Monday Morning Briefing CW 17, 2025

April 28, 2025

Regulatory News

EU Postpones Sustainability Reporting Deadlines

On April 14, 2025, the European Council approved the “Stop-the-Clock” Directive, delaying CSRD and CSDDD implementation. Member States must transpose the directive into national law by December 31, 2025. This postponement aims to provide companies with additional time to adapt to the new reporting requirements.

EU Commission Faces Complaint Over Relaxed Sustainability Rules

Climate advocacy groups, including ClientEarth, filed a complaint with the European Ombudsman. They allege that the Commission’s proposal to relax certain sustainability rules lacked proper consultation and assessment, risking maladministration.

EBA Releases New Climate Risk Dashboard for Banks

The European Banking Authority (EBA) launched an ESG dashboard tracking climate transition risks and physical risks across EU/EEA banks, based on the latest Pillar 3 disclosures.

Sustainable Funds Face Record Outflows

Global sustainable funds saw $8.6 billion in net outflows during Q1 2025 — the worst quarterly performance on record. Europe alone witnessed $1.2 billion in withdrawals, driven by political uncertainties and performance concerns.

Net Zero Banking Alliance Lowers Ambition

NZBA members revised their climate targets from a strict 1.5°C pathway to a broader “well below 2°C” Paris-aligned goal. Several major banks have exited the alliance, citing feasibility and political pressure concerns.

Enel Sets Higher Renewable Investment Target

Italian energy giant Enel announced a 10% increase in its renewable energy investment budget through 2028, citing accelerating energy transition trends and growing European policy support.

SAP Publishes First CSRD-Aligned Sustainability Report

SAP became one of the first DAX companies to release a CSRD-aligned sustainability report early, setting a benchmark for German corporations ahead of the mandatory 2026 reporting deadline.

Europe’s Climate Leaders 2025 Announced

The Financial Times recognized Tele2 (Sweden), Intermediate Capital Group (UK), and ERG (Italy) as Europe’s top climate performers for significant reductions in Scope 1 and 2 emissions.

Defense Stocks Attract Sustainability Investors

With rising geopolitical tensions, sustainability funds are increasingly including defense sector stocks, especially firms specializing in critical minerals and rare-earths important for renewable energy.

The European Commission is expected to release technical guidance for CSRD voluntary sector-specific standards.
Corporate earnings season continues, with key sustainability disclosures expected from Schneider Electric and BMW Group.

Sources: Reuters, macfarlanes, eba.europa, SAP, Financial Times, Wall Street Journal

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