EU Postpones Sustainability Reporting Deadlines Amid Simplification Efforts
The European Union has officially approved the "Stop-the-Clock" directive, delaying the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). This move aims to provide companies with additional time to adapt to the new requirements. Specifically, the second wave of CSRD reporting companies now has until 2028 to comply, while the third wave has until 2029. The European Financial Reporting Advisory Group (EFRAG) has been tasked with simplifying the European Sustainability Reporting Standards (ESRS) to reduce the reporting burden on companies.

SEC Withdraws Defense of Climate Disclosure Rule
The U.S. Securities and Exchange Commission (SEC) has voted to cease its legal defense of the climate disclosure rule, which required companies to disclose climate-related risks and emissions. This decision follows significant opposition from industry groups and Republican state attorneys general, who argued that the rule exceeded the SEC's authority and imposed undue burdens on businesses. The rule was initially adopted in 2024 to enhance transparency for investors regarding climate-related financial risks.

ICMA Advises Against Overreliance on EU Taxonomy in SFDR Revisions
The International Capital Market Association (ICMA) has cautioned the European Union against an overreliance on the EU Taxonomy in the upcoming revisions of the Sustainable Finance Disclosure Regulation (SFDR). ICMA argues that using the taxonomy as the sole measure of sustainability could restrict capital flows and hinder sustainable development. The association recommends a more flexible approach that accommodates various sustainability strategies and market practices.

UK FCA Engages ESG Ratings Providers in Regulatory Development
The UK's Financial Conduct Authority (FCA) has launched a voluntary survey targeting Environmental, Social, and Governance (ESG) ratings providers. The initiative aims to gather insights to inform the development of a regulatory framework for ESG ratings and sustainability disclosures. The FCA's move follows the UK government's draft legislation to bring ESG ratings providers under regulatory oversight, ensuring transparency and accountability in the ESG ratings market.

SBTi Launches Consultation on Revised Net-Zero Standard
The Science Based Targets initiative (SBTi) has opened a public consultation for its revised Corporate Net-Zero Standard Version 2.0. The updated standard aims to provide clearer guidance for companies setting net-zero targets, incorporating feedback from stakeholders and aligning with the latest climate science. The consultation period runs until June 1, 2025, allowing businesses, investors, and other stakeholders to contribute to the development of robust and actionable net-zero strategies.

European Council Adopts Position on CSRD Delay
The European Council has formally adopted the "Stop-the-Clock" directive, postponing the implementation timelines for the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). This move aims to provide companies with additional time to comply with the new sustainability reporting requirements. Member states are required to transpose this directive into national legislation by December 31, 2025.

EU and EFRAG Move Toward Reporting Framework Simplification
The European Financial Reporting Advisory Group (EFRAG) has been mandated by the European Commission to simplify the European Sustainability Reporting Standards (ESRS). This initiative seeks to make sustainability reporting more practical and effective, particularly for small and medium-sized enterprises, by reducing complexity and enhancing interoperability with global standards.

International Bodies Call for Standardized ESG Disclosure Alignment
The International Organization for Standardization (ISO) has launched guidance to support organizations in aligning their ESG disclosures with existing reporting standards. This effort aims to facilitate interoperability and create a harmonized approach to ESG compliance across borders, thereby reducing the reporting burden for companies operating internationally.

UK Government Introduces Nature Finance Standards to Boost Green Investment
The UK government has launched comprehensive nature finance standards aimed at setting a global benchmark for nature-based investments. Developed in collaboration with the British Standards Institution (BSI), these standards provide a framework to ensure high-integrity nature markets, prevent greenwashing, and encourage investment in nature restoration projects. They are designed to support businesses in making credible and impactful investments in nature, aligning with the UK's commitment to environmental sustainability.

Australia Allocates $250 Million to Enhance Nature Credit Market Infrastructure
The Australian government has committed A$250 million to bolster its nature credit market infrastructure. This funding aims to support the development of high-integrity carbon credits by investing in projects that sequester carbon through agricultural land management and conservation efforts. The initiative is part of Australia's broader strategy to meet its climate targets and promote sustainable land use practices.

TotalEnergies Plans to Generate 50 Million Nature-Based Carbon Credits by 2030
TotalEnergies has unveiled plans to produce 50 million nature-based carbon credits by 2030. This initiative involves investing in reforestation and conservation projects worldwide to offset the company's carbon emissions. The move reflects TotalEnergies' commitment to integrating nature-based solutions into its climate strategy and achieving its net-zero goals.

Bhutan's Mountain Hazelnuts Secures $7.9 Million Investment for Sustainable Agriculture
Mountain Hazelnuts, a social enterprise in Bhutan, has received a $7.9 million equity investment led by Finnfund and Mirova. The funding will support the expansion of climate-resilient farming practices, factory upgrades, and attainment of international certifications such as Rainforest Alliance and Organic. This investment underscores the growing interest in sustainable agriculture and its role in climate adaptation.

IFC and IDB Invest Launch Brazil's First Biodiversity and Social Bond
In collaboration with Itaú Unibanco, IFC and IDB Invest have issued Brazil's first bond focused on biodiversity and social initiatives, totaling BRL 1.4 billion (approximately $250 million). The bond aims to finance projects that promote environmental sustainability and social inclusion, marking a significant step in integrating biodiversity considerations into financial instruments.

New Forests and Oji Holdings Establish $300 Million Forestry Investment Fund
New Forests has partnered with Japan's Oji Holdings to create the Future Forest Innovations Fund, a $300 million investment vehicle targeting sustainable forestry projects across Southeast Asia, North America, Latin America, and Africa. The fund aims to achieve both financial returns and climate benefits, contributing to Oji's goal of capturing an additional 1.5 million tonnes of CO₂ annually by 2030.

Nature Tech Collective Highlights Gaps in Biodiversity Data
The Nature Tech Collective has released a sector map developed with Conservation International, identifying significant gaps in biodiversity data that hinder effective conservation efforts. The report emphasizes the need for improved data collection and analysis tools to better assess and manage biodiversity risks and opportunities.

