29 September, 2026
September 2026 – UK corporate reporting reform, EU data center sustainability rating scheme, Hong Kong's sustainable finance taxonomy
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 Aug. 25 to Sept. 24, we look at the UK’s plans to reform corporate reporting, EU proposals to rate the sustainability of data centers and draft updates to Hong Kong's sustainable finance taxonomy.
EUROPE
EU adviser publishes draft list of datapoints for revised sustainability standards
European Financial Reporting Advisory Group (EFRAG), which serves as technical adviser to the European Commission, published Aug. 28 a draft list of datapoints for the revised European Sustainability Reporting Standards (ESRS), the set of disclosure standards for companies subject to the Corporate Sustainability Reporting Directive (CSRD). The draft list outlines the different data points required under the revised standards and categorizes them using distinct data types. It also includes references to the original ESRS adopted in 2023 to help users understand changes to individual disclosure requirements and datapoints. Simplification amendments published by the European Commission in July will reduce reporting of mandatory datapoints by companies subject to the CSRD by more than 60%. A feedback period is open until Oct. 23, and EFRAG said it expects the final version of the datapoints to be published by the end of 2026.
UK government opens consultation on simplifying corporate reporting
The UK government on Sept. 7 opened a consultation on simplifying corporate reporting, including whether and how the country’s sustainability reporting standards should be incorporated in existing company law. The UK published UK SRS 1 and UK SRS 2, which are aligned with the International Sustainability Standards Board (ISSB), in February 2026, and the two standards are currently voluntary. The government said it would use feedback from the consultation to consider how the UK SRS “should be reflected” in the Companies Act, the UK law that establishes basic corporate governance and shareholder rights. The government also said it recognizes there is overlap between the UK SRS and current mandatory climate-related disclosure requirements, noting that some companies subject to proposals for mandatory climate reporting under UK SRS S2 may also be required under the current climate-reporting regime. It said companies may use their UK SRS S2 disclosures to meet current obligations. It also said the government would clarify that UK SRS is to become the national framework for climate reporting, dependent on the results of another consultation held earlier in 2026. The government also said it is seeking views on energy and carbon reporting to help inform a consultation due to be held later in 2026 by the Department of Energy Security and Net Zero.
EU proposes sustainability and resilience criteria in public procurement rules
The European Commission proposed Sept. 9 new regulation to modernize EU rules on public procurement, which would include environmental, climate-related and social objectives. Under the proposed regulation, public buyers such as government entities and services would have to consider circularity, recycled and refurbished content, waste recovery and energy efficiency when awarding contracts. The proposals would also create a framework for mandatory green procurement requirements for certain product categories. Buyers would also have to consider social inclusion, labor market integration, accessibility for persons with disabilities, improved working conditions, workforce training, gender equality and human rights in supply chains. The proposals also include new provisions on resilience and security of supply. These would apply to contracts related to critical infrastructures and would encourage the diversification of supply chains, security of supply and crisis preparedness, the Commission said. The regulation would also require public buyers to address risks related to security and public safety, sensitive information, cybersecurity and undue third-country influence within the EU or in member states.
European Commission proposes mandatory rating scheme for data centers
The European Commission on Sept. 21 proposed regulation that would establish a rating scheme for data centers throughout the EU. The scheme would apply to data centers with a capacity of over 500 kilowatts and would require data centers to disclose how they are using resources such as water and energy, the Commission said. It would allow comparisons between data centers and encourage designs that reduce water and energy consumption, promote low-emissions energy, increase the efficiency of the grid, or facilitate the reuse of waste heat in nearby facilities and heat networks. A labelling scheme for individual data centers would begin in 2027. The regulation will be subject to a two-month scrutiny period by the European Parliament and the Council of the EU, made up of government ministers of the 27 member states. The Commission also said it had launched a call for evidence regarding minimum performance standards for data centers operating in Europe.
ASIA-PACIFIC
Hong Kong regulator issues recommendations on data protection in agentic AI use
Hong Kong's Office of the Privacy Commissioner for Personal Data (PCPD) published Aug. 25 nine recommendations on the protection of personal data privacy in the use of agenic AI. The regulator recommends that companies avoid excessive or arbitrary collection of personal data for use by agentic AI; be transparent about the use of agentic AI in processing personal data; ensure accuracy of personal data processed by agentic AI; set appropriate retention periods; ensure personal data is not used for a new purpose without consent; safeguard the security of personal data in agentic AI systems; uphold data access and correction rights; conduct continuous risk assessments; and assign clear responsibilities and provide training. The guidance aims to provide practical recommendations on how to benefit from agentic AI while complying with the relevant requirements of Hong Kong's Personal Data (Privacy) Ordinance, the PCPD said.
