chief executive Shirine Khoury-Haq, are to ensure sectors and companies have a pathway to net zero and to lead a systematic review of the financing challenges and respective roles of government, industry and the financial sector in addressing them. The Council, which will meet once a quarter, also aims to identify key challenges facing SMEs in reducing their carbon footprints and to support their transition with new information and advice.
Commenting, Shirine Khoury-Haq said: “We are in the grip of a climate crisis of humankind’s making and this is the single most important issue that the global community faces. It is vital that all businesses actively contribute to the net zero journey with vigour, as failure to seize this opportunity simply cannot be an option.”
Europe needs to step up circular economy efforts, report finds
A briefing published this week by the European Environment Agency’s (EEA) has found that the EU must make more progress in implementing its circular economy action plan so as to achieve its goal of doubling the share of recycled materials used in its economy by 2030. The briefing, ‘How far is Europe from reaching its ambition to double the circular use of materials?’ found that enhanced waste recycling alone will not be sufficient for the EU to achieve the target and that less overall use of materials is needed. It also recommended more ambitious measures, for example: increasing the recycling rate of all treated waste from the current 40 percent to 70 percent, decreasing overall material inputs by 15 percent, and reducing the amount of fossil fuels used by 34 percent. It also recommends a special focus be put on non-metallic minerals, such as construction materials, as these account for about half of all materials used in the EU, and on materials with the highest negative impacts in their production, especially fossil fuels and biomass.
European Parliament backs new rules for sustainable products and to eliminate greenwashing
Members of the European Parliament last week approved the proposal for a new directive aimed at empowering consumers for the green transition by helping them make environmentally friendly choices and encouraging companies to offer more durable and sustainable products. The directive was proposed on 30 March 2022 by the Commission to empower consumers through better information and better protection against unfair practices. Among the measures foreseen are the banning of the use of general environmental claims like “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” if not supported by detailed evidence, and the banning of environmental claims that are based solely on carbon offsetting schemes.
The proposed directive is part of the first circular economy package and paves the way for a new green claims directive. The Council of the EU adopted its own negotiating mandate on 3 May, meaning that negotiations between the Parliament and the member states on the final content and wording of the directive can start soon.
Are you an SME interested in retrofitting your premises (renters or owners)?
A National Roadshow to help SMEs take the next step in commercial retrofitting is now underway. The roadshow, organised by ENACT, will be travelling across Ireland to bring in-person and online sessions to Cork, Dublin, and Galway. Sessions are organised by building type and sector. This is a unique opportunity for SMEs either owners or renters of premises:
ENACT is a 3-year initiative tasked with ‘enabling national action on commercial renovation’. It is funded by the Sustainable Energy Authority of Ireland (SEAI) and led by the Irish Green Building Council, in partnership with the University of Galway, SustainabilityWorks, Dublin Chambers of Commerce and the Society for Chartered Surveyors of Ireland. It aims to accelerate the rate of energy efficiency retrofits of commercial buildings around Ireland by enabling the commercial sector to overcome the barriers to retrofitting, which include financial, technical, knowledge and behavioural challenges.
Technical Update
From our colleagues in Professional Accountancy
Did you know?
Bleeper and Fingal County Council have collaborated to create Dublin's first shared cargo bike. The cargo bike can be hired using the Bleeper app. A €3 unlock fee applies, and then the first 120 minutes are free, after which a fee of €0.05 per minute is charged.
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Upcoming Events
Department of Enterprise, Trade and Employment Responsible Business initiatives webinar, 10:00 - 11:30 IST, Tuesday, 23rd May
Department officials will outline responsible business initiatives which may soon lead to new obligations for businesses.
SME Business Briefing, 10am – 11am Wednesday 24th May
Join SEAI on Wednesday 24th May at 10am and learn about how your business can save money and energy this year. This webinar will help you understand energy use and how to reduce energy costs, immediate ‘no-cost’ actions you can take to save, benefits of completing an Energy Audit and how SEAI will support you, the Climate Toolkit for Business and how to start your zero-carbon journey.
24 May
Chartered Accountants Ireland - Webinar on the Corporate Sustainability Reporting Directive (CSRD)
Join Dee Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions.
25 May
Business Post, ESG Summit, Croke Park, Dublin
30 May
Dublin Chamber, 2050 Series, Urban Planning: What will Dublin look like in 2050? Dublin Chamber's series of events focusing on sustainable mobility, flexible working practices, a focus on renewable energy, circular economy adoption, and urban density. Dublin Chamber, 7 Clare Street, Dublin 2, D02 F902, Free. 8.30-10.00
1 June
Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition
In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition.
8 June
This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture.
8 June
Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion.
21 June
Network for Chartered Accountants working on ESG projects
Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?
Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.
If you would like to attend please email sustainability@charteredaccountants.ie
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.