IPSASB
The International Public Sector Accounting Standards Board Issues Public Sector Standard for Climate-Related Disclosures
The International Public Sector Accounting Standards Board (IPSASB) published the first public sector standard for climate-related disclosures on January 29. Developed with the support of the World Bank, the IPSASB SRS 1, Climate-related Disclosures is the first public sector standard to assist governments and public sector entities in reporting their own climate-related risks and opportunities in a clear and consistent manner, according to the IPSASB. The IPSASB SRS 1 is aligned with the IFRS S2 Climate-related disclosures to allow for consistency and comparability across public and private sector disclosures and may be applied to an entity’s general purpose financial reports as of January 1, 2028.
GRI
The Global Reporting Initiative Launches New Guide to Assist Companies in their Biodiversity Reporting
The Global Reporting Initiative (GRI) launched a new practical resource on February 16 aimed at helping organizations improve their biodiversity reporting. Decoding biodiversity impacts: A practical guide to corporate reporting with the GRI Standards provides information on how organizations can assess biodiversity impacts across operations and regions; the benefits of integrating nature-related information into governance and decision-making; the value of location-specific data in understanding biodiversity impacts and dependencies; and assessing and responding to data collection challenges throughout supply chains.
SBTi
The Science Based Targets initiative Opens Public Consultation on Updated Automotive Net-Zero Standard Draft
The Science Based Targets initiative (SBTi) opened a public consultation on February 3 on the updated draft of its Automotive Sector Net-Zero Standard. This is the second consultation by the SBTi on a Net-Zero Standard for the automotive sector, with the updated draft reflecting the extensive feedback received during the first consultation. The updated draft specifically aims to improve alignment with the developing SBTi Corporate Net-Zero Standard V2, redefines low-emission vehicles, introduces greater optionality for automakers with regard to scope 3 target setting, and allows global aggregated targets for light-duty vehicles. The consultation will remain open until March 22.
Africa
Nigeria
The Financial Reporting Council of Nigeria Consults on Its Roadmap Report for the Adoption of IFRS Sustainability Disclosure Standards
The Financial Reporting Council of Nigeria (FRCN) opened a public consultation on January 8 on its Roadmap Report for the Adoption of IFRS Sustainability Disclosure Standards in Nigeria. The Roadmap outlines the phased approach to applying the IFRS Sustainability Disclosure Standards in Nigeria proposed by the FRCN, under which Public Interest Entities (PIEs) and government organizations would be subject to mandatory disclosure requirements as of January 1, 2028. The consultation was accompanied by the FRCN’s Sustainability Reporting Guidelines No. 1 (SRG 01), 2025, which aim to provide practical guidance to reporting entities. The consultation closed on January 20.
Japan
The Sustainability Standards Board of Japan Opens Consultation on Practical Guidance Regarding the Use of Disclosures Made under the Japanese Greenhouse Gas Reporting System for the Purpose of Disclosures under the Board’s Climate Standard
The Sustainability Standards Board of Japan (SSBJ) opened a public consultation on January 22 on draft practical guidance clarifying how entities reporting their greenhouse gas (GHG) emissions under the Japanese GHG reporting system can use said reporting for the purposes of their disclosures under the SSBJ’s Climate Standard. The draft practical guidance is presented in the form of an “Exposure Draft.” The SSBJ published the draft practical guidance in response to uncertainty among stakeholders as to whether the approach to measuring GHG emissions under Japan’s “Act on Promotion of Global Warming Countermeasures” is appropriate for the purposes of disclosures under the SSBJ’s Climate Standard. A summary of the Exposure Draft is available in English and accessible here. The consultation will remain open until March 25.
