News Update CW 12

24th of March, 2025

Regulatory News

EU Omnibus Simplification Package: Policy Reforms & Industry Reactions

The European Union introduced the Omnibus Simplification Package, aimed at easing regulatory burdens for businesses under sustainability rules. Key proposed changes include:

Corporate Sustainability Reporting Directive (CSRD) Adjustments: The reporting threshold would rise to companies with over 1,000 employees, exempting 80% of currently affected businesses.
Corporate Sustainability Due Diligence Directive (CSDDD) Delay: Implementation would be pushed back to 2028, allowing companies more time to comply.

Industry Reactions:

Smaller businesses welcome the relief.
Larger corporations (e.g., RHI Magnesita) argue the reforms unfairly shift the compliance burden onto them.
Critics warn that reducing reporting requirements could weaken corporate transparency and accountability.

UBS Delays Climate Targets by a Decade

UBS announced a postponement of its net-zero emissions goal from 2025 to 2035, citing challenges from its Credit Suisse acquisition.

This move reflects a broader trend among financial institutions, including HSBC, which also extended its decarbonization target to 2050.

Executive Compensation and ESG Targets: A Shift in Strategy

Major European banks, including UBS, Standard Chartered, and HSBC, are reducing the role of ESG targets in executive pay. The shift follows investor concerns over inflated compensation without meaningful climate action.

This change raises questions about the effectiveness of financial incentives in driving corporate sustainability efforts.

Upcoming Regulatory & Corporate Decisions

EU Green Taxonomy Review (March 27, 2025): The European Commission will announce updates to the EU Taxonomy for sustainable activities. Expect tighter criteria around which industries will be classified as sustainable under the Taxonomy. This will have major implications for green investments in sectors like energy, construction, and finance.
UK’s Chancellor’s Spring Statement (March 28, 2025): The UK government will outline economic policy changes, including potential adjustments to green taxation. A focus on maintaining fiscal stability while balancing the Net-Zero Strategy is expected. The statement might offer more clarity on the government’s carbon pricing policy.
European Banks’ Annual Reports (March 30, 2025): Several major European banks, including HSBC and BNP Paribas, will release their annual financial and sustainability reports. These reports are expected to highlight progress in carbon offsetting, green bonds, and changes to executive compensation tied to ESG targets.

This article was created with the assistance of AI and carefully reviewed, edited, and refined to ensure accuracy and clarity.

News Update CW 12, 2025