CSR News - October 2025

👉 Decree No. 2025-957 of September 6, 2025, on the Calculation and Communication Methods of the Environmental Cost of Textile Products
& Order of September 6, 2025, on Labeling and Methodology for Calculating the Environmental Cost of Clothing Textile Products

On September 9, 2025, the Ministry of Ecological Transition published a decree and an order aimed at regulating the display of the environmental cost of textile products. Starting from October 1, 2025, textile companies will have the option to display the environmental cost of the clothing they sell through a simple and readable label. The calculation method is based on the PEF (Product Environmental Footprint) methodology developed by the European Commission, supplemented by the French methodology. Each participating company will be required to declare the information and data on a dedicated portal.

Source: Legifrance, 09/09/2025 and Legifrance, 09/09/2025

👉 Decree No. 2025-917 of September 5, 2025 & Order of September 5, 2025, Defining the Framework for the Low-Carbon Label

On September 7, 2025, the Ministry of Ecological Transition published two regulatory texts aimed at updating the framework for the Low-Carbon Label. These changes are primarily designed to make the Low-Carbon Label fully compatible with the European framework, particularly with regard to non-financial reporting requirements for companies (as defined by the CSRD directive). The two texts also pave the way for the existence of transferable carbon credits, aimed at facilitating access to financing and simplifying the commitment of stakeholders.

Source: Legifrance, 09/07/2025 and Legifrance, 09/07/2025

👉 Report on the Mapping of Tools, Platforms, and Digital Initiatives for SME Sustainability Reporting & Mapping of Platforms and Digital Initiatives for SME Sustainability

EFRAG published two complementary reports on September 25 aimed at supporting the implementation of the voluntary sustainability reporting standard for SMEs (VSME Standard). The first report aims to provide practical support to SMEs wishing to disclose their GHG emissions according to the SME model. The second report lists the 223 platforms and initiatives for SMEs that responded to EFRAG's call for expressions of interest.

According to Patrick de Cambourg (President of the EFRAG SRB), these two reports represent "a first step towards a pan-European ecosystem essential to supporting SMEs in their sustainability journey."

Source: EFRAG, 25/09/2025

👉 2025 Handbook of international quality management, auditing, review, other assurance, and related services pronouncements, IAASB

On September 17, 2025, the International Auditing and Assurance Standards Board (IAASB) released its 2025 Handbook, comprising five volumes. Notably, Volume 3 introduces ISSA 5000 – the International Standard on Sustainability Assurance, which sets out general requirements for sustainability assurance engagements.

The other volumes cover key standards including:

• International Standards on Auditing (ISA)
• International Standards on Quality Management (ISQM)
• International Auditing Practice Notes (IAPN)
• The new ISA for Audits of Financial Statements of Less Complex Entities
• And other related pronouncements

Source: IAASB, 09/17/2025

👉 Summary of the 2024 Inspection Program, H2A

On September 22, 2025, the High Audit Authority (H2A) published a summary of its annual inspections conducted among statutory auditors certifying financial statements and, for the first time, among certifiers of sustainability information (including statutory auditors, independent third-party bodies, and sustainability auditors). The report provides a comprehensive overview of the inspection campaign results, with the goal of helping auditors better understand the certification process and the regulatory and normative requirements that govern their work.

Source: H2A, 09/17/2025

👉 FCA eases SDR rules for passive funds

The FCA plans to amend its Sustainability Disclosure Requirements, making it easier for index-tracking funds to obtain sustainability labels. Passive managers will be deemed compliant if invested assets meet sustainability criteria, even without active selection. The regulator also proposes more flexible reporting periods to align with financial statements.

