ISSB
The International Sustainability Standards Board Consults on Proposed Amendments to Three Sustainability Accounting Standards Board Standards
The International Sustainability Standards Board (ISSB) opened a public consultation on March 26 on proposed amendments to three Sustainability Accounting Standards Board (SASB) Standards and the related Industry-based Guidance on Implementing IFRS S2 Climate-related Disclosures. The proposed amendments cover SASB Standards in relation to Agricultural Products; Meat, Poultry, and Dairy; and Electric Utilities and Power Generators. The changes aim to align the language and concepts in the SASB Standards with ISSB Standards, improve the international applicability and decision-usefulness of the disclosures, support interoperability with other standards while remaining focused on the information needs of investors, and maintain alignment between climate-related content in the SASB Standards and the ISSB’s Industry-based Guidance on Implementing IFRS S2. The consultation will remain open until July 24.
The ISSB Publishes Jurisdictional Readiness Assessment Guide to Enhance ISSB Adoption Toolkit
The ISSB published its Jurisdictional Readiness Assessment Guide and associated tool on February 24. The Guide is intended to support jurisdictions in assessing how prepared their markets are for the adoption or other use of ISSB Standards. The guide outlines a structured, evidence-based review of the readiness of a market, including the reporting ecosystem, entities, and broader support system that could inform how a jurisdiction decides the pace, scope, and sequencing of regulatory actions to introduce ISSB Standards. The Guide provides practical examples derived from experience in the approximately 40 jurisdictions that have adopted measures to introduce the ISSB Standards.
GRI
The Global Reporting Initiative Publishes New Analysis on the State-of-Play for Air Pollution Reporting
The Global Reporting Initiative (GRI) published research on the pollution disclosure practices of publicly listed companies on February 24. The Air Pollution Reporting Gap: Evidence from 1,000 Organizations across High-Emitting Sectors derives insights from 2023-2024 sustainability reports spanning eight sectors. The study found that measurable emissions data and information on individual pollutants was uneven or lacking, despite progress in companies acknowledging their contribution to air pollution. The study notably highlights that companies in the chemicals, mining, and construction materials sectors provide more detailed reporting than their peers in agriculture, pharmaceuticals, transport, construction, and metals processing.
GRI Opens Consultation on Draft GRI Standard to Strengthen Reporting on Pollution Impacts and Management
GRI launched a public consultation on March 30 on updates to existing pollution-related GRI standards that propose the introduction of new disclosures. The consultation concerns three exposure drafts that aim to strengthen transparency on air pollution, soil pollution, and critical incidents reporting. Specifically, GRI is consulting on significant expansions to disclosures under GRI 305: Emissions 2016 and GRI 306: Effluents and Waste 2016, in addition to its first dedicated standard on soil pollution. The consultation will remain open until June 8.
TNFD
The Taskforce on Nature-related Financial Disclosures Consults on Draft Sector Guidance for Alternative Fuels and Technology and Communications
The Taskforce on Nature-related Financial Disclosures (TNFD) opened two public consultations in February and March on separate draft sector guidance. The first of these consultations, opened in February, concerns draft sector guidance on the application of TNFD recommendations, specifically the “LEAP approach” for the purposes of reporting on the alternative fuels value chain, which includes industries such as biofuels, agricultural products, chemicals, forestry management, waste management, airlines, air freight & logistics, marine transportation, road transportation, electric utilities, and power generators. The consultation will remain open until May 5.
Separately, in March the TNFD opened a public consultation on draft sector guidance on the application of TNFD recommendations for the purposes of reporting on the technology and communications value chain. This value chain covers industries such as electronic manufacturing services and original design manufacturing, hardware, internet media and services, semiconductors, software and IT services, and telecommunications services. The consultation will remain open until April 10.
SBTi
The Science Based Targets initiative Publishes an Updated Version of Its Forest, Land and Agriculture Guidance
The Science Based Targets initiative (SBTi) published an updated version of its Forest, Land and Agriculture (FLAG) Guidance on March 19. According to the SBTi, the update is intended to strengthen the clarity and consistency of target setting under the FLAG Guidance. The updated version specifically aims to improve alignment with the Greenhouse Gas Protocol’s (GHGP) Land Sector and Removals Standard, introduces a no-deforestation target date, updates commodity requirements under no-deforestation commitments, and introduces a requirement to publish documentation. The updated version entered into effect immediately upon publication, and the SBTi has expressed the expectation that all companies required to set FLAG targets must align their no-deforestation commitments with the updated requirements.
