
- Emperor
- Emperor
- Sustainability
- 31 July 2025
- 5 min
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Issue #1
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Good morning, and welcome to the first edition of the Emperor Sustainability Briefing.
The sustainability landscape in 2025 is defined by complexity and contradiction. Stakeholders continue to expect visible progress and strong leadership: a GlobeScan survey earlier this year found that 71% of US adults believe CEOs should speak out on climate issues, while 67% support CEOs defending DEI initiatives. Yet political headwinds and regulatory delays are undermining the very frameworks designed to support and measure said progress.
Companies are caught in the middle. Roll back or push on? Communicate boldly or evolve quietly? The landscape is shifting fast; knowing what’s happening, what’s next, and what ‘good’ looks like is harder than ever.
That’s where this Briefing comes in.
It’s your fortnightly need-to-know on corporate sustainability and ESG, covering news, expert insight, and emerging best practice. Think of it as a boardroom cheat sheet for CSOs, CMOs and IR professionals. We’ll monitor regulatory shifts, cut through the noise, and surface the developments that deserve your attention. And through our ‘Short List’ feature, we’ll spotlight those leading the way.
Our ambition is to provide a balanced blend of insight and information, offering not just facts, but the context and analysis that spark informed dialogue and drive impactful decision-making.
Happy reading!
- Lara Sharrock, Director of Sustainability, Emperor
Read on for more sustainability stories covering regulation, policy, reporting, and government.
The Science Based Targets initiative (SBTi) has launched its Net-Zero Standard for Financial Institutions - the first global framework that tells banks, asset managers, and insurers how to align their activities with limiting global warming and achieving net zero by 2050.
The SBTi’s new framework expands asset class coverage, meaning financial institutions can’t cherry pick and ignore the rest, they need to account for emissions across all major investment types. It also gives a choice: institutions can opt to either set pathways for financed emissions or prove their customers are on track for net zero. Financial institutions must assess, monitor, disclose, and address deforestation risks, with engagement plans to match. Plus, there’s now a fossil fuel transition policy requirement, which sets out clear expectations and timelines to cease financial activities and insurance services to the fossil fuel industry.
With major financial institutions exiting collaborative climate initiatives, it will be interesting to see how many choose to adopt the SBTi's new voluntary standard, open to any entity earning 5% or more of its revenue from lending, asset management, asset ownership, insurance underwriting, or capital markets activities. The launch comes amid a wave of departures of big financial institutions from collaborative climate initiatives following Trump’s election, with HSBC’s exit from the NZBA marking the latest.
EFRAG, the EU’s reporting advisory body, has proposed cutting 58% of mandatory data points from the European Sustainability Reporting Standards (ESRS), rising to 66% when voluntary disclosures are included. This is the latest detail as part of the broader Omnibus proposal aimed at making green legislation “faster, easier, and cheaper” for companies to implement.
Although the proposed changes may make the reporting process easier, it’s arguably not simpler. The cuts add to the uncertainty, with companies needing to reassess what is still required, what may become optional, and how to maintain credibility under a more flexible framework. EFRAG’s consultation kicks off this week, with exposure drafts due by October. The question remains: is this a smart streamlining or a step backwards?
The Global Reporting Initiative (GRI) has announced the release of the ‘Textiles and Apparel Sector Standard exposure draft’, intending to support companies within the textile, apparel, footwear and jewellery sectors to report on key sustainability impacts. This standard has been prioritised due to the sector’s complex supply chain and links to labour and human rights issues. A public comment period will remain open until September 28th to gather feedback to inform the final standard, which is expected to be released in Q2 2026.
The UK Government has announced significant expansions to the Emissions Trading Scheme (ETS), following last year’s public consultation on how to strengthen support for the country’s net-zero goals without undermining incentives to reduce emissions.
In a bid to boost the developing sector, greenhouse gas removals (GGRs) will be incorporated into the national ETS from 2029. Initially, the focus will be on engineered removal solutions in the UK, such as Direct Air Capture and bioenergy with carbon capture and storage (BECCS) technologies. Maritime activities, waste incineration and energy-from-waste was also included in last year’s consultation. The UK’s ETS will be expanded to all commercial domestic shipping activities from 1 July 2026
Evaluating the implementation of the European Sustainability Reporting Standards (ESRS), the European Financial Reporting Advisory Group (EFRAG) has found gaps between climate pledges, transition plans, and disclosures. Research among 50 companies found a third do not have short-term Scope 1 or 2 targets, and 16% had not aligned targets with the 1.5°C target. The report also found a distinction of progress across geographies, with the Netherlands having the most companies with transition plans.
Across the board, however, there was a general lack of detailed and standardised plans, as well as a lack of explanation of components within transition plans, such as decarbonisation levers. We believe that a good transition plan is essential to demonstrating the long-term robustness of your sustainability strategy and reporting. Get in touch if you’d like any support or best practice guidance when developing your transition plan report.
The concept of a ‘just’ transition seeks to capture the varied experiences and injustices caused by climate change. Now, the EU and China have committed to it following a joint press statement. At its heart, the commitment aims to bring stronger climate collaboration and improved leadership on climate action. This includes actions like submitting updated 2035 Nationally Determined Contributions (NDCs), increasing renewable energy deployment and access to green technologies, and collaborating on a wide variety of other topics. These commitments are ultimately building up for COP30, which is pushing for ‘ambitious, equitable, balanced and inclusive outcomes’ - all core elements of a ‘just’ transition.
Commitments from the EU and China to scale up green tech isn’t new. But stressing the importance of access and inclusivity in practices combatting climate change reflects a shift in focus. It will become increasingly important for business to show that their sustainability efforts are ‘just’. We recommend getting ahead while you can and start looking beyond your actions; who is being affected? How can we end up with a positive outcome for everyone involved, across your value chain and beyond? And most importantly, how can we tangibly demonstrate that our actions are ‘just’?
The UK’s Joint Committee on Human Rights has uncovered evidence indicating that products made wholly or partially through forced labour are being sold to consumers, and the country is lagging behind other nations in tackling forced labour within global supply chains. The UK’s current framework, centred on the Modern Slavery Act 2015, relies heavily on voluntary reporting which the Committee argues is outdated. The committee has urged the government to implement mandatory human rights due diligence measures for all businesses operating in the UK market and to prohibit the importation of goods linked to forced labour practices.
88%
The percentage of companies now viewing sustainability as a long-term value creation opportunity, driving benefits including higher profitability, revenue growth, and improved cost of capital.
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.