ESG

Amid claims that ESG (Environmental, Social, and Governance) and sustainable investing were set to fade into obscurity under a second Trump presidency, new data from Morgan Stanley suggests otherwise. Instead of waning interest, sustainable investing is experiencing a significant surge, driven particularly by younger generations who are not just interested in financial returns but also in aligning their investments with their values.

The Dutch Authority for the Financial Markets (AFM) kicked off May 2025 with an important update on their priorities for sustainable finance. As consumers increasingly demand financial products that align with their values, the AFM has issued clear guidance on how financial institutions can meet this new wave of demand. But while progress has been made, the AFM is urging financial firms to do even more—and they’re not holding back on their expectations.

The Canadian Securities Administrators (CSA) announced recently that it’s temporarily pressing pause on two highly anticipated projects: the development of mandatory climate-related disclosure rules and changes to diversity-related disclosure requirements. The decision, which comes at a time of mounting geopolitical and economic uncertainty, signals the CSA’s focus on supporting Canadian businesses as they navigate the fast-moving, sometimes turbulent, regulatory landscape.

In a move that will surely be welcomed by businesses throughout the European Union (EU), the European Commission has announced new measures to simplify the implementation of the EU Deforestation Regulation (EUDR), reducing the burden on operators and traders while maintaining the regulation's environmental goals. As the EUDR is set to fully come into force at the end of this year, these changes aim to make compliance easier without sacrificing the core focus: tackling deforestation, climate change, and biodiversity loss.

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.