AASB S2 Climate-related Disclosures in Active Implementation Phase
Australia’s mandatory AASB S2 Climate-related Disclosures remained in active implementation during the June-September 2025 period, having taken effect for annual reporting periods beginning on or after January 1, 2025. The standard requires entities to disclose climate-related risks and opportunities affecting cash flows, finance access, or capital costs, focusing on governance, strategy, risk management, and metrics/targets including scenario analysis and Scope 1-3 emissions. The phasing approach means first sustainability reports were issued for periods starting January 1, 2025, with first mandatory reporting for June 30 year-ends occurring June 30, 2026. The standard incorporates all IFRS S2 requirements as a mandatory framework. ( AASB )
Hong Kong Exchange ESG Code Climate Requirements Active Implementation
During the June-September 2025 period, HKEx’s New Climate Requirements remained in effect since January 1, 2025, requiring all listed issuers to disclose Scope 1 and 2 greenhouse gas emissions mandatorily. The framework operates on a tiered basis: Main Board issuers follow ‘comply or explain’ for additional climate disclosures, GEM issuers participate voluntarily, while LargeCap issuers prepare for mandatory compliance from January 1, 2026. Additionally, new corporate governance requirements took effect July 1, 2025, introducing new INED requirements. The climate requirements are based on IFRS S2, positioning HKEx among the first exchanges to enhance disclosures using international standards. ( HKEx )
UK FCA SDR First Ongoing Product-Level Disclosures Become Required
On June 30, 2025, the first ongoing product-level disclosures became required under the UK FCA’s Sustainability Disclosure Requirements regime, including Part B reports. This milestone marked the operational implementation of the comprehensive SDR framework that includes anti-greenwashing rules, four sustainable investment labels, consumer-facing disclosures, and detailed institutional disclosures. The regime requires firms to ensure sustainability claims are fair, clear, and not misleading, and establishes requirements for distributors to ensure product-level information reaches consumers. This builds upon existing TCFD requirements and supports the UK’s sustainable investing roadmap. ( FCA )
SEC Releases Status Report on Climate Disclosure Rules Litigation
On July 28, 2025, the SEC released a status report stating it ‘does not intend to review or reconsider the final rule at this time’ but asked the court to ‘proceed with the litigation and decide the case.’ This followed the SEC’s March 2025 decision to end its defense of the climate disclosure rules adopted in March 2024. The rules remain stayed pending judicial review, creating uncertainty for companies that would have begun reporting for year-end December 31, 2025. Companies continue to operate under existing 2010 SEC climate guidance while awaiting final court resolution. ( SEC )
EFRAG Publishes 12 Revised ESRS Exposure Drafts for Simplified Sustainability Reporting
On July 31, 2025, EFRAG published exposure drafts for 12 revised European Sustainability Reporting Standards as part of the Commission’s directive to simplify ESRS. The revisions place greater emphasis on materiality as an overarching principle while simplifying double materiality assessment. The proposals significantly reduce mandatory data points and application guidance, moving some content to nonmandatory illustrative guidance. The standards enhance flexibility in information presentation and improve interoperability with global frameworks. The revisions explicitly include the fair presentation principle and simplify general disclosure requirements. (source not available)
European Commission Adopts CSRD ‘Quick Fix’ Amendments for Wave 1 Entities
On July 11, 2025, the European Commission adopted delegated act amendments to the CSRD providing relief for Wave 1 entities. The amendments allow these largest companies to maintain the same reporting level applied in 2024 for both 2025 and 2026 reporting periods, extending transitional provisions and providing additional reporting relief. The delegated act entered force three days after publication in the Official Journal with an effective date of January 1, 2025. This development followed the Commission’s broader omnibus legislative process that began in February 2025 to reduce sustainability reporting burdens while maintaining transparency standards. ( European Commission )
ISSB Publishes Comprehensive SASB Standards Amendments Exposure Drafts
In July 2025, the ISSB published two exposure drafts proposing substantial amendments to SASB Standards and Industry-based Guidance on Implementing IFRS S2. The amendments target nine industries initially, with enhancements designed to align SASB Standards more closely with IFRS Sustainability Disclosure Standards and GRI frameworks. The comment period runs until November 30, 2025, with finalization expected in 2026. The amendments address greenhouse gas emissions, energy management, water management, labor practices, and workforce health & safety metrics. This represents the first comprehensive review opportunity for global stakeholders since SASB’s integration into the IFRS Foundation framework. ( IFRS Foundation )