Microsoft Signs 25-Year Deal for 7 Million Tons of Carbon Removal Credits
Microsoft has entered into a 25-year agreement with Chestnut Carbon to secure over 7 million tons of high-quality carbon removal credits. The afforestation, reforestation, and revegetation (ARR) projects span 60,000 acres across Arkansas, Texas, and Louisiana. This initiative supports Microsoft's goal to become carbon negative by 2030.

Amazon Launches Carbon Credit Service for Business Clients
Amazon has introduced a carbon credit service through its Sustainability Exchange, offering high-quality, science-based carbon credits to qualified companies. This initiative aims to support businesses in achieving their sustainability goals by providing access to verified carbon credits that fund projects reducing or removing greenhouse gas emissions.

Philip Lee Expands into U.S. Market Amid Carbon Removal Boom
Irish law firm Philip Lee has expanded its operations to the United States by partnering with New York-based Skylight Law. The collaboration aims to capitalize on the growing demand for legal expertise in climate finance, carbon project development, and climate-tech venture capital, positioning the firm as a leader in climate law practices.

Microsoft Commits to 1.5 Million Tonnes of Carbon Removal Credits in India
Microsoft has entered into a 30-year agreement to purchase 1.5 million tonnes of carbon removal credits from an afforestation project in India. The project, developed in collaboration with Climate Impact Partners and Terra Natural Capital, involves planting native trees across 20,000 hectares, contributing to Microsoft's goal of becoming carbon negative by 2030.

Google Contracts Over $100 Million in Carbon Removal Credits
Google has significantly increased its investment in carbon removal solutions, contracting more than $100 million in carbon removal credits. This expenditure is three times higher than the company's initial projections, reflecting its commitment to accelerating the development and deployment of both high-tech and nature-based carbon removal technologies, including direct air capture and biochar. These efforts are part of Google's broader strategy to address climate change and achieve net-zero emissions.

Axa IM Warns It May Exit Companies Weakening Climate Targets
Axa Investment Managers has warned it may reduce exposure to companies that have softened or reversed climate transition plans. This stance follows an internal assessment of climate target integrity across its portfolio. Axa IM emphasized the importance of robust decarbonization pathways in sustaining long-term financial performance.

Cambridge Associates Shifts ESG Strategy Toward Climate Risk Planning
Investment consultancy Cambridge Associates has overhauled its sustainability strategy, prioritizing climate risk management and portfolio resilience. The firm is guiding clients toward integrating physical and transition climate risks into long-term capital allocation decisions.

PwC and CDP Report Finds Resilient Corporate Climate Commitments
According to a joint report by PwC and CDP, corporate climate pledges are holding firm despite regulatory and economic uncertainty. More than 4,000 companies disclosed emissions reduction goals in the past year, with growing participation from mid-sized and emerging market firms.

SME Climate Commitment Momentum Builds
The median revenue of firms making climate pledges dropped significantly over five years, according to CDP data. This trend reflects a growing wave of small and medium enterprises adopting science-aligned net-zero targets and integrating sustainability into product design and operations.

Businesses Quietly Advance Net-Zero Implementation Despite Less Publicity
Analysts note that many corporations are implementing transition strategies under the radar, investing in decarbonization and low-carbon products even without major public announcements. This signals a maturing phase in corporate climate action where impact takes precedence over messaging.

Slovenia Prepares to Launch First Sovereign Sustainability-Linked Bond in Europe
Slovenia has unveiled its inaugural Sustainability-Linked Bond (SLB) framework, positioning itself to become the first European sovereign to issue such a bond. The bond's interest rates will be tied to the country 's performance on specific environmental targets, including greenhouse gas emissions reductions, renewable energy adoption, and energy efficiency improvements. The issuance is anticipated in June, aiming to raise up to €1.5 billion.

Triodos Bank UK Provides Nature-Linked Loan to RESTORE
Triodos Bank UK has extended a nature-linked loan to RESTORE, a nature restoration company, to support the expansion of its natural capital services. The financing will enable RESTORE to scale its operations and contribute to biodiversity enhancement and ecosystem restoration projects across the UK.

Sustainable Bond Issuance Declines by 20% Amid Market Challenges
The first quarter of 2025 witnessed a 20% drop in sustainable bond issuance compared to the same period in the previous year. The decline is attributed to a slowdown in corporate and sovereign issuances, reflecting broader market uncertainties and investor caution.

Societe Generale Predicts Record Year for Green Debt Instruments
Despite a slow start to the year, Societe Generale forecasts that the sustainable bond market will reach new heights in 2025. The bank cites factors such as bond redemptions and the proliferation of green taxonomies as key drivers that could propel the market to surpass $7 trillion in cumulative issuance.

Thriving Investments Secures £40 Million for Essential Worker Housing Fund
UK-based Thriving Investments has raised £40 million from institutional investors for its place-based impact strategy aimed at delivering affordable housing to essential local workers in Greater Manchester. The fund seeks to address housing shortages and support community development by providing rental homes at below-market rates.

Just Climate Invests $25 Million in Sustainable Agriculture Solutions Provider
Just Climate has invested $25 million in GreenLight Biosciences, a company specializing in sustainable agriculture solutions. The funding will support the global expansion and commercialization of GreenLight's RNA-based technology, which aims to enhance crop yields and reduce reliance on chemical pesticides.

Blended Finance Explored as Tool for Ukraine's Reconstruction
An OECD and Environmental Finance conference highlighted the potential of blended finance in supporting Ukraine's reconstruction efforts. Discussions focused on leveraging public and private capital to address infrastructure needs and promote economic resilience in conflict-affected regions.

Pentagreen and BII Provide $80 Million for Southeast Asia Renewable Projects
Pentagreen Capital and British International Investment (BII) have jointly committed $80 million to support solar and battery storage projects in Southeast Asia. The funding aims to accelerate the region's transition to clean energy and enhance energy security.

responsAbility Partners with DenizBank to Promote Green Lending in Türkiye
Swiss impact asset manager responsAbility has partnered with DenizBank to promote green lending in Türkiye. The collaboration involves a $25 million loan aimed at financing projects that contribute to climate change mitigation and environmental sustainability.

Legal & General Launches $235 Million Nature and Social Outcomes Strategy
Legal & General has launched a $235 million strategy focused on nature conservation and sustainable development in emerging markets. The initiative aims to address critical funding gaps by investing in projects that deliver both environmental and social benefits.

