International Sustainability Updates
South Korea to expand scope of mandatory ESG reporting
South Korea FSC announced expansion to mandatory sustainability reporting expected to commence in 2028.
Korea’s Financial Services Commission (FSC) has announced plans for a significant expansion to the scope of its planed mandatory sustainability reporting requirements, which comes into force in 2028.
The FSC attributed the decision, which would significantly expand the number of companies in scope to requests from institutional investors, citing its utility in informing investment decisions. Under the draft roadmap, released earlier this year, companies listed on the Korean KOPSI index with assets in excess of 30 trillion KRW would have to report in 2028.
Under the finalised roadmap published by the FSC this threshold has been lowered to 10 trillion KRW in assets in 2028 to qualify, then further expanding to cover companies with 5 trillion KRW in the following year. The FSC has indicated it would consider lowering this limit further to 2 trillion KRW following a review to disclosure practices in 2028/2029.
Notably, the intent to expand the scope of the reporting runs counter to a current trend in global ESG legislation, with many nations actively streamlining or outright eliminating key reporting legislation.
Green energy and energy security prioritised in China’s plan for its 2030 energy system
China recently published a 5-year plan for a low-carbon, efficient and secure energy system targeted for 2030.
China’s National Development and Reform Commission and National Energy Administration recently published a plan for developing a low-carbon, efficient and secure energy system for 2030.
The plan sets out targets for the 2026-2030 Five-Year Plan period, covering green transition, energy security and technological self-reliance. Non-fossil energy is targeted to account for 25% of energy consumption and 50% of total power generation and wind and solar are targeted to become over 50% of installed generation capacity.
To reach this, a new resilient,low carbon energy infrastructure system is to be established on or around 2030. The plan works towards China’s aims to have a self-reliant energy supply chain and being a leader within global energy technology innovation. Through reducing fossil fuel use, this transition will also support China to reach its carbon targets of peaking carbon emissions before 2030 and being carbon neutral by 2060.
Singapore releases draft Sustainability Disclosure Standards
Singapore’s Accounting and Regulatory Authority released IFRS aligned Sustainability disclosure standards including mandatory climate disclosures.
Singapore’s Accounting and Corporate Regulatory Authority (ACRA) has released draft Singapore Sustainability Disclosure Standards (SFRS S1 and SFRS S2), which are based on the IFRS Foundation’s International Sustainability Standards Board (ISSB) reporting standards. The standards are intended to underpin Singapore’s sustainability reporting framework, with mandatory climate-related disclosures and voluntary broader sustainability reporting.
While the draft standards are closely aligned with the ISSB framework, ACRA has introduced several modifications to ease implementation. Reporting under SFRS S1, which covers broader sustainability-related disclosures, will remain voluntary, while SFRS S2 climate-related disclosures will become mandatory.
Under the revised implementation timeline, Straits Times Index (STI) listed companies will continue to report in line with the original schedule, with mandatory climate reporting already underway. For other listed companies, ISSB-aligned climate reporting requirements will begin from FY2028 for companies with a market capitalisation above SGD 1 billion, and from FY2030 for those below SGD 1 billion, with Scope 3 emissions reporting remaining voluntary.
For large non-listed companies, mandatory Scope 1 and 2 emissions reporting has been deferred from FY2027 to FY2030, while Scope 3 reporting will remain voluntary. External assurance requirements for Scope 1 and 2 emissions have also been delayed to FY2029 for listed companies and FY2032 for large non-listed companies. These changes provide companies with additional time to develop the systems and capabilities required for climate reporting.
Expanded CDP environmental disclosures to newly include ocean disclosure in 2026 reporting
CDP’s 2-26 disclosure cycle included the option to disclose ocean dependencies, risks, opportunities and impacts.
CDP’s 2026 disclosure cycle opened this year with the addition of ocean disclosures alongside the previous reporting categories of climate, water security, forests, plastics and biodiversity.
The updated disclosure includes insights into dependencies, risks, opportunities, and impacts related to the ocean through questions related to targets, board-level oversight, and supply chains. This works to address data gaps and transparency required to support ocean health and economic resilience based on the fact that 90% of global trade is transported on the Ocean.
GHG Protocol Scope 2 Publish Summary of Consultation ahead of changes
The GHG Protocol Public Consultation summary was released, putting under review the hourly matching and deliverability requirements.
On July 29th, the GHG Protocol published the summary of the Scope 2 Public Consultation discussing the proposed changes to Scope 2 accounting. The consultation attracted nearly 1,100 participants across 56 countries, providing a broad range of perspectives on the proposed changes to market-based Scope 2 reporting.
There were two significant proposals under review were the introduction of hourly matching and deliverability requirements.
