4 May, 2026
April 2026 — EU bank reporting simplification, Switzerland’s proposed sustainability requirements, Japan’s amendments to disclosure standards
Regulation is shaping the sustainability agenda and changing the way companies do business in different jurisdictions, but keeping pace with constant regulatory updates has become a mammoth task for businesses and investors. In this recurring series, S&P Global Energy Horizons presents key developments to sustainability regulations and standards from around the world.
In this month's update covering March 20 to April 20, we look at plans by the European Banking Authority to simplify its sustainability reporting requirements, Switzerland’s proposals for new sustainability disclosure rules and Japan’s proposed amendments to its sustainability standards.
INTERNATIONAL
ISSB proposes amendments to three industry-specific sustainability standards
The International Sustainability Standards Board on March 26 published draft amendments to three of the 77 industry-specific Sustainability Accounting Standards Board (SASB) standards. The proposals cover electric utilities and power generators; agricultural products; and the meat, poultry and dairy industries. They are designed to align the SASB standards with the ISSB’s and would update industry-based guidance on implementing the ISSB’s climate-related standard, IFRS S2. They also are designed to support companies in applying the ISSB standards and facilitate use of the standards with other global disclosure standards, the ISSB said. The proposed amendments are subject to stakeholder feedback and would become effective 12 to 18 months after they are issued. A consultation closes on July 24, 2026.
Global Reporting Initiative launches consultation on pollution standards
The Global Reporting Initiative (GRI), an international standard setter, on March 30 announced a consultation on its first standard on soil pollution and updates to two existing standards related to pollution. The soil pollution standard would require disclosures on managing soil pollution impacts, incidents of soil pollution and what soil pollutants companies release. In a separate standard on air pollution, the GRI is proposing to revise existing disclosures and incorporate new information. It is also planning to replace disclosures on significant spills in its current Effluent and Waste standard to include emergency preparedness, prevention and response for all critical incidents regardless of whether they are related to pollution. The GRI said the proposals align with international frameworks, including the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, and would work in conjunction with the European Sustainability Reporting Standards (ESRS). The consultation period is open until June 8.
TNFD consults on integration of nature metrics into voluntary frameworks
The Taskforce on Nature-related Financial Disclosures (TNFD) on April 10 launched a joint consultation with the GRI and another global standard setter, the Science Based Targets Network (SBTN), on incorporating nature metrics into their respective frameworks. The proposals draw on metrics developed by the Nature Positive Initiative (NPI), which has created a set of nature-related metrics such as nature loss or recovery. The consultation document outlines how they can be included in standards and frameworks already developed by the TNFD, GRI and the SBTN. In the consultation, the TNFD is proposing that companies and financial institutions should report state of nature metrics only for locations with material nature-related impacts and dependencies. Stakeholders have until June 4 to respond to the consultation.
EUROPE
EU banking regulator proposes streamlining sustainability-related reporting
The European Banking Authority (EBA) on April 10 announced a series of measures to simplify EU supervisory reporting, including environmental, social and governance (ESG) requirements. The regulator said its proposals seek to bring its ESG requirements into line with recent amendments to the EU’s sustainability reporting framework. The proposed changes would also simplify requirements for large financial institutions by removing four reporting templates related to alignment with the EU Taxonomy, a classification system of sustainable activities, and exposure to the largest carbon-intensive firms. The proposals also introduce two new reporting templates, including one on exposure to physical and transition risks, which the EBA said would provide supervisors with “the harmonized quantitative information necessary” to assess banks’ exposure to broader environmental risks. A consultation is open until July 10. The proposed changes would apply from 2027.
European Chemicals Agency launches consultation on PFAS restrictions
The European Chemicals Agency (ECHA), which implements the EU’s chemicals legislation, on March 26 launched a consultation on the draft opinion of its Committee for Socio-Economic Analysis (SEAC) on restricting the manufacturing, sale and use of per- and polyfluoroalkyl substances, known as PFAS or forever chemicals in the EU. The consultation is open until May 26, and the committee is expected to adopt its final opinion by end-2026. In the consultation document, SEAC said a restriction would offer “the possibility to define a broad chemical scope” instead of simply leading to a substitution of one PFAS for another. A restriction would also “tackle the problem of ongoing, uncontrollable emissions at the source, as manufacture and use can be restricted to avoid or minimize emissions,” it said. A restriction could cover thousands of substances across several sectors.
