We hope August brought a welcome change of pace.
As we reflect on the month, several climate and sustainability policy developments deserve a closer look. The European Commission issued new guidance for the EU’s Carbon Border Adjustment Mechanism (CBAM), while the US pressed for further changes to EU sustainability laws.
Here are those and other updates you may have missed:
IFRS announces five-year plan, including new ISSB seat in Geneva
On August 18, the IFRS Foundation Trustees announced a five-year operating and financing plan for the IASB and ISSB. More than 45 jurisdictions currently use the ISSB Standards, and companies in 18 jurisdictions are set to report by 2027. The IASB plan focuses on diversifying its funding base and allows for the short-term use of reserves. The Trustees also announced that a new ISSB office will open in Geneva in mid-2027 and serve as its seat, joining existing offices in Beijing, Frankfurt, Montreal, and Tokyo. They also published proposed Constitution amendments, open for comment until November 16, 2026. The announcements follow the recent appointments of Steven Maijoor as IFRS Foundation Trustees Chair, Sam Woods as IASB Chair, and Laura Forzani as incoming IFRS Foundation Managing Director.
World Bank raises $4B through new sustainable development bond
The World Bank announced a new seven-year, $4B sustainable development bond issued by the International Bank for Reconstruction and Development. The offering drew strong demand, attracting more than $11B across over 150 investor orders. Banks, treasuries, and corporates represented 43% of the order book, followed by central banks and official institutions (30%), and asset managers, insurance companies, and pension funds (27%). The bond matures in August 2033 and is intended to support the World Bank’s broader goal of mobilizing capital for sustainable development.
EU publishes CBAM guidance
On August 14, the European Commission published a series of guidance documents to help non-EU operators implement the Carbon Border Adjustment Mechanism (CBAM). Later in the month, the Commission released additional guidance to help stakeholders understand the verification and accreditation requirements under CBAM.
EU packaging rules begin to apply, including restrictions on PFAS
The EU’s Packaging and Packaging Waste Regulation (PPWR), which entered into force in February 2025, began applying on August 12. The law replaces fragmented national packaging rules with a single harmonized framework covering the full packaging life cycle. It aims to cut packaging waste, reduce compliance costs, lower reliance on raw materials, strengthen the secondary raw materials market, and support the EU’s circular economy and climate neutrality goals for 2050. A key provision restricts PFAS (“forever chemicals”) in food-contact packaging. Items such as takeaway containers, fast-food wrappers, microwave popcorn bags, bakery paper, and pizza boxes can no longer be placed on the EU market if PFAS levels exceed set limits. The EU’s stated aim is to protect human health and reduce the release of these substances into the environment.
US pushes for further narrowing of scope on EU sustainability laws
The US government is advocating for further changes to EU sustainability laws. As the European Commission’s public consultation on CSDDD implementation guidelines closed this month, the US government argued in its submission that the Omnibus I changes to the CSDDD and CSRD did not fully address its concerns. The submission called for a further narrowing of scope and limits on fines and litigation exposure. It warned that the US “will take any actions necessary to address unreasonable burdens on U.S. commerce” if further changes are not made.
SEC will stop responding to Rule 14a-8 no-action requests
On August 14, the US SEC announced that it will stop responding to Rule 14a-8 no-action requests entirely, effective immediately. Companies must still notify the SEC when they intend to exclude a shareholder proposal, but they will no longer receive a staff response indicating whether the Division would object. This leaves companies to assess exclusions without that staff guidance. Proponents, including climate- and ESG-focused shareholder groups, will also lose a relatively low-cost avenue for challenging exclusions and may turn more often to litigation.
US appeals court upholds injunction protecting federal climate grants
Earlier this month, the D.C. Circuit Court of Appeals upheld a preliminary injunction preventing the Trump administration from terminating grants awarded through the $20B Greenhouse Gas Reduction Fund. Six of the 10 participating judges found that the EPA likely violated the Inflation Reduction Act by seeking to terminate the grants and recover funds already disbursed based solely on policy disagreement. Four judges said that part of the injunction was no longer warranted after Congress repealed the relevant Inflation Reduction Act provision last year. The court affirmed the remaining parts of the injunction by an evenly divided vote and left unresolved whether the EPA’s future authority to suspend or terminate the grants is limited by both the grant agreements and the Inflation Reduction Act, or only by the contracts. The EPA said it is reviewing the decision.
New report finds continued momentum in US greenwashing litigation
A report published this month by Ropes & Gray found continued momentum in US greenwashing litigation, driven primarily by state attorneys general, private plaintiffs, and environmental advocacy organizations, while federal enforcement remained muted. You can read the full summary here.
Australia considers reforms to climate reporting regulations
The Australian government has opened a consultation on potential reforms to its ISSB-aligned mandatory climate-related reporting regime, with feedback open through October 2, 2026. The reporting requirements, introduced in a 2024 law, apply to public companies and large proprietary companies that meet size thresholds, with requirements phasing in from 2025 to 2027. Key changes under consideration include updated assurance rules, clearer guidance on key terms and concepts, and a reduced burden from supply chain information requests.
That’s all for August. We’ll be watching how these developments progress in September. As always, please reach out to our team if you have questions about how these or any other policy changes affect you.
