Sustainability & Stewardship in Financial Services Regulation — September 2026 

International

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GRI

The Global Reporting Initiative Publishes Its 2025 Impact Report

The Global Reporting Initiative (GRI) published its 2025 Impact Report on September 10. The report outlines the GRI’s efforts to strengthen impact reporting during 2025, highlighting the publication of new GRI Climate Change and Energy Standards, various pilot programmes and partnerships supporting the implementation of existing GRI standards, and continued investment in digital reporting. 

The report also outlines the GRI’s efforts to improve alignment between GRI standards and other reporting frameworks. According to the GRI, these efforts are intended to reduce duplication, address different information needs, and strengthen the relevance and use of impact reporting. 

Asia Pacific

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Singapore

The Monetary Authority of Singapore and the People’s Bank of China Strengthen Cooperation on Green and Transition Finance

The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC) held the fourth Singapore-China Green Finance Taskforce (GFTF) meeting on September 17. According to an MAS statement, the authorities reaffirmed their commitment to strengthening bilateral sustainable finance cooperation and expanding interoperability between their sustainable finance taxonomies. 

The Taskforce also discussed the use of technology to support sustainable finance solutions, biodiversity credits, insurance solutions for climate adaptation and resilience, and greater connectivity between cross-border carbon markets. In addition, the authorities considered how insurance and blended finance structures could mobilize private capital for sustainable projects. 

The Accounting and Corporate Regulatory Authority Publishes Sustainability Reporting Body of Knowledge

The Accounting and Corporate Regulatory Authority (ACRA) published a Sustainability Reporting Body of Knowledge on September 3. The Body of Knowledge is designed as a guide for training providers developing sustainability reporting programmes such as the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures, and the Greenhouse Gas Protocol. 

According to ACRA, the framework was validated by more than 50 industry stakeholders, including reporting entities, assurance providers, professional bodies, and training organizations. It is intended to promote consistent coverage and depth across sustainability reporting training programmes as Singapore implements its phased climate reporting and assurance roadmap.

Hong Kong

The Securities and Futures Commission Chairman Calls for Robust Transition Plans and Stronger Climate Accountability

Dr. Kelvin Wong, Chairman of the Securities and Futures Commission (SFC) delivered opening remarks at the SFC Forum on Transition Plans on September 8. According to Dr. Wong, transition plans should include clear interim targets, aligned capital expenditure, and board-level oversight.

Dr. Wong called for sustainability performance, including transition-planning quality, physical climate risk exposure, and supply-chain decarbonization, to be more closely linked to the cost of capital and risk weights. He emphasized the roles of corporate boards in integrating material climate considerations into strategy and capital allocation, asset managers in promoting active stewardship, and policymakers and regulators in supporting sustainability disclosures aligned with international standards and managing greenwashing risks. 

The Hong Kong Monetary Authority Consults on Phase 2B of the Hong Kong Taxonomy for Sustainable Finance

The Hong Kong Monetary Authority (HKMA) launched a public consultation on the Phase 2B prototype of the Hong Kong Taxonomy for Sustainable Finance on September 7. The prototype adds 10 economic activities and recategorizes certain existing activities, increasing the taxonomy’s coverage from 25 to 39 activities. It also introduces technical criteria for green and transition activities and measures, including enabling technologies such as battery manufacturing and recycling and low-carbon technology manufacturing, as well as transition pathways for hard-to-abate sectors, including air transport, iron, and steel. 

Phase 2B also introduces a process-based methodology for assessing climate change adaptation activities and 24 adaptation measures, comprising 11 whitelist and 13 non-whitelist measures. The initial adaptation criteria focus on shoreline protection and flood management. The consultation closes on October 7, 2026.

Malaysia

The Advisory Committee on Sustainability Reporting Defers Mandatory Sustainability Assurance Requirements to 2028

The Advisory Committee on Sustainability Reporting (ACSR), chaired by the Securities Commission Malaysia (SC), announced on September 17 the deferral of mandatory reasonable assurance for climate-related disclosures. Specifically, requirements for reasonable assurance of Scope 1 and Scope 2 greenhouse gas emissions disclosures under the National Sustainability Reporting Framework will take effect for Group 1 entities for annual reporting periods beginning on or after January 1, 2028, rather than January 1, 2027. The corresponding requirements for Group 2 and Group 3 entities will also be postponed by one year, to 2029 and 2030, respectively. The deferral follows a review of the first 91 Group 1 listed issuers reporting under the IFRS Sustainability Disclosure Standards, which identified a need for further improvements in disclosure quality. 

Listed issuers will continue to be required to disclose whether their sustainability information has been reviewed by internal auditors or independently assured. Any independent assurance must be conducted exclusively in accordance with International Standard on Sustainability Assurance 5000, with ISAE 3000 (Revised) and ISO standards no longer recommended. The ACSR also intends to issue a Sustainability Assurance Guide to support assurance providers and promote consistent application of the requirements.