Switzerland proposes new sustainability reporting requirements
Switzerland’s Federal Council on April 1 proposed new sustainability reporting requirements based on the EU’s Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive. The proposed Federal Act on Sustainable Corporate Governance would require Swiss companies with more than 1,000 employees and global annual revenues of more than CHF450 million to file annual sustainability reports. It would also require due diligence disclosures from larger companies with more than 5,000 employees and global annual revenues of more than CHF1.5 billion. Companies would be required to report using the European Sustainability Reporting Standards. However, they may use other standards like the ISSB’s in conjunction with the those of the Global Reporting Initiative to ensure they comply with a double materiality assessment, which requires companies to report not only financial terms but also in how their business affects the environment, employees and consumers. The Federal Council is also proposing two options for a due diligence civil liability regime. Under option one, a company would be liable for damages caused by an overseas subsidiary if the injured party can prove that the parent company failed to fulfill its duty of care. Under option two, general provisions of the Swiss Code of Obligations concerning liability would apply in the event of damages. A consultation runs until July 9.
UNITED STATES AND CANADA
California regulator proposes rules for implementing emission disclosure rule
The California Air Resources Board (CARB) on March 23 outlined rulemaking proposals for emissions disclosures taking effect on Aug. 10, 2026. The proposals detail CARB’s approach to greenhouse gas accounting by defining the scope of operations that should be included in a company’s GHG emission accounting, and how companies should calculate emissions and classify Scope 1, 2, and 3 emission disclosures. CARB is also proposing using the GHG Protocol’s 15 categories for Scope 3 reporting and is requesting feedback on three different options for Scope 3 reporting, including excluding those categories with little impact on a company’s business; reporting on a sectoral basis starting with the transportation and industrial sectors, which account for the majority of California’s emissions; or phasing in Scope 3 emissions beginning with the five most-reported categories.
ASIA-PACIFIC
India proposes easing corporate social responsibility requirements
The Indian government on March 23 proposed easing corporate social responsibility (CSR) requirements for some companies, potentially reducing the number of companies subject to CSR rules. Under proposed amendments to India’s Company Act, 2013, the country’s central government would be able to exempt certain companies from CSR obligations. In addition, the proposed amendments would raise the thresholds for CSR spending. Companies with annual net profit of more than 100 million rupees would be required to contribute at least 2% of their average net profit in the last three years toward CSR policies, up from 50 million rupees currently. Transfer times for unspent CSR funds would be increased to 60 days from 30 days currently. The net profit threshold for needing to create a dedicated CRS committee would rise to 10 million rupees from 5 million rupees.
Japan proposes amendments to mandatory sustainability disclosures
Japan’s Financial Services Agency (FSA) on March 31 proposed amendments to the country’s sustainability-related disclosures for listed companies after the Sustainability Standards Board of Japan amended its three standards to align with changes made by the ISSB to its climate standard. The FSA’s proposed amendments would remove some types of Scope 3 emissions from the reporting requirements; allow commercial banks or insurers to use alternative industry-classification systems other than the Global Industry Classification Standard (GICS) in disclosing disaggregated financed emissions; permit companies to use other ways of measuring GHG emissions than the GHG Protocol Corporate Standards; and use other methods for measuring global warming potential values than those of the Intergovernmental Panel on Climate Change.
Nepal holds consultation on proposed sustainability-related disclosure standards
Nepal’s Accounting Standards Board on April 7 launched a consultation on its two draft sustainability-related disclosure standards. The standards, NFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and NFRS S2: Climate-related Disclosures, are fully aligned with those of the ISSB. NFRS S1 requires companies to disclose information about “significant” sustainability-related risks and opportunities that could affect their cash flows, access to finance or cost of capital over the short, medium, and long term. NFRS S2 focuses on climate-related risks and opportunities that are expected to have an impact on a company’s prospects. The comment period runs until June 6.
Thailand’s securities regulator proposes framework for sustainability-related debt
Thailand’s Securities and Exchange Commission on April 10 proposed regulatory requirements to support issuance of bonds designed to promote the energy transition. The regulation would oversee the issuance of “amber bonds,” whose proceeds would be used for activities defined as “amber” under Thailand’s green taxonomy. Amber economic activities are those that have not yet reached net-zero emissions but have established decarbonization pathways. The proposed requirements would also cover transition bonds whose proceeds would invest in projects aligned with an issuer’s transition strategy in line with internationally recognized transition bond standards. The proposals also seek to enhance ESG bond regulations to improve disclosure standards. Issuers would be required to prepare a framework for their bond issuance and appoint an external review provider to provide assurance that the framework is aligned with standards, guidelines or a taxonomy recognized at the international or national level.
This piece was published by S&P Global Sustainable1 and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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