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European Parliament Votes to Postpone Deforestation Regulation to 2025 and Proposes Additional Amendments

The vote follows the European Commission’s proposal to delay application of the regulation by one year. On 14 November 2024, the European Parliament (Parliament) voted in favour of the European Commission’s (Commission) ...more

UK Government Announces New UK 2035 Climate Target

The Prime Minister announced the new UK target of an 81% reduction in greenhouse gas emissions at COP29 in Baku, Azerbaijan. ...more

EU Commission Suggests Potential Consolidation of ESG Reporting Frameworks in 2025

The announcement follows declarations to simplify regulatory frameworks for businesses, and an overall drive to increase competitiveness in Europe. On 8 November 2024, European Commission President Ursula von der Leyen...more

Hong Kong Publishes Code of Conduct for ESG Ratings and Data Products Providers

On October 6, 2024, the Hong Kong Code of Conduct for ESG Ratings and Data Products Providers (VCoC) was published to establish and promote a consistent, interoperable, and proportionate voluntary code for providers offering...more

UK Government Publishes 2035 Industrial Strategy to Drive Green Growth and Innovation

On 17 October 2024, the UK government published “Invest 2035: the UK’s modern industrial strategy” (the strategy) for public consultation. The strategy sets out a 10-year roadmap based on goals including driving economic...more

SGX RegCo to Incorporate IFRS Standards Into Mandatory Climate Reporting Rules

On 23 September 2024, the Singapore Exchange Regulation (SGX RegCo) announced that it will begin incorporating the IFRS Sustainability Disclosure Standards (IFRS Standards) issued by the International Sustainability Standards...more

European Commission Proposes One-Year Delay to European Deforestation Regulation

The Commission published guidance documents to the regulation and proposed to postpone its entry into application to 30 December 2025....more

European Commission Opens Infringement Procedures Regarding Sustainability Reporting Rules

The EU Corporate Sustainability Reporting Directive (CSRD, or the Directive) took effect beginning 2024 and requires mandatory sustainability reporting by a first set of companies in 2025. Under the terms of the CSRD, the...more

Ruling Requires South Korean Government to Review Climate Targets

South Korea’s Constitutional Court has issued a “first of its kind” decision in Asia, requiring South Korea to update its greenhouse gas reduction targets. On 29 August 2024, South Korea’s Constitutional Court (the Court)...more

ISSB Implementation Across Asia - September 2024

In the December 2023 edition of Regulatory Updates in Asia ESG we provided an update on how jurisdictions across Asia are responding to the International Sustainability Standards Board (ISSB) standards. Several regulators in...more

European Commission Publishes FAQs on EU Corporate Sustainability Reporting Directive

The FAQs aim to clarify key aspects of the CSRD, including the scope of the rules, compliance dates, and exemptions. On 7 August 2024, the European Commission (Commission) published a set of frequently asked questions...more

Understanding the New Ecodesign for Sustainable Products Regulation

The ESPR aims to make sustainable products the norm in the EU, replacing the current Ecodesign Directive and introducing broader measures for sustainability....more

The EU’s Corporate Sustainability Due Diligence Directive - Obligations for Companies

On 5 July 2024, the final text of the Corporate Sustainability Due Diligence Directive (CSDDD) was entered into the Official Journal of the EU. The CSDDD will enter force on 25 July 2024. This marks the final key step in the...more

EU Adopts Corporate Sustainability Due Diligence Directive

The CSDDD is set to impose mandatory human rights and environmental due diligence obligations for in-scope companies. On 5 July 2024, the Corporate Sustainability Due Diligence Directive (CSDDD) was published in the...more

UK Court of Appeal Rules NCA’s Refusal to Investigate Cotton Imports From Uyghur Region Unlawful

The ruling propels UK law enforcement to increase its investigative powers under POCA, and businesses to enhance their supply chain due diligence. On 27 June 2024, the UK Court of Appeal found that the National Crime...more

China’s Ministry of Finance Publishes Corporate Sustainability Disclosure Standards

The Standards provide a framework for all Chinese companies’ sustainability disclosures and the applicability extends beyond listed companies. On May 27, 2024, China’s Ministry of Finance published the new Corporate...more

UK Supreme Court Requires EIAs to Consider Likely Direct and Indirect Environmental Effects on Climate if Readily Quantifiable

Finch v. Surrey calls for assessment of all likely direct and indirect environmental effects in EIAs, including certain Scope 3 emissions if a reasonable estimate is feasible. On 20 June 2024, the UK Supreme Court (the...more

European Council Approves Nature Restoration Law

The regulation aims to restore 20% of the EU’s land and sea by 2030 and provide a launchpad for achieving long-term nature-related goals through 2050....more

Denmark to Allow Stacking of Voluntary Carbon Credits and Nationally Determined Contribution

Denmark’s unprecedented carbon removals fund has facilitated the coexistence of corporate and national carbon claims in carbon accounting. In the past few years, stakeholders in the carbon market have debated how to...more

EFRAG Publishes First Implementation Guidance Documents for CSRD Reporting

This guidance aims to support the preparation and analysis of reports using the European Sustainability Reporting Standards. On 31 May 2024, EFRAG published the first three Implementation Guidance (IG) documents relating...more

International Tribunal on the Law of the Sea Issues Landmark Advisory Opinion on Climate Change

The Tribunal confirmed that States party to UNCLOS must take measures to prevent marine pollution caused by climate change, on top of their obligations under the Paris Agreement. On 9 April 2024, the International...more

UK Government Update on Sustainability Disclosure Requirements Framework

On 16 May 2024, the government published updated guidance regarding the UK Sustainability Disclosure Requirements (SDR) framework. The SDR was first set out in Greening Finance: A Roadmap to Sustainable Investing in...more

EU Parliament Approves Supply Chain Sustainability Rules

On 24 March 2024, the European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD) with a vote of 374 in favour (compared with 235 votes against and 19 abstentions)....more

European Court of Human Rights Delivers Three Landmark Rulings on Climate Change

For the first time, the Court has confirmed that the adverse impacts of climate change fall within the ambit of human rights protection under the European Convention of Human Rights, obliging States to implement effective...more

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