ISSB Proposes Comprehensive Review of Priority SASB Standards and Targeted Amendments to Others

The International Sustainability Standards Board (ISSB) has published two exposure drafts proposing amendments to the SASB Standards and consequential amendments to the Industry-based Guidance on Implementing IFRS S2.

The proposed amendments:

• Present a comprehensive review of nine industries that were prioritised (all eight industries in the Extractives & Minerals Processing sector and the Processed Foods industry).
• Align some metrics in a further 41 industries for topics such as Water Management and Workforce Health & Safety; and
• Propose updates toIndustry-based Guidance on Implementing IFRS S2 (affecting the nine prioritised industries and 37 of the 41 industries) to maintain alignment with climate-related content in the SASB Standards.

The ISSB included these enhancements in its 2024–2026 work plan to provide timely support to companies applying IFRS Sustainability Disclosure Standards (ISSB Standards) and to enhance the decision-usefulness of information provided to investors. This work will support implementation of the ISSB Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures and will also benefit the many companies that apply the SASB Standards on a voluntary basis.

Article 6 Given Red Light within EU ETS

The European Commission has confirmed that carbon credits from Article 6 of the Paris Agreement will not be eligible for use within the EU ETS EU emissions trading system (ETS). The commission’s proposal to cut EU greenhouse gas emissions by 90pc by 2040 compared with 1990 levels would, from 2036 onwards, allow up to 3pc of the goal to be met using international carbon credits issued under Article 6 of the Paris climate agreement.

EU Simplifies ESG Reporting, New Standards Unveiled By EFRAG

EFRAG has released a simplified draft of the European Sustainability Reporting Standards (ESRS), accompanied by a 60-day public consultation period.

This major step follows the European Commission’s Omnibus initiative and its formal request to EFRAG in March 2025 to deliver a critical simplification to the ESRS adopted in 2023.

The objective: make sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) more manageable while preserving its relevance and alignment with the European Green Deal.

China Overhauls Green Taxonomy to Boost Energy Transition Finance

China has updated its green taxonomy as part of the country’s efforts to strengthen its net-zero transition ambitions and reduce fragmentation which had often been a source of confusion and increased costs for financial institutions and regulators.

The catalogue of green finance endorsed projects comes into effect in October and will replace two separate green lists that have been used for bond and loan markets, but it will not cover Chinese equities.

Issued by the People’s Bank of China (PBoC), the National Financial Regulatory Administration and the China Securities Regulatory Commission, the catalogue defines which economic activities and investments qualify as green or environmentally sustainable across a wide variety of industries.

New EU VSME Standard Boosts SME Sustainability Reporting

The European Commission has adopted a new voluntary sustainability reporting framework tailored to small and medium-sized enterprises (SMEs). The recommendation presents a voluntary standard that will make it easier for SMEs that are not covered by the Corporate Sustainability Reporting Directive (CSRD) to respond to specific requests for sustainability information from large financial institutions and companies.

The voluntary standard for SMEs (VSME) was developed by EFRAG, the Commission’s technical advisory body for sustainability reporting. The Commission encourages large companies and financial institutions that seek sustainability information from SMEs to base their requests on the voluntary standard as far as possible.

SMEs may also wish to voluntarily report sustainability information to improve their access to sustainable finance and better understand and monitor their own sustainability performance, thereby improving their resilience and competitiveness.

 

GRI Trains ESG Leaders, New Courses Support Climate and Nature Disclosure Skills

The Global Reporting Initiative (GRI) has launched two new GRI Academy courses to upskill sustainability professionals

As the global climate and nature crises continue to intensify, bringing rising temperatures, biodiversity loss, social disruptions and economic risks – the need for accountability from organizations, built on an understanding of their impacts, has never been more critical.

To support sustainability practitioners in addressing these challenges, the GRI Academy, the world’s leading training platform for sustainability reporting, has launched new courses to boost climate and nature reporting skills.

• Climate Reporting with GRI and IFRS Standards:Focusing on reporting with the GRI 102 Climate Change Standard and IFRS Sustainability Disclosure Standards, this course delves into the need for a shift to a more holistic approach to climate reporting that includes human and biodiversity dimensions. It explores disclosure on greenhouse gas emissions, transition plans and adaptation strategies, and why reporting on climate-related risks alone is insufficient.
• GRI-TNFD Interoperability: A Guide for Nature-Related Reporting: This course unpacks why nature-related disclosures matter and how organizations can respond to growing expectations for transparency by leveraging the GRI Standards alongside recommendations set by the Taskforce on Nature-related Financial Disclosures. It includes a practical explanation of new interoperability mapping – a tool to aligns reporting requirements from both frameworks to simplify and unify biodiversity disclosures.

Saudi Arabia Deploys DAC Tech in Riyadh to Boost Carbon Removal and Support Vision 2030

Saudi Arabia has marked a significant milestone in its climate strategy with the launch of its first Direct Air Capture (DAC) demonstration unit in Riyadh. The project, a collaboration between the Ministry of Energy, KAPSARC, and Climeworks, was inaugurated on July 27, 2025. This DAC unit is designed to capture carbon dioxide directly from the atmosphere, helping the country work toward its net-zero emissions targets and contribute to global efforts to tackle climate change.

Located at the King Abdullah Petroleum Studies and Research Center (KAPSARC), the mobile DAC unit will test the technology’s performance under the extreme heat conditions of the region. Unlike Climeworks’ previous installations in colder climates like Iceland, this project will provide critical data to refine DAC technology for use in hot, arid environments, which are more common in regions around the world.

The launch of the unit is part of Saudi Arabia’s broader strategy to scale carbon capture technologies. The country aims to capture up to 44 million tonnes of CO₂ annually by 2035, through the deployment of large-scale Carbon Capture, Utilization, and Storage (CCUS) hubs in the Eastern and Western regions.

Green Climate Fund Approves Record $1.225bn for Climate Projects

The Green Climate Fund has approved record funding of $1.225 billion for climate projects in developing countries. The USD 1.225 billion total is the largest amount approved at a single Board meeting, during a year in which the Fund is scaling up its activities in response to the global demands for climate finance.

GCF now has a portfolio of 314 projects amounting to USD 18 billion in GCF resources, USD 67 billion including co-financing. The funds will support renewable energy investments, climate adaptation, and low-emission technology development. The largest allocations will go to projects in Africa and South Asia.

IDB and World Bank Launch $1bn Amazonia Bond Programme

The Inter-American Development Bank (IDB) and the World Bank launched a new platform to help countries and institutions raise private capital for sustainable development in the Amazonia region, combining environmental protection with economic and social impact.

The  platform is grounded on the Amazonia Bond Issuance Guidelines, just issued jointly by the IDB and the World Bank. These guidelines provide a comprehensive framework for structuring bonds with clear criteria for use of proceeds, impact measurement, and transparency.

As a first move under the new program, the IDB plans to issue up to $1 billion in Amazonia Bonds, targeting projects that curb deforestation, protect biodiversity, and support local livelihoods and economic resilience.

 

Introducing the Climate Edge Platform:

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We deliver three core solutions that generate measurable sustainability impact:

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• 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗘𝗱𝗴𝗲 𝗳𝗼𝗿 𝗖𝗮𝗿𝗯𝗼𝗻 𝗙𝗼𝗼𝘁𝗽𝗿𝗶𝗻𝘁, offering comprehensive carbon accounting across Scope 1, 2, and 3 emissions
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