CSR News - September 2025

👉 Commission recommendation (EU) 2025/1710 of 30 July 2025 on a voluntary sustainability reporting standard for small and medium-sized enterprises

On 5 August 2025, the European Commission published a recommendation concerning the VSME standard for unlisted small and medium-sized enterprises (SMEs) developed by EFRAG. Through this recommendation, the Commission encourages large companies and financial institutions seeking sustainability information from unlisted SMEs in their value chains to base their requests on the VSME standard. It also recommends that SMEs wishing to voluntarily disclose such information rely on the standard.

Pending the formal adoption of the delegated act related to the VSME standard, this recommendation serves as an interim solution to meet market demands. It should be noted, however, that the content of the delegated act may differ from this recommendation depending on the progress of legislative discussions.

Source : European Commission, 08/05/2025

👉 Net-Zero standard draft for the Automotive sector, SBTI

In a publication dated 18 August 2025, the Science-Based Targets Initiative (SBTi) invited companies in the automotive sector to test its draft Net-Zero Standard. This draft standard, the “Automotive Sector Net-Zero Standard,” constitutes a new global framework designed to enable automakers and suppliers to set greenhouse gas (GHG) emission reduction targets aligned with climate science. The draft standard, currently being finalized by the SBTi, will undergo pilot testing and a second public consultation by the end of 2025. Interested companies are invited to complete the dedicated application form before 12 September.

Source : SBTI, 08/18/2025

👉 New resources published for ISSA 5000 standard, IAASB

On 14 August 2025, the International Auditing and Assurance Standards Board (IAASB) published two new resources to assist jurisdictions and stakeholders in implementing the International Sustainability Assurance Standard (ISSA) 5000, which sets out general requirements for sustainability assurance engagements. These resources include:

• The publication of extracts from ISSA 5000 for limited and reasonable assurance engagements, designed to help stakeholders more easily identify the most relevant requirements and application methods for their jurisdictional decisions
• The publication of a FAQ on ISAE 3000 and ISAE 3410 standards, which will no longer apply once ISSA 5000 comes into effect in December 2026.

Source : IAASB, 08/14/2025

👉 Survey on costs and benefits of ESRS simplification, EFRAG

Alongside the public consultation on the simplification of ESRS standards, currently open until 29 September 2025, EFRAG launched on 8 August 2025 a survey for interested stakeholders on the cost-benefit analysis of ESRS simplification conducted by external consultants. The deadline for submitting responses is 12 September 2025.

Source : EFRAG, 08/08/2025

👉 European climate tech funding plunged 71% H1 2025 vs 2024 (€21.7bn → €6.2bn) as AI, SaaS, and defense attract more attention. But VCs say the sector hasn’t disappeared. It is rebranding under “resilience” and must now prove both impact and profitability.

Source : Sifted, 08/21/2025

👉 Private equity increasingly integrates ESG in due diligence and 100-day plans. 77% of firms have ESG processes, 90% for buyouts. ESG drives risk mitigation, efficiency, and can boost exit valuations. However, challenges remain: limited data, fragmented regulations, LP influence, ESG benchmarking gaps, short-term vs long-term trade-offs, and skills shortages.

Source : Financier Worldwide, 08/14/2025

👉 ESMA and the European Environment Agency signed an angreement to strengthen cooperation on sustainable finance. They will share data, expertise, and training to better integrate environmental information into the EU’s sustainable finance monitoring and enforcement.

Source : ESG News, 08/20/2025

👉 The UN-backed Net-Zero Banking Alliance has paused activities amid high-profile departures and plans a major restructuring, including ending its membership-based model, to rethink how banks drive progress toward global net-zero goals. Despite this position, Dutch, German and Brazilian banks reiterate commitment to climate action.

Source : ESG Today, 08/28/2025 + Responsible Investor, 08/29/2025

👉 The EBA issued a no-action letter on ESG Pillar 3 disclosures to clarify legal and operational uncertainties amid Omnibus package updates, and released an updated ESG risk dashboard, showing a stable risk landscape across EU/EEA banks given the long-term nature of climate-related exposures.

Source : EBA, 08/06/2025

👉 Effective sustainability disclosures are key for financial institutions to manage risks, allocate resources, and align strategies. A new UNEP FI report highlights data gaps and shares case studies from banks and companies to guide practical implementation amid evolving standards.

Source : UNEP FI, 08/2025

👉 ICE expands its climate data and analytics to cover 5M+ private companies, offering physical and transition risk metrics, including Scope 1‑3 emissions and exposure to extreme weather, helping investors assess climate impact across all major asset classes.

Source : ESG News, 08/12/2025

👉 Australia’s top VCs, Blackbird and Airtree, missed gender diversity targets for the 3rd year running: women-only founders received just 2% of capital in FY25, while mixed teams got 10% of deals for Airtree, highlighting persistent gaps despite DEI strategies and public reporting.

Source : AFR, 09/01/2025

👉 Over 300 investors, companies, and other organizations are urging the EU to safeguard the double materiality principle of the CSRD, emphasizing the need for corporate disclosures to capture both impacts on sustainability and risks to the business.

Source : GRI, 08/04/2025

👉 Candriam has created a quantitative model to translate corporate biodiversity impacts into economic value, not only to guide potential restoration but also as a management tool. The model supports responsible investment decisions by comparing companies and integrating biodiversity risk, considering potential future regulations.

Source : L'Info Durable, 09/03/2025

👉 A Bank of England study shows that companies with similar activities can have vastly different financed emissions depending on the chosen “boundary.” Moving from minimal to PCAF coverage raises estimates by ~50%, and expanding to all activities adds ~50% more, especially for major banks. Boundary choice should reflect the goal: risk assessment (PCAF) or climate impact (all activities).

Source : Bank Underground, 08/28/2025