Source: ETF Stream, 09/17/2025

👉 Investors push for SME reporting standard beyond VSME

On 19 September 2025, Eurosif and a coalition of investors urged the European Commission to go beyond the Voluntary Sustainability Reporting Standard for SMEs (VSME). They argue that the VSME, designed for very small companies, is inadequate for voluntary reporting by small and mid-caps. Instead, they recommend a proportionate standard tailored to firms with over 250 employees, drawing from the revised ESRS structure. Such an approach would ensure continuity with CSRD requirements, improve comparability, and provide investors with reliable data to assess sustainability risks and opportunities. Without it, investors risk limited visibility into smaller listed firms, potentially constraining capital allocation and slowing sustainable finance flows to SMEs.

Source : Eurosif, 09/19/2025

👉 2025 Annual Report on the Scope of Voluntary Disclosure of Principal Adverse Impacts (PAI)

The Joint Committee of the three European Supervisory Authorities (ESA) published its 2025 annual report on the scope of voluntary disclosure of PAIs under the “SFDR” regulation on September 9, 2025. The ESAs noted a consistent improvement in the quality of disclosures, both at the entity and product levels. As in previous years, the report reveals that financial market participants within large multinational groups tend to provide more detailed information, while smaller entities often combine general ESG or marketing information with their SFDR disclosures.

Source : Joint Committee of the three European Supervisory Authorities (ESA), 09/09/2025

👉 The SEC Chair warned the IFRS Foundation that expanding support for ISSB standards could undermine IASB’s core mission if funding is stretched. He raised concerns about sustainability reporting overshadowing financial reporting. This highlights growing tensions over the global push for ESG disclosure.

Source : ESG Today, 09/11/2025

👉 EU Court backs nuclear & gas in green taxonomy: on 10 Sept 2025, the EU Court of Justice upheld including nuclear & fossil gas in the EU taxonomy, paving the way for energy firms & investors to consider them in sustainable strategies and ESG-aligned projects.

Source : RSE Magazine, 09/11/2025

👉 GRESB & IIGCC launch Net-Zero alignment for infrastructure. A new approach helps investors assess infrastructure assets against NZIF 2.0, providing metrics and methodology to track net-zero progress and enable consistent, comparable reporting across assets.

Source : GRESB, 09/08/2025

👉 Private equity decarbonization gains, Bain/CDP report shows a 55% rise in climate disclosure among PE portfolio companies, with median Scope 1-2 cuts of 5%-26%. Leaders follow 5 key practices linking decarbonization to business value, targets, governance, supply chain collaboration, and risk integration.

Source : Bain, 09/2025

👉 ESAs report progress in SFDR PAI disclosures. On 9 September 2025, the ESAs (ESMA, EBA, EIOPA) released their fourth annual report on Principal Adverse Impact (PAI) disclosures under SFDR. The review highlights improved quality, clarity, and accessibility of PAI statements, with more references to international standards and Net Zero targets. However, gaps remain in data coverage, comparability, and target-setting.

Source : European Banking Authority, 09/09/2025

👉 ESG fundraising momentum stalls in Europe’s private markets. PitchBook reports that after a record €84.1bn was raised in 2024 under SFDR Article 8/9 funds, only €10.1bn had been raised by mid-2025, with 90% of capital flowing elsewhere. Political backlash in the US, greenhushing, and fierce competition for capital are reshaping ESG strategies, though many GPs still see climate risk and impact investing as central.

Source : Pitchbook, 09/05/2025

👉 PwC survey: mandatory sustainability reporting delivers business value. PwC’s 2025 Global Sustainability Reporting Survey finds most companies see strategic value from CSRD/ISSB disclosures, beyond compliance. Despite EU efforts to defer and simplify CSRD scope, 40% of firms plan to delay statutory reporting, while an equal share will proceed voluntarily. Over two-thirds report business benefits, from supply chain to risk management.

Source : PwC, 09/05/2025

👉 ISO and GHG Protocol partner to align emissions standards. On 9 September 2025, ISO and the GHG Protocol announced a strategic partnership to harmonise global standards for measuring and reporting greenhouse gas emissions. The collaboration aims to reduce fragmentation, improve comparability, and streamline compliance for companies and investors navigating multiple disclosure frameworks.

Source : ESG Today, 09/09/2025