Weekly updates

Several developments this week show how quickly the sustainability landscape continues to evolve:
⚡ Energy policy shift in Europe
European Commission President Ursula von der Leyen recently acknowledged that Europe may have made a strategic mistake by turning away from nuclear energy too quickly. With energy security and decarbonization both high on the agenda, nuclear is increasingly being reconsidered as part of the low-carbon mix.
💰 Sustainable finance keeps scaling
HSBC announced that its sustainable finance activity exceeded $100 billion in 2025, highlighting the growing demand from companies and investors for financing that supports the transition to a low-carbon economy.
🏦 Banks face growing scrutiny
At the same time, Dutch banks received lower scores on sustainability policy in the latest review by the Eerlijke Bankwijzer. The results show that expectations around climate, biodiversity, and human rights policies continue to rise.
📊 Sustainability reporting beyond regulation
Interestingly, many European companies indicate they will continue reporting on sustainability even without CSRD obligations, demonstrating that ESG transparency is increasingly seen as a strategic business tool rather than just a compliance exercise.

ESG update #58 New ESG insights from last week now live!

This week’s ESG Update dives into three major developments shaping the sustainability landscape:

-->💚 the UK’s finalized Sustainability Reporting Standards,
--> 🧑‍🏫 the EU’s newly published Omnibus I package, and
--> 🌍 Milieudefensie’s striking Climate Crisis Index 2026 — revealing that none of the 28 assessed companies have plans aligned with the Paris Agreement.

If you want a fast, reliable snapshot of what matters in ESG right now, this update brings it all together. Stay informed. Stay ahead.

The ESG landscape is evolving rapidly – and this week shows just how serious Europe is about climate action and sustainable finance.
🔹 EU Climate Law: The European Parliament has backed a bold new target – a 90% net emissions reduction by 2040 (vs. 1990 levels). A major milestone on the road to climate neutrality by 2050, with built-in flexibility mechanisms and biannual progress reviews.
🔹 CSRD in the Netherlands: The Dutch Minister of Finance proposes a repair clause to reduce uncertainty around CSRD implementation for the 2024 and 2025 reporting years. A crucial development for companies and auditors navigating compliance.
🔹 Sustainable Finance in Action: Deutsche Bank issued its first €500 million European Green Bond under the EU’s new “gold standard” (EuGB), reinforcing transparency, EU Taxonomy alignment, and credibility in green finance.
Regulation is tightening. Expectations are rising. Transparency is becoming non-negotiable.

This week’s ESG developments remind us that sustainability is anything but boring: regulators are sharpening their pencils on green claims, climate alliances are reshuffling the deck, pension funds are doubling down on net-zero, and the U.S. has (once again) decided Paris is “not for them.”

What’s the takeaway? ESG is maturing fast. Claims need to be clear, credible and evidence-based, commitments need to survive political headwinds, and net-zero is no longer a buzzword — it’s a strategy (preferably with milestones and fewer asterisks).

As we kick off the year, we’re starting 2026 with good intentions, renewed energy… and a slightly upgraded weekly update. Our familiar CSRD update has evolved into a broader Weekly ESG News Update, because sustainability doesn’t stop at one directive (even if it sometimes feels like it does).

In this week’s edition, we dive into key ESG developments across Europe and beyond — from the Omnibus debate and central banks’ data needs, to global moves in China and the Philippines on climate and sustainability reporting. Less box-ticking, more big-picture thinking.

This week’s update brings several important developments from Brussels. The European Parliament agreed to simplify sustainability reporting and due diligence rules, significantly narrowing the scope and reducing the administrative burden for many companies. At the same time, the European Commission proposed changes to the 2035 car emissions targets, moving away from a full ban on combustion engines, and announced measures to strengthen the Carbon Border Adjustment Mechanism (CBAM) to better prevent carbon leakage and improve enforcement.

🔹 The EU institutions have reached a provisional deal to reduce the administrative burden of CSRD and CSDDD.
Key changes include limiting CSRD obligations to companies with >1,000 employees and €450m turnover, narrowing CSDDD to only very large companies (>5,000 employees and €1.5bn turnover), removing the mandatory climate-transition plan, shifting to risk-based supply-chain “scoping,” and postponing full compliance to 2028/2029.
🔹 EFRAG has introduced a new digital platform centralising all ESRS-related materials: the 2023 ESRS, the draft Simplified ESRS, the VSME standard, guidance, Q&A, templates, and links to legislation. The Hub aims to make reporting more accessible, transparent and consistent, with interactive navigation and cross-referencing across standards and datapoints.
🔹 PwC advises organisations not to wait for full regulatory certainty: the revised ESRS are expected to be formally adopted mid-2026 and apply from FY2027 for Wave 2 companies.
They outline three priorities: integrate insights from double materiality into strategy, assess how the new ESRS structure affects data collection and processes, and start gathering high-priority data now (E1, S1, G1) — especially for Scope 3, often the most challenging.
🔹 The AFM reviewed how major Dutch banks and insurers voluntarily disclosed climate-transition plans and financed emissions in 2024. While all eight institutions included a plan, scope and detail vary widely, limiting comparability. Data quality — especially deeper in the value chain — remains a key bottleneck.
The AFM stresses the need for further standardisation of definitions, methodologies and reporting formats to improve transparency and comparability across the sector.

Most notably:
✅ EFRAG released technical advice on the draft simplified European Sustainability Reporting Standards (ESRS) under a mandate from the European Commission.
Proposed impact: ~57% fewer mandatory datapoints, a ~68% reduction in total disclosures, and more than 55% shorter standards — with improved clarity, reduced overlap, and proportional reporting reliefs expected for companies. First application would be for reporting year 2027 (published in 2028), pending a delegated act (potentially mid-2026).

