2 Dec, 2025
October 2025 – Proposed changes to EU deforestation rule, California’s draft emissions reporting template, Philippines sustainable reporting 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 Sustainable1 presents key environmental, social and governance regulatory developments and disclosure standards from around the world.
In this month's update, we look at proposals by the European Commission to simplify the EU deforestation rule, California’s publication of a draft template for reporting Scope 1 and Scope 2 emissions and the Philippines’ proposed sustainability reporting standards.
EUROPE
European Commission proposes simplifications to deforestation rule
The European Commission on Oct. 21 proposed a series of changes to the EU Deforestation Regulation (EUDR), which aims to ensure that key goods placed on the EU market will not contribute to deforestation and forest degradation. Under the proposed changes, small companies would be required to submit a simple, one-time declaration in the EU Deforestation Regulation IT system instead of regular submissions. Downstream operators and traders would no longer be obliged to submit due diligence statements, with reporting obligations focusing on operators first placing the products on the market. The Commission also proposed delaying application of EUDR for small companies until Dec. 30, 2026, instead of June 30, 2026. The regulation will continue to apply as of Dec. 30, 2025, for large and medium-sized companies, but the Commission said these companies would benefit from a grace period of six months for checks and enforcement. The European Parliament and the Council of the EU, composed of government ministers of the 27 EU member states, would need to adopt the amendments for them to come into effect. The proposals come as Commission is seeking to simplify its sustainability reporting framework.
European Commission restricts use of forever chemicals in firefighting foams
The European Commission on Oct. 3 adopted measures restricting the use of per- and polyfluoroalkyl substances, known as PFAS or forever chemicals, in firefighting foams under the EU Regulation on registration, evaluation, authorization and restriction of chemicals (REACH). The restrictions will take effect after transition periods of between 12 months and 10 years depending on use to allow time for safer replacements. The Commission said the restriction marks “a major step” in its objective to lower PFAS emissions across the board and will prevent water and soil pollution and exposure to firefighters. The move comes as the European Commission is seeking to restrict the use of PFAS, which could cover more than 10,000 substances across several sectors.
European insurance regulator publishes guidelines to promote diversity on boards
The European Insurance and Occupational Pensions Authority (EIOPA) on Oct. 14 published guidelines designed to promote diversity on the boards of insurers and reinsurers following an amendment to the EU’s Solvency II Directive that aims to promote greater diversity in insurers’ and reinsurers’ decision-making. Solvency II sets out requirements applicable to insurance and reinsurance companies in the EU and went under a review in 2020. The new guidelines require insurers and reinsurers to develop and implement diversity policies, including gender balance. Diversity policies should also take into account candidates’ educational and professional background, age and geographical origin. Entities will also be required to set quantitative objectives related to gender balance, EIOPA said. The guidelines will apply from Jan. 30, 2027.
EU securities regulator sets out enforcement priorities for sustainability reporting
The European Securities and Markets Authority (ESMA) on Oct. 14 announced its enforcement priorities for 2025 financial reports, including what companies should focus on when preparing their sustainability reports. The regulator highlighted the importance of connectivity between financial and sustainability reports. It also set out how companies should consider their materiality assessment when reporting according to the Corporate Sustainability Reporting Directive (CSRD)’s European Sustainability Reporting Standards (ESRS), including taking into account materiality of impacts, risks and opportunities and the materiality of information. The European Commission is seeking to simplify the CSRD, which will likely entail a sharp reduction in the number of data points companies are required to report when applying the ESRS. ESMA said, however, that large companies already reporting according to the CSRD should not use draft revisions to the ESRS when preparing their 2025 reports.
ASIA-PACIFIC
New Zealand government agrees to lower thresholds for climate-related disclosures
The New Zealand cabinet on Oct. 22 agreed to lower reporting thresholds for mandatory climate-related disclosures as part of a move to encourage stock market listings and cut costs for small businesses. Under the changes, the Ministry of Business, Innovation & Employment said the threshold for reporting companies would be raised to NZ$1 billion in market capitalization or face value of debt from NZ$60 million currently. Legislation to make the changes is expected to be passed in 2026, the Ministry said. It also said amendments to the climate-disclosure laws will no longer require managed investment scheme managers to report. The number of entities reporting will fall to 76 from 164, with 66 listed companies and 22 management investment scheme managers no longer required to report. Under the amendments, directors will no longer be liable for “unsubstantiated representations in their climate statements,” the Ministry said.
Philippines regulator publishes amended draft sustainability reporting standards
The Philippines Securities and Exchange Commission on Oct. 24 published draft sustainability reporting standards based on the International Sustainability Standards Board’s two sustainability disclosure standards. The proposed standards take into account feedback from a consultation launched in July. The new draft provides guidance on how companies may incorporate other sustainability-reporting frameworks in their reports and details expectations for the progression from mandatory limited assurance to reasonable assurance. Companies with a market capitalization of more than 50 billion Philippine pesos will be required to start reporting in 2027 for financial year 2026, and smaller companies will start reporting in subsequent years
UNITED STATES AND CANADA
US banking regulators withdraw climate risk guidance
The US Federal Reserve, Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) on Oct. 16 announced that they were jointly rescinding the climate risk management guidelines for large financial institutions they issued in 2023. The agencies said they now view the Principles for Climate-Related Financial Risk Management for Large Financial Institutions as redundant, as banks were already expected “to consider and appropriately address all material financial risks, and should be resilient to a range of risks, including emerging risks.” Adhering to the principles could distract banks from managing other potential risks, the agencies said.
California publishes draft reporting template for emissions disclosure
California Air Resources Board (CARB) on Oct. 10 published a draft reporting template on Scope 1 and Scope 2 emissions disclosures for companies subject to its Climate Corporate Data Accountability Act. The law requires public and private US companies that do business in the state and have annual revenues exceeding $1 billion to disclose their Scope 1 and Scope 2 emissions from 2026 and Scope 3 emissions from 2027. The template proposes that companies disclose Scope 1 and Scope 2 emissions by energy source, for example electricity or fuel use. The regulator also said it would delay its initial rulemaking for the law to the first quarter of 2026 from Oct. 14, 2025.
LATIN AMERICA AND THE CARIBBEAN
Chile holds consultation on gender quota law reporting
Chile's financial regulator, la Comisión para el Mercado Financiero, on Oct. 28 published a consultation on how companies should submit information to comply with a new law that requires gender quotas on corporate boards. The law, known as the More Women in Boards of Directors Act, was published in Chile’s Official Journal on Aug. 19 and will apply from Jan. 1, 2026. Companies will be required to report on the gender of all board members. Between 2026 and 2028, companies will be allowed a maximum of 80% of a board’s membership to be of the same gender; 70% between 2029 and 2021; and 60% by 2032. Companies that do not comply with the requirements must explain why. The regulator is proposing companies should report through a platform called CMF Supervisa and is planning to publish a list of companies subject to compliance.
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.
This list is not exhaustive, and information is current as of the publication date. If there are additional significant regulatory developments we should cover going forward, please reach out to Jennifer Laidlaw at jennifer.laidlaw@spglobal.com. We welcome feedback.