Emperor Sustainability Briefing 26.03.2026

Issue #17

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The near future

Current geopolitical events have coloured discussions in the sustainability space over the past fortnight, reigniting debates around long-term investment, fossil fuel dependency, and energy security. The EU’s carbon pricing system has come under pressure in this context, with the mechanism facing an uncertain future. 

A bright spark comes in the form of the UK’s new fusion strategy, an energy source which promises potentially limitless clean energy – which would sound like sci-fi, if there wasn’t already significant R&D and funding underway. Meanwhile, the SBTi wants fast responses on new FLAG Guidance, and a leading fund publishes nature recommendations. 

Contents

ETS and energy – Government feedback

Nature expectations – Fusion energy

CSRD continuity – SBTi FLAG

Reporting Highlight

Standard Life plc has published its Annual Report and Sustainability Report, along with its Net Zero Transition Plan 2026. We loved the page in the Plan summarising progress against commitments since last year’s report – and considering there isn’t a specific regulatory pressure to publish annual updates, it’s impressive to see Standard Life putting out a second transition plan.  

Stories 

Policy

EU’s carbon trading system caught in global energy crossfire

Events in Iran and their impact on global energy prices have, as with the Ukraine conflict, foregrounded the relationship between fossil fuels and energy security. While investment in renewable energy can reduce dependency on oil and gas imports over the long term, countries and companies are facing short-term cost spikes which require rapid attention. The EU’s Emissions Trading System (ETS), which uses carbon pricing to incentivise decarbonisation while driving investment in the energy transition, has become a focal point of this debate in Europe.

While member states have requested an immediate review of the ETS to reduce pressure on industry, Commission President Ursula von der Leyen has insisted on the mechanism’s continued role in “massively reduced gas consumption” and in driving investment in the energy transition. However, she also unveiled a series of commitments to increase flexibility, including expanded benchmarks for free emissions allocations, and measures for greater price stability. While having immediate read-across for affected companies, von der Leyen’s concessions here are also a reflection of the complex back-and-forth of energy transition politics. Firms can expect continued turbulence over green policy and debate, particularly if the current conflict continues into the medium-term – watch this space!

UK Government seeks company feedback on climate reporting rules

The Department for Business and Trade alongside IFF research is set to conduct interviews with companies reporting on its climate-related financial disclosure regulations (i.e. TCFD) to determine how effective its rules have been. While it’s a relatively small-scale round of feedback, outcomes are set to inform aspects of UK Sustainability Reporting Standards (SRS) implementation – with SRS also involving climate reporting. A little unusually, if you are interested in taking part, you can message the DBT’s Head of Sustainability Reporting here. 

Finance

Major sovereign wealth fund publishes nature expectations for companies

Norway’s $2trn sovereign wealth fund Norges Bank Investment Management (NBIM) has published eight ‘core expectations’ for performance on nature, which it will employ as part of ownership activities. Given NBIM’s strong reputation on sustainability the expectations are a helpful bellwether for what solid nature performance looks like in 2026. NBIM’s recommendations include robust Board oversight, implementation of the TNFD framework, nature action plans, and responsible community engagement – with the full document viewable here. Companies looking to reflect on their own performance on nature, or aiming to anticipate how investors might evaluate them, should review the document. 

Energy

Fusion: The UK’s latest Power-point 

The UK has published the first UK Fusion Strategy, confirming plans to build a prototype fusion plant at the former West Burton, Nottinghamshire coal site. Construction is scheduled for 2030, with a 2040 operational target. The national strategy, which lays out a long-term plan for the development and commercial deployment of fusion technology to produce “virtually limitless” clean energy, marks a world-first. 

The government has allocated £200m to secure a construction partner, alongside £1.3bn already committed to the programme. A further £45m will fund “Sunrise,” a new fusion‑dedicated supercomputer to speed up R&D through modelling. The strategy also promises a new market framework to draw in private investment and £50m for skills and innovation development in the emerging sector.

While still a cutting-edge technology, and commercially unproven, fusion is undeniably exciting. In the case of successful execution, it would become a powerful arrow in the quiver of national energy plans. The government’s release speculates that the future fusion market could be worth up to £12 trillion globally in the second half of the century. 

Regulation and frameworks

Companies out of CSRD scope plan to maintain or expand reporting

According to a survey of C-suite executives, 90% of companies which have fallen out of scope of the EU’s CSRD regulation following the Omnibus still plan to maintain or expand their sustainability reporting activity – with 86% stating that they can continue producing reports at ‘CSRD-level’. While this is only one survey, the outcomes are relatively promising, considering that some had feared the Omnibus would result in significant drawbacks to the quality and transparency of sustainability reporting. 

It aligns with what we’ve observed at Emperor, with companies in both the UK and EU looking to build on the initial spend and effort that has gone into upgrading towards CSRD. As well as a desire to avoid wasted effort, the survey points towards the value that data collection can have in other areas – with 53% citing using sustainability data to inform operational and resource planning, and 49% to improve visibility on operational risks. 

SBTi publishes updated FLAG guidance, with quick rollout

The SBTi has published version 1.2 of its Forest, Land and Agriculture (FLAG) guidance, the standard used for target setting by companies with significant land exposures in their carbon footprints. If you have a FLAG target or are looking to set one, you should examine the new guidance, as SBTi are looking to move quickly. The new rules are effective immediately, and all companies submitting targets in 2026 must align with the updated requirements. 

One Number

435 

Standard Chartered have closed a $435 million sustainability-linked loan with agri-business company COFCO international, with terms tied to COFCO’s performance on climate adaptation and social goals. The bank says the transaction marks its first social resilience-themed loan, with a focus on addressing social and climate resilience risks within the supply chain. 

Short List

Holcim UK and Canary Wharf Group have delivered net zero concrete in fullscale construction trials, using biochar partially derived from waste coffee grounds and wood. 

FedEx has launched a reusable packaging system developed with Returnity, using durable boxes that can complete up to 50 shipping cycles and potentially cut emissions by 64–88% compared to single use packaging. 

To discuss any of these topics in more detail or speak to one of our Sustainability team about how to better your corporate sustainability efforts, email [email protected] -we'd love to hear from you.