January 2026: Hamburg Declaration, IPSASB's inaugural public sector standard, PepsiCo’s call for a sustainability reframe, and more

Key highlights from January 2026 in the sustainability space.

1- Nine countries launch the Hamburg Declaration for clean energy

On January 26, 2026, the governments of Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, and the United Kingdom signed the Joint Offshore Wind Investment Pact and the Hamburg Declaration, committing to the development of 300 GW of offshore wind energy capacity by 2050, including 100 GW through transnational cooperation projects.

In cooperation with the European Commission and the European Investment Bank, the Pact commits to the steady build-out of wind projects across the North Seas by removing regulatory obstacles to Power Purchase Agreements and implementing two-sided Contracts for Difference to facilitate investment, while also driving industrialisation and collaboration to support scalability and cost-effectiveness.

This initiative reflects broader concerns regarding Europe’s energy autonomy and its implications for regional security. While the Trump administration  terminated 7,6 billion USD in clean energy grants in 2026, U.S. companies have benefited from sanctions on Russia, as oil and gas together accounted for 58% of the EU’s energy consumption in 2025. The Pact seeks not only to establish a low-carbon counterweight that supports Europe’s energy independence, but also to strengthen regional security and defense through “increased cooperation in the framework of NATO, as appropriate, to enhance its defense, security, and resilience.”

2- EU Joint Bank Reporting committee publishes 2026 Work Programme and ESG recommendations

The EU Joint Bank Reporting Committee published its 2026 Work Programme alongside a set of ESG recommendations, making semantic integration and harmonised reporting standards a priority in 2026. The recommendations aim to standardize how European financial institutions define, categorize, and report ESG information across statistical, supervisory and resolution reporting.

The initiative aligns with the EU’s broader objective to improve data quality, reduce remediation costs for market actors, and enhance interoperability across institutions and sectors.

3- PepsiCo CEO calls for sustainability reframe

Speaking at the World Economic Forum in Davos, the PepsiCo CEO Ramon Laguarta called on companies to reframe their discussions of sustainability and growth as a question of short and long-term costs, rather than as a trade-off between sustainability and profits. His speech emphasized that business models founded on growth must determine how to generate expansion without depleting the resources necessary for future growth.

His remarks echo broader industry concerns about the impact of global warming and extreme weather on the food and beverage sectors, which are facing rising adaptation and risk-management costs while navigating regulatory tensions between the EU and the US. Against the backdrop of regulatory rollbacks in the US and a $4.3 trillion annual financing gap for SDG goals, private sector engagement is increasingly positioned as a critical investment.

4- U.S. exits the Paris Climate Agreement for the second time

On January 7th 2026, the White House published a Presidential Memorandum directing the withdrawal of the United States from 66 international organisations considered to no longer serve national interests, including the Paris Climate Agreement.

The decision, which constitutes the second withdrawal from the Agreement under a Trump administration, underscores the volatility of U.S. engagement on climate change, even as the IPCC warns that some climate systems already show signs of irreversible changes. Despite the disengagement of the world’s second largest CO2 emitter, the Secretary-General reaffirmed the UN’s commitment to limiting global temperature rise to 1.5° Celsius and emphasized its readiness to engage with the Trump administration on this issue.

5- IPSASB releases public sector standards on climate disclosures

The International Public Sector Accounting Standards Board (IPSASB) has released its inaugural public sector standard on climate-related disclosures, representing Phase 1 of its two-phase climate-related disclosures project. Phase 2 will address the regulatory and policy roles of public sector entities.

Developed in cooperation with the World Bank, the standards align closely with those issued by the IFRS for private-sector sustainability reporting, while also addressing broader stakeholder needs beyond investors. The standards emphasize the considerable financial risk that climate change represents for governments, as well as the importance of transparency and high-quality disclosures in evaluating how these risks impact public services. The standards also introduce a rebuttable presumption in favor of the GHG Protocol, establishing an expectation that entities will use this protocol for emissions reporting unless they justify the use of an alternative methodology.

IPSASB SRS 1 is effective for annual reporting periods beginning on or after January 1, 2028, with earlier application permitted.

- Content prepared with the help of Amanda Alden.

