
Australia has launched a sustainable finance taxonomy focusing on climate change mitigation. The framework will be available for voluntary use and aims to support the credible allocation of capital towards Paris-aligned activities by strengthening investor confidence in low-emissions investment claims, reducing the risk of greenwashing, and improving the comparability of investment products and sustainability disclosures. The development of the framework was a joint initiative between the Australian government and finance sector, led by the Australian Sustainable Finance Institute (ASFI). During the taxonomy’s implementation phase, ASFI will pilot the taxonomy with a select cohort of financial institutions including ANZ, Commonwealth Bank of Australia, National Australia Bank, Westpac, Rabobank, Hesta and Rest Super.
The European Commission is working on a European Climate Adaptation Plan, which is set to be adopted at the end of 2026, a spokesperson told Responsible Investor. The EU executive will conduct an impact assessment and public consultations before finalising its proposal. It will also prepare legislation and policies to ensure every country and region in the bloc has a “robust adaptation system”.
A South Korean democratic politician has introduced a revised mandatory human rights and environmental due diligence bill. The Corporate Human Rights and Environmental Due Diligence Act was introduced in 2023 and has since been revised after a review by the ministry of government legislation. It establishes mandatory corporate due diligence to “proactively identify and address” potential human rights and environmental abuses across global supply chains. If passed, it would apply to companies with more than 500 employees or annual revenue exceeding around $150 million.
Supply chain is defined in the bill as covering both direct and indirect relationships for activities from raw material procurement to end-user consumption. Stakeholder engagement is mandatory throughout the due diligence process. Failure to meet the requirements would result in liability for damages and administrative corrective order, and failure to implement these would incur criminal penalties. Companies in scope would be required to establish and internalise human rights and environmental policies, conduct human rights impact assessments, develop and implement action plans to address potential and negative impacts, monitor and publicly disclose outcomes, and establish internal grievance mechanisms.
Fife Council Pension Fund is set to amend its statement of responsible investment principles to include an expectation for managers to “demonstrate how they incorporate ESG issues into their ownership policies and practices”, warning that “material misalignment from our approach will lead to review”. The fund’s pension committee will vote on the updated policy, which is undergoing its first major revision in four years, this week.
Spain has adopted greenhouse gas reporting rules, which came into effect last week. Large companies with more than 500 employees will be required to adhere to the new rules, as well as public entities. Companies will be required to report their Scope 1 and 2 emissions on an annual basis. Scope 3 is currently voluntary, but will become mandatory in 2028 for public entities. Companies are also required to publish a GHG emissions reduction plan with quantifiable targets over a minimum five-year period, aligned with international climate goals, such as the Paris Agreement.
The International Accounting Standards Board (IASB) has finalised examples that aim to improve the reporting of uncertainties in financial statements. The seven examples use climate-related scenarios to illustrate principles that apply broadly to all types of uncertainties. The examples have been developed to address concerns about inconsistencies between information disclosed in financial statements and in other reports. The examples demonstrate how IFRS accounting standards apply when reporting uncertainties in financial statements, the IASB said. The board plans to publish the final document in October to support “timely and informed” application.
Montanaro Asset Management will apply the FCA’s Sustainability Impact label to its Better World fund, the UK manager has announced. The vehicle, which invests in listed equities, has six long-term impact themes including innovative technology, healthcare and the green economy, and invests with the primary objective of achieving a pre-defined, positive and measurable sustainability impact alongside a financial return.
The Canadian Securities Administrators (CSA) is seeking feedback on proposed amendments to its mining standards, which aim to “clarify, harmonise and streamline” the country’s mining disclosure regime, without introducing any new requirements. The changes would update and enhance the standards for disclosure practices and policy considerations identified by CSA staff, and reflect changing industry and investor expectations, the regulator said.