Golding Capital Partners Closes First Private Equity Impact Fund at €115.5 Million
Golding Capital Partners has announced the final closing of its first dedicated private equity impact fund, securing €115.5 million in commitments. The fund aims to invest in companies that generate measurable social and environmental impact alongside financial returns.

Schroders Greencoat Acquires 49% Stake in Repsol's €580M Spanish Renewables Portfolio
Schroders Greencoat has acquired a 49% stake in a €580 million renewable energy portfolio from Repsol, comprising eight wind farms and two solar plants totaling 400 MW across Spain. This strategic partnership aims to accelerate the development of renewable energy projects in the region.

KGAL ESPF 5 Invests in 28 MW Wind Farm Project in Germany
The renewable energy fund KGAL ESPF 5 has acquired a 40% stake in the development of a 28 MW wind farm project in Bierbergen, Lower Saxony, Germany. The project, consisting of five wind turbines, is expected to be operational by the first quarter of 2026.

Ardian to Acquire French Renewable Energy Firm Akuo
Private investment house Ardian has announced an agreement to acquire Akuo, a French independent power producer specializing in renewable energy. Akuo operates a 1.9 GW portfolio of solar, wind, and energy storage projects, with plans to expand to 5 GW by 2030.

Mirova Expands Impact Finance Services in Emerging Markets
Mirova has announced the expansion of its Impact Finance Services (IFS) to better support companies in emerging markets. The initiative aims to enhance the structuring of business and impact models for companies seeking to scale their sustainable solutions.

BNP Paribas Asset Management Launches €750M Low Carbon Transition Infrastructure Equity Fund
BNP Paribas Asset Management has launched a €750 million fund focused on investing in clean energy, sustainable mobility, and circular economy projects across Europe. The fund aims to build a diversified portfolio of 8 to 12 equity investments in mid-market infrastructure projects.

Brookfield to Invest Up to $1.1 Billion in Sustainable Aviation Fuel Producer Infinium
Brookfield Asset Management has committed to investing up to $1.1 billion in Infinium, a producer of ultra-low carbon electrofuels. The investment will support the development of Infinium's Project Roadrunner in Texas and other eFuels projects globally, aiming to accelerate the availability of sustainable aviation fuels.

WaterEquity Announces $100 Million in Financing for Water and Sanitation Infrastructure
WaterEquity has announced the availability of $100 million in financing to support water and sanitation infrastructure projects in emerging markets. The fund seeks to invest in both infrastructure projects and growth companies working across the water value chain, prioritizing equity and mezzanine instruments.

Deloitte Launches Global ESG-AI Upskilling Academies
Deloitte has launched new academies aimed at upskilling workforces in areas such as artificial intelligence, sustainability, and innovation. The programs offer tailored learning experiences to help organizations build resilient workforces equipped with high-demand skills.

Global Sustainable Bond Issuance Nears $1 Trillion in 2024
The issuance of green, social, sustainability, and sustainability-linked bonds is expected to exceed $1 trillion in 2024, reflecting an increasing commitment from governments and corporations toward financing environmental and social projects. The EU, China, and the U.S. are leading this market, with strong demand for ESG-compliant fixed-income assets. Source: Latin Finance

EU Advisers Recommend Overhaul of Sustainable Finance Fund Categories
EU regulators are considering a major overhaul of the Sustainable Finance Disclosure Regulation (SFDR), proposing three distinct fund categories to improve clarity and transparency for investors. The move aims to combat greenwashing and make ESG investments easier to understand for retail investors. Source: Reuters

Switzerland Strengthens Sustainability Disclosure Rules
Switzerland is introducing stricter sustainability disclosure regulations, requiring companies to align net-zero strategies with the country's 2050 climate targets. Firms will be mandated to report detailed emissions data and climate risk assessments in line with global standards.

Source: Sustainable Finance Daily
APEC Finance Ministers Push for Sustainable Economic Growth Finance ministers from Asia-Pacific Economic Cooperation (APEC) countries have outlined new frameworks to strengthen economic resilience through sustainable finance. They emphasize decarbonization, digital financial solutions, and regional green investment strategies. Source: APEC

Thailand Issues $865 Million Sustainability-Linked Bond
Thailand’s government has successfully issued its first $865 million sustainability-linked bond to finance projects focused on renewable energy, water conservation, and sustainable transportation. This marks a significant step in the country's transition to a green economy. Source: Thailand Ministry of Finance

BNP Paribas AM Launches €750 Million Low Carbon Transition Fund
BNP Paribas Asset Management has introduced a €750 million infrastructure fund dedicated to supporting companies involved in the low-carbon transition. The fund will prioritize investments in renewable energy, green mobility, and sustainable supply chains. Source: BNP Paribas

Heirloom Raises $150 Million for Direct Air Carbon Capture
Carbon removal startup Heirloom has secured $150 million in funding to scale its direct air capture technology. The company’s innovative approach enhances CO₂ absorption efficiency, providing scalable solutions for carbon removal at an industrial level. Source: Heirloom

EU Implements Transitional Framework for Sustainable Finance Reviewers
Starting December 21, 2024, companies providing external reviews of sustainable finance products must comply with the European Securities and Markets Authority (ESMA) regulations to ensure quality standards and prevent misleading sustainability claims. Source: EU Finance

Canada Considers $15 Billion Incentive for AI-Driven Green Data Centers
The Canadian government is exploring a $15 billion incentive program to encourage investment in AI-powered green data centers, aiming to boost digital infrastructure while reducing emissions. Source: Reuters

COP29 Prioritizes Climate Finance for Developing Countries
At COP29, discussions focused on scaling climate finance for developing nations, with emphasis on debt relief, sustainable energy funding, and a fair carbon credit framework. Wealthy nations were urged to fulfill their climate finance commitments. Source: Wikipedia

UN Secretary-General Calls for Action on Climate Finance Pledges
During a visit to Lesotho, UN Secretary-General António Guterres demanded that developed nations fulfill their commitment to providing $300 billion per year in climate finance to developing economies. Source: AP News

