Recent developments

Asia Pacific

07 May: The Monetary Authority of Singapore published a speech by Managing Director Mr. Chia Der Jiun at the Financing Asia’s Transition Partnership (FAST) Conference 2025. The speech highlights the critical need for collaboration, investment in renewable energy, and the development of carbon markets, positioning Asia as a leader in global sustainability efforts. Key takeaways include:

• Collaboration: Emphasizing the necessity for leaders in policy, finance, and the economy to unite for effective climate action and a sustainable future.
• Energy Transition in Asia: With rising electricity demand, renewable energy is increasingly vital, particularly in countries like China. The ASEAN Power Grid initiative aims for operationalization by 2045, necessitating significant investment in renewable infrastructure.
• Singapore's Role: Singapore seeks to accelerate renewable energy deployment, establishing clear definitions for green activities through the Singapore-Asia Taxonomy (SAT) and launching initiatives like the Financing Asia’s Transition Partnership to fund decarbonisation.
• Carbon Markets: High-integrity carbon markets are essential for attracting investment, with initiatives like the Transition Credits Coalition enhancing their credibility.
• Adaptation and Resilience: Financial institutions are encouraged to integrate environmental risk management, with the insurance sector playing a key role in risk financing for renewable projects.
• Long-term Vision: The speech advocates for unwavering commitment to climate action and investment in infrastructure to promote economic resilience and growth.

EU

25 April: The EBA launched an ESG dashboard. The dashboard aims to create a framework for monitoring environmental, social, and governance (ESG) risks while providing centralized access to comparable climate risk indicators. The dashboard encompasses indicators related to:

• Climate-related transition risk
• Physical risk
• Exposures secured by immovable property collateral
• Alignment of EU and EEA banks with the EU Taxonomy
• These indicators are derived from Pillar 3 ESG data disclosed by banks, in accordance with the disclosures mandated by the Capital Requirements Regulation (CRR). Next steps: The EBA intends to update and evolve the indicators over time. It comments that, as the Pillar 3 disclosure templates are presently under revision, the charts, and indicators (particularly those relating to Taxonomy alignment) may be adjusted in future versions

25 April 2025: EFRAG published a work plan to meet the Commission’s mandate, with a draft of the revised ESRS anticipated for consultation in Summer (likely August).

16 April 2025: The Stop the Clock Directive entered into force, postponing Wave 2 and Wave 3 CSRD reporting for two years, along with a one-year delay for Member State transposition and implementation of CSDDD.

27 March: The European Commission requested EFRAG to revise and simplify ESRS, with technical advice expected by 31 October 2025.

Ongoing: The European Parliament and Council are reviewing substantive changes to the Amending Directive of CSRD/CSDDD.

GLOBAL

12 May: The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, convened to address key priorities. During the meeting, GHOS members discussed the Committee's proposed Pillar 3 disclosure framework for climate-related financial risks. Additionally, the Basel Committee plans to release a voluntary disclosure framework for jurisdictions to consider. The GHOS also examined the Committee's comprehensive efforts regarding climate-related financial risks. As a result, they tasked the Committee to prioritise analysing the impact of extreme weather events on financial risks. 

28 April: ISSB published its Exposure Draft proposing targeting amendments to IFRS S2 to ease application for its companies. Comments are due by 27 June 2025