Welcome to the May 2025 edition of Sustainability Watch, your monthly overview of global ESG regulatory developments. With over 260 changes recorded, ESG reforms continue to shape climate finance, labor standards, and corporate accountability. Here’s a regional snapshot of key updates:
Europe
In Europe, the European Parliament delayed the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) by up to two years to ease compliance costs, potentially saving €6 billion. Germany proposed new battery waste legislation, and ESMA began enforcing ESG fund naming rules from May 21 to combat greenwashing.
North America
North America saw continued ESG evolution. US. regulators focused on workforce transparency, especially diversity and inclusion. Canada advanced mandatory climate disclosures in line with global standards. The IFRS Foundation launched a Roadmap Tool to support ISSB adoption and harmonize sustainability reporting.
South America
In South America, Brazil and Chile strengthened frameworks for supply chain due diligence and anti-corruption, enhancing corporate accountability. Regional governments showed interest in the IFRS Roadmap Tool, signaling a move toward standardized ESG reporting.
APAC & Oceania
Asia-Pacific and Oceania were active in climate-related disclosures. India introduced a draft Climate Finance Taxonomy to classify sustainable investments. Taiwan proposed mandatory sustainability disclosures in annual reports. Australia progressed ESG integration in governance, supported by ASIC’s release of Regulatory Guide 280 (RG 280), which outlines mandatory sustainability reporting under the Corporations Act and aligns with ISSB standards.
Middle East & Africa
In the Middle East and Africa, GCC countries explored regional ESG frameworks to attract sustainable investment. South Africa and Kenya advanced laws on labor rights and environmental stewardship. The IFRS jurisdictional templates were well-received, aiding local adaptation of global standards.
