Building business competitiveness though climate action

Ibec’s new Climate Action Toolkit for Business

Environmental sustainability has taken on new meaning and importance in recent years. Once largely a matter of compliance, it is now a question of business value and survival. In the coming years investment, talent, and consumers will increasingly flow to businesses that show leadership on climate action, renewable energy, biodiversity, and resource circularity.

Irish businesses big and small recognise this new reality and are making environmental sustainability a mainstream business priority. This is evident in the surge in uptake and interest in renewable energy, science-based targets, and voluntary environmental disclosure schemes.

In Ibec’s 2024 CEO survey, business leaders identified climate action as a top-three priority for the next Government, along with the housing crisis and the cost of doing business.

However, most businesses, especially SMEs, do not know how to start this journey. Even for firms with in-house expertise, it can be difficult to navigate the jargon, the multiple climate standards, policy initiatives, legislative obligations, target setting frameworks and commercial offerings. And this brings its own risks. Businesses that do not adopt a robust, credible, and science-based approach, could be charged with greenwashing or á la carte environmentalism.

INDUSTRY BEST PRACTICE

With these challenges in mind, Ibec and Accenture have developed a new resource to help businesses avoid greenwashing and build a robust climate action strategy that reflects industry best practice.

Ibec’s Climate Action Toolkit is ideal for anybody new to the subject of climate action struggling to keep pace with recent developments in sustainability legislation and the growing expectations of investors, consumers, and other corporate stakeholders.

The Toolkit is rooted in industry best practice and is aligned with the GHG Protocol Corporate Standard, seen by many as the gold standard for company GHG emission management and disclosure. This is a resource designed by business for business.

At the heart of the Toolkit is a five-step process that brings the business through carbon footprinting, employee mobilisation, target setting, strategic implementation, and progress measurement and reporting.

The Toolkit also includes an extensive glossary of climate science and policy terminology, an overview of relevant EU legislation, a guide to voluntary sustainability initiatives, and a summary of the unique challenges facing the food and drink, commercial and financial, technology, and public sectors.

Search ‘Ibec Climate Action Toolkit’ and begin your climate action journey.

The scale of the solar panel installs requested by customers has also changed. One of Active8’s first commercial jobs was panels for the SSE Arena in Belfast in 2017. At 420 kilowatts, it was the largest solar rooftop in Ireland at the time.

“Now that’s bread and butter normal commercial,” says Marron. “Many of the early adopters were the smaller systems. Now corporates are looking at bigger loads to future proof their building. Industries in all sectors have done their best with energy efficiency through LED lighting etc, but as their business expands their loads are growing too.”

With the SSE Arena project, Marron pledged to SSE that he wouldn’t expect payment if the job wasn’t delivered on time. That commitment impressed the UK utility, which in 2018 bought a 40% stake in Active8, which later increased to 50%.

Marron recalls: “At the time solar thermal had plateaued and we knew we would face solar PV competition from Northern Ireland and the UK. Partnering with a company with many customers and green credentials was a perfect fit. We came to an agreement where I remained as CEO and in charge of dayto-day operations. Internally there has been very little change and we work very closely with SSE.

“They are constantly engaging with commercial customers and bringing them on the renewable journey. When the timing is right, we’ll get the introduction to speak to them. We are also involved in projects in Scotland and around London, and the UK is the next step.”

The Irish Solar Energy Association estimates that c.1 million homes have roof space for six or 10 solar panels, which would save up to €450 on the householder’s annual electricity bill. In April 2023, VAT of 23% was scrapped on domestic solar panels, reducing the cost of a 4.5 kilowatt solar system with 10 panels from around €9,000 to €8,000. With the current SEAI grant of up to €2,500, the net cost falls to €5,500.

In July 2023, a new Solar PV Scheme introduced grant funding of up to €160,000 for commercial installation sizes greater than 6kWp up to 1,000kWp (1MW) capacity. The commercial grant typically supports 20-30% of the investment cost, reducing payback to around five years.

Rooftop solar panels have also been exempted from planning permission, except in limited circumstances such as proximity to airfields. Incentives and relaxation of regulation have also spurred more competition in the market.

“In 2018 there were seven contractors certified for domestic solar PV and now that’s up to around 300,” says Marron. “We have developed a training academy because the required skill sets aren’t out there. Solar is a relatively new trade and we are taking in electricians and roofers and upskilling them to our standards. They will follow a crew for a certain period before they go out on their own. As you have more new teams, you need to inspect them regularly.”

He adds: “We would love to see Government incentivising the training programme for specialists in solar. It takes four years to become a qualified electrician and PV isn’t part of that course. We are working with a local ETB to design a bespoke course for the industry.

“Parents also need to understand that an apprenticeship can be just as beneficial a career choice as a degree. When I got my degree there were no jobs, and I went back did an electrician apprenticeship. People with degrees have the knowledge upstairs, but the practical knowledge on the ground isn’t there. I believe that on-thejob and off-the-job training together is much more beneficial for an employer than taking in someone after four or five years of college.”

Marron is convinced that for his business and staff, the only way is up.

“My pals used to joke about Ireland not being sunny enough for solar. Now they’re saying what happens when all the roofs are done? I tell them that demand for electricity is increasing, in areas such as heat and transport. Hopefully we can keep up with that, and micro generation is going to play its part. Where our electricity demand today is X, it’s possibly going to be two times X by 2030. And solar PV will have to take some of the load off the grid.”