The Securities Commission Malaysia Hosts Inaugural ASEAN Regulatory Sustainability Summit

The Securities Commission Malaysia (SC), in collaboration with the Centre for Sustainable Development Law and Policy at Durham University, held the inaugural ASEAN Regulatory Sustainability Summit on September 9. Supported by the Asian Development Bank, the closed-door dialogue brought together more than 40 policymakers, capital market regulators from the ASEAN Capital Markets Forum (ACMF), academics, and industry experts. The Summit builds on the ACMF Action Plan 2026–2030 and focused on strengthening resilience amid emerging economic and sustainability pressures. 

Discussions covered country, market, and corporate resilience; the mobilization of private, concessional, and philanthropic capital for climate adaptation and transition; and the evolving architecture of voluntary carbon markets, including measures to strengthen their financial market integrity. The SC indicated that the Summit was intended to support collective action across ASEAN capital markets in addressing regional and international sustainability challenges. 

South Korea

The Financial Services Commission Consults on Fair-Value and Governance Requirements for Listed-Company Transactions

On September 16, the Financial Services Commission (FSC) proposed amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and the Regulation on Issuance and Disclosure of Securities. The amendments would implement statutory reforms requiring listed companies to use fair-value pricing for specified mergers, spin-offs, significant asset or business transfers, and comprehensive share exchanges or transfers. The consultation closes on October 6. 

Under the proposed rules, boards would be required to prepare and disclose written opinions addressing the purpose and expected effects of relevant transactions and the appropriateness of the transaction price. Companies would also need to obtain an external appraisal of matters including transaction value and terms. For transactions between affiliated companies, listed companies would be required to disclose conflicts of interest and relationships between related parties and the transaction counterparty.

Australia

Treasury Consults on Reforms to Climate-Related Financial Disclosure Requirements

The Australian Treasury published in August a consultation paper on reforms intended to reduce the compliance costs associated with Australia’s climate-related financial disclosure framework. The proposals include retaining limited assurance on an ongoing basis, postponing the transition to reasonable assurance from 2030 to 2035, or requiring reasonable assurance only for more mature metrics, such as Scope 1 and Scope 2 emissions. 

The consultation also seeks views on additional guidance concerning the application of proportionality mechanisms under AASB S2, including the concepts of information available without “undue cost or effort” and statements that an entity has no material climate-related risks or opportunities. Further proposals would establish clearer boundaries for value-chain information requests and improve access to domestic emissions factors to reduce the burden of collecting Scope 3 emissions data, particularly from SMEs. The proposed changes will not affect entities reporting for the 2026-27 financial year. The consultation closes on October 2. 

The Australian Securities and Investments Commission and the Australian Prudential Regulation Authority Consult on Streamlining the Financial Accountability Regime

The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) opened a public consultation on September 2 on proposed reforms to the Financial Accountability Regime (FAR). The proposals would remove key-function requirements from the FAR regulator rules and cease requiring accountable entities to include information on accountable persons’ direct reports in their accountability maps.

ASIC and APRA estimate that the proposed changes would reduce reporting requirements for all accountable entities and approximately 4,500 accountable persons, while halving the number of updates made to accountability maps. Subject to consultation feedback, the regulators intend to finalize the changes by the end of 2026, with the revised requirements taking effect in early 2027. 

New Zealand

The External Reporting Board Consults on Transition to IFRS S2-Based Climate Reporting

The External Reporting Board (XRB) is consulting on a draft roadmap for climate reporting in New Zealand. The roadmap proposes introducing NZ IFRS S2 Climate-related Disclosures, based on IFRS S2 Climate-related Disclosures and incorporating the climate-relevant requirements of IFRS S1. The proposed approach would seek international alignment with the standards of the International Sustainability Standards Board (ISSB), greater harmonization with Australia’s climate reporting framework, and modifications where necessary for New Zealand’s legal and market context.

The roadmap envisages an extended transition period during which reporting entities could continue to apply the existing Aotearoa New Zealand Climate Standards. The consultation also seeks feedback on the benefits and costs of adopting IFRS S2, the practical implications for reporting entities, and the appropriate approach to Australian harmonization. The consultation closes on September 30.

Europe

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EU

Revised European Sustainability Reporting Standards and Voluntary Sustainability Reporting Standard Published in the Official Journal

The revised European Sustainability Reporting Standards (ESRS) were published on September 21 in the Official Journal of the European Union (OJEU) in the form of Commission Delegated Regulation (EU) 2026/1563. The revisions simplify the existing standards by reducing the number of datapoints, prioritizing quantitative information, clarifying the application of materiality, distinguishing more clearly between mandatory and voluntary information, and improving interoperability with global sustainability reporting standards. The revised ESRS will apply to financial years beginning on or after January 1, 2027, subject to the applicable transitional arrangements. 

Relatedly, Commission Delegated Regulation (EU) 2026/1560, published on the same date, establishes a voluntary sustainability reporting standard for undertakings outside the scope of the Corporate Sustainability Reporting Directive (CSRD). The standard also operates as the “value chain cap,” limiting the sustainability information that reporting companies may request from value-chain undertakings.