EU Strengthens Rules to Combat Greenwashing in ESG Funds
The European Securities and Markets Authority (ESMA) has proposed tighter ESG fund regulations, restricting funds labeled as "green" from investing in companies with high emissions. Source: Financial Times

EU Strengthens Clean Tech Investments with €4.6 Billion Funding
The European Commission has committed €4.6 billion to support clean technology projects, reinforcing the EU’s ambitious climate agenda. This funding will help accelerate the deployment of renewable energy, hydrogen, and battery storage projects, contributing to the EU's goal of achieving climate neutrality by 2050. Source: European Commission

EU Parliament Approves Carbon Removal Certification System
The EU lawmakers have approved a new regulation establishing a certification framework for carbon removal projects. This initiative aims to enhance transparency in carbon credit markets and encourage businesses to adopt robust carbon capture technologies. The certification system will align with the EU’s Fit-for-55 package. Source: EU Parliament

UK Introduces Sustainability Reporting Law for Financial Sector
The UK government has launched a proposal requiring financial institutions to disclose climate-related risks in line with IFRS sustainability standards. This measure will help investors assess environmental risks associated with financial assets and drive capital towards sustainable investments. Source: UK Financial Conduct Authority

Texas Sues BlackRock and Vanguard Over ESG Investments
Texas has initiated a multi-state lawsuit against asset managers BlackRock, Vanguard, and State Street, accusing them of using ESG-focused investment strategies to manipulate energy markets. The lawsuit claims these firms prioritize climate policies over financial returns, violating fiduciary duties. Source: Texas Attorney General

42% of Companies Uncertain About Meeting CSRD Requirements
A PwC survey has found that only 42% of companies required to comply with the EU’s Corporate Sustainability Reporting Directive (CSRD) are confident in meeting the reporting requirements. The study highlights challenges related to data collection and regulatory alignment. Source: PwC

Hong Kong to Implement IFRS-Aligned Sustainability Reporting by 2025
The Hong Kong Stock Exchange has announced mandatory sustainability reporting rules aligned with IFRS standards, requiring listed companies to disclose climate risks and transition strategies from 2025 onwards. Source: Hong Kong Stock Exchange

IFRS Foundation Launches Sustainability Disclosure Guide
The IFRS Foundation has published new guidelines to help companies identify and report sustainability risks. This initiative aims to standardize ESG disclosures globally and support investors in making informed decisions. Source: IFRS Foundation

GRI and CDP Strengthen Sustainability Reporting Alignment
Global Reporting Initiative (GRI) and CDP have announced stronger alignment between their sustainability reporting frameworks. This effort will improve consistency in corporate disclosures on climate change and natural resource use. Source: GRI &; CDP

Microsoft Expands Water-Free Cooling Systems in Data Centers
Microsoft is scaling up its deployment of water-free cooling technologies across data centers in high-heat regions, reducing water consumption while maintaining energy efficiency. Source: Sustainable Finance Daily

H&;M Expands Circular Fashion Initiatives with New Recycling Program
H&;M Group has introduced an expanded textile recycling program across Europe and North America, aligning with its circular economy goals and net-zero fashion ambitions. Source: Reuters

Meta Turns to Nuclear Energy to Decarbonize AI Data Centers
Meta has announced plans to power its AI-driven data centers using nuclear energy, aiming to reduce emissions from its expanding digital infrastructure. This move aligns with the company's broader sustainability strategy to achieve net-zero emissions across operations. Source: Meta

TotalEnergies Acquires Renewable Energy Firm for $1.7 Billion
TotalEnergies has completed a $1.7 billion acquisition of renewable energy developer VSB. This deal significantly strengthens its portfolio in wind and solar energy projects, advancing its goal of transitioning to clean energy solutions. Source: TotalEnergies

Amazon Achieves 99% Landfill Diversion for Data Center Hardware
Amazon has implemented a circularity program for its data centers, achieving a 99% landfill diversion rate for retired hardware components. This initiative supports the company’s broader sustainability goals, including reducing electronic waste and promoting material reuse. Source: Amazon

IKEA Invests $1.6 Billion to Decarbonize Heating and Cooling Systems
IKEA is investing $1.6 billion to develop low-carbon heating and cooling solutions for its stores globally. The initiative is part of its sustainability roadmap to cut greenhouse gas emissions and improve energy efficiency in retail operations. Source: IKEA

Bank of Japan Launches Green Finance Support Program
The Bank of Japan (BOJ) has introduced a new green finance initiative, offering incentives for private-sector investment in renewable energy and low-carbon technologies. Source: Japan Times

Barclays Tightens Lending Rules for Carbon-Intensive Projects
Barclays has updated its climate risk policies, imposing stricter lending requirements for fossil fuel projects while increasing green financing allocations. Source: Financial Times

HSBC Launches Climate-Linked Bonds for Disaster Risk Financing
HSBC has introduced a new range of climate catastrophe bonds, designed to provide financial resilience for countries vulnerable to extreme weather events. Source: Bloomberg

Societe Generale Sets €500 Billion Sustainable Finance Target
French banking giant Societe Generale has committed to mobilizing €500 billion for sustainable finance initiatives by 2030. The bank aims to expand its green loan portfolio and facilitate investments in environmental and social impact projects. Source: Societe Generale

Euronext Strengthens Commitment to Sustainable Finance During Sustainability Week
Euronext launched several new ESG-focused initiatives to promote sustainable investments across European markets, including enhanced ESG disclosure requirements and green bond frameworks. Source: [Euronext Press Release]

BMW and Toyota Partner to Develop Hydrogen-Powered Fuel Cell EVs
BMW and Toyota deepened their collaboration to develop next-generation hydrogen fuel cell electric vehicles, targeting mass production by 2030, aligning with global decarbonization goals. Source: [Reuters]

Volvo Delays Full Electrification Plans, Adjusts EV Targets Amid Market Challenges
Volvo announced a strategic delay in its goal to sell only electric vehicles by 2030, citing market volatility and supply chain disruptions. The company remains committed to its long- term sustainability goals. Source: [Bloomberg]

Microsoft Signs 20-Year Solar Power Deal with EDP Renewables in Singapore
Microsoft has signed a long-term power purchase agreement with EDP Renewables to secure solar energy in Singapore, reinforcing its commitment to 100% renewable energy across global operations by 2025. Source: [Microsoft Blog]

