Global Sustainability & ESG Insights - October 2025

Global

IFRS Foundation Announce Global Passport Initiative

On October 30, the IFRS Foundation announced a major initiative to position International Sustainability Standards Board (ISSB) Standards as a “global passport” for sustainability disclosures. The expansion of the Jurisdictional Adopters Working Group will support multilateral discussions among regulators, aiming to enable ISSB-aligned sustainability reports to be accepted across jurisdictions. This move seeks to reduce market fragmentation, lower compliance costs, and provide investors with consistent, comparable information.

Net-Zero Banking Alliance Disbanded

On October 3, the Net-Zero Banking Alliance (NZBA) announced it will cease operations following widespread member departures. Its guidance will transition into a publicly available framework, enabling banks to set and implement net-zero targets independently. This follows an August decision where NZBA members voted to shift from a membership-based alliance to a framework-based initiative.

Asia

Singapore

Initiative to Build High-Integrity Carbon Market

On October 28, the Singapore Government announced a coordinated set of initiatives to support the development of high-integrity carbon markets. These measures aim to catalyze demand, strengthen market infrastructure, and build financial sector capabilities. Among the initiatives is the publication of the Voluntary Carbon Market Guidance, designed to help businesses integrate carbon credits into credible decarbonization plans.

Workplace Fairness (Dispute Resolution) Bill

On October 14, the Workplace Fairness (Dispute Resolution) Bill was tabled in parliament. The Bill introduces mandatory mediation for workplace discrimination disputes, allowing affected individuals to seek civil remedies. Claims will be handled by the High Court or Employment Claims Tribunal, depending on the amount. If passed, implementation is planned for 2027. The Bill also updates related employment legislation to align with the new dispute resolution framework.

Guide to Prevent Misleading Product Claims and Greenwashing

On October 6, the Competition and Consumer Commission of Singapore issued a guide outlining five principles to help businesses make clear, accurate, and evidence-based product claims, aiming to prevent misleading practices such as greenwashing and promote consumer trust and informed decision-making. The principles include:

1. Claims should be true and accurate
2. Claims should be clear and easily understood
3. Claims should be meaningful
4. Claims should be accompanied by material information
5. Claims should be supportable by evidence

China

Recommendations for the 15th Five-Year Plan

On October 28, The Central Committee of the Communist Party of China released its official recommendations for the 15th Five-Year Plan. The Plan underscores green development as central to its modernization strategy. It commits to achieving peak carbon emissions by 2030 and accelerating the transition to a clean, low-carbon, safe, and efficient energy system. Industrial policy emphasizes upgrading traditional sectors through digital, smart, and green manufacturing, while enhancing national quality infrastructure and brand competitiveness. Environmental governance will focus on pollution prevention, ecosystem restoration, and cross-regional coordination. Energy reforms aim to expand renewables, modernize grids, and develop zero-carbon industrial zones. It’s important to note that this document is not the final plan. This is expected to be formally released and implemented in March 2026.

Europe

European Works Council

On October 27, the Council of the European Union formally adopted at first reading new rules to strengthen European Works Councils (EWCs). It aims to improve employee representation in multinational companies across the EU and EEA. The reforms clarify what constitutes “transnational matters,” mandate gender-balanced representation, and require companies to consult EWCs before decisions affecting workers. They also introduce stronger enforcement, including financial penalties and better access to justice.

Classification, labelling and packaging of chemicals application dates postponed

On October 23, the European Parliament voted to postpone most parts of the revised EU regulation on classification, labelling, and packaging of chemicals to 1 January 2028, as part of simplification efforts. The draft law now awaits formal Council approval to enter into force. This forms part of the ‘Omnibus VI’ package, aiming to reduce compliance costs and ease the administrative burden for the chemical industry.

