ESG

In a statement released Tuesday, ESMA published the results of a Common Supervisory Action examining how investment firms and credit institutions have integrated sustainability considerations into suitability assessments and product governance frameworks under MiFID II. The review, conducted alongside national competent authorities throughout 2024 and 2025, paints a picture of an industry still working through the practical realities of embedding ESG preferences into investment advice.

The European Commission is moving to scale back the complexity of the EU’s sustainability reporting regime, unveiling proposed revisions to the European Sustainability Reporting Standards that officials say will sharply reduce compliance burdens for businesses without dismantling the broader goals of the Corporate Sustainability Reporting Directive.

The European Commission is trying to smooth the runway for its deforestation regulation before it begins applying at the end of the year, publishing a new simplification package meant to give companies, EU countries and trading partners more certainty over how the rules will work in practice.

The Hong Kong Monetary Authority is sharpening its focus on climate risk and sustainable finance, laying out a 2026 agenda that blends tighter supervision with a broader effort to position Hong Kong at the center of the region’s green transition.

The European Securities and Markets Authority is shaping how environmental, social and governance ratings are used across borders, launching a public consultation on draft guidelines tied to the ESG Ratings Regulation.

A year that many sustainability leaders describe as a “storm” has done little to derail corporate decarbonization efforts, according to PwC’s third annual State of Decarbonization report, released yesterday.

The Financial Conduct Authority is asking ESG rating providers to help shape the future of regulation in the sector, launching a voluntary reporting pilot aimed at testing how forthcoming disclosure requirements might work in practice.