Recent developments

Local Contact

19 Sept 2025
Subject Tax updates
Categories Consulting

Overview:

EMEIA

12 August: EY development on ESRS simplification

6 August: The EBA published a no-action letter on the application of the ESG Pillar 3 disclosure requirements under the EBA disclosure Implementing Technical Standards (ITS). This no-action letter aims to address legal and operational uncertainties linked to the evolving ESG disclosure framework, considering the proposed amendments under the European Commission’s Omnibus legislative package on sustainability reporting. The EBA also updated its ESG risk dashboard.

31 July: EY ESRS Illustrative Sustainability Statements

30 July: The European Central Bank has added a "climate factor" to its collateral framework to address financial risks from climate change. This factor will consider sector-level data from non-financial corporation bonds in the 2024 climate stress test, the issuers' CSPP climate score, and the asset's residual maturity. Next step: Implementation of these measures is planned for the second half of 2026. 

29 July: The European Central Bank has added a "climate factor" to its collateral framework to address financial risks from climate change. This factor will consider sector-level data from non-financial corporation bonds in the 2024 climate stress test, the issuers' CSPP climate score, and the asset's residual maturity. Next step: Implementation of these measures is planned for the second half of 2026. 

28 July: EY development on Quick fix issue

23 July: EIOPA released findings from a monitoring exercise on the use of climate change scenarios in the own risk and solvency assessment (ORSA). Conducted in 2024, the exercise assessed 26% of EEA insurance and reinsurance firms, covering about 85% of the market. EIOPA noted a positive shift in firms' risk management regarding climate change, with most now incorporating climate scenarios into their ORSA. However, EIOPA identified areas for improvement, including:

23 July: EFRAG launched its “2025 State of Play” portal. The portal is a live, interactive platform presenting key insights from its latest market study on the early implementation of the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). 

15 July: EY developent on Omnibus and EU Taxonomy: Key implications of the new Delegated Regulation for reporting undertakings

7 July: ISSB proposes amendments to SASB Standards & IFRS S2 Industry-based Guidance

30 June: Introduction to IFRS S1 and IFRS S2 Updated June 2025

13 June: Comment letter – ED - Amendments to Greenhouse Gas Emissions Disclosures

22 May: Connected Financial Reporting: Accounting for Climate Change

29 April: ISSB proposes amendments to Greenhouse Gas (GHG) emissions disclosures

28 March: Good Group Climate (International) Limited

7 January: Greenhouse Gas Protocol (GHGP) Disclosure Checklist December 2024

17 November: ISSB issues educational material on materiality

Global

29 July: The United Nations Environment Programme Financial Initiative (UNEP FI) introduced new guidance on the Principles for Responsible Banking (PRB) to help banking professionals incorporate climate adaptation and resilience into their risk frameworks and business strategies. This guidance focuses on strategy, assessment, and action, offering insights from the real estate and agriculture sectors to provide concrete examples. Banks in other sectors are encouraged to adapt the core methodologies to suit their unique portfolios and client needs.

29 July: The Science Based Targets initiative (SBTi) released a paper detailing the mandatory five-year review process for companies seeking to maintain active target status on the SBTi Target Dashboard. This review ensures alignment with the latest SBTi Criteria and Standards, allowing companies to uphold their science-based targets. The publication clarifies an existing SBTi requirement without introducing new elements. Additionally, the SBTi has provided a document outlining the various commitment and target statuses that can be assigned to companies in the SBTi system.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.