There are plenty of opportunities to weigh in on policy proposals this summer. The EU is getting ready to publish draft sustainability reporting standards for non-European companies (N-ESRS), the UK is taking comments on its proposal to drop TCFD reporting for financial products, and the comment period for the US SEC’s reversal of its climate disclosure policy has opened. The California Air Resources Board (CARB) is also taking comments on possible updates to SB 253, and has proposed delaying the first reporting deadline to November.
Here’s a look at these and other developments in the global climate reporting space:
SBTi finalizes Corporate Net-Zero Standard 2.0
SBTi finalized version 2 of its Corporate Net-Zero Standard, introducing differentiated target-setting by company size and sector, expanded Scope 1, 2, and 3 options, mandatory governance and board accountability, transition planning, and disclosure requirements. The update also establishes tiered emissions responsibility and requires larger companies to purchase carbon removals starting in 2035.
ISO opens public consultation on first international net zero standard
ISO has launched a 12-week public consultation on ISO 14060, the Net Zero Aligned Organizations Standard, described as the world's first international, independently verifiable standard for net zero transition planning. The draft is open to ISO's national members across more than 170 countries, with national consensus positions due by early September. The standard follows close to two years of negotiations involving hundreds of experts from business, government, academia, civil society, and standards bodies, one of the largest working groups in ISO's history. When finalized, ISO 14060 is intended to provide a globally negotiated, consensus-based framework that helps organizations of all sizes and sectors develop credible transition plans aligned with global climate goals.
ISO publishes net zero transition planning standard for financial institutions
ISO has published ISO 32212, a new standard specifying requirements and recommendations for strategic net zero transition planning by financial institutions, applicable to banks, insurers, asset owners, asset managers, and capital market participants of any size or geographic location. The standard is designed to enable financial institutions to develop and maintain transition planning objectives and targets aligned with the Paris Agreement's temperature and resilience goals, and to establish policies and processes that integrate those targets into lending, investment, and insurance activities. It addresses the full scope of transition planning, from identifying climate-related risks and opportunities and setting emissions reduction targets, to mobilizing capital toward decarbonization and climate adaptation in the real economy, and considering nature, adaptation, and just transition factors alongside emissions reduction. ISO 32212 is designed to complement the separately published ISO 14060 net zero standard for organizations, with financial institutions that aim to address both operational and financed emissions able to apply the two standards together.
ISSB previews nature-related disclosure proposals, Exposure Draft expected October 2026
At the IFRS Foundation Conference in London, ISSB Vice-Chair Sue Lloyd previewed the board's forthcoming nature-related disclosure proposals, following the ISSB's finalization of decision-making on their content. The ISSB is targeting October 2026 to publish the proposals as an Exposure Draft, taking the form of a Practice Statement that builds on the existing requirements in IFRS S1 to support companies in providing nature-related information to investors. Lloyd outlined several key decisions: the Practice Statement would be used together with IFRS S1 and IFRS S2; it would be a tool companies can choose to use, though a jurisdiction could decide to mandate it; and it would draw on the TNFD framework. She framed the Practice Statement as a way to address fragmentation in the disclosure landscape without disrupting ongoing implementation of ISSB Standards, while leaving the door open to a full Standard in the future.
Draft N-ESRS Standards for non-European entities coming soon
EFRAG's Sustainability Reporting Board discussed progress on the Non-European Sustainability Reporting Standards (N-ESRS), the reporting standards being developed for non-EU companies that fall within the scope of the Corporate Sustainability Reporting Directive (CSRD). The N-ESRS will focus on impacts rather than double materiality, and target a fiscal year 2028 reporting start. The board is evaluating three reporting approaches (global, mixed, and voluntary full ESRS) and plans to seek stakeholder input. The draft standards will come out in mid-July 2026 and will be followed by public consultation, a field test, and a cost-benefit analysis. EFRAG expects to deliver technical advice to the European Commission in January 2027, with final N-ESRS adoption anticipated by mid-2027.
UK opens consultation on proposal to drop product-level TCFD reporting for investment products
The UK’s Financial Conduct Authority has opened a consultation on a proposal that would drop requirements for asset managers, life insurers, and FCA-regulated pension providers to publish TCFD-aligned climate disclosures for investment products. The stated aim is to simplify the existing requirements while preserving the original policy intent. Comments on the proposal are due by July 13, 2026.
