Monthly EsG Updates for Financial Regulatory Services
The world is witnessing a significant shift towards sustainable finance, with various governments, regulatory bodies, and international organisations taking steps to address climate change and promote green investments. Here's a summary of some recent developments in this area.
UK Green Taxonomy Consultations Launched
The UK government has initiated consultations on a UK Green Taxonomy, aiming to provide a framework for defining environmentally sustainable economic activities.
FCA's Culture and Non-financial Misconduct Survey Results Discussed
The Financial Conduct Authority (FCA) has released the results of its culture and non-financial misconduct survey, providing insights into the financial sector's conduct and behaviour.
New Regulatory Framework on Diversity and Inclusion Proposed
In collaboration with the Prudential Regulation Authority, the FCA has launched consultations on a new regulatory framework to promote diversity and inclusion in the UK's financial sector.
European Commission's Sustainability Reporting for SMEs
The European Commission has adopted a recommendation for voluntary sustainability reporting for Small and Medium Enterprises (SMEs) in the EU, encouraging them to disclose their environmental, social, and governance (ESG) impacts.
ASIC Initiates Greenwashing Penalty Proceeding
The Australian Securities and Investments Commission (ASIC) has taken its first step towards penalising greenwashing, initiating a proceeding against a company accused of misleading consumers about its environmental credentials.
US Mandatory Climate Reporting Bill Passed
The Senate has passed a mandatory climate reporting Bill in the US, requiring companies to disclose climate-related risks and opportunities in their financial statements.
NGFS Publishes Guidance on Sustainable Scenarios
The Network for Greening the Financial System (NGFS) has published a technical document providing guidance on the purpose and use of the NGFS scenarios, aiding financial institutions in assessing climate-related risks.
Simplification of Sustainability Reporting and Due Diligence in the EU
The European Council has agreed on a position to simplify sustainability reporting and due diligence requirements in the EU, aiming to make it easier for businesses to comply with these regulations.
ISSB Publishes Inaugural Standards
The International Sustainability Standards Board (ISSB) has published its inaugural standards, providing a global baseline for high-quality sustainability reporting.
SEC Orders Vanguard to Pay Penalty for Greenwashing
The US Securities and Exchange Commission (SEC) has ordered Vanguard to pay a $12.9 million penalty for greenwashing, marking a strong stance against misleading environmental claims.
FCA Speaks on Sustainable Investment Finance
The FCA's CEO Andrew Bailey delivered a speech on sustainable investment finance, emphasising the importance of transparency and accountability in the sector.
AMF Publishes Supervisory Initiatives on Sustainable Finance
The Autorité des marchés financiers (AMF) has published findings from three supervisory initiatives on sustainable finance, providing insights into the French financial sector's approach to ESG issues.
FCA Highlights Progress and Challenges in Climate Reporting
The FCA's multi-firm review of climate reporting in the UK highlighted progress in integrating climate change risks but noted challenges with data availability and reporting complexity.
ACC R'S Greenwashing Proceedings against Santos
In Australia, the Australian Competition and Consumer Commission (ACCC) is investigating allegations of greenwashing by energy company Santos, as part of a broader crackdown on misleading environmental claims.
Australian Sustainable Finance Taxonomy Consultation
The Australian government has opened a consultation on the development of an Australian Sustainability Reporting Standard, aiming to align with global reporting standards and promote transparency.
FCA Publishes Enforcement-focused Plan
The FCA has published a briefing note on the FRC Plan 2024-2025, considering the enforcement aspects of the plan, particularly in relation to climate-related disclosures.
Settlement over Misleading Carbon Neutral Claims
An energy retailer and generator in Australia reached a settlement with an advocacy group over allegations of misleading consumers by marketing its carbon offset products as carbon neutral.
Draft Exposure Legislation on Climate-related Financial Disclosure
The Australian Treasury has published a draft exposure legislation on climate-related financial disclosure, seeking feedback from stakeholders on proposed regulations.
European Commission Updates Platform on Sustainable Finance
The European Commission has updated its Platform on Sustainable Finance in the EU, providing information on ongoing initiatives and consultations in the field of sustainable finance.