Singapore
The Monetary Authority of Singapore Establishes Supervisory Expectations on Financial Institutions for Transition Planning Practices Addressing Environmental Risk
The Monetary Authority of Singapore (MAS) issued on March 5 three separate Guidelines on Environmental Risk Management in relation to transition planning for banks, insurers, and asset managers. The Guidelines aim to support financial institutions in their management of transition and physical risks that they and/or their portfolios may face due to climate change. The new Guidelines supplement the 2020 Guidelines on Environmental Risk Management. Under the Guidelines, financial institutions are expected to develop effective risk assessment and risk management capabilities for better resilience against climate-related risks. According to MAS, this should involve engagement with their customers and investee companies to better understand the climate-related risks that the customers and companies are exposed to.
Malaysia
The Securities Commission Malaysia Publishes its Capital Market Masterplan 2026-2030
The Securities Commission (SC) Malaysia published its Capital Market Masterplan 2026-2030 (CMP) on March 9. The CMP outlines Malaysia’s ambition to strengthen its position in the financial ecosystem of southeast Asia by increasing the volume of the region’s financial transactions, improving capital market literacy and accessibility, harnessing capital markets to achieve national sustainability goals, and offering greater regional accessibility for overseas capital. With respect to national sustainability goals, the CMP envisages a number of broad initiatives to facilitate sustainable financing. These include the adoption of a national sustainability taxonomy, further support of Malaysia’s carbon market ecosystem, future impact-investment guidance, and encouraging capacity-development in sustainability-related competencies among market participants.
Indonesia
The Otoritas Jasa Keuangan Consults on the Introduction of Sustainability Reporting Standards in Indonesia
The Otoritas Jasa Keuangan (OJK) opened a public consultation on February 10 on the Implementation of Sustainable Finance for Financial Sector Business Entities, Issuers and Public Companies. The consultation outlines draft Sustainability Reporting Standards for financial and non-financial entities in Indonesia based on the ISSB standards. The consultation closed on March 13.
South Korea
The Financial Services Commission of South Korea Provides Statutory Interpretations to Support Shareholder Activities of Institutional Investors
The Financial Services Commission (FSC) of South Korea provided statutory interpretations on March 6 on the large shareholding reporting rule (the so-called 5% rule). The issuance of the statutory interpretation is intended to facilitate the activities of institutional shareholders during the season of annual general meetings in South Korea. Specifically, the FSC has sought to address uncertainties as to which shareholder activities constitute efforts to influence corporate management and which do not, so as to clarify how existing shareholder disclosures would apply. The FSC has clarified that efforts to improve “the culture of general shareholder meetings,” through requests for early disclosure of agenda items and/or supplementary explanations from the investee company, do not constitute attempts to influence corporate management. Similarly, shareholder requests for the cancellation of Treasury Stock in accordance with the revised Commercial Act are not considered attempts to influence corporate management. Shareholder activities in relation to executive compensation and dividends are also excluded, through recent legislative amendments, from the scope of influencing corporate management. The FSC has updated its statutory interpretations to reflect updated legislative requirements.
The FSC Consults on Draft Roadmap on the Introduction of Sustainability Reporting Requirements Based on Standards Developed by the Korean Sustainability Standards Board
The FSC opened a public consultation on February 25 on a draft roadmap for the implementation of sustainability reporting requirements in South Korea. As per the draft roadmap, companies listed on the Korean Composite Stock Price Index (KOSPI) with consolidated total assets of 30 trillion Korean Won (KRW) would be required to disclose information from 2027 onwards in line with the standards developed by the Korean Sustainability Standards Board (KSSB). The draft roadmap envisages broadening the scope of sustainability reporting requirements to KOSPI-listed companies with consolidated total assets of KRW 10 trillion or more from 2028 onwards. In the first year of reporting, subsidiaries that contribute less than 10% to the consolidated total assets of a corporate group would be exempt from reporting requirements. Small companies, as defined under Korean law, would also be exempt.
Australia
The Australian Securities and Investments Commission Launches New e-Learning Education Modules on Sustainability Reporting
The Australian Securities and Investments Commission (ASIC) launched new e-learning sustainability reporting educational Modules 1 to 3 on March 30. The new educational modules aim to assist companies in understanding the core concepts behind sustainability reporting requirements introduced in the Corporations Act 2001. The modules have been developed in partnership with the Australian Accounting Standards Board (AASB) and are primarily intended for use by Group 2 and Group 3 entities that will be subject to sustainability reporting obligations from July 1, 2026.