December 2025: First Swiss Climate Case, NY GHG emissions regulations, EU tackles plastics, and more

Key highlights from December 2025 in the sustainability space.

1- Swiss court declares climate case Asmania et al. vs Holcim admissible

On December 17, the Cantonal Court of Zug declared admissible a civil claim filed by Indonesian islanders against the cement company Holcim. The complaint, filed in 2023, alleges that as one of the main CO2 emitters, Holcim is neglecting its climate obligations and therefore contributing to recent flooding of low lying Indonesian islands.

The ruling rejects the company’s argument that climate protection should remain within the ambit of policy and that companies should not be subject to justiciable accountability. In doing so, the court echoes the logic of the ICJ’s July 2025 advisory opinion which established that the tangible harm induced by unchecked environmental degradation necessitates substantive and enforceable climate obligations. By affirming the admissibility of climate cases brought by civil society on grounds of objective and avoidable harm, the decision paves the way for climate justice that holds major polluters directly accountable.

2-New York announces new GHG emissions disclosure regulations

On December 1, 2025, the New York State Department of Environmental Conservation (DEC) announced new regulations for mandatory greenhouse gas (GHG) emissions disclosure, to take effect in 2027. This decision enacts part 253 pursuant to the state’s Climate Leadership and Community Protection Act, which implemented state-wide 60% reduction of GHG emissions by 2030.

The DEC’s regulations require certain entities that emit 10,000 metric tons of CO2 annually, including fuel suppliers, waste disposal, and petroleum and natural gas facilities, to provide GHG emission data reflecting the previous year’s emissions.

This advancement represents a further step towards efforts by several states, including California, Washington, Minnesota, Illinois and New York, to harmonize their disclosure legislation and thereby reinforce climate obligations for major emitters. While these states account for approximately 7% of national emissions based on 2023 data, their combined economies represented roughly 30% of U.S. GDP in 2024, making this multistate group a significant economic force in incentivizing climate action.

3- European Commission unveils pilot action for plastics

On December 24, the European Commission announced a set of pilot actions aiming to optimize plastics recycling. The implementing act, which establishes end-of-waste criteria and quality management systems to be implemented by producers, is published for public feedback until January 26 before its final adoption.

These measures are part of the upcoming Circular Economy Act, to be proposed in 2026, which will address legal certainty for chemical recycling, the implementation of the Single Use Plastics Directive, and harmonization of rules for the calculation, verification and reporting of chemically recycled plastics.

4- UK regulator bans ads over greenwashing

On December 3, the UK Advertising Standards Authority (ASA) published three rulings banning ads from Nike, Lacoste and Superdry over misleading environmental claims. In each case, the ASA found that companies’ advertising of products as sustainable were likely to mislead consumers and violated the Committees of Advertising Practice (CAP) code, which requires businesses to provide a high level of substantiation for all environmental claims.

Significantly, in the cases of Nike and Lacoste, the sole factor of products containing mainly recycled materials or certified fabrics did not constitute sufficient claim to sustainability, as the companies had not provided evidence that their products had no detrimental environmental effects when taking into account their entire life cycle.

5- Bank of England announces new climate risk policy

On December 3, the Bank of England’s Prudential Regulation Authority published Supervisory statement 5/25 that put forth updated expectations for firms’ climate risk management approaches. The statement outlines the operational and financial risks inherent to climate change and the transition to a net-zero economy, as well as strategies for a strategic management approach. Chapters include new guidelines for governance, risk management, climate scenario analysis, data and disclosures, as well as two sector-specific chapters for banking and insurance firms.

Firms are expected to conduct an internal review of their current status in meeting these expectations by June 2026, as well as to regularly update their risk assessments and climate actions. The new expectations underscore the role of financial institutions in incentivizing and facilitating climate action, not only as social responsibility, but as a long-term investment in resilience and sustainable growth.

- Content prepared with the help of Amanda Alden.

November 2025: EU lowers due diligence and sustainability reporting standards, COP30 updates, big tech and ESG compliance, phasing out PFAs, and more

Key highlights from November 2025 in the sustainability space.

1- European Parliament proposal lowers due diligence and sustainability reporting standards 
On November 13, the European Parliament adopted its negotiation position on the Omnibus Directive amending corporate sustainability reporting and due diligence rules. The proposal raises reporting thresholds to companies with more than 1,750 employees and €450 million in annual turnover, and limits due diligence obligations to firms with over 5,000 employees and €1.5 billion in turnover. 