Malaysia
The Bank Negara Malaysia and the Securities Commission Malaysia Publish a Joint Statement on the Outcome of the 16th Joint Committee on Climate Change Meeting
The Bank Negara Malaysia (BNM) and the Securities Commission (SC) Malaysia issued a Joint Statement following the 16th meeting of the Joint Committee on Climate Change (JC3) on February 6. According to the Joint Statement, the JC3 has made substantial progress towards achieving its aim of mobilizing finance for impactful climate and nature-positive projects through initiatives such as the Climate Finance Innovation Lab (CFIL). The Joint Statement also highlighted that work to develop the Malaysia Taxonomy will continue in 2026, with a Call for Feedback on the Taxonomy’s design and scope envisaged in Q1.
The SC Malaysia Announces the Operator of Malaysia’s First Social Exchange Platform
The SC Malaysia announced the appointment of LC Wakaful Digital Sdn Bhd as Malaysia’s first Social Exchange Platform operator on February 12. The Social Exchange initiative is described as a key element of Malaysia’s Capital Market Masterplan 2026-2030 and has been designed to facilitate social impact financing. According to the announcement, the Social Exchange platform is intended to provide a structured and transparent avenue for non-profit organizations to raise donations from eligible social projects while giving donors greater visibility over fund utilization and the impact of social projects. The Guidelines on Social Exchange Platforms, which were published on September 19, 2025, set out the regulatory requirements for Social Exchange Platform operators.
India
The Securities and Exchange Board of India Constitutes Working Group to Review India’s ESG Rating Providers Regulatory Framework
The Securities and Exchange Board of India (SEBI) announced on February 18 the formation of a working group (WG) to review the regulatory framework governing ESG Rating Providers (ERPs) in India. The WG is composed of representatives from issuers, ESG rating users, domestic and global ERPs, ESG analysts, legal experts, and academics. According to the Terms of Reference, the WG’s mandate is “to undertake a comprehensive review of the existing regulatory framework governing ERPs”; to recommend measures to enhance transparency, reliability, and investor confidence in ESG ratings; and to evaluate international regulatory developments in the ESG rating space with a view to aligning with global best practices.
Australia
The Australian Treasury Consults on a Proposed System to Label Sustainable Financial Products
The Australian Treasury opened a public consultation on a proposed Sustainable Investment Product Labelling system on February 12. The consultation outlines core aspects of the labelling system, including its scope, consumer-facing disclosures, investment criteria, and evidence requirements. The Treasury has sought to reflect the feedback received during an earlier consultation, held between July and August of 2025, and to take account of international approaches to sustainable investment product labelling. Among the Treasury’s proposals would be a requirement for financial products to make use of sustainability-related or similar terminology to adhere to an appropriate Sustainable Investment Product label and fulfil any associated requirements, such as investment thresholds. The consultation will remain open until March 13.
EU
The European Supervisory Authorities Publish Opinions in Support of the Simplified European Sustainability Reporting Standards and Suggest Targeted Adjustments
The European Supervisory Authorities (ESAs) (the collective name for the European Securities and Markets Authority [ESMA], the European Banking Authority [EBA], and the European Insurance and Occupational Pensions Authority [EIOPA]) issued separate Opinions in support of the draft revised European Sustainability Reporting Standards (ESRS) between February 16 and 18.
In their Opinions, the EBA (Opinion) and ESMA (Opinion) welcome the majority of the draft changes to the ESRS. In addition, they recommend that the European Commission (EC) make a number of adjustments to the revised ESRS prior to their final adoption. ESMA specifically suggests that the EC ensures that so-called “permanent reliefs” are subject to time limits; refines requirements on transition plans; strengthens reporting on the sustainability competences of administrative, management, and supervisory bodies; enhances transparency over financial resources allocated to sustainability actions; and adjusts the exemption for reporting sustainability risks and opportunities for subsidiaries.
In its Opinion, EIOPA expresses support for the majority of the draft changes to the ESRS while making suggestions to ensure that decision-useful sustainability information remains available to insurance and reinsurance undertakings. EIOPA specifically proposes the introduction of a 3-year time limit on the waiver to report data in view of “undue costs or efforts” for a company’s own operations.