Japan
Sustainability Standards Board of Japan Amends Three Sustainability Disclosure Standards to Reflect ISSB’s Amendments to the IFRS S2
The Sustainability Standards Board of Japan (SSBJ) announced amendments to three Sustainability Disclosure Standards to reflect amendments to greenhouse gas (GHG) emission disclosures introduced by the ISSB on March 13. The amendments impact the Universal Sustainability Disclosure Standard, Theme-based Sustainability Disclosure Standard No. 1 “General Disclosures,” and Theme-based Sustainability Disclosure Standard No. 2 “Climate-related Disclosures.” The SBBJ and the ISSB have reaffirmed that SSBJ Standards are designed to be functionally aligned with ISSB Standards.
Relatedly, the SSBJ announced on March 31 the publication of an updated version of their Comparison between SSBJ Standards and ISSB Standards.
New Zealand
The Financial Markets Authority of New Zealand Grants Class Exemption for Issuers Offering Green, Social, Sustainability and Sustainability-Linked Bonds
The Financial Markets Authority (FMA) of New Zealand announced on March 31 a class exemption for issuers of green, social, sustainability and sustainability-linked (GSSS) bonds. The class exemption aims to facilitate and promote the issuance of GSSS bonds on the New Zealand market. The exemption permits issuers to offer bonds with identical features to existing quoted bonds, except for a different interest rate, redemption date, and GSSS status, without providing the usual disclosures in the product disclosure statement. The FMA has indicated that the differential treatment of GSSS bonds is partly driven by the fact they offer “an additional non-financial benefit.”
EU
The European Commission Seeks Feedback on Amendments to the Technical Screening Criteria of the EU Taxonomy
The European Commission published draft amendments on March 17 to the EU Taxonomy Climate Delegated Act and Environmental Delegated Act (DA) with the aim of updating and simplifying the technical screening criteria (TSC). The draft amendments are comprehensive and seek to render the EU Taxonomy easier to use for issuers and market participants. Notably, the amendments introduce a 5-step process for demonstrating a “substantial contribution” to climate change adaptation and simplify the “do no significant harm” (DNSH) criteria, partially through seeking better alignment with existing EU sectoral legislation. Public feedback on the draft amendments can be submitted until April 14.
UK
The Department for Business and Trade Publishes Its Consultation Outcome on UK Sustainability Reporting Standards Alongside Guidance Documents
The Department for Business and Trade (DBT) published its Consultation Outcome on the UK Sustainability Reporting Standards (SRS) on February 25. The Consultation Outcome summarizes the responses that DBT received to its consultation on the UK SRS Exposure Drafts and presents the UK Government’s final policy decision on the introduction of sustainability reporting requirements in the United Kingdom. Notably, the UK Government has decided to endorse the IFRS Sustainability Disclosure Standards in the interest of maintaining full international alignment. The final UK SRS will be retained for voluntary use in the United Kingdom.
The Financial Conduct Authority Publishes Good and Poor Practice Notice Concerning the Use of the Sustainability Disclosure Requirements Labels
The Financial Conduct Authority (FCA) provided examples on February 27 of good and poor practice in relation to the use of labels under the Sustainability Disclosure Requirements (SDR) regime. Under the SDR regime, the use of sustainability labels triggers a number of requirements for firms, including specific pre-contractual disclosures. The FCA has provided examples of good disclosures, which tend to be clear and concise, avoid the use of complex terms, and disclose information relevant to the fund in relation to the four SDR labels available. Examples of poor disclosures are also provided.
United States
The California Air Resources Board Approves Climate Transparency Regulation for Entities Doing Business in California
The California Air Resources Board (CARB) approved the adoption of the California Greenhouse Gas Reporting and Climate Financial Risk Disclosure Initial Regulation on February 26. CARB approval is the initial step in implementing the California climate disclosure rules of SB 253 and SB 261, as amended by Senate Bill 219. The regulation establishes how fees will be assessed to cover the cost of administration of the framework, specifies key definitions necessary for fee assessment and program application, and establishes a first-year reporting deadline under SB 253. Of note, CARB is currently not enforcing SB 261 due to a court order tied to litigation seeking to block the rule from taking effect. With respect to the first-year reporting requirements under SB 253, for which the deadline is August 10, 2026, CARB has stated that it does not intend to take enforcement action against entities making “good faith” compliance efforts.
By:
Hugo Gallagher, Senior Associate, Regulatory Affairs & Public Policy, ISS STOXX
Karina Karakulova, Director of Regulatory Affairs & Public Policy, ISS STOXX