Among the simplification measures, the revised rules would allow companies to prioritize which risks to assess based on the severity and likelihood of adverse impacts, while also relieving them of the obligation to obtain information directly from business partners across their value chains, permitting reliance on publicly available information. In addition, certain provisions of Directive (EU) 2024/1760 on climate transition would be deferred until 2028 while the Commission develops new due diligence guidelines. 

Negotiations between the European Parliament, the Council, and the European Commission began on 18 November 2025, with the objective of adopting a final text by the end of the year. On the same day, in the spirit of simplification and increasing business competitiveness, expansion and investment, the Parliament also adopted a resolution supporting the BEFIT initiative to harmonise corporate tax rules, citing competitiveness, legal certainty and reduced compliance costs.

The move towards deregulation comes on the heels of trade negotiations with the Trump Administration who has pushed to reduce the burden of the CSRD and CSDDD on U.S. firms. Together, these measures signal a shift towards regulatory simplification and competitiveness, potentially at the cost of sustainability and ESG standards.

2- Federal appeals court enjoins Senate Bill 261 
On November 18, the Ninth Circuit Court of Appeals granted an injunction pending appeal of California's Senate Bill 261, requiring certain companies to disclose climate risks, while staying Senate Bill 253, requiring companies to disclose greenhouse gas emissions.

The plaintiffs, who challenged the legislation on grounds of First Amendment, extraterritoriality and federal preemption, included the U.S. and California Chambers of Commerce. Yet the Ninth Circuit did not limit injunction to members of the plaintiff organisations, effectively suspending enforcement for all covered companies until the appeal is heard in January 2026. 

Meanwhile, delays in the developing regulations for SB 253, particularly those clarifying revenue thresholds and disclosure requirements, have added to regulatory uncertainty for affected companies. This injunction and pending appeals against both statutes risk undermining California's efforts to counterbalance the deregulatory momentum and rollback of climate policies pursued by the Trump administration.

3- COP30 concludes on renewed pledges but no consensus 
From 17 to 22 November, over 60,000 delegates convened in Belém for the COP30 to assess progress on climate mitigation, adaptation and finance. The final decision calls on public and private actors to increase climate finance to at least 1.3 trillion USD annually by 2035, particularly with respect to mitigation and adaptation for developing countries. 

While no consensus was reached on energy transition, several EU countries including Austria, Belgium, Denmark, the Netherlands and Spain signed the Declaration on the Transition Away from Fossil Fuels, and will participate in the first international conference dedicated to fossil fuels in April 2026. Negotiations also focused on contention related to the EU Carbon Border Adjustment Mechanisms and the Deforestation Regulation, signaling potential changes in the regulatory landscape and carbon pricing mechanisms. 

With few binding commitments and no new technical guidance, COP30 confirms a trend of uneven climate transition, led by coalitions of willing states rather than a unified global framework. Fragmented global governance further underscores the relevance of private finance and market-based instruments in driving climate action. 

4- U.S. Attorney Generals warn big tech against ESG compliance 
A coalition of sixteen U.S. state attorneys general has issued formal warnings to Microsoft, Google, and Meta, cautioning against compliance with EU sustainability reporting and due diligence rules on the grounds that adherence could violate domestic legal standards.

The letters accuse the EU of attempting to impose compliance with the Paris Agreement and specifically criticize existing DEI or sustainability initiatives, including Meta’s and Google’s ESG disclosure programs. 

This development underscores the growing compliance dilemma facing multinationals based in the US, which must balance adherence to international sustainability standards against the risk of domestic legal and political backlash, while also managing potential scrutiny from EU regulators in cases of curtailed reporting. 

5- Child rights advocates call for stronger safeguards in African trade integration
Following the release of a  multinational study  on child rights mainstreaming in Africa, the Institute for Human Rights and Development in Africa (IHRDA) urged governments to address child labour and harmful industrial practices as negotiations around the African Continental Free Trade Area (AfCFTA) advance. 

