ESG International Weekly News 2/1- 2/7

1. Sustainability disclosure is converging globally

UK FCA proposes IFRS-aligned sustainability reporting from 2027

The UK Financial Conduct Authority has launched a consultation to require listed companies to adopt IFRS/ISSB-based UK Sustainability Reporting Standards starting in 2027.
Scope 3 and broader sustainability disclosures will follow a phased, “comply or explain” approach, balancing regulatory ambition with corporate readiness.

Key signal: Sustainability disclosure is moving toward accounting-grade global standards.

2. Carbon removals enter an investable phase

EU adopts its first certification standard for permanent carbon removals

The European Commission has approved its first voluntary certification methodologies for permanent carbon removals, covering DACCS, BioCCS, and biochar.
The framework defines what qualifies as a tonne of removal, permanence, and MRV requirements, laying the foundation for a credible carbon removal market.

Key signal: Carbon removals are shifting from concept to regulated market infrastructure.

3. Climate targets rise, but trajectories lag

MSCI: Only 38% of companies aligned with the 2°C goal

MSCI’s latest analysis shows that just 38% of listed companies have emissions trajectories aligned with a sub-2°C pathway, and only 12% with 1.5°C.
Overall, listed companies currently imply around 3°C of warming.

Key signal: Investors are increasingly focused on temperature alignment, not just net-zero pledges.

4. Corporates continue to drive clean energy buildout

Meta signs a 176 MW solar PPA in Texas

Meta has signed a new solar PPA with Zelestra, adding 176 MW of renewable capacity to the Texas grid.
Their U.S. partnership now totals roughly 1.2 GW across seven projects, all expected online by 2028.

Key signal: Corporate PPAs are becoming a key mechanism for grid expansion, not just decarbonization.

5. Legal pushback against anti-ESG laws

Texas court strikes down fossil fuel “boycott” blacklist law

A Texas judge ruled Senate Bill 13 unconstitutional, invalidating requirements for state entities to divest from firms deemed to boycott fossil fuel companies.
The ruling highlights growing legal risks for state-level anti-ESG legislation.

Key signal: The legal environment around ESG and investment freedom is shifting.

📌 One-line takeaway

Sustainability is being institutionalized across regulation, capital markets, energy systems, and the courts—raising the stakes for corporate strategy.