Nestlé Shifts to Paper Packaging for Key Product Lines to Reduce Plastic Waste
Nestlé introduced paper packaging for major products, including Nescafé and Vital Proteins, as part of its pledge to achieve 100% recyclable or reusable packaging by 2025. Source: [Nestlé Press Release]

TotalEnergies Invests $444 Million in Indian Solar Joint Venture with Adani
TotalEnergies announced a $444 million investment in a 1 GW solar project with Adani Green Energy, advancing its clean energy initiatives in the Indian market. Source: [Financial Times]

Air France-KLM Secures 1.9 Billion Liters of Sustainable Aviation Fuel from TotalEnergies
Air France-KLM signed a landmark agreement to purchase 1.9 billion liters of sustainable aviation fuel from TotalEnergies to meet its carbon reduction targets for 2030. Source: [Air France-KLM Press Release]

Amazon and Air Products Launch Hydrogen-Powered Truck Trials with Mercedes- Benz
Amazon and Air Products have begun testing hydrogen-powered Mercedes-Benz trucks in Europe, aiming to reduce emissions in their supply chain logistics by transitioning to cleaner energy solutions. Source: [The Verge]

Microsoft Purchases 234,000 Carbon Credits from Rainforest Restoration Project
Microsoft acquired 234,000 carbon credits from Toroto, a rainforest restoration initiative in Mexico, reinforcing its strategy to be carbon-negative by 2030. Source: [Microsoft Sustainability Report]

Google Partners with Holocene for Direct Air Capture Carbon Removal
Google signed an agreement with Holocene to remove 100,000 tonnes of CO₂ using direct air capture technology, supporting its net-zero emissions goals by 2030. Source: [The Verge]

Brookfield to Invest $1.1 Billion in Synthetic Sustainable Aviation Fuel Startup Infinium
Brookfield announced a $1.1 billion investment in Infinium, a leading producer of synthetic sustainable aviation fuel, to support the aviation sector's decarbonization. Source: [Financial Times]

Nasdaq Launches Marketplace for Clean Energy Tax Credits
Nasdaq, in collaboration with Crux, introduced a marketplace to facilitate the trading of clean energy tax credits, capitalizing on incentives from the U.S. Inflation Reduction Act. Source: [Nasdaq Newsroom]

Standard Chartered Finances $205 Million Carbon Capture Project at Harvestone Biorefinery
Standard Chartered provided $205 million in financing for a carbon capture project at Harvestone Biorefinery, aiming to reduce emissions in biofuel production. Source: [Standard Chartered Press Release]

Australia Senate Passes Mandatory Climate Risk Disclosure Law
The Australian Senate passed a landmark law requiring companies to disclose climate-related financial risks from 2025, aligning with international sustainability standards. Source: [ABC News Australia]

SEC Fines Keurig $1.5 Million Over Misleading Recycling Claims
The U.S. Securities and Exchange Commission fined Keurig $1.5 million for falsely advertising the recyclability of its coffee pods, marking a significant ESG enforcement case. Source: [SEC Press Release]

European Commission to Introduce Carbon Footprint Labels for Flights
The European Commission announced plans to mandate carbon footprint labels on airline tickets to promote transparency and encourage sustainable travel choices among consumers. Source: [EU Commission]

UK Regulator Cracks Down on Greenwashing in Fashion Industry
The UK’s Competition and Markets Authority issued warnings to 17 fashion brands for misleading environmental claims, intensifying scrutiny on the industry’s sustainability marketing. Source: [BBC]

Italy Launches Investigation into Shein’s Environmental Claims Amid Greenwashing Concerns
Italy's antitrust authority initiated an investigation into Shein over concerns about false sustainability claims, reflecting growing regulatory focus on fast fashion’s environmental impact. Source: [Reuters]

Asian Development Bank Targets $100 Billion in Climate Finance by 2030
The Asian Development Bank announced an ambitious plan to mobilize $100 billion in climate finance by 2030 to support renewable energy and sustainable infrastructure projects in developing countries. Source: [ADB Press Release]

Bank of America Commits $205 Million to Carbon Capture Financing at Biorefinery
Bank of America announced a $205 million investment in a carbon capture initiative at a U.S. biorefinery, emphasizing its dedication to sustainable finance and emissions reduction. Source: [BoA Newsroom]

TPG Raises $1.25 Billion for Global South Climate Solutions Fund
TPG secured $1.25 billion for a climate solutions fund aimed at financing sustainable projects in emerging economies, focusing on renewable energy and climate resilience. Source: [TPG Press Release]

WaterEquity Raises $100 Million for Global Water Impact Fund Backed by Microsoft and Starbucks
WaterEquity, with backing from Microsoft and Starbucks, raised $100 million to support water access and sanitation projects in underserved communities globally. Source: [WaterEquity Press Release]

EcoVadis Acquires Ulula to Enhance Human Rights Analytics in Supply Chains
EcoVadis strengthened its ESG offerings by acquiring Ulula, a human rights analytics platform, improving transparency and ethical sourcing in global supply chains. Source: [EcoVadis Press Release]

Oracle Launches New Sustainability Data Management Platform for ESG Reporting
Oracle introduced a comprehensive sustainability data platform to help companies streamline ESG reporting and meet emerging global regulatory requirements. Source: [Oracle Newsroom]

MSCI Unveils Carbon Credit Rating Platform to Enhance Transparency in Carbon Markets
MSCI launched a carbon credit rating platform, offering institutional investors a tool to evaluate the quality and effectiveness of carbon offset projects. Source: [MSCI Press Release]

Deloitte Launches Global Sustainability and AI Upskilling Academies for Corporate Leaders
Deloitte introduced sustainability and AI upskilling academies worldwide, equipping corporate leaders with the tools to integrate ESG into business strategies effectively. Source: [Deloitte Insights]

Honeywell Introduces Carbon Emission Reduction Tool for Hospitality Sector
Honeywell unveiled a new tool designed to help mid-sized hotels monitor and reduce their carbon emissions, addressing the hospitality industry’s sustainability challenges. Source: [Honeywell Press Release]