The Council of the EU Approves the Sustainability Omnibus Package to Simplify EU Sustainability Reporting and Due Diligence Requirements, Concluding the Legislative Process
As per the January edition of the newsletter, the European Parliament and the Council of the EU reached a provisional political agreement on December 9, 2025, concerning the revision of the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) (collectively referred to as the Sustainability Omnibus Package). The political agreement concludes a protracted legislative process that began in February 2025 with proposals by the European Commission to simplify the EU’s sustainability reporting and due diligence requirements.
The European Parliament voted to validate the political agreement on December 16, 2025. The Council of the EU approved the political agreement on February 24 as the last formal step in the legislative process. The final text of the amended CSRD and CSDDD was published in the Official Journal of the European Union (OJEU) on February 26. Member States will now have approximately 12 months to transpose the amended Directives into national law.
UK
The Financial Conduct Authority Consults on the Application of the UK Sustainability Reporting Standards to Listed Companies
The Financial Conduct Authority (FCA) opened a public consultation on January 30 on updates to the sustainability disclosures of UK-listed companies. The consultation solicits feedback on how the sustainability reporting requirements of UK-listed companies could evolve in light of the development of the UK Sustainability Reporting Standards (UK SRS) and build upon the FCA’s existing TCFD-aligned approach. Specifically, the consultation includes proposals on the scope of disclosure requirements, the approach to climate-related and wider sustainability disclosures, and transition plan disclosures and assurance, as well as the approach to implementation and transitional arrangements. The consultation will remain open until March 20.
United States
The Securities and Exchange Commission Division of Corporation Finance Updates Compliance and Disclosure Interpretations
The Securities and Exchange Commission (SEC) Division of Corporation Finance (the Division) issued updated and new Compliance and Disclosure Interpretations (CDIs) related to Proxy Rules and Executive Compensation, among other topics, on January 23. The Division revised Question 126.06 to state that SEC Staff will now object to voluntary submissions of a Notice of Exempt Solicitation under Exchange Act Rule 14a-6(g). The Division specifically amended its prior interpretive position to explain that the purpose of Rule 14a-6(g) is to alert the public to exempt solicitations for large shareholders. Accordingly, SEC Staff will object to voluntary submissions by persons who do not beneficially own more than $5 million of the class of subject securities.
The updated CDIs follow the SEC’s Statement regarding the Division of Corporation Finance’s role in the Exchange Act Rule 14a-8 process of November 17, 2025. In that Statement, the SEC clarified that it would no longer provide a substantive response to no-action requests from companies seeking to exclude shareholder proposals from their definitive proxy materials, pursuant to Rule 14a-8.
The Environmental Protection Agency Repeals the 2009 Greenhouse Gas Endangerment Finding and Federal Greenhouse Gas Emission Standards for All Vehicles and Engines
The Environmental Protection Agency (EPA) issued a final rule on February 12 announcing the repeal of the EPA’s 2009 Endangerment Finding. The 2009 Endangerment Finding, issued following a U.S. Supreme Court decision that held that some air pollutants may be regulated under the Clean Air Act, concluded that greenhouse gas (GHG) emissions from motor vehicles endanger public health and welfare. This provided a legal basis for the EPA to regulate GHG emission standards for light-duty, medium-duty, and heavy-duty vehicles and engines.
In reevaluating and rescinding the 2009 Endangerment Finding, the EPA has determined that the agency had exceeded its authority under the Clean Air Act by regulating GHG emissions. The most immediate impact of the repeal is the invalidation of GHG emission standards for motor vehicles. A group of environmental and public health organizations have sued the EPA, arguing the repeal is illegal and contradicts legal precedent.
By:
Hugo Gallagher, Senior Associate, Regulatory Affairs & Public Policy, ISS STOXX
Karina Karakulova, Director of Regulatory Affairs & Public Policy, ISS STOXX
