On 6 November 2025, the long-awaited “SFDR 2.0” has finally surfaced in a leak and, as many in the market expected, it represents a major reset of Europe Union’s (“EU”) sustainable finance framework. The proposal, still in draft form from the European Commission, aims to simplify the original Sustainable Finance Disclosure Regulation (“SFDR”). Yet for
Environmental, Social and Corporate Governance (ESG)
European Parliament Rejects “Omnibus” Negotiating Mandate on CSRD and CSDDD Simplification
On 22 October 2025, the European Parliament voted against adopting a negotiating mandate on the European Commission’s Omnibus Directive – a proposal to simplify and streamline sustainability reporting and due diligence obligations under the Corporate Sustainability Reporting Directive (“CSRD”) and the Corporate Sustainability Due Diligence Directive (“CSDDD”).
The vote was narrowly…
European Parliament Takes Next Step to Reduce Scope of CSRD
On 8 October 2025, the European Parliament’s Socialists and Democrats (S&D) group ultimately accepted the European People’s Party (EPP)’s position on the Omnibus Directive, which revises the scope of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
Trilogue Negotiations
The next step is for the…
EIOPA Raises Concerns Over Proposed European Union Climate-Reporting Scope Reduction
At the recent Sustainable Finance Conference, EIOPA Chair Petra Hielkema cautioned against the European Commission’s Omnibus proposal to scale back mandatory sustainability disclosures.
Under the proposal, only about 20% of market participants would be required to report, with the remainder left to disclose voluntarily. Hielkema noted that such an approach risks generating incomplete and inconsistent…
CARB Publishes Preliminary List of Companies in Scope of California Disclosure Laws
By Rachel Lowe & Aliza Cinamon on
The California Air Resources Board (CARB) published its preliminary list of companies that may be subject to California’s climate disclosure laws SB 253 (the Climate Corporate Data Accountability Act, which requires U.S.‑based entities doing business in California with over $1 billion in annual revenue to publicly disclose their Scope 1, 2 and 3 greenhouse gas…
New SFDR Clarifications Published by the European Supervisory Authorities
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
On 4 August 2025, the European Supervisory Authorities (“the ESAs”) published updated guidance on the application of the Sustainable Finance Disclosure Regulation (“SFDR”) by adding to their Q&A. Below, we break down the areas clarified in the advice and note, with interest, their use of the current European corporate sustainability reporting standards, despite them…
Council of the European Union Agrees Mandate to Streamline CSRD and CSDDD Requirements
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
On 23 June 2025, the Council of the European Union (“Council”) endorsed its negotiating mandate on the European Commission’s Omnibus I proposal, which aims to streamline the Corporate Sustainability Reporting Directive ((EU) 2022/2464) (“CSRD”) and the Corporate Sustainability Due Diligence Directive ((EU) 2024/1760) (“CSDDD”). This initiative forms part of a broader EU strategy to reduce regulatory complexity and enhance…
TCFD Is Dead, Long Live ISSB – Are You Ready?
By Aliza Cinamon, Rachel Lowe & Michael Singh on
Sustainability reporting is evolving fast. As global momentum builds around the endorsement and adoption of the International Sustainability Standards Board (ISSB) standards in key jurisdictions, businesses must act now to stay ahead. Our latest report breaks down—what’s changing, where it’s headed, and how you can prepare.
Download the full report now and gain the insights…
Final opportunity to shape SFDR’s future in European Commission’s Call for Evidence
By Rachel Lowe, John Verwey, Michael Singh & Sulaiman Malik on
On 2 May 2025, the European Commission launched its ‘Call for Evidence’ on the review of the Sustainable Finance Disclosure Regulation (SFDR).
The European Commission aims to review the SFDR to simplify the framework, enhance usability, and prevent greenwashing. Stakeholders are invited to submit general feedback rather than answer specific questions…
EU Regulators Take Different Enforcement Paths for ESMA ESG Fund Name Guidelines
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
European regulators have taken different routes as to how they plan to enforce the European Securities and Markets Authority’s (“ESMA”) guidelines (the “Guidelines”) with respect to the use of sustainability‑related terms in fund names. The deadline to implement these changes for existing funds is by 21 May 2025 and has applied to…