Emperor Sustainability Briefing 27.08.2026

Issue #28

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The sustainability storm continues to swell 

While there's nothing more British than complaining about the weather, forecasters are warning of an “unprecedented” El Niño building over the Pacific, with 2027 tipped to be the hottest on record. El Niño is a natural phenomenon, but its impacts are likely to be sharpened by an already-warming world - a reminder that while governments debate the rules, the effects of climate change are already being felt daily, and most acutely by those least equipped to withstand them.

As we continue to weather the sustainability storm in this week’s Briefing, pockets of progress shine through the clouds – notably, American Airlines soars to new heights with the first commercial passenger flight powered by eSAF, and UK households see record progress in clean energy tech installations. Elsewhere, the storm clouds thicken, with regulators and courts continuing to redraw the boundaries of climate accountability, shareholder pressure quietly fading, and the EU and US agreeing further watering down of regulations in favour of trade relations.

Brollies at the ready – we hope you enjoy reading! 

Energy costs – US-EU trade agreement 

Domestic renewables growth - New Zealand policy 

Extreme weather - Shareholder resolutions 

Stories

Energy

Business energy costs rise by 25% as gas price volatility continues

Business energy prices have risen by 25% since February 2026, according to new analysis from Cornwall Insight. The increase stems from ongoing disruption tied to the Iran war, compounded by surging demand during recent European heatwaves.

The resulting supply-demand imbalance has driven gas prices higher, with businesses facing further cost hikes as they head into winter. The episode is a sharp reminder of how exposed energy costs remain to geopolitical shocks - and of the tension this creates for governments trying to hold the line on net zero while managing short-term economic pressure.

Regulation and Frameworks 

EU agrees to (further) ease sustainability rules for US businesses 

The EU has agreed to ease its sustainability rules for US businesses as part of a wider trade deal reached with the US at the end of July. In a joint statement on 21st August, the EU pledged to reduce the administrative burden of the Corporate Sustainability Due Diligence Directive (CSDDD) on US businesses, and promised that neither CSDDD nor the Corporate Sustainability Reporting Directive (CSRD) would restrict transatlantic trade. 

The EU also committed to flexibilities for US companies under its Carbon Border Adjustment Mechanism (CBAM), and recognised US commodity production as posing a negligible deforestation risk under its Deforestation Regulation. 

The move follows sustained US pressure; officials have criticised the regulations’ extraterritorial reach, net-zero references, reporting requirements, and enforcement mechanisms, with the US Trade Representative estimating CBAM and the Deforestation Regulation could impact $4.7 billion and $8.6 billion of annual US exports respectively. 

This is despite the already narrowed scope of the regulations following the EU’s Omnibus package, which cut the number of companies affected by CSRD and CSDDD by around 90% and 70% respectively, and reduced mandatory data points by 60%.

While the bigger picture aim of the US-EU framework is to “reinvigorate our economies’ reindustrialisation” and "unleash the full potential of our combined economic power”, yet again we see sustainability regulation caught in the crossfire. 

Critics have warned that embedding commitments on CSDDD and CSRD in a trade deal risks cementing deregulation for years, while campaigners have separately flagged the EU's $750 billion pledge to buy US LNG, oil and nuclear products as a threat to its own decarbonisation targets.

Policy

UK home solar and battery installations break records

The latest data from the Microgeneration Certification Scheme (MCS) shows record-breaking growth in the UK's roll-out of small-scale clean energy technologies, with 17% more domestic renewables installations accredited compared to the same period last year. Solar led the growth, with a certified heat pump, solar array or battery storage system installed every 74 seconds on average during the first half of 2026.

While the figures point to strong momentum in household adoption of clean energy technology, the picture is less consistent elsewhere in the UK’s electrification push. 

In response to pressure from car manufacturers and dealerships who say the current targets risk discouraging investment and forcing vehicles to be sold at a loss, the government is exploring options to loosen its 2035 phase-out target for petrol and hybrid vehicles.

The contrast is a useful reminder that progress on decarbonisation rarely moves at a single, uniform pace.