UK sets out deforestation due diligence framework for businesses
The UK government has published its approach to deforestation regulation, outlining plans for a mandatory due diligence regime in Great Britain that will apply to businesses with an annual turnover above £1 million. Companies using forest risk commodities such as cattle, cocoa, coffee, palm oil, rubber, soy, and wood will be required to establish due diligence systems, report on their activity, and collect geolocation data to demonstrate that products were produced in compliance with relevant local laws. Legislation to implement the regime in Great Britain is expected to be delivered in 2027. The UK's framework is designed to operate consistently alongside the EU Regulation on Deforestation-free Products (EUDR).
EU Council agrees on negotiating position on revised SFDR
The Council of the European Union has agreed on its negotiating position on a reformed Sustainable Finance Disclosure Regulation (SFDR), the existing framework that requires financial market participants to disclose how they integrate ESG risks and adverse impacts into their investment products. The revision would replace current disclosure concepts with three new fund categories — sustainable, transition, and ESG basics — with the aim of reducing reporting burdens while improving comparability for investors. The Council's position is a negotiating mandate, not final text; trilogue negotiations with the European Parliament can only begin once Parliament agrees on its own position.
EU Council agrees on position to strengthen and extend CBAM
The EU Council has agreed its negotiating position on reforms to the Carbon Border Adjustment Mechanism (CBAM), the EU's tool for pricing carbon embedded in imported goods, ahead of negotiations with the European Parliament. In its current form, CBAM targets mostly raw materials across six carbon-intensive sectors, creating a risk that downstream products manufactured with significant quantities of those materials — particularly iron, steel, and aluminium — could bypass the carbon price and undercut EU producers subject to the Emissions Trading System. The Council's position addresses this by extending CBAM's scope to a selection of such downstream products, mandating an annual Commission review of further candidates for inclusion, and introducing anti-circumvention measures that bring pre-consumer metal scrap into scope and empower the Commission to act where deceptive reporting by high-risk companies is detected. Trilogue negotiations with the European Parliament are expected to begin once Parliament adopts its own position, with an agreement targeted before the end of the year.
CARB proposes three-month delay to first SB 253 reporting deadline
The California Air Resources Board has announced a proposal to defer the first Scope 1 and 2 emissions reporting deadline under SB 253 from August 10 to November 10, 2026. The delay follows CARB's decision to withdraw its Initial Regulation from the Office of Administrative Law — which must grant final approval before the regulation takes effect — in order to make limited clarifying changes to certain requirements. Those changes will be subject to a forthcoming 15-day public comment period before the regulation is resubmitted for OAL approval. CARB noted that the three-month extension is intended to ensure reporting entities have adequate clarity on the final regulation before their first disclosures are due.
Public comment opens for SEC climate rule rescission
On June 3, the rescission proposal for the SEC was published in the Federal Register. The proposal has now entered a 60-day public comment period that ends August 3, 2026. Following the comment period, a full repeal of the rule is widely expected, though a legal challenge is likely as well. For larger public companies, the impact may be limited: California, EU, and ISSB-aligned mandates continue to require most of the same disclosures. Smaller public companies stand to benefit most from rescission, though existing SEC materiality-based disclosure obligations and the agency's 2010 climate guidance remain in effect regardless.
Brazil rolls back mandatory ISSB reporting
Brazil's CVM published Resolution 244 on June 1, 2026, removing the planned mandatory phase for ISSB-aligned sustainability reporting by public companies, which had been scheduled to begin with FY2026 data. In its place, a comply-or-explain system requires public companies that choose not to file sustainability reports to justify that decision through a market announcement when they file annual financial statements in 2027. Companies that do report must use CBPS/ISSB standards and commit to at least three consecutive years of disclosure.
Australia AASB reporting begins in July
In July, Group 2 entities begin mandatory climate reporting under AASB S2. This covers companies with AUD 200M+ revenue, AUD 500M+ assets, or 250+ employees. AASB S2 is closely aligned with the ISSB global baseline of IFRS S2. They follow the same structure and contain substantively similar disclosure requirements.
The overall picture this month reflects a global recalibration. We’re seeing ongoing proposals to streamline frameworks and delay deadlines, but reporting requirements persist. New disclosure cycles are opening in Australia, and updated ESRS and SBTi standards are moving toward finalization. For companies navigating multiple jurisdictions, the near-term priority is tracking shifting timelines and, if necessary, weighing in with public comments.
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