Hourly matching would require electricity consumption to be matched with renewable electricity generation on an hourly basis, while deliverability would require EACs to originate from a location where the electricity could plausibly be delivered to the reporting organisation’s load.
The proposed Scope 2 revisions could have significant implications for how companies approach renewable electricity procurement and the reporting of Scope 2 market-based emissions.
While the final requirements have not yet been confirmed, companies should begin assessing how hourly matching and deliverability could affect their existing procurement strategies, particularly where electricity consumption is spread across multiple markets or where long-term PPAs and EAC contracts are already in place.
EU Sustainability Updates
EU Sets electrification targets to increase share of renewables covering all energy generation.
The EU Clean Industrial Deal and Affordable Energy Action Plan included an Electrification plan to increase the share of electricity in the overall energy mix to facilitate renewables.
European electricity generation has seen a notable increase in renewables percentage from 15.9% in 2004 to 49.9% in 2025, however this only accounts for 23% of total energy consumption. In order for the EU to reach 2050 climate targets, renewable energy must reach a higher proportion of total energy consumption, not just electricity.
The Clean Industrial Deal and Affordable Energy Action plan, published 17 July 2026, introduced Key Performance Indicators on electricity and an Electrification Action Plan. This set an electrification target of 46% by 2046, from a reference of 32% by 2030.
Areas of focus identified by the commission include transport, electrification and the implementation of heat pumps. The commission also highlights how these changes have the potential to also provide financial savings when implemented.
First half of 2026 sees an increase of 40.5% of EV sales in Europe
European Automobile Manufacturers’ Association data shows a notable increase in EV sales across Europe for 2026 associated with supported policies and higher petrol costs.
New data from the European Automobile Manufacturers’ Association (ACEA) shows that battery electric vehicle (BEV) sales in the EU increased by 40.5% in the first half of 2026, compared with the same period in 2025. BEVs accounted for 20.7% of all new passenger car registrations, up from 15.6% a year earlier, reflecting continued growth in consumer demand for electric vehicles despite broader market challenges.
The increase has been attributed to supportive government policies, expanding model availability and higher petrol prices, which have encouraged consumers to switch to electric vehicles.
Industry groups have highlighted the importance of maintaining ambitious EV policies, to support Europe’s automotive competitiveness and decarbonisation objectives. They have also warned that weakening regulatory targets could slow investment in the transition to zero-emission transport.
EU Commission publishes review of ETS scheme to improve industrial competitiveness.
A review of the EU ETS Scheme was published aiming to reduce pressure on European industry while increasing investment in clean industry and technologies.
The EU Commission published a review of the ETS Scheme on 17 July with the aim to aim to preserve the EU’s industrial competitiveness. This will be implemented through reducing emissions allowances reduction rates, easing pressure on EU businesses impacted by the scheme, and strengthening the Market Stability Reserve to limit price fluctuations. At the same time the proposals call for increased investment into clean industry and climate action, support for a fair energy system transition and carbon removal technologies.
While overall allowances have seen a reduction, the scheme is being strengthened for transport and expanded to include the waste industry. Ultimately any finalised proposal will need to first be subject to negotiations with members states and the EU parliament.
US Sustainability Updates
California extends 2026 GHG reporting deadline and proposes narrowing of scope 3 reporting
California released an updated proposal to Senate Bill 253 delaying the due date for 2026 reporting and reducing the Scope 3 categories to report.
In a new proposal the California Air Resources Board (CARB) has outlined some key requirements for the state’s climate reporting regulation SB253, notable for its upcoming inclusion of mandatory Scope 3 Emissions reporting. After receiving feedback from stakeholders citing data availability concerns, mandatory Scope 3 disclosures are expected to be initially limited 5 of the 15 scope 3 categories, in a category phase-in approach outlined by CARB.
These are:
- (1) Purchased Goods and Services
- (3) Fuel and Energy Related Activities
- (5) Waste Generated in Operations
- (6) Business Travel
- (7) Employee Commuting
Note - the ultimate requirements for Scope 3 reporting under SB253 are yet to be finalised and several stakeholder feedback sessions are planned to further inform the proposed requirements.
The first year of SB253 reporting - 2026, requires that companies report on only their Scope 1 and 2 emissions, with Scope 3 being required from 2027. The deadline for 2026, originally August 10th has now been extended to November 10th, giving more time for companies to comply and CARB to issue relevant guidance.
An additional requirement introduced in the 2027 reporting period, will be the requirement for limited assurance covering Scope 1 and 2 reporting, carried out according to one of five accepted standards such as ISO 14064-3.
NUS consulting has previously covered California’s carbon reporting regulations.