Regulation Preventing the Loss of Plastic Pellets into the Environment

On October 23, the EU adopted the Regulation Preventing the Loss of Plastic Pellets into the Environment. Entities handling over 5 tonnes of pellets, including EU and non-EU carriers and maritime operators, must implement risk management plans and take measures to avoid losses. Maritime operators must use strong packaging and provide clear cargo information. Any losses must be reported and mitigated immediately. The law will take effect two years after entry into force.

Vote on Sustainability Omnibus Package

On October 22, the European Parliament rejected a proposal to simplify sustainability reporting and due diligence rules for companies, part of the European Commission’s Omnibus I package aimed at reducing administrative burdens. The proposal will now be reconsidered and voted on again at the plenary session on 13 November. Once Parliament adopts its position, further negotiations will begin, with the goal of finalizing the legislation by the end of 2025.

Deforestation Regulation

On October 21, the European Commission proposed amendments to the Deforestation Regulation. The proposal simplifies reporting obligations, especially for micro and small operators from low-risk countries, by requiring only a one-off declaration instead of regular due diligence statements. For downstream operators and traders, only one due diligence statement will be needed at the entry point to the EU market, reducing administrative burdens. Transitional periods are also proposed to help companies adapt and strengthen the IT system supporting EUDR compliance.

Work Program for 2026

On October 21, the European Commission published its work program for 2026. The plan prioritises environmental initiatives including a Circular Economy Act, a climate package for the decade ahead, and simplification measures to reduce administrative burdens. Key legislative proposals target e-waste, climate targets, energy efficiency, and phasing out fossil fuel subsidies. Non-legislative actions focus on water resilience and climate adaptation. These initiatives aim to advance the EU’s environmental and climate goals while streamlining compliance for businesses.

For more information, view our flash update.

Carbon Border Adjustment Mechanism

On October 17, the amendment to the Carbon Border Adjustment Mechanism (CBAM) was published. The amendment forms part of the Omnibus I Package, setting out to simplify compliance and reduce reporting costs, especially for SMEs. Key changes include a new “de minimis” exemption for import volumes up to 50 tonnes per importer per year and transitional measures for importers awaiting CBAM registration. The regulation maintains climate ambition, covering about 99% of embedded emissions, applying directly in all EU member states.

European Supervisory Authorities publish work program for 2026

On October 16, the Joint Committee of the European Supervisory Authorities (ESAs) announced it will prioritise sustainable finance in 2026 by monitoring SFDR reforms, providing clarifications, and preparing for new technical standards. The ESAs will not publish their annual principal adverse impact report to reduce administrative burden but will continue to guide market participants and authorities. They will also develop joint guidelines for ESG stress testing to ensure consistent climate risk assessment across the EU financial sector.

Framework for Global Climate and Energy Policy Published

On October 16, the European Commission introduced its strategic framework for global climate and energy policy, reaffirming its commitment to a clean transition while advancing European competitiveness. The strategy will set out to provide new opportunities for European businesses in clean tech, energy and related climate sectors.

For more information, view our flash update.

Zero-Emission Heavy-Duty Vehicles Directive

On October 7, the European Parliament voted to exempt zero-emission trucks and buses from road tolls across the EU, aiming to accelerate the shift to cleaner transport. The proposal encourages Member States to waive tolls for vehicles that produce no CO₂ emissions, such as electric or hydrogen-powered heavy-duty vehicles. This measure is part of broader efforts to reduce air pollution and support the EU’s climate neutrality goals. MEPs also backed stricter CO₂ reduction targets for new trucks and buses including: 45% by 2030, 65% by 2035, and 90% by 2040.

Middle East

UAE

Biodiversity Protection Framework Published

On October 14, Abu Dhabi introduced a comprehensive biodiversity protection framework under Decision No. 6/2025. The policy aims to conserve and restore terrestrial and marine ecosystems critical to local flora and fauna. It establishes regulatory mechanisms for environmental protection and promotes nature-based solutions to address habitat degradation and climate change impacts.

