Weekly updates

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.

This week in sustainability reporting:
✅ The European Parliament proposes simpler CSRD and due diligence rules, reducing the burden for smaller companies while tightening accountability for large ones.
✅ The University of Groningen explores how the Dutch Civil Code could anchor sustainability obligations in national law — making CSRD compliance more enforceable.
✅ Meanwhile, across the Atlantic, California delays new climate reporting regulations, and LEGO takes bold steps to eliminate natural gas from its operations by 2028.

This week brought several important developments in sustainability, governance, and reporting — across Europe and beyond:
EU delays sustainability standards for non-EU companies
The European Commission has postponed the adoption of sustainability reporting standards (ESRS) for non-EU entities until after October 2027, as part of a broader effort to reduce regulatory burdens and improve efficiency.

Net-Zero Banking Alliance to cease operations
After a member vote, the NZBA — once the flagship global initiative for climate action in banking — will dissolve. Its guidance and tools will remain public, highlighting the challenges of maintaining voluntary climate commitments.

ISO launches new biodiversity standard
ISO introduced ISO 17298: Biodiversity for Organizations, providing a framework for assessing and managing biodiversity impacts, dependencies, and opportunities within strategy and governance structures.

CSRD conference: embrace complexity
At a recent CSRD workshop in Nieuwegein, experts urged companies not to fear the complexity of sustainability reporting — emphasizing that it’s not only about compliance, but about driving real sustainable transformation.

New sustainability assurance firm: Verda Assurance
Three registered accountants have founded Verda Assurance, a new firm dedicated to sustainability assurance — reinforcing that the demand for credible ESG reporting continues to grow, despite regulatory delays.

Dutch SMEs awarded RAAK grants for sustainability projects
Two SME-focused projects received funding to develop practical tools for measuring and communicating sustainability performance, including the Sustainability Compass and Sustainable Value Propositions for SMEs.

At Arana Finance, we keep a close eye on the latest developments in sustainability reporting. This week’s highlights:
🔹 Dutch companies struggling with sustainability reporting
A Workiva study shows that while 83% of Dutch companies report on emissions, many still face challenges with data reliability, complex international rules, and limited expertise. AI is emerging as a key enabler for more accurate and efficient reporting.
🔹 EU businesses want stronger sustainability rules
A YouGov survey reveals that most EU companies favor tougher due diligence and reporting requirements than those proposed in the EU’s Omnibus package. Many see sustainability regulation not as red tape, but as a driver of competitiveness.
🔹 SBTi launches first global registry of certified experts
The Science Based Targets initiative has published a worldwide register of certified professionals in climate target-setting, linked to its new SBTi Academy with training and certification opportunities.

This week’s sustainability headlines show a mix of missed deadlines, messy IT excuses, and policy backtracking. From the EU stumbling on its 2035 climate target 🎯, to WWF calling out delays on deforestation rules 🌳, and Omnibus packages quietly shaving off sustainability safeguards ✂️—the momentum is under pressure.

Meanwhile, EY highlights how most companies still treat nature reporting as a checkbox rather than a strategy 🐝, while PwC reminds us that resilience and adaptation are no longer “nice-to-haves” but core value drivers for business continuity 💡.

From many words but few deeds on Prinsjesdag 🇳🇱, to the EU court giving nuclear & gas a (greenish) thumbs-up, to the U.S. SEC being told to either “defend it or ditch it” 🇺🇸… Sustainability reporting never sleeps.

This week’s highlights:
🔹Dutch cabinet softens its CO₂-tax for industry
🔹EU Taxonomy keeps nuclear & gas in the “sustainable” club
🔹U.S. climate disclosure rules hang in legal limbo
🔹Nature organisations in NL still waiting for real action

This week’s developments highlight exactly that:
🔹 Pension funds narrowing their portfolios to strengthen focus and sustainability.
🔹 New EU rules holding fast fashion accountable for collection and recycling.
🔹 A landmark partnership between ISO and the GHG Protocol, creating a single global language for emissions reporting.
🔹 Denmark preparing the world’s first European Green Bond under the new EU standard.