NGFS Publishes Greenhouse Gas Emissions Data Improvement Note
The NGFS has published an information note on Improving Greenhouse Gas Emissions Data, highlighting the importance of accurate and consistent data for climate-related risk assessments.
SEC Issues Climate-related Disclosure Rules
The US Securities and Exchange Commission (SEC) has issued climate-related disclosure rules, requiring companies to disclose climate-related risks and opportunities in their financial statements.
Australian Sustainable Finance Institute Authorized
The Australian Competition and Consumer Commission has authorized the Australian Sustainable Finance Institute to collaborate on sustainable finance initiatives in Australia.
ESAs Publish Progress Reports on Greenwashing
The European Supervisory Authorities (ESAs) have published Progress Reports on greenwashing in the financial sector, outlining their efforts to combat misleading environmental claims.
ESMA Launches Consultation on Sustainability Preferences Integration
The European Securities and Markets Authority (ESMA) has launched a consultation on the integration of sustainability preferences in the suitability assessment and product governance arrangements.
Transition Plan Taskforce Extended
The Transition Plan Taskforce has been extended to support the Transition Finance Market Review, aiming to provide guidance on transitioning to a low-carbon economy.
ESMA Publishes Final Version of Disclosure Framework
The Transition Plan Taskforce has published the final version of its Disclosure Framework, providing a standardised approach for companies to disclose their transition plans.
FCA Proposes New Anti-greenwashing Guidance
The FCA has proposed new guidance on the anti-greenwashing rule, aiming to ensure that firms accurately represent their environmental credentials.
August 2025: Developments in ESG Regulations in Australia
In August 2025, Australia is seeing developments in ESG regulations, particularly in the context of carbon capture and sequestration (CCS) technologies supported by government initiatives; large-scale projects in early stages across Australia aim to leverage extensive underground storage sites and favourable policies to boost low-emission technologies, including CCS and green hydrogen.
UK Prudential Regulation Authority Publishes Consultation Paper
The Prudential Regulation Authority in the UK published a Consultation Paper on enhancing banks' and insurers' approaches to managing climate-related risks.
European Commission Adopts European Sustainability Reporting Standards (ESRS)
The European Commission has adopted the European Sustainability Reporting Standards (ESRS), providing a common framework for sustainability reporting across the EU.
UK Government Moves Away from UK Taxonomy
The UK government will not pursue a UK Taxonomy and will be moving forward on the delivery of its commitments on transition plans and the sustainability reporting standards.
ICJ Affirms States' Obligations to Protect the Climate
The International Court of Justice (ICJ) issued a judgment affirming states' obligations to protect the climate from greenhouse gas emissions.
Taskforce on Nature-related Financial Disclosures Publishes Recommendations
The Taskforce on Nature-related Financial Disclosures has published its recommendations, outlining a framework for companies to disclose their impacts on nature and the risks associated with nature loss.
European Commission's Climate Resilience Dialogue Publishes Interim Report
The European Commission's Climate Resilience Dialogue has published an interim report, outlining progress and challenges in building climate resilience across the EU.
UK Financial Conduct Authority Publishes Final Rules and Guidance on Sustainable Disclosure Requirements (SDR) and Investment Labels
The UK Financial Conduct Authority (FCA) has published final rules and guidance on Sustainable Disclosure Requirements (SDR) and investment labels, aiming to improve transparency in sustainable investments.
California Climate Emissions and Carbon Offset Disclosure Laws Discussed
Discussions have been held on California's climate emissions and carbon offset disclosure laws, which aim to increase transparency and accountability in the state's carbon market.
Transition Finance Market Review Findings and FCA's Response Discussed
The findings and the FCA's response to the Transition Finance Market Review have been discussed, providing insights into the progress and challenges in transitioning to a low-carbon economy.
FCA Publishes Three New Climate Financial Risk Forum Guides
The FCA has published three new Climate Financial Risk Forum guides, providing guidance on climate-related risks and opportunities for firms across various sectors.
House of Commons Treasury Committee Publishes Report on Sexism in the City
The House of Commons Treasury Committee has published a report as part of its current inquiry into Sexism in the City, discussing issues of gender inequality in the financial sector and proposing recommendations for change.
