| 2025 | |
| 17 April 2025 | The 'Stop-the-clock' Directive amending the EU Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) came into force postponing the dates from which member states are to apply certain corporate sustainability reporting and due diligence requirements. |
| 21 May 2025 | ESMA Fund Names Guidelines - expiration of transitional period for funds in existence on 21 November 2024. |
| 30 June 2025 | ESMA published its report containing the findings of the 2023-2024 common supervisory action (CSA) on sustainability-related disclosures and the integration of sustainability. |
| 4 July 2025 | European Commission published its proposed Taxonomy simplification legislation to simplify and streamline the sustainability reporting frameworks contained in the Disclosures Delegated Act ((EU) 2021/2178). Amendments are also proposed to the Taxonomy Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139) and the Taxonomy Environmental Delegated Act (Commission Delegated Regulation (EU) 2023/2486). |
| Quarter 4 2025 | Report on Regulation (EU) 2019/2088 (SFDR) Level 1 review expected to be published by the European Commission. |
| 2026 | |
| 2 July 2026 | Regulation (EU) 2024/3005 on ESG Ratings Providers to commence application, whereby financial market participants (FMPs) referencing an ESG rating in marketing communications will be required to include website disclosures with detailed information relating to that ESG rating. |
Highlights during the period
In this latest edition of the Walkers ESG newsletter, we identify a number of key highlights from European legislative and regulatory developments and advances in the global sustainable finance framework more broadly.
Call for Evidence ("CfE") on the revision of the SFDR
In May 2025, the European Commission (the "Commission") launched its CfE on the revision of the SFDR, ahead of its forthcoming legislative proposal scheduled for Q4 2025. Against the backdrop of its current focus on market competitiveness and simplification, the Commission continues it engagement on the possible options for the future of SFDR. These options include limiting the revamp of SFDR to targeted changes and clarifications to the existing disclosures or turning to a potential categorisation or labelling system.
Further detail can be found in section 1.1 of the newsletter.
Omnibus sustainability package on simplifying the Taxonomy
In July 2025, as part of the latest omnibus sustainability package the Commission published a delegated regulation designed to simplify the reporting requirements under Article 8 of the Taxonomy Regulation ((EU) 2020/852) ("Taxonomy"), which focuses on disclosure requirements related to environmentally sustainable economic activities.
Amendments are also proposed to the Taxonomy Climate Delegated Act (Delegated Regulation (EU) 2021/2139) and the Taxonomy Environmental Delegated Act (Delegated Regulation (EU) 2023/2486) aimed at amending sustainability due diligence and reducing and simplifying reporting obligations of companies.
Further detail can be found in section 3.1 of the newsletter.
ESMA report on CSA on sustainability-related disclosures and the integration of sustainability risks
In June 2025, ESMA's report on its 2023-2024 CSA made a number of recommendations to both NCAs and FMPs around enhancing supervisory convergence, improving integration of sustainability risks and strengthening disclosures, both at an entity level in respect of FMPs and for SFDR Article 8 and Article 9 funds. ESMA also published the first note in a thematic study on sustainability-related claims used in non-regulatory communications, focusing on ESG credentials.
Further detail can be found in sections 1.2 and 4.1 of the newsletter.
The "Stop-the-Clock" Directive came into force postponing the application date for CSRD and CSDDD
On 17 April 2025, the 'Stop-the-Clock' Directive came into force postponing certain application dates under the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. This is part of a broader initiative aimed at reducing regulatory burden for firms operating within the EU. The Directive has been swiftly transposed into Irish law.
Further detail can be found in section 2.1 of the newsletter.
ESMA Report on CSA on ESG Disclosures under the Benchmarks Regulation
In April 2025, ESMA published a report on its findings and conclusions on the CSA exercise conducted during 2024 with National Competent Authorities ("NCAs") on ESG disclosures under the Benchmarks Regulation (EU) 2016/1011 ("BMR").
Further detail can be found in section 4.8 of the newsletter.
Defence sector and the sustainable finance framework
As Europe adopted a package of measures aimed at simplifying and boosting industrial defence readiness in the EU, the Commission clarifies that the EU sustainable finance framework is compatible with investing in the defence sector.
Further detail can be found in section 4.3 of the newsletter.
ESMA Consultation on RTS on ESG Ratings
Ahead of June 2026 application, ESMA published a consultation on regulatory technical standards ("RTS") under Regulation (EU) 2024/3005 on the transparency and integrity of ESG rating activities. ESMA expects to publish a final report and submit the draft RTS to the Commission for adoption in October 2025.
Further detail can be found in section 4.2 of the newsletter.
Central Bank on transition planning
The Central Bank of Ireland (the "Central Bank") published an information note outlining its views that clear, credible and actionable transition plans are a good practice for financial firms even when there is no legislative requirement to publicly disclose a transition plan.
Further detail can be found in section 4.5 of the newsletter.
ESMA Risk Article on the Impact of ESG Fund Names on Investment Flows
ESMA published its latest risk article on ESG-related fund names changes and their impact on investment flows. The report explores whether fund managers' decisions to incorporate ESG terms into their funds' names lead to an increase in investor interest and flows.
Further detail can be found in section 4.7 of the newsletter.
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