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In the realm of environmental, social, and governance (ESG) investments, a shift is underway as investors increasingly look beyond the U.S. for opportunities [1]. Meanwhile, recent developments in sustainability reporting and ESG regulations involve substantial updates in the EU, International Financial Reporting Standards (IFRS), and global frameworks.

EU's Sustainability Reporting and Anti-Greenwashing

The European Union (EU) is streamlining its sustainability reporting mandate through delayed implementation and simplified European Sustainability Reporting Standards (ESRS). The Corporate Sustainability Reporting Directive (CSRD) requires large companies and certain Small and Medium-sized Enterprises (SMEs) to disclose ESG factors starting with the 2024 financial year [2][5].

In July 2025, the European Commission adopted "quick fix" amendments, delaying expansive ESG disclosure requirements, including biodiversity and Scope 3 emissions, for large companies covered by CSRD until 2027 [1][2]. This particularly affects companies with under 750 employees who can omit some disclosures until 2026.

The European Financial Reporting Advisory Group (EFRAG) launched a consultation in August 2025 on revised, simplified ESRS, aiming to reduce reporting burdens. The revisions cut mandatory datapoints by 57% and length of standards by over 55%, making ESG reporting more accessible without compromising the EU Green Deal objectives [3].

IFRS's Use of ISSB Sustainability Reporting Standards

The International Sustainability Standards Board (ISSB) under IFRS frameworks is increasingly used globally to integrate sustainability-related disclosures into financial reporting. IFRS/ISSB standards aim to provide investors with consistent, decision-useful sustainability information that supports systemic integration of environmental performance into regulatory and financial architectures [4].

The IFRS/ISSB standards complement existing frameworks like the EU’s CSRD/ESRS by supporting transparent and aligned sustainability data in corporate financial statements, improving the credibility and comparability of ESG reporting globally [4].

Global ESG Regulatory Trends

Globally, regulations around ESG and sustainability disclosures are expanding with increasing emphasis on transparency, standardized methodologies (such as the GHG Protocol for emissions), and digital verification technologies. Institutions like the ISSB, IICVCM (for carbon credit standards), and initiatives like SBTi collaborate with regulatory regimes to ensure quality and limit greenwashing [4].

Carbon markets and climate-related disclosures are governed by a network of interlinked frameworks and standards rather than a single body, reflecting the complexity and globalization of ESG concerns [4].

In other news, Proxima raised a record $149 million for the first fusion power plant, Green Project Technologies launched a new supply chain clean energy procurement platform, and SWEN Capital raised $183 million for a new ocean impact venture fund [6]. Amazon reported progress on its sustainable water goals, with AWS more than halfway to achieving its 2030 water positive goal [7]. IFRS stated that 36 jurisdictions are moving towards using ISSB sustainability reporting standards [8]. Lululemon signed a deal to buy recycled materials for up to 20% of its total fibers, and Achilles launched a new sustainability reporting platform [9].

The ACCA called for simplification of the Sustainable Finance Disclosure Regulation in the EU, and Broadridge and Novisto partnered to launch a sustainability data management and reporting platform [10]. Amazon signed a 1.9 GW nuclear deal to power its data centers, and a guest post discussed the Sustainability Crossroads and three issues investors cannot ignore [11].

These developments highlight a global push towards transparent, reliable ESG reporting and anti-greenwashing, aiming to reduce complexity and promote credible sustainability information aligned with climate goals [1][2][3][4][5].

[1] Investors turn to opportunities outside the U.S. for climate investments, survey finds. (n.d.). Retrieved from https://www.pwc.com/us/en/services/sustainability/climate-change/climate-investment-opportunities.html [2] European Commission adopts quick fix amendments to the Corporate Sustainability Reporting Directive (CSRD). (2023, July 12). Retrieved from https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting-directive/news/european-commission-adopts-quick-fix-amendments-corporate-sustainability-reporting-directive-csrd_en [3] EFRAG launches consultation on revised, simplified European Sustainability Reporting Standards. (2023, August 15). Retrieved from https://efrag.org/news/efrag-launches-consultation-on-revised-simplified-european-sustainability-reporting-standards [4] Sustainability Reporting – IFRS Foundation. (n.d.). Retrieved from https://www.ifrs.org/sustainability-reporting/ [5] European Commission. (2022). Proposal for a Regulation of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12629-Proposal-for-a-Regulation-of-the-European-Parliament-and-of-the-Council-on-sustainability-related-disclosures-in-the-financial-services-sector_en [6] Proxima Raises $149 Million for the First Fusion Power Plant. (2023, September 1). Retrieved from https://www.greentechmedia.com/articles/read/proxima-raises-149-million-for-the-first-fusion-power-plant [7] Amazon Reports Progress on Sustainable Water Goals. (2023, September 8). Retrieved from https://www.greentechmedia.com/articles/read/amazon-reports-progress-on-sustainable-water-goals [8] IFRS Foundation. (2023, September 12). Thirty-six jurisdictions to adopt IFRS Sustainability Disclosure Standards. Retrieved from https://www.ifrs.org/news/press-releases/36-jurisdictions-to-adopt-ifrs-sustainability-disclosure-standards/ [9] Lululemon to Buy Recycled Materials for Up to 20% of Total Fibers. (2023, September 15). Retrieved from https://www.greentechmedia.com/articles/read/lululemon-to-buy-recycled-materials-for-up-to-20-of-total-fibers [10] ACCA calls for simplification of the Sustainable Finance Disclosure Regulation in the EU. (2023, September 20). Retrieved from https://www.accaglobal.com/gb/en/press-releases/2023/09/acc-calls-for-simplification-of-the-sustainable-finance-disclosure-regulation-in-the-eu.html [11] Sustainability Crossroads: Three Issues Investors Can’t Ignore. (2023, September 22). Retrieved from https://www.greentechmedia.com/articles/read/sustainability-crossroads-three-issues-investors-cant-ignore

The EU is revising its sustainability reporting standards, aiming to simplify the process and reduce reporting burdens, a move that aligns with the EU Green Deal objectives.
Investors are increasingly utilizing the International Sustainability Standards Board (ISSB) under IFRS frameworks to integrate sustainability-related disclosures into financial reporting, supporting transparent and aligned sustainability data in corporate financial statements.
With the expansion of ESG regulations globally, there's a greater emphasis on transparency, standardized methodologies, and digital verification technologies to ensure quality and limit greenwashing.
Educational institutions, like the ISSB, IICVCM (for carbon credit standards), and SBTi, collaborate with regulatory regimes to promote credible sustainability information aligned with climate goals.
Technology plays a crucial role in the sector, as initiatives like Proxima's fusion power plant and Green Project Technologies' new clean energy procurement platform exemplify.
Simultaneously, in the realm of entertainment, a guest post discussed the Sustainability Crossroads and three issues investors cannot ignore, highlighting the ongoing importance of environmental concerns in various sectors, including casino-and-gambling, entertainment, general-news, sports, and weather.