New Zealand shields companies from climate liability lawsuits 

New Zealand’s Parliament has passed legislation preventing companies from being held liable in civil court for climate-related harm caused by greenhouse gas emissions. The bill passed just as the Supreme Court was concluding its hearing of a related case brought by Māori climate activist Mike Smith against six major New Zealand companies, including dairy giant Fonterra, over their emissions.

The government argues the law protects business confidence and existing climate policy from being undermined by litigation. Critics have accused the government of climate denial, with Smith calling the timing “deeply concerning” given its overlap with the Supreme Court case. Opposition parties are promising to repeal it if they win the looming election.

The case is somewhat jarring against the recent backdrop of climate accountability momentum; earlier this year, the United Nations General Assembly (UNGA) endorsed the International Court of Justice’s (ICJ) opinion that climate inaction may violate governments’ legal obligations to current and future generations. 

For your diaries: Get ahead of the UK SRS 

For our UK-based readers, a reminder to join us at our London offices on 23rd September for an inside scoop on what the UK’s new Sustainability Reporting Standards will mean in practice. We’ll discuss how organisations can build on existing sustainability reporting work, and the strategic actions you can take to prepare for the changes ahead.

Secure your place here: https://www.eventcreate.com/e/uk-srs-the-inside-track 

Climate 

Continued extreme weather on the horizon

Just as Europe enjoys a brief respite from the sweltering temperatures of this summer, forecasters are warning that next year will likely be hotter still.

The UK Met Office says an “unprecedented” El Niño event is developing over the Pacific Ocean and likely already affecting the world’s weather patterns, with below-average monsoon rains in India and suppressed hurricane activity in the Atlantic. 

While El Niño is a naturally occurring weather pattern taking place roughly every two to seven years, its weather impacts will likely be driven to greater extremes against the backdrop of a warming world. 

While our UK Briefing readers may need to ready their brollies for a stormier-than-usual Autumn ahead, it’s elsewhere that we’ll likely see the greatest damage. Previous El Niño events have affected crop yields across the world, causing surging food prices and hundreds of billions of dollars in lost GDP globally. The UN’s Food and Agriculture Organization is warning  that this El Niño could pose a significant threat to the tens of millions of people who are already facing crisis-level acute food insecurity in at-risk countries.   

Corporate 

Shareholder environmental resolutions hit a new low 

Environmental shareholder resolutions have declined sharply in 2026, according to new research from The Conference Board. Just 75 environmental proposals were filed at Russell 3000 companies in the first half of this year - half the number filed over the same period in 2024 - marking two full years without a passed environmental resolution at a major US company.

The trend matters because shareholder pressure has historically pushed companies to act. While overall shareholder proposals have also fallen – from 923 in 2024 to 622 in 2026, a drop of around a third – the decline in environmental proposals specifically has outpaced that wider fall, suggesting sustainability issues are losing ground even as shareholder activism cools more broadly.

These dwindling figures place the burden of driving sustainability progress back on regulation – a lever which, from the above stories, we know also stands on unstable footing. 

Progress takes flight with American Airlines 

American Airlines has completed the first commercial passenger flight in the US powered by electro-sustainable aviation fuel (eSAF), a synthetic fuel made from captured carbon dioxide and renewable electricity. The fuel, produced by Californian-based company Infinium, is said to cut lifecycle emissions by more than 90% compared to standard jet fuel.

It’s a notable step given how slow SAF adoption has been more broadly - production nearly doubled in 2025, yet still accounts for just 0.6% of airlines’ fuel consumption, according to IATA. Unlike conventional SAF, eSAF is produced without biobased feedstocks, offering a more scalable route. American Airlines has an offtake agreement for future volumes once Infinium's Project Roadrunner facility comes online in 2027.

The achievement is a welcome story of corporate sustainability progress amid the US government’s otherwise opposite trend.  

Shortlist 

Lloyds Banking Group has pledged to facilitate more than £100 billion in sustainable and transition finance between 2027 and 2030, an acceleration on the £70.9bn achieved between 2022 and 2025. 

After hitting its 2030 goal five years early, global cruise company Carnival Corporation has announced a new commitment to reduce its GHG emissions intensity by 25% by 2029. 

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.