ESG

The European Parliament recently voted in favor of giving businesses a little more breathing room when it comes to complying with the new sustainability and due diligence rules. With an overwhelming vote of 531 for, 69 against, and 17 abstentions, MEPs backed the European Commission's proposal to delay the deadlines for these significant regulations. The intended goal? To simplify the process for businesses and help the EU stay competitive on the global stage. It’s part of the broader “Omnibus I” simplification package, which aims to reduce the red tape businesses face while still driving progress on important issues like human rights and environmental impact.

The Australian Securities and Investments Commission (ASIC) has recently dropped a new set of guidelines that will help companies navigate the complexities of climate-related financial reporting. The release of Regulatory Guide 280 comes after a deep dive into industry feedback and offers a clearer picture of how companies, superannuation funds, and investment vehicles should approach sustainability disclosures under the Corporations Act 2001.

The Office of the Comptroller of the Currency (OCC) has announced its withdrawal from the interagency principles for climate-related financial risk management for large financial institutions, signaling a shift in its regulatory approach.

It’s no secret that banks are under increasing pressure to understand and manage their environmental, social, and governance (ESG) risks, and Banca d’Italia’s latest report on ESG disclosures shows just how challenging that can be. As the financial world moves toward a more sustainable future, Italian and European banks are slowly but surely stepping up to the plate—despite facing significant hurdles. Banca d’Italia’s Notes on Financial Stability and Supervision No. 45 delves into the current state of ESG risk assessment, tracking the progress these banks have made while highlighting the areas still in need of improvement.

In what is sure to be a controversial turn of events, the U.S. Securities and Exchange Commission (SEC) has decided to pull back from its defense of the much-debated climate disclosure rules. A move that may change the course of corporate environmental regulation, the SEC’s vote today marks a shift in its approach to climate-related corporate transparency.

If you’ve been keeping an eye on the news, it might feel like corporate sustainability is in trouble. Stories about companies walking back their climate commitments seem to be everywhere—fueled by a mix of economic strain, shifting regulations, and political uncertainty. It’s easy to get the impression that businesses are losing their nerve when it comes to climate action.