In July 2025, the European Financial Reporting Advisory Group (EFRAG) released a dramatically slimmed-down version of the European Sustainability Reporting Standards (ESRS), part of a broader rethink of how the EU balances transparency with practicality. At the heart of the update is fewer datapoints, more usability, and a clearer nod to the real-world pressures companies are facing.
U.S. Securities and Exchange Commission (SEC) Commissioner Caroline A. Crenshaw issued a strongly worded statement on July 23 criticizing the agency’s response to a federal court order in ongoing litigation over its climate-related disclosure rules.
A growing number of global companies continue to see sustainability as a pathway to long-term value, not just risk mitigation, according to the 2025 Sustainable Signals: Corporates report from the Morgan Stanley Institute for Sustainable Investing.
Even in the face of shifting regulations, mounting data demands, and a murky compliance landscape, companies aren’t backing down from their ESG reporting commitments. That’s the central message from KPMG’s 2025 ESG Assurance Maturity Index, which paints a nuanced picture of steady, if uneven, progress, and a growing divide between those leading the charge and those still trying to find their footing.
The European Commission has stepped in with a timely adjustment to ease pressure on companies already navigating the EU’s sustainability reporting rules. On July 11, the Commission adopted a “quick fix” to the first set of European Sustainability Reporting Standards (ESRS), giving a break to companies that began reporting for financial year 2024, commonly referred to as “wave one” reporters. These companies will now be able to skip certain additional disclosures for two more years, covering financial years 2025 and 2026.
The California Air Resources Board (CARB) has published a detailed FAQ to guide companies preparing for two new climate disclosure laws: the Climate Corporate Data Accountability Act (Health and Safety Code section 38532) and the Climate-Related Financial Risk Disclosure Program (section 38533). The document outlines early steps for compliance, reporting timelines, and public engagement opportunities, ahead of formal regulations expected later this year.
The European Banking Authority (EBA) has recently announced that it is launching a public consultation to revise its long-standing Guidelines on Product Oversight and Governance (POG). The revisions would, for the first time, formally incorporate ESG-related risks into how financial products are designed, marketed, and reviewed without, the EBA insists, adding unnecessary red tape.