Economic and Monetary Affairs Committee Adopts Position on Reform of the Sustainable Finance Disclosure Regulation

The European Parliament’s (EP) Committee on Economic and Monetary Affairs (ECON) adopted its final amendments on the proposed reform of the Sustainable Finance Disclosure Regulation (SFDR) on September 10. The reform would replace the existing Article 8 and Article 9 disclosure framework with product categories for transition, ESG basics, and sustainable products, alongside category-specific investment criteria and exclusions. 

The ECON amendments also support clearer disclosures for products that do not qualify for an SFDR category and include provisions addressing principal adverse impacts and sustainability-related engagement strategies. The final ECON amendments will have to be validated by a vote of the full EP plenary. This is expected to take place during the October plenary session, following which negotiations with the Council of the EU may begin. 

The Platform on Sustainable Finance Recommends Changes to EU Taxonomy Disclosures

The Platform on Sustainable Finance published on September 22 its response to the European Commission consultation on the review of the EU Taxonomy Disclosures Delegated Act. The Platform recommended a two-tier operating expenditure KPI comprising a mandatory KPI focused on research and development expenditure and a broader voluntary KPI for companies wishing to report additional transition-related operating expenditure. It also recommended removing the weighted-average consolidated KPI for group reporting and using the KPI associated with a group’s principal reporting regime where a single consolidated KPI is required. 

The Platform further recommended incorporating climate adaptation clarifications into the Delegated Act and retaining mandatory reporting for certain categories of capital expenditure while improving their definition. The response was transmitted to the European Securities and Markets Authority (ESMA) and precedes a fuller Platform report expected to be submitted to the European Commission in December 2026.

United Kingdom

The Department for Business, Innovation, Science and Trade Consults on Reforms to the UK Corporate Reporting Framework

The Department for Business, Innovation, Science and Trade launched on September 7 a public consultation on proposals to modernize the United Kingdom’s corporate reporting framework. The proposals aim to simplify reporting requirements by rationalizing company thresholds and exemptions, reducing duplicative requirements, and introducing a more principles-based strategic reporting model focused on financially material information for investors and creditors. The consultation also considers a new “very large” company category for certain non-financial reporting requirements; wider exemptions for medium-sized companies and wholly owned subsidiaries; and reforms to financial, corporate governance, and remuneration reporting. 

The consultation also includes proposals to allow companies flexibility to present climate and other sustainability-related financial disclosures, either within the strategic report or in a separate section of it. In addition, the consultation also covers digital shareholder communications, virtual annual general meetings, and the use of artificial intelligence in corporate reporting. The consultation closes on November 30. 

Financial Conduct Authority Finalizes UK Sustainability Disclosure Rules for Listed Issuers and Consults on Technical Guidance

The Financial Conduct Authority (FCA) has published a Policy Statement outlining the application of the UK Sustainability Reporting Standards (SRS) to UK-listed companies. According to the Policy Statement, in-scope listed issuers will be required to report against UK SRS S1 and S2 on a “comply or explain” basis, including international commercial companies with a secondary UK listing and depositary receipt issuers. The rules will apply to financial years beginning on or after 1 January 2027, with the first reports to be published in 2028. Transitional relief will allow issuers to omit Scope 3 emissions disclosures without explanation for the first year and UK SRS S1 disclosures without explanation for the first two years. Relatedly, the FCA is also consulting on accompanying technical guidance. This consultation will close on October 28. 

Americas

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United States

The Securities and Exchange Commission Proposes Rescission of Shareholder Proposal Rule and Reforms to Proxy Solicitation Process 

The US Securities and Exchange Commission (SEC) proposed on September 16 to rescind Rule 14a-8 under the Securities Exchange Act of 1934, which governs the inclusion of shareholder proposals in companies’ proxy materials. Under the proposal, which is open to public consultation, whether a shareholder proposal must be included in a company’s proxy materials would no longer be governed by federal law. Instead, this process would be governed by state law or, where permitted, by a company’s governing documents. The SEC also proposed amendments to Rule 14a-4 to expand the circumstances under which companies may seek discretionary voting authority with respect to shareholder proposals submitted outside the Rule 14a-8 process. 

In a companion proposal, the SEC is seeking to modernize the proxy solicitation process by proposing to eliminate the requirement for companies to deliver annual reports to security holders, eliminating the deadline for delivering proxy statements incorporating information by reference, and rescinding a rule requiring large shareholders to submit Notices of Exempt Solicitation. The release also proposes to shorten the minimum period for broker searches from 20 business days to five business days. 

In the accompanying press release, the SEC explains its view that Rule 14a-8 exceeds its statutory authority and encroaches into matters of state corporate law, and that the proxy solicitation rules need to be modernized to eliminate redundant disclosures and account for technology advances. The comment periods for the proposals will remain open for 60 days following publication of the proposals in the Federal Register.