As the global sustainability landscape continues to evolve, March 2025 has brought a wave of significant regulatory developments and policy reforms across key regions. From the European Union’s Omnibus package introducing ESG reporting simplifications, to North America’s shifting climate stance and Asia-Pacific’s push for standardized sustainability disclosures, governments and institutions worldwide are balancing economic priorities with environmental imperatives. This edition of Sustainability Watch dives into these regional updates, offering a comprehensive view of how diverse strategies are shaping the future of ESG regulation and sustainable development.
Europe
EU’s ‘Omnibus’ package has been published aiming at proposing amendments to the CSRD, CSDDD, CBAM, and the EU taxonomy, including a postponement of the application of CSRD and CSDDD. Detailed proposals will need to be adopted by the European Council and the Parliament before they can be made law. The European Commission has announced its ‘Clean Industrial Deal’ for achieving a decarbonized economy by 2050, with an intermediate target of a 90% reduction in emissions by 2040. The EBA has published a report on data availability and the feasibility of a common methodology for ESG exposures to evaluate the availability of data on ESG risks, and the possibility of creating a standardized method for identifying banking book credit exposures to risks related sustainability.
North America
The U.S. rejected the United Nations Sustainable Development Goals (UN SDGs), citing conflicts with U.S. sovereignty and interests. This stance is part of a broader retreat from international climate agreements, including the Paris Agreement. Concurrently, U.S. legislation like the "PROTECT USA" Act aims to shield American companies from the EU's Corporate Sustainability Due Diligence Directive, emphasizing national sovereignty. Following this trend, the SEC, under new leadership, has moved away from enforcing climate disclosure rules, despite investor demand. Additionally, the Trump administration's closure of the Department of Education could significantly impact student loans, creating uncertainty and delays, potentially affecting students' financial planning. In Canada, new Prime Minister Mark Carney has eliminated the consumer carbon tax to address inflation concerns while maintaining carbon pricing for businesses and introducing measures to prevent carbon leakage.
South America
In recent developments across South America, some countries are taking significant strides towards sustainability. Chile has updated its emission standards for thermoelectric plants, aiming for carbon neutrality and impacting existing and future plants regardless of fuel type. This move aligns with the country's broader decarbonization strategy. Concurrently, Chile and Argentina have collaborated on a pioneering translocation project to conserve the endangered Patagonian rhea, showcasing the importance of international cooperation in biodiversity conservation. Additionally, Chile is set to implement a groundbreaking forest certification standard to ensure sustainable forest management and combat deforestation, positioning itself as a global leader in this area.
APAC
A Member’s bill titled “Financial Markets (Conduct of Institutions) Amendment (Duty to Provide Financial Services) Amendment Bill” was introduced by Andy Foster, Member of the New Zealand Parliament. The proposed bill aims to amend the Financial Markets (Conduct of Institutions) Amendment Act 2022 to place a new duty on financial institutions to provide financial services to customers except in situations based on law or for valid and verifiable commercial grounds. If enacted, the Bill would prevent banks from refusing banking services to businesses based on ESG (environmental, social, and governance) criteria.