Deloitte Survey: 85% of Companies Increased Sustainability Investments in 2024
A Deloitte survey revealed that 85% of companies increased their sustainability investments over the past year, expecting long-term business benefits and regulatory compliance advantages. Source: [Deloitte Survey 2024]

BCG Study Highlights AI's Role in Accelerating Corporate Decarbonization
A report by Boston Consulting Group showed that companies leveraging AI in their decarbonization efforts are achieving faster, more cost-effective emissions reductions. Source: [BCG Report]

Bain Survey Finds CEOs Scaling Back Sustainability Despite Rising Consumer Demand
Bain & Company’s latest survey indicates that many CEOs are deprioritizing sustainability initiatives despite increasing consumer demand for environmentally responsible products. Source: [Bain & Co Survey]

Salesforce Study Shows Divided Executive Opinions on AI’s Impact on Sustainability
A Salesforce survey found that just over half of executives believe AI will have a positive effect on sustainability, while others remain skeptical about its environmental benefits. Source: [Salesforce Insights]

Aligns ESRS with GRI Standards
The European Financial Reporting Advisory Group (EFRAG) has aligned the European Sustainability Reporting Standards (ESRS) with concepts and definitions from the Global Reporting Initiative (GRI). Interoperability and mapping tools have been published to assist GRI users in preparing for ESRS reporting starting in 2025. Additionally, the GRI has launched a new GRI-ESRS Linkage service in collaboration with EFRAG, focusing on training and capacity building. The Corporate Sustainability Reporting Directive (CSRD) adopts a double materiality approach, requiring companies to report on both business risks and broader impacts. This alignment allows the use of equivalent standards like GRI and ISSB, aiding companies in meeting CSRD requirements and benefiting those affected by its extraterritorial reach.

IFRS Foundation Work Plan for Harmonised Sustainability Reporting
During London Action Climate Week, the IFRS Foundation announced a two-year work plan to deliver harmonized corporate sustainability reporting. As the sustainability disclosure landscape evolves through regulation and voluntary initiatives, the IFRS Foundation will play a crucial role in creating standardized approaches and practices for high-quality, comparable disclosure information. The foundation is exploring additional aspects of disclosure as transition plans become increasingly relevant and decision-useful information for investors. Tailored guidance on transition plan disclosures would enhance the application of the IFRS S2 Climate-related Disclosures without impacting its structure.

Australia to Use ISSB Standards for Sustainability Disclosure
Australia is shifting its sustainability standards to align more closely with the International Sustainability Standards Board (ISSB) standards, moving beyond a climate-only focus. This change follows significant feedback from the investor community and the financial sector, emphasizing the need for comprehensive sustainability reporting. The Australian Accounting Standards Board (AASB) has indicated plans to adopt IFRS S1 voluntarily, while climate disclosures will remain mandatory. This alignment aims to strike a balance between interoperability and local needs.

China to Implement ISSB-Styled Corporate Disclosure Standards by 2030
China’s Ministry of Finance launched a consultation on Corporate Sustainability Disclosure Standards: Basic Principles, marking the first step towards establishing an ISSB-based disclosure regime. Feedback on the draft standards can be submitted until June 24, 2024. The standards aim to standardize corporate sustainability information disclosure, with mandatory reporting gradually phased in by 2030. The Ministry hopes to develop unified national standards, including climate standards by 2027, and require all listed, non-listed entities, and SMEs to adopt the standards by 2030.

IFRS and EFRAG Publish Interoperability Guidance
On May 2, 2024, the IFRS Foundation and EFRAG jointly published interoperability guidance to help streamline the ISSB and ESRS disclosure processes for reporting entities. The guidance aims to minimize the reporting and compliance burden for entities disclosing against both the ISSB and ESRS frameworks, illustrating high alignment, especially in climate-related disclosures. It includes information on general reporting requirements, materiality, and sustainability topics beyond climate, improving efficiency in sustainability reporting.

European Parliament Set to Implement Basel III Standards
The European Parliament passed the EU Banking Package with key amendments to the Capital Requirements Regulation (CRR3) and the Capital Requirements Directive (CRD), marking an important milestone in implementing Basel III reforms. These reforms will enhance the assessment of ESG risks in the prudential framework, requiring institutions to integrate ESG risks when assessing collateral value. From January 1, 2025, financial institutions must disclose ESG risks, including physical and transition risks, following technical standards developed by the European Banking Authority (EBA).

Final CSDDD Agreement Reached
The Corporate Sustainability Due Diligence Directive (CSDDD) was adopted on May 24, 2024. The directive requires companies to prevent and address adverse impacts on human rights and the environment linked to business activity. Large companies (over 5,000 employees and €1,500 million turnover) must comply by 2027, followed by medium-sized companies (over 3,000 employees and €900 million turnover) by 2028. Companies with 1,000 employees and €450 million turnover have until 2029 to comply. The regulation directly impacts approximately 5,400 EU companies and affects franchising or licensing deals in the EU, as well as non-EU companies.

EU Council Adopts Net Zero Industry Act
The European Council approved the Net Zero Industry Act to scale investments in net-zero technologies. The regulation simplifies the permit granting process for eligible projects and facilitates market access to renewables by implementing sustainability and resilience criteria in public procurement. Additionally, the act supports carbon capture, utilization, and storage projects. The EU targets an increase in manufacturing capacity for net-zero technologies to roughly 40% of the EU’s deployment needs.

European Securities and Markets Authority (ESMA) Releases Finalised Guidelines on ESG Terms in Fund Names
ESMA issued guidelines to regulate the use of ESG or sustainability-related terms in fund names to prevent greenwashing. The final report retains the minimum 80% threshold for sustainable investment to meet the environmental/social characteristics or sustainability objective. ESMA removed the 50% sustainable investment threshold, following stakeholder feedback that the definition under Article 2(17) SFDR is unclear. Instead, ESMA introduced a commitment to meaningful investment in sustainable investments. The guidelines clarify exclusions criteria for different terms, grouping social and governance terms with transition-related terms under Climate-Transition Benchmark (CTB) exclusions. Funds with environmental and sustainability-related terms will be subject to Paris-Aligned Benchmarks (PAB) exclusion criteria. ESMA provides a six-month transitional period for existing funds to comply or explain, while new funds must use the guidelines immediately.

