Europe
Europe’s ESG landscape is entering a phase of strategic recalibration, balancing simplification with ambition. The European Commission’s Omnibus package proposes narrowing CSRD’s scope and delaying reporting deadlines, while EFRAG introduces a voluntary VSME template to ease SME compliance. Supervisory bodies like ESMA and EIOPA remain focused on greenwashing prevention, ESG disclosure quality, and climate stress testing, alongside emerging priorities such as ethical AI and carbon market integrity. Legislative debates and recent jurisprudence underscore that while compliance burdens may lighten, accountability and transparency in sustainability practices remain non-negotiable.
North America
North America’s ESG trajectory reflects a decisive regulatory retreat amid global climate commitments. U.S. banking regulators have withdrawn climate-risk management principles for large institutions, citing existing prudential standards, signaling a pivot away from climate-specific oversight. The SEC is actively discouraging ESG-focused shareholder proposals and has abandoned plans for enhanced ESG disclosure rules, framing them as costly and politically charged. In contrast, Canada is doubling down on climate leadership, advancing global priorities at the G7 Energy and Environment Ministers’ Meeting through initiatives on water security, circular economy, critical minerals, and mobilizing private finance for clean energy transitions. This divergence underscores a widening gap: while Canada positions sustainability as a growth driver, U.S. policy shifts emphasize deregulation and traditional risk frameworks.
South America
South America is strengthening climate transparency through collaborative innovation. Brazil’s Ministry of Science, Technology and Innovation has partnered with CDP in a technical cooperation agreement to enhance corporate climate disclosure and data quality. This initiative aims to align national reporting practices with global standards, improve emissions tracking, and support evidence-based policymaking. By fostering transparency and accountability, the region signals its commitment to integrating sustainability into economic development and positioning itself as a proactive player in global climate governance.
APAC & Oceania
APAC and Oceania are accelerating green transitions through policy innovation and strategic partnerships. Japan is advancing its GX (Green Transformation) strategy with measures to decarbonize industry, promote hydrogen, and strengthen circular economy frameworks, supported by METI and Environment Ministry initiatives. China is tightening sustainability-linked trade controls, introducing export restrictions on lithium batteries and critical materials to safeguard supply chain integrity and environmental standards. Singapore has launched negotiations for a Green Economy Partnership Agreement, aiming to integrate climate resilience into trade and investment. Meanwhile, Taiwan’s financial regulator is pushing for earlier disclosure of shareholder meeting documents to enhance governance transparency.