⚠️ At the same time, the EU Ombudsman flagged procedural failings in the Commission’s proposed regulatory burden relief under Omnibus I, stating it was advanced without adequate internal and public consultation, full impact assessment, or demonstrated climate alignment. This puts accountability and transparency at the forefront of the debate on regulatory simplification.

🌍 And for the financial sector:
The Updated GHG Accounting Standard 2025 under PCAF Standard was launched by the global PCAF, adding new methodologies for financed emissions (Part A) and insurance-associated emissions (Part C). It now covers a wider range of instruments and portfolios — including use-of-proceeds financing, securitisations and structured products, sub-sovereign debt, treaty reinsurance, and project insurance — reflecting growing demand for more complete, consistent, and forward-looking emissions disclosure across portfolios.

This week’s key takeaways:
✅ Green financing as catalyst for sustainable housing:
BNG Bank is piloting “green loans” with attractive interest rates and a sustainability-linked bonus to accelerate social housing upgrades and climate-resilient construction. ESG integration is framed not as trend, but as essential risk and value management for future-proof real estate.
✅ EU supply chain deforestation rules postponed and simplified:
The EU Deforestation Regulation (EUDR) rollout has been delayed. Large companies now have until end-2026 to comply, smaller operators until mid-2027, with reduced due diligence and lighter reporting obligations. This has triggered political debate around balancing compliance feasibility with environmental ambition.
✅ CSRD transposition accelerates, but uneven adoption persists:
Ropes & Gray’s CSRD Transposition Tracker shows 14 EU/EEA countries have enacted the “Stop the Clock” directive, 9 more have proposed it but not yet adopted. 22 of 30 jurisdictions have now implemented CSRD at least partially. Meanwhile, EFRAG is finalising simplified ESRS standards to reduce reporting burdens without losing sustainability impact.
🔎 Why this matters:
Delays and simplifications across ESG regulations underline a critical phase — one where organisations need operational guidance to stay compliant, strategic and efficient while keeping sustainability goals intact.

Better late than never: Omnibus I finally made its way into the spotlight — and it’s already reshaping the sustainability reporting landscape. This week’s CSRD update brings a series of impactful developments across Europe, ranging from the European Parliament’s vote to significantly narrow the scope of both CSRD and CSDDD, to new insights into rising polarization around sustainability topics. We also highlight EY’s latest Climate Action Barometer, which shows Dutch companies increasing their reporting efforts but still struggling to accelerate real decarbonisation. Additionally, EY’s illustrative Good Bank ESRS report offers practical guidance on implementing the updated ESRS standards, including the recent “quick-fix” amendments. And beyond regulation, COP30 is already stirring debate: more than 300 industrial agriculture lobbyists are expected to influence negotiations, raising concerns about the integrity of global climate objectives.

This week, we dive into:
💻 The EIB’s “Green Checker” expanding worldwide — because green finance deserves global reach.
🧾 EFRAG’s Simplified ESRS draft — finally, “simplified” and “reporting” in the same sentence.
🇬🇧 The UK’s Sustainability Assurance Standard — bringing structure (and sanity) to ESG assurance.
🌡️ SBTi’s Net-Zero Standard v2 — more consultation, more acronyms, same 2050 ambition.
🏢 Zurich’s decision to drop SBTi validation — because even insurers sometimes need a break from validation.
⚡ Ørsted’s 98% emission reduction — setting the bar so high the rest of us need a ladder (made of recycled materials, of course).

✅ EU Climate Target for 2040 – Member States agreed on a 90% emissions reduction compared to 1990, balancing ambition with economic competitiveness.
✅ Sustainability Due Diligence – Research shows most European companies want to keep the full scope of the CSDDD, seeing it as a competitive advantage rather than a burden.
✅ Digital Product Passport (DPP) – The Dutch textile sector moves toward transparency and circularity through digital product data – a major stride under the new ESPR framework.
✅ ISSB “Passporting” Framework – The ISSB calls for global recognition of sustainability reports across jurisdictions to enhance comparability and reduce reporting costs.

🚀 The UNFCCC calls for faster global climate action as new data suggests emissions could finally start bending downward — but urgent acceleration is needed to stay on track for 1.5°C.
💡 KPMG stresses that CSRD reporting must make a step-up in transparency, encouraging companies to clearly link sustainability impacts to their financial results.
🌱 The Net Zero Asset Managers (NZAM) initiative is entering a new chapter, reaffirming its commitment to helping investors manage climate risks despite industry challenges.
⚖️ And in France, a court ruled that TotalEnergies misled consumers with climate claims — a strong signal that accountability in sustainability communication is here to stay.

✅ CSRD Awards 2025 Shortlist Announced – Eleven companies have been shortlisted for their leadership in transparent and high-quality sustainability reporting under the EU’s CSRD framework.

🏛️ European Parliament Rejects Weakened Sustainability Rules – Lawmakers voted against proposals to scale back reporting and due diligence obligations, reaffirming the EU’s commitment to strong sustainability regulation.

🌲 EU Deforestation Regulation Moves Forward, But Weakened – The EUDR will not be delayed but is softened, granting smaller producers more time and easing traceability requirements — a move criticized by NGOs.

⚡ GHG Protocol Consultation on Scope 2 Updates – The GHGP has opened consultation on major revisions to its Scope 2 guidance, with implications for energy sourcing and emissions accounting under IFRS S2 and ESRS frameworks.