SFDR Summary Report Indicates Split Over New Category System
The European Commission published a Summary Report highlighting key takeaways from the targeted consultation on the implementation of SFDR initiated on September 14, 2023. The report shows that 80% of respondents agree that SFDR’s objective to enhance transparency through sustainability disclosures is relevant. Additionally, there is consensus on maintaining consistency across key pieces of legislation under the sustainable finance framework including the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), and SFDR. Over half of the respondents support uniform disclosure requirements for all financial products as a means for investors to accurately identify sustainable and unsustainable assets across European markets. However, 77% of respondents expressed limitations in the effectiveness of the framework due to various issues including unclear legal concepts and definitions and lack of disclosure data. The 2023 consultation proposed either converting Article 8 and 9 into formal product categories with clear and concise criteria or creating a new categorization system that does not incorporate underlying concepts embedded in the SFDR framework. The Summary Report reveals that there is no clear preference between the two options, making it a complex task for regulators and market participants to chart a course of action.

California Considers Delay in Climate Disclosure Rules
On June 28, 2024, the Newsom administration proposed amendments to delay the implementation of California's climate emissions disclosure and financial risk reporting laws. Key proposed revisions include a two-year delay for the implementation of both SB 253 and SB 261, allowing the California Air Resources Board (CARB) more time to develop regulations. Other revisions include modifications to Scope 3 emissions reporting, consolidation of emissions reporting at the parent company level, and granting CARB discretion in contracting with nonprofit reporting organizations.

ESMA Releases Guidelines on Sustainability Information Enforcement
The European Securities and Markets Authority (ESMA) issued Guidelines on the Enforcement of Sustainability Information (GLESI) to establish uniform and robust supervisory approaches to sustainability reporting. National authorities may use these recommendations to align with the Corporate Sustainability Reporting Directive (CSRD) and the ESRS framework. ESMA will monitor the application of sustainability reporting practices and GLESI in 2025. A Public Statement from ESMA supports large issuers progressing through a learning curve during the initial reporting period and calls for transparency on transitional reliefs in the CSRD.

AFM Clarifies CSRD Double Materiality Process
The Dutch regulator Authority for Financial Markets (AFM) published guidance on CSRD double materiality assessment to support companies reporting from 2025. The 10 waypoints provide a circular pathway for conducting double materiality analysis, emphasizing transparency throughout the process, starting with stakeholder engagement and due diligence to identify materially relevant sustainability topics. Double materiality integrates financial materiality (how sustainability-related issues affect financial performance) and impact materiality (a company's impact on the environment and society).

Swiss Federal Council Clarifies Binding Vote on CSRD
On May 29, 2024, the Swedish Parliament voted to adopt a bill to transpose the CSRD into national law. The Federal Council clarified that the vote to approve sustainability reports at annual general meetings will be binding. The new rules will regulate the quality of sustainability information disclosed by entities, requiring verification from an auditor or conformity assessment body. The Federal Council of Switzerland has opened a consultation until October 17, 2024, proposing changes to non-financial reporting obligations under the Swiss Code of Obligations to align with international sustainability standards, including the CSRD.

CSDDD Published in the Official Journal of the EU
On July 5, 2024, the Corporate Sustainability Due Diligence Directive (CSDDD) was published in the Official Journal of the EU. This directive mandates companies to address negative impacts on human rights and the environment, such as child labor and biodiversity loss. It requires remediation of actual adverse impacts caused. The regulation will apply in stages, depending on a company’s turnover and employee count. Companies with over 5,000 employees and €1,500 million turnover will have three years to comply. Member States must impose penalties for non-compliance, including fines up to 5% of a company’s net turnover.

German Supply Chain Regulation May Be Replaced Early with EU CSDDD
Germany plans to reduce the scope of its national supply chain due diligence legislation (LkSG) from 5,200 to fewer than 1,000 firms, replacing it with the EU CSDDD. Legal experts note that this could violate EU law as the CSDDD prohibits lowering existing protections. The CSDDD will be fully effective from 2027, and Member States have two years from enforcement to transpose it into national law.

SEBI Proposes Changes to the BRSR Framework
In 2021, India’s top financial regulator introduced mandatory sustainability reporting for the top 1,000 listed companies by market capitalization under the BRSR. SEBI has since released a Consultation Paper proposing key changes, including redefining the value chain, introducing a new leadership indicator related to green credits, and replacing the term assurance with assessment. For FY2023-2024 disclosures, companies can choose between assessment and reasonable assurance. For reports from FY2024 onwards, disclosures will be subject to assessment, aiming to alleviate compliance burdens and facilitate ease of doing business.

UK Government Updates Timeline for Final Sustainability Reporting Framework
The UK Department of Business and Trade announced a delay in creating the UK Sustainability Reporting Standards (SRS), previously slated for release in July 2024. The timeline was delayed to Q1 of the next year to provide businesses, especially first-time reporting entities, more time to gather input on reporting requirements. The Financial Conduct Authority (FCA) will determine the mandatory application of standards for listed companies. The UK will consider mandatory climate reporting from 2026, with a decision expected in the second quarter of the next year.

US EPA Updates Methane Emissions Reporting Rule
The US Environmental Protection Agency (EPA) updated methane emissions reporting requirements for natural gas and petroleum systems under the U.S. Greenhouse Gas Reporting Program. The final rule includes the ‘Super-Emitter Program,’ requiring facility owners and operators to report emissions exceeding 100 kg per hour. This aims to close the gap between observed and reported methane emissions, with enhanced data collection to establish the total volume of pollution caused by the oil and gas industry. Enhanced measurements of emissions will serve as a basis for calculating waste fees for facilities with methane emissions above certain thresholds defined by the Methane Emissions Reduction Program (MERP) created under the Inflation Reduction Act (IRA).

TNFD Releases Guidance on Nature-related Reporting
The Taskforce on Nature-related Financial Disclosures (TNFD) released sector-specific guidance, including recommended disclosure metrics, to assist companies and financial institutions with nature-related reporting. Organizations in eight "real economy" sectors—aquaculture, biotechnology and pharmaceuticals, chemicals, electric utilities and power generators, food and agriculture, forestry and paper, metals and mining, and oil and gas—can utilize tailored guidance for nature-related disclosures. Additional guidance is provided for financial institutions, including banks, insurers, reinsurers, asset managers, asset owners, and development finance institutions.