UK

Carbon Budget and Growth Delivery Plan

On October 29, the government published the Carbon Budget and Growth Delivery Plan. It outlines how the UK will capture clean energy benefits and drive investment. The strategy aims to lower energy bills, create quality jobs, and deliver warmer homes and cleaner air, all while meeting emissions targets under the Climate Change Act. By providing a stable policy framework, the plan is designed to attract further private investment and support long-term economic growth.

Employment Rights Bill

On October 28, the Employment Rights Bill returned to the House of Lords for further debate and votes on amendments. Key changes passed include a six-month qualifying period for unfair dismissal, new rules on guaranteed hours contracts, a definition of seasonal work, opt-in for trade union political contributions, and a 50% turnout threshold for industrial action ballots. The Lords also agreed to government amendments on public duties, non-disclosure agreements, and guidance for child volunteers on heritage railways. The Bill now returns to the Commons for further consideration, with significant areas of contention remaining.

For more information, view our briefing.

New Environmental Permitting Exemptions

On October 27, the UK and Welsh governments announced that the Environment Agency and Natural Resources Wales will gain new powers to create, amend, or remove Environmental Permitting exemptions without legislation. Regulators must consult the public and publish risk assessments for changes, with initial powers covering flood risk, groundwater, water discharges, and waste operations. In England, this also applies to waste carriers, brokers, and dealers. Safeguards require adherence to existing objectives, but regulators can define exemption limits. Wales will decide on implementation after the May 2026 Senedd elections.

Draft Financial Services and Markets Act 2000 (Regulated Activities) (ESG Ratings) Order 2025

On October 27, the Draft Financial Services and Markets Act 2000 (Regulated Activities) (ESG Ratings) Order 2025 was published. This order brings ESG ratings that may influence investment decisions under Financial Conduct Authority (FCA) regulation across the UK. Providers must be authorised and meet new standards to improve transparency, governance, and reduce greenwashing. The regime excludes certain activities (e.g., ratings as part of other regulated services, benchmarks, charity work, or intra-group ratings). In conjunction with this Draft Order, the FCA will development their regime for ESG ratings and will consult on proposed rules before the end of the year.

Government Considers Stronger Measures on Forced Labour in Supply Chains

On October 16, the Government’s responded to the Joint Committee on Human Rights’ report on forced labour in UK supply chains outlines ongoing and planned actions. The Government is reviewing its approach to responsible business conduct, considering new legislation, mandatory human rights due diligence, and potential import bans on goods linked to forced labour. Coordination across departments is being strengthened, and reforms to the Modern Slavery Act 2015 are under consideration. The response also addresses procurement, trade agreements, critical minerals, and ethical supply chains in sectors like energy and solar. The Government commits to further stakeholder engagement and ongoing policy development.

Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024

On October 1, the reporting deadline under the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 passed. These Regulations establish an extended producer responsibility (EPR) scheme for packaging, requiring producers to cover the full net cost of managing household packaging waste. This includes the costs of collection, sorting, recycling, and disposal once packaging is discarded by consumers. From this date, large producers must submit their packaging data via the Report Packaging Data online portal, covering the period from January 1 to June 30, 2025.

US

US Regulators Withdraw Climate Risk Principles

On October 16, US federal banking regulators announced the immediate withdrawal of their joint Principles for Climate-Related Financial Risk Management for large financial institutions. It was stated that existing safety and soundness standards already require institutions to manage all material financial risks, including emerging ones.

California Climate Disclosure Laws

On October 14, the California Air Resources Board announced a delay in releasing draft regulations for climate disclosure laws SB 253 and SB 261. The draft rules, originally expected in late 2025, will now be published in the first quarter of 2026 due to the high volume of public feedback and ongoing stakeholder input. Statutory reporting deadlines remain unchanged for now.

Co-authored by Nathan Handoll (ESG Researcher in Knowledge).

Further reading

Navigating EU Law | Strategic Guidance for a Shifting Regulatory Landscape | Business Topic

COP30 Insights