March Global Regulatory Brief: Green finance

The financial sector continues to face new rules and government expectations as part of the broader effort to aid the green transition. The following green finance policy developments represent a sample of wider regulatory and policy coverage available to Bloomberg Terminal customers. Run REGS <GO> to find out more or contact your Bloomberg representative:

• Australia: Treasury consults on sustainable product labelling
• EU: EU publishes final sustainability omnibus law
• UK: FCA consults on ISSB-aligned sustainability reporting standards
• Singapore: MAS issues guidelines on environmental risk management

The Australian treasury consults on its sustainable investment product labelling regime

The Australian Treasury seeks views on possible policy options to underpin a Sustainable Financial Product Labelling framework.

In more detail

In its Sustainable Finance Roadmap, published in June 2024, the government had committed to developing consistent labels and disclosure requirements for investment products marketed as ‘sustainable’ or similar. The Roadmap indicated the Government would target 2027 for commencement of the regime, subject to final policy decisions.

Treasury has consulted with a range of stakeholders throughout 2024 and 2025 to inform the development of the proposed labelling regime. The most significant part of this process to date was the public consultation period between 18 July and 29 August 2025, whose submissions can be found here.

In the most recent paper, the Government proposed new rules to better inform investors and help them make decisions in line with their investment goals.

The proposals are intended to be a starting point for designing a regime, capturing its core elements:

• Products that qualify as part of the regime; The first round of consultation revealed broad support for the introduction of a labelling regime that applies specifically to financial products that market themselves as sustainable, rather than extending to all financial products. The intention of the option proposed is that it will not apply to claims made about the whole of fund sustainability or ESG objectives, rather, it applies to claims made at the product level, including options within a financial product.
• Consumer-facing disclosures; Feedback to the first consultation paper, together with international developments, indicate that the introduction of mandatory consumer-facing disclosure (CFD) requirement in Australia could materially improve transparency, credibility and comparability for sustainability-labelled investment products. Product Disclosure Statements (PDSs) of financial products labelled as sustainable or similar often use long, technical, compliance-heavy descriptions that aim to reduce liability exposure. Therefore, it was deemed appropriate to consider how additional consumer-facing disclosure requirements can best support the effectiveness of the existing framework.
• Criteria that trigger requirements; In the first consultation, stakeholder feedback regarding the use of thresholds in a labelling regime was mixed. There are two broad design options for adopting thresholds in the Australian context. The first option would be to require a product claiming to be sustainable to meet a minimum threshold for the proportion of assets which align with the sustainability claims made by the product issuer. The threshold would be included in the product’s CFD document. An alternative option would be to not require a specific threshold but instead only require product issuers to disclose the proportion of assets supporting the product which align with the product’s sustainability claims in the CFD document.
• The evidentiary requirements to support sustainability claims; Feedback received in the earlier consultation emphasized that product issuers use a variety of sustainable investment approaches for financial products and that evidentiary requirements should reflect this diversity.

Next steps

Submissions to the consultation paper are due 13 March. Feedback from stakeholders on the proposals set out in this paper, together with further planned consultation with industry and investors, will help inform the policy and enforcement design, ahead of the government finalizing its policy position.

EU publishes final sustainability omnibus law

Summary

The European Commission has published the final legislative text of the Sustainability Omnibus in the EU Official Journal, formally launching the revised implementation timeline – see final text. The law significantly amends the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), narrowing scope thresholds and modifying key obligations for in-scope EU and non-EU companies.

Context

The Omnibus proposal was originally tabled in February 2025 as part of the Commission’s simplification agenda. A political agreement was reached in late 2025. The final text is broadly consistent with the provisions agreed during negotiations, including substantial changes to CSRD scope and adjustments to CSDDD obligations.

Key takeaways

• Revised CSRD Scope
  The amended CSRD applies to:
  • EU undertakings with more than 1,000 employees on average during the financial year and net turnover above EUR 450 million; and
  • Non-EU companies generating more than EUR 450 million net turnover in the EU (at individual or group level) for the last two consecutive financial years, with an EU subsidiary or branch generating more than EUR 200 million net turnover in the preceding financial year.
• EU Taxonomy Reporting Maintained
  Companies within the revised CSRD scope must continue reporting in line with the EU Taxonomy Regulation.
• Transition Plans (CSDDD Adjustment)
  The obligation under CSDDD to adopt a transition plan has been removed.
  However, under CSRD, companies that have adopted a transition plan must report on it in accordance with the amended European Sustainability Reporting Standards (ESRS), including under the comply-or-explain approach for climate transition plan disclosures.
• Digital Reporting Requirements
  CSRD in-scope companies will be required to prepare electronic sustainability reports and digitally tag disclosures in accordance with the Single Electronic Reporting Format.
  This obligation will apply once the Commission adopts the relevant delegated act specifying the technical standards. ESMA is developing the Regulatory Technical Standards (RTS), which require Commission approval before entry into force (timeline to be confirmed).
• Sector-Specific Standards
  Sector-specific ESRS requirements are now voluntary. The Commission may issue non-binding sectoral guidance to support voluntary reporting.