The statement highlights the ongoing lead-poisoning crisis in Kabwe, Zambia, which has affected over 95% of children living and working near former mines, a crisis reflecting not only unsafe environmental practices, but a critical lack of governmental oversight. With the informal sector accounting for over 80% of employment in certain countries, the lack of compliance oversight as well as low entry barriers render youth particularly vulnerable to exploitative practices. Advocates warn that without a robust, enforceable mechanism for child rights at the continental level, deregulated cross-border trade would leave women and children further exposed to exploitation, trafficking and harassment. 

6- Chemical companies move to eliminate PFAS 
BASF, the world's largest chemicals group, has pledged to phase out per- and polyfluoroalkyl substances (PFAS) by 2028, joining a list of major companies renouncing highly persistent "forever chemicals." Citing the need to maintain high safety and environmental standards, the German conglomerate will phase out products formulated with PFAS and substitute with safer alternatives.

This move responds to growing concern among investors concerned about regulatory tightening, compliance obligations and potential litigation exposure, in addition to the impact on ecosystems and public health. According to the ChemSec press release, one third of the world's top 40 chemical companies have indicated they are willing to phase out, reduce or avoid persistent chemicals. 

- Content prepared with the help of Amanda Alden.

October 2025: EU delays CSRD reporting for non-EU companies, French court delivers greenwashing judgment against TotalEnergies, ExxonMobil sues California over climate disclosure laws, and More

Key highlights from October 2025 in the sustainability space.

1- EU Delays CSRD Reporting for Non-EU Companies

On October 6, The European Commission postponed sustainability reporting standards for non-EU companies under the Corporate Sustainability Reporting Directive (CSRD) until at least October 2027, as part of its broader simplification agenda to ease regulatory burdens. This is part of a larger move deprioritising over 100 “non-essential” regulatory and implementing standards, including standards for listed SMEs (which will fall outside the scope of CSRD under the Omnibus I proposal) or non-EU companies (to be adopted by June 2026 with reporting starting in 2029), and a triennial review of the first non-sector-specific ESRS.

While offering short-term relief to companies, the delay prolongs uncertainty around existing and upcoming sustainability standards. 

2- French Court Finds TotalEnergies Misled Consumers on Climate Claims

In a landmark decision on October 23, a Paris civil court held that TotalEnergies misled consumers with claims about its role in the energy transition. The court found that the company’s claims of achieving carbon neutrality by 2050 and being “a major actor in the energy transition” amounted to misleading commercial practices. 

Other claims, relating to TotalEnergies communications about biofuels and gas being cleaner than other fossil fuels, were dismissed on the grounds that they were not linked to the promotion, sale or provision of energy to consumers. The penalty was relatively modest, with the court ordering TotalEnergies to cease using the contested language, publish the judgment on its website for six months, and pay compensation to the claimants. 

Brought by Greenpeace, Friends of the Earth France, and Notre Affaire à Tous, the case marks the first successful greenwashing action against a major oil company in France. Activists hailed the ruling as a turning point for climate accountability, reinforcing the idea that corporate communications must reflect scientific reality rather than marketing narratives. While the company noted that most of the plaintiffs’ demands were dismissed, the decision signals growing judicial scrutiny of ESG-related claims across Europe.

3- Updates on Net-Zero Financial Alliances 

On October 3, the Net-Zero Banking Alliance (NZBA) ceased operations following the wave of high-profile exits on both sides of the Atlantic. Members voted to transition from a membership-based coalition to a guidance framework for climate target setting, citing growing legal and political challenges in the U.S. The banks have stated they will continue assessing climate risks on an individual basis, and the NZBA’s guidance is still available to banks. 

On the other hand, on October 29, the Net-Zero Asset Managers (NZAM) initiative announced its return after a temporary suspension, unveiling a revised commitment structure that removes references to its previous 2050 net zero target. The suspension had followed several member withdrawals amid scrutiny from U.S. lawmakers mirroring the pressures that led to NZBA’s dissolution. 

The divergent approaches reflect a strategic divide in the financial sector’s efforts to uphold climate ambitions amid intensifying opposition to ESG.

4- California delays climate disclosure regulations 

On October 15, the California Air Resources Board announced a delay in the rulemaking process for its climate disclosure laws, SB 253 and SB 261, moving the expected date for the presentation of implementing regulations to early 2026. We had previously reported here that these had been expected to be finalised before the end of 2025. 