ISO to Launch Net Zero Standard in 2025
The new Net Zero Standard by ISO is expected to launch in November 2025 at the COP30 conference. This standard aims to provide 'clarity, credibility, and trust' to organizations' net zero targets and strategies. It will build upon the existing Net Zero Guidelines, creating an independently verifiable net zero standard suitable for organizations of all sizes, sectors, and geographies.

ESAs Propose Enhancements to SFDR Framework
The European Supervisory Authorities (ESAs) recommended enhancements to the Sustainable Finance Disclosure Regulation (SFDR) to improve transparency and investor protection. Key proposals include categorizing financial products into "Sustainable" and "Transition Product" categories, with minimum sustainability thresholds. The statement emphasizes the need for clearer definitions of sustainable investments under Article 2(17) of the SFDR, urging the EU Commission to align it with the EU Taxonomy. The ESAs also suggest improvements in the disclosure framework for principal adverse impacts, government bonds, and simplification of pre-contractual disclosures. Additionally, the ESAs call for restrictions on using sustainability-related terms in product naming to combat greenwashing and ensure accurate representation of sustainability profiles.

Australia Introduces Sustainability Classifications for Certified Products
In May 2024, the Responsible Investment Association of Australasia established three fund labels—responsible, sustainable, and sustainable plus—along with criteria for each label. The sustainability classification system specifies that firms must align investment activities with sustainability objectives. Single asset portfolios must have a minimum of 80% sustainable investments to achieve the 'sustainable' label, while multi-asset portfolios must have at least 50%. 'Sustainable plus' funds must meet additional requirements and incorporate sustainability objectives as binding criteria in their documentation. Australia is also considering legislation to establish minimum standards for marketing investment products as sustainable, covering all managed investment and superannuation products marketed to retail clients. This aims to standardize sustainability terminology and require ongoing disclosure against sustainability criteria.

ICMA Publishes Draft Hong Kong Code of Conduct for ESG Ratings and Data Providers
The International Capital Markets Authority (ICMA) released a draft code of conduct for ESG ratings and data providers in Hong Kong. The voluntary code of conduct (VCOC) is based on recommendations from the International Organization of Securities Commissions (IOSCO) and focuses on comparability and international interoperability. The VCOC contains six principles and follows the IOSCO structure to ensure four key outcomes: good governance, systems and controls, conflict of interest management, and transparency. Guidance for practical application and interpretation of each principle ensures that providers have the appropriate policies and procedures in place for high-quality, reliable product offerings. ESG ratings providers have a six-month implementation period, while data providers have twelve months to comply. By signing up, providers must publicly disclose information on their data and ratings methodologies.

ESAs Jointly Publish Final Report to End Greenwashing
The European Supervisory Authorities (ESAs) published a final report addressing greenwashing risks, emphasizing the importance of substantiating sustainability claims clearly and without misleading information. The report calls for effective supervision of sustainability disclosures by competent authorities and stresses the need for cooperation among authorities to ensure adherence to key legal provisions, such as the Taxonomy Regulation, SFDR, and CSRD. The report also promotes standardization and machine-readability of sustainability reports to enhance transparency and comparability.

Hong Kong Monetary Authority Launches Taxonomy
The Hong Kong Monetary Authority launched a new classification system for environmentally sustainable economic activities to facilitate green finance flows. The taxonomy helps guide investors in identifying and classifying green activities and avoiding investments with negative environmental impacts. It currently includes twelve economic activities under four sectors: power generation, transportation, construction, and water and waste management. The taxonomy provides supplemental guidance on using the standardized framework, including thresholds and criteria for eligibility. It is designed to be compatible with the Common Ground Taxonomy (CGT), EU Taxonomy, ASEAN Taxonomy, and the Climate Bonds Taxonomy (CBT) established in Mainland China. Future iterations of the taxonomy plan to include transition activities and additional sectors.

GRI Updates Labour Standards for Workplace Transparency
The Global Reporting Initiative (GRI) updated its labor-related standards to enhance transparency in labor practices and human rights reporting. This includes revisions to standards such as “GRI 402: Labor/Management Relations,” “GRI 401: Employment,” and “GRI 202: Market Presence.” The proposed disclosure standards cover various employment factors, including non-standard employment types, data privacy, and hiring and turnover metrics. Other revisions relate to employee conditions, policies, and practices, including remuneration issues, working hours, skill development, retention, gender pay gaps, and social protection. GRI also announced two additional consultations within the next year, focusing on reporting aspects concerning career development, workers’ rights, and protections, leading to updates across a total of eleven GRI standards.

White House Publishes Fact Sheet on Voluntary Carbon Market Principles
On May 28, 2024, the Biden-Harris administration issued a Joint Statement on Voluntary Carbon Markets, providing an overview of the current state of voluntary carbon markets (VCMs) and their potential. The statement outlines voluntary principles that U.S. market participants are encouraged to adopt to support the development and operation of carbon credit markets. It highlights that many crediting methodologies have so far failed to produce the claimed decarbonization results. To address these issues, the statement includes best practices for improved standards, tracking systems, and market infrastructure to enhance credit transparency, quality, and market participation.

IFRS Foundation Publishes Inaugural Jurisdictional Adoption Guide
The IFRS Foundation published a guide on May 2, 2024, to support the adoption and use of ISSB standards. The guide details jurisdictional approaches for integrating these standards into national regulations, ranging from full transposition to functionally aligned outcomes. It plans to publish high-level jurisdictional profiles, including information on the pathway to adopt or use the standards, existing regulations for sustainability-related disclosures, and the status of jurisdictional approaches.

FCA Proposes Expanding UK SDR to Include Portfolio Management Services
The UK Financial Conduct Authority (FCA) proposed extending the Sustainable Disclosure Requirements (SDR) to portfolio managers, alongside new guidelines to combat greenwashing. Currently, only retail investors are within the regulation's scope. The proposal would extend requirements to firms managing a group of investments for consumers,