Europe
Europe’s sustainability agenda is increasingly focused on implementation and refinement as regulatory frameworks mature. The European Council has advanced negotiations on the review of the Sustainable Finance Disclosure Regulation (SFDR), proposing a clearer product categorisation system to enhance investor understanding, reduce greenwashing risks, and simplify compliance requirements.
At the same time, the European Commission has introduced temporary Basel III market risk adjustments aimed at preserving the competitiveness of EU banks while maintaining prudential standards, highlighting the growing connection between sustainability, resilience, and capital market policy. The Commission has also accelerated its transition toward non-animal chemical safety testing, supporting broader environmental and innovation objectives.
North America & South America
Brazil and the United States are taking different approaches to sustainability disclosure regulation. In Brazil, the Securities and Exchange Commission (CVM) has amended Resolution 193 through Resolution 244, strengthening alignment with ISSB-based sustainability reporting and introducing new requirements related to reporting continuity, transparency of disclosure decisions, and communication with the market when companies choose not to publish sustainability reports.
Meanwhile, the U.S. Securities and Exchange Commission has proposed repealing its climate-related disclosure rules, reflecting a shift toward a more materiality-focused approach and renewing debate over the role of climate reporting within securities regulation.
APAC
Across Asia, governments and market regulators are expanding sustainability expectations and embedding ESG considerations into business practices. In Japan, new initiatives focused on nature-positive procurement, sustainable forestry, and the responsible management of foreign workers reflect a growing emphasis on biodiversity, climate resilience, and social responsibility in corporate decision-making.
At the same time, China is accelerating industrial decarbonization through a three-year action plan targeting energy-intensive industries, strengthening the implementation of climate transition measures and operational emissions reductions. In India, efforts to enhance ESG governance continue through proposed sustainability assurance standards, stronger ethical requirements for assurance professionals, and new mechanisms for directing corporate CSR funding through regulated social finance platforms.
Across Southeast Asia, sustainable finance remains a key priority. The Philippine Stock Exchange is encouraging the adoption of global environmental disclosure practices, while Cambodia is expanding its climate-finance infrastructure to support green growth and strengthen climate resilience.