The postponement follows extensive public feedback and challenges in defining covered entities, though reporting timelines remain unchanged. The first climate risk report under SB 261 is due January 1, 2026, while the first GHG emissions report for Scopes 1 and 2 under SB 253 is due in June 2026. 

5- ExxonMobil sues California over climate disclosure laws

On October 24, ExxonMobil filed a federal lawsuit seeking to block California’s climate disclosure laws on the basis of its First Amendment rights. Exxon is urging the court to grant an injunction to prevent the laws from coming into force in 2026 as mentioned above. 

Exxon claims the rules compel ideological speech by forcing companies to adopt frameworks such as the GHG Protocol and Task Force on Climate-related Financial Disclosures, which it says misrepresent emissions and require speculation on climate risks. While the laws have already survived an injunction request under the First Amendment in August 2025, that case is now proceeding to trial. The resilience of the laws are thus being tested on multiple fronts. Their fate will provide an indication of the future of climate disclosure laws in the US. 

- Content prepared with the help of Defne Fresko Tasci.

September 2025: EU Court rules on nuclear and gas, EU Parliament revises waste framework, Chine unveils emissions reduction goal, and more

Key highlights from September 2025 in the sustainability space.

1- EU court rules nuclear and gas can be included in EU Taxonomy

On September 10, the EU’s General Court rejected Austria’s challenge to the European Commission’s decision to classify nuclear energy and fossil gas as potentially sustainable under the EU Taxonomy. The Court found that the Commission was “entitled to take the view” that both could, under specific conditions, contribute substantially to climate mitigation and adaptation objectives. It credited the argument that nuclear power produces near-zero greenhouse gas emissions and that low-carbon alternatives of comparable scale remain limited.

The ruling confirms the EU’s pragmatic stance on transition finance, recognizing the need for a gradual reduction in emissions while maintaining energy security. However, it has renewed debate over the taxonomy’s credibility, with critics warning that including fossil fuels and nuclear power could dilute its environmental integrity. An appeal may still be filed.

2- EU Parliament adopts waste framework revision

The European Parliament approved a revision of the EU Waste Framework Directive that creates new obligations for textile and food producers in the EU. The September 9 revision requires textile producers in the EU, including fashion brands and online retailers, to fund the collection, sorting and recycling of their products. The updated directive also introduces the EU’s first binding food waste reduction targets, requiring a 10% cut in food manufacturing and processing waste and a 30% reduction in waste from households, retail and hospitality by 2030.

The reform, initially introduced in 2023, is aimed at reducing the EU’s textile and food waste. Member states have 30 months to establish Extended Producer Responsibility (EPR) schemes, with microenterprises granted an extra year after their implementation to comply with the rules. The directive is now deemed adopted as the position was already agreed by Council this summer. 

3- China unveils first absolute emissions reduction goal 

On September 24, the Chinese government committed for the first time to an absolute emissions reduction target. China has thus undertaken to cut economy-wide emissions 7–10% from peak levels by 2035. President Xi Jinping announced the goal during a UN Climate Summit that marked the 10th anniversary of the Paris Agreement.

Accordingly, the world’s biggest emitter will expand wind and solar capacity to 3,600 gigawatts and increase the share of non-fossil fuels in total energy consumption to more than 30% in less than 10 years. The move signals Beijing’s intent to lead on climate diplomacy as the U.S. steps back from some environmental commitments, marking a notable milestone in global climate governance.

4- European pension fund pulls €14bn from Blackrock over ESG policy 

On September 3, PFZW, one of Europe’s largest pension funds, stopped investing in stock funds managed by BlackRock citing sustainability concerns. The withdrawn investment amounts to €14bn, and points to the widening gap between European asset managers and US counterparts on issues of sustainability strategy. 

BlackRock’s withdrawal from the Net Zero Asset Managers initiative and lower support for ESG resolutions have frustrated European clients, prompting funds like PFZW to seek managers better aligned with their sustainability priorities. While asset managers face a fragmented regulatory landscape on climate risk, the broader trajectory is clear: climate costs are mounting, and the energy transition is now part of the market’s foundation.

- Content prepared with the help of Defne Fresko Tasci.