Next steps

• 1 January 2027 – Revised CSRD scope thresholds apply to EU companies (first reports due in 2028).
• 19 March 2027 – Deadline for Member States to transpose the revised CSRD into national law.
• 1 January 2028 – CSRD application to in-scope non-EU companies under Article 40a (first reports due in 2029).

Implementation

The publication in the Official Journal formally initiates the implementation timeline. Further detailed rulemaking, including digital tagging standards and updated ESRS amendments, will follow through delegated acts and technical standards.

FCA consults on ISSB-aligned sustainability reporting standards

The UK Financial Conduct Authority (FCA) has published Consultation Paper CP26/5 proposing changes to the UK Listing Rules to align listed companies’ sustainability disclosures with forthcoming UK Sustainability Reporting Standards (UK SRS), based on ISSB standards. The proposals would replace existing TCFD-aligned requirements and apply to UK and overseas issuers across several listing categories.

Context

The FCA’s current climate disclosure regime is aligned with the Task Force on Climate-related Financial Disclosures (TCFD), which was disbanded in 2023. The UK Government is developing UK Sustainability Reporting Standards to adapt ISSB standards for the UK, and the FCA is consulting in advance on how these standards would be implemented through the Listing Rules once finalized.

Key takeaways

• Listed companies in scope would be required to report climate-related disclosures in line with UK SRS S2 on a mandatory basis, replacing existing TCFD-aligned rules.
• Scope 3 greenhouse gas emissions disclosures would continue on a ‘comply or explain’ basis.
• Wider sustainability (non-climate) disclosures under UK SRS S1 would be introduced on a ‘comply or explain’ basis.
• Issuers would be required to state whether they have published a climate-related transition plan, where it can be found, or explain why not.
• Companies would need to disclose whether third-party assurance has been obtained over sustainability disclosures, and provide details where assurance is in place.
• Overseas issuers with a secondary listing or depositary receipts would disclose applicable or voluntarily adopted sustainability standards in their primary jurisdiction, rather than report against UK SRS.

Next steps

The consultation closes on 20 March 2026. The FCA expects to publish final rules and a policy statement in autumn 2026, subject to the finalization of UK SRS. The proposed requirements would apply for accounting periods beginning on or after 1 January 2027, with transitional reliefs for Scope 3 emissions and non-climate disclosures.

MAS issues guidelines on environmental risk management – transition planning

Summary

On 5 March 2026, the Monetary Authority of Singapore (MAS) issued three new Guidelines on Environmental Risk Management – Transition Planning for banks, insurers and asset managers. The Guidelines outline MAS’ supervisory expectations for how financial institutions (FIs) should manage climate‑related transition and physical risks and support clients and investee companies through the transition. They will take effect in September 2027 following an 18‑month transition period. MAS’ responses to the public consultation feedback can be found here (banks, insurers, asset managers).

Context

MAS first introduced broad Environmental Risk Management (ERM) Guidelines in 2020. As global climate‑related supervisory standards evolve, MAS has now issued a dedicated set of expectations on transition planning, aiming to strengthen forward‑looking risk assessment, client engagement practices, and sector‑wide resilience. These Guidelines incorporate feedback from MAS’ public consultation and industry engagements.

Key takeaways

• Three sector‑specific Guidelines – Separate guidance has been issued for banks, insurers, and asset managers, reflecting their differing business models and risk exposures.
• Forward‑looking transition planning – FIs must establish a risk‑proportionate transition planning process aligned with their business model, risk profile, and local operating context.
• Managing physical and transition risks – MAS expects FIs to adapt business models, governance arrangements, and risk management frameworks to address both transition risks (e.g., policy, technology changes) and physical risks (e.g., acute and chronic climate impacts).
• Client and investee engagement (avoid disorderly retreat) – FIs should engage customers and portfolio companies to understand their climate‑related risks and management plans, rather than withdrawing financing, insurance, or investments indiscriminately.
• Risk‑materiality‑based data collection – Data expectations should scale with the materiality of the counterparty’s climate risk profile, avoiding unnecessary burdens.
• Capability enhancement – FIs should keep pace with rapid developments in climate‑risk methodologies, analytics, and data sources.
• Proportionality principle – Implementation should be calibrated to the FI’s size, complexity, and climate‑risk exposure.

Next steps

• Effective Date:
  The Guidelines will apply from September 2027, following an 18‑month transition window starting from the release date (5 March 2026).
• Preparation Required:
  FIs should begin assessing gaps in governance, risk management processes, data capabilities, and client engagement frameworks.
• Supervisory Engagement:
  MAS is expected to continue proactive supervisory dialogue to support capability building and monitor implementation progress leading up to 2027.