Key highlights from June 2025 in the sustainability space.
1- The European Commission clarifies the Green Claims Directive is not withdrawn
On June 20, reports emerged that the European Commission intended to withdraw the Green Claims Directive proposal following opposition from the European People’s Party (EPP). The EPP criticized the proposal for being overly complex and misaligned with the Commission’s broader agenda of regulatory simplification. This news broke just ahead of the scheduled trilogue discussions on June 23, which the Council subsequently cancelled.
The announcement drew criticism from MEPs on the basis that the directive had already taken simplicity into account, especially as the Parliament had already agreed to a full exclusion of microenterprises from the Directive’s scope. Several political groups went as far as to threaten withdrawal of support for the Commission, warning that the move could jeopardize the institution’s legislative credibility.
In response to mounting criticism, the Commission clarified on June 30 that the proposal had not been formally withdrawn, but reiterated that its future hinges on the continued exclusion of microenterprises from its scope. Critics warned that the Commission’s handling of the matter sets a troubling precedent and could derail two years of progress toward greater consumer protection and recognition for truly sustainable businesses.
2- UK releases draft Sustainability Reporting Standards
On June 25, the UK government released exposure drafts for the upcoming UK Sustainability Reporting Standards. The proposed standards (UK SRS) are modelled on the IFRS Sustainability Disclosure Standards. Published alongside consultations for mandatory transition plans and assurance of sustainability reporting, the drafts include UK-specific amendments such as a two-year “climate-first” relief period and a requirement for sustainability disclosures to be published in tandem with financial statements. The goal is to shape a reporting regime that is transparent, proportionate, and connected to existing financial reporting.
The consultations will remain open until September 17, 2025. The Government is seeking feedback not only on the proposed amendments in the UK SRS but also on the anticipated costs and benefits of adopting the UK SRS instead of current reporting practices.
3- Progress made towards international ocean protection at UN Oceans Conference
The UN Oceans Conference in Nice, France, concluded on June 13 with a major breakthrough: enough nations pledged to ratify the High Seas Treaty for it to enter into force by September. The successful push was led by contributions from nations including French Polynesia, Colombia, and Samoa, while the US was notably absent from the conference.
Earlier in the conference, on June 11, the European Commission announced the adoption of the European Ocean Pact. First agreed on June 5, the Pact commits the EU to restore 20% of marine ecosystems by 2030, including ambitious targets to halve both plastic and nutrient pollution.
While civil society groups expressed concern over a potential disconnect between commitments and concrete implementation, the conference marked a clear step forward in global efforts to safeguard ocean health and biodiversity.
4- German prosecutors drop greenwashing probe
On June 17, German prosecutors closed their criminal investigation into former DWS CEO Asoka Wöhrmann concerning greenwashing allegations around his time at Deutche Bank’s asset management arm. The allegations stemmed from a whistleblower complaint by the asset manager’s ex-sustainability chief, who accused DWS of overstating its ESG investments. The firm was fined €25 million by German authorities in April 2025. Regulators found that assertions such as being a “leader” in ESG investing and positioning ESG as an integral part of the firm’s “DNA” did not reflect actual practices. This follows a similar case in the United States, where the firm settled with the SEC in September 2023 for $25 million over comparable allegations.
Despite the broader enforcement actions, prosecutors opted not to pursue charges against former executive Asoka Wöhrmann. Citing his departure from the firm in 2022, lack of prior convictions, and current absence from financial sector roles, authorities closed the case without imposing penalties.
The decision highlights the ongoing challenge of establishing individual accountability in cases involving ESG misrepresentation.
5- Actors urge SAG-Producers Pension Plan to stop investing in fossil fuel companies
In a letter published on June 24, over 200 SAG-AFTRA members urged the SAG - Producers Pension Plan to divest over $100 million from fossil fuels. The pension fund manages over $5 billion and supports more than 65,000 participants.
The campaign, led by Stand.earth under the Retire Big Oil banner, calls for full divestment from fossil fuel companies and reinvestment of at least 10% of the pension into climate-safe, socially responsible funds within five years. The letter argues fossil fuels are financially underperforming and socially harmful, especially to communities of color, and that the fund should reflect the union’s values of justice, sustainability, and long-term security.
- Content prepared with the help of Defne Fresko Tasci.