Hong Kong financial regulator publishes draft updated sustainable finance taxonomy
The Hong Kong Monetary Authority (HKMA) on Sept. 7 proposed expanding its sustainable finance taxonomy to boost investment in climate mitigation and adaptation activities. The proposals expand the taxonomy’s number of economic activities related to climate change mitigation to 39 from 25. The draft update also proposes adding technologies that would support the development of decarbonization measures, including the manufacture and recycling of batteries, and the manufacture of low-carbon technologies. It also provides transition pathways for hard-to-abate sectors like air transport, iron and steel. The taxonomy outlines 24 adaptation measures, including shoreline protection and flooding risks, which are climate hazards particularly relevant to Hong Kong, the regulator said. A public consultation ends Oct. 7, 2026. Hong Kong has been developing its sustainable finance taxonomy in stages, with the first stage issued in May 2024.
Malaysia delays start of mandatory assurance requirements for carbon emissions
Securities Malaysia Commission announced Sept. 17 a one-year delay of mandatory reasonable assurance requirements for Scope 1 and Scope 2 emissions disclosures for companies subject to the country’s ISSB-aligned sustainability reporting standards. Certain main-market listed issuers with market capitalization of 2 billion ringett and above will now be required to report using mandatory reasonable assurance as of Jan. 1, 2028, instead of Jan. 1, 2027, the Commission said. Mandatory reasonable assurance requirements will also be delayed for other main-market issuers and for companies listed on Malaysia’s high-growth ACE market until 2029 and 2030, respectively. Listed issuers will remain subject to listing requirements that oblige them to report whether their sustainability disclosures have been reviewed by an internal auditor or independently assured by a sustainability assurance provider, the Commission said.
UNITED STATES AND CANADA
California regulator publishes guidance on carbon emission disclosure
The California Air Resources Board (CARB) on Sept. 1 published guidance on Scope 1 and Scope 2 emissions disclosures for companies subject to its Climate Corporate Data Accountability Act. Companies are required to start reporting from Nov. 10, 2026, and CARB reiterated previous statements that it will exercise “enforcement discretion” for the first disclosure report. In the first year of reporting, companies may submit an existing annual report that includes Scope 1 and Scope 2 emissions or use data submitted to another reporting framework, CARB said. Companies may also use CARB’s draft Scope 1 and Scope 2 emission reporting template published in 2025, but it is not obligatory in the first year of reporting. The regulator also requested companies submit before Nov. 10 a statement of non-reporting if they were not gathering data on Scope 1 and Scope 2 emissions as of Dec. 5, 2024. It said it encourages companies to report additional details in 2026, including methodologies, data sources, global warming potential values, emission factors, organizational boundaries and disaggregated emission data by category and gas. CARB also said it is currently developing 2027 reporting requirements, greenhouse gas (GHG) accounting methodologies, deadlines, assurance requirements, and reporting formats.
SEC proposes rescinding shareholder proposal rule and amending proxy rules
The Securities and Exchange Commission (SEC) on Sept. 16 proposed rescinding its shareholder proposal rule, which required companies to include qualified shareholder proposals in their proxy materials. Rescinding the rule would leave state law or company bylaws rather than federal law to determine whether a shareholder proposal should receive a vote. The SEC also proposed amendments to rules overseeing the proxy solicitation process, which shareholders often use to ask companies about sustainability-related issues.
EPA repeals power plant emission requirements, proposes rescinding other standards
The US Environmental Protection Agency (EPA) finalized Sept. 14 the repeal of the majority of GHG requirements for US power plants passed under the Biden administration and proposed rescinding additional GHG standards applicable to the power sector. Under the final rule, the EPA is repealing emission guidelines for existing coal- and natural gas-fired power plants, the carbon capture and sequestration/storage (CCS)-based standards for coal-fired power plants undertaking a large modification, and the CCS-based standards for new base load stationary combustion turbines. It will be effective Nov. 16, 2026. The EPA also said its proposal to rescind other standards would repeal all other GHG emission standards for fossil-fuel fired power plants. The proposal, which would affect coal plant standards set during the Obama administration, has a 45-day comment period.
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.