Q1 2025 ESG Trends: International Standards, Taiwan Regulations and Carbon Markets (3 February–30 March)

Last updated: 6 October 2026

Four developments defined the first quarter of 2025: the EU proposed a Simplification Omnibus to substantially narrow CSRD coverage and postpone supply chain due diligence requirements; US policy shifted, leaving the SEC's climate disclosure rules uncertain as financial institutions such as Wells Fargo abandoned or scaled back net-zero and ESG commitments; Taiwan launched its carbon fee system, with the Ministry of Environment encouraging high emitters to apply for voluntary reduction incentives; and Japan proposed 2035 and 2040 reduction targets while SBTi began revising its Corporate Net-Zero Standard. In the same quarter, an Australian court fined a superannuation fund for greenwashing, reminding businesses that sustainability claims must match actual conduct.

This page compiles weekly developments from 3 February to 30 March 2025. For subsequent developments, see the latest articles on each topic. Each item retains the dates and facts reported at the time. Where later official announcements changed the outcome, an “(Update: …)” note provides the development and an official source; errors in dates or figures in the original weekly reports are marked “(Correction: …)”.

Eight Weeks of Q1 2025 Highlights

The table below lists the most notable developments each week. Details are organised by topic in the sections that follow.

International Sustainability Disclosure Standards and Reporting Rules

The quarter's international disclosure agenda combined EU simplification, a US retreat, and continued progress in the UK and nature-related disclosures. For Taiwan businesses with European or US customers or subsidiaries, both coverage and timing changed, making the latest official announcements essential.

EU proposes Omnibus simplification to ease CSRD and postpone CSDDD (Week of 24 February–2 March 2025; renewed attention around 12 March) The European Commission proposed the Simplification Omnibus to reduce corporate compliance burdens and improve competitiveness. Under the proposal, companies with fewer than 1,000 employees would be exempt from the Corporate Sustainability Reporting Directive (CSRD), removing reporting requirements for about 80% of companies. The Corporate Sustainability Due Diligence Directive (CSDDD) would be delayed by one year to 2028, with review coverage narrowed to direct suppliers. Approximately 90% of importers would be exempt from the Carbon Border Adjustment Mechanism (CBAM). The EU reiterated its commitment to net zero by 2050, but environmental groups and some European lawmakers criticised the proposal for weakening corporate accountability. (Update: On 14 April 2025, the EU adopted the “stop-the-clock” Directive (EU) 2025/794, postponing CSRD reporting by two years for large companies and listed SMEs that had not yet started reporting, and delaying the first phase of CSDDD application until 26 July 2028. Source: EUR-Lex Official Journal.) For the proposal and subsequent changes, see the EU sustainability Omnibus package's impact on CSRD and CBAM, What is CSRD? and the launch of CBAM's definitive period.

€6 trillion investor coalition: EU sustainability reporting rules should not be weakened (Week of 3–9 February 2025) An investor coalition managing €6 trillion in assets warned against weakening EU sustainability reporting rules. It stressed that transparent, comprehensive corporate ESG information helps investors reduce risk and advance sustainable investment.

Prospects weaken for US SEC climate disclosure rules (Week of 10–16 February 2025) Following the Trump administration's arrival, markets expected weaker enforcement of climate disclosure rules by the US Securities and Exchange Commission (SEC). ESG-related legislation in California and elsewhere also faced legal challenges. Meanwhile, EU requirements for US businesses operating in Europe were tightening, requiring multinationals to manage rules across different markets. (Update: On 27 March 2025, the SEC voted to stop defending its climate disclosure rules in court. Source: SEC press release 2025-58.)

UK announces plans to consult on adopting ISSB standards (Week of 3–9 March 2025) The UK government said it would launch a consultation in March on adopting ISSB standards, focusing on corporate transition-plan requirements and the standards' applicability in the UK. (Update: The UK government actually published its consultation on draft UK Sustainability Reporting Standards (UK SRS), based on IFRS S1 and S2, on 25 June 2025, alongside a consultation on transition-plan requirements. Source: UK government consultation page.) For Taiwan's ISSB adoption arrangements, see the IFRS third-phase adjustment and IFRS Sustainability Disclosure Standards FAQs.

Workiva study: 85% of businesses will continue disclosing climate information (18 February 2025) Research released by Workiva found that 85% of businesses planned to continue disclosing climate-related information despite global political and market volatility, showing that climate disclosure had become a long-term corporate activity.

TNFD launches a Learning Lab and trainer portal (19 February 2025) The Taskforce on Nature-related Financial Disclosures (TNFD) launched a Learning Lab and trainer portal to help market participants understand nature-related financial risks and opportunities.

European Banking Authority highlights continuing ESG data gaps (Week of 3–9 March 2025) The European Banking Authority (EBA) said ESG data availability had improved but significant gaps remained. It called for better collection methods to support standardised credit-risk analysis and greater bank data transparency to meet supervisory requirements. For the evolution of climate disclosure frameworks, see the transition from TCFD to IFRS S2.

Taiwan Regulations and Policy

Taiwan's priorities this quarter included sustainability report filing tools, financing for net-zero industries and talent development. Many of these measures continued into subsequent years; consult the latest articles for filing rules and schedules.

TPEx ESG Digital Platform launches a sustainability report preparation feature (Week of 3–9 February 2025) Taipei Exchange (TPEx) launched a feature on the ESG Digital Platform to assist TPEx-listed companies in preparing sustainability reports, improving sustainability information disclosure in line with the Financial Supervisory Commission's (FSC) Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies. For platform functions and filing requirements, see how the TWSE ESG Digital Platform supports corporate sustainability transformation and key 2025 amendments to sustainability reporting procedures.

Ministry of Environment requests NT$10 billion from the National Development Fund for net-zero industries (Week of 10–16 February 2025) The Ministry of Environment requested NT$10 billion from the National Development Fund for its programme to strengthen investment in green-growth and net-zero industries. The focus was on companies not listed on TWSE or TPEx, helping emerging decarbonisation technologies overcome financing constraints and reach deployment faster.

TWSE holds practical sustainability disclosure workshops (From 20 March 2025) The Taiwan Stock Exchange (TWSE) began holding practical sustainability disclosure workshops on 20 March 2025. Courses covered sustainability report preparation rules, guidance on material-topic disclosures and ESG Digital Platform applications to strengthen listed companies' sustainability governance capabilities.

Accounting Research and Development Foundation announces the 2025 ESG Summit (Announced during the week of 3–9 March 2025) Taiwan's Accounting Research and Development Foundation announced plans for an ESG Summit in August 2025, focusing on sustainability disclosures, the 2050 net-zero goal and the use of digital technology in sustainability transformation.

Taiwan Smart City Summit & Expo focuses on digital and green transformation (From 18 March 2025) The Smart City Summit & Expo focused on digital and green transformation, discussing net-zero solutions and providing a platform for Taiwan businesses to showcase ESG practices and find partners.

Ministry of Environment launches green-collar training subsidies (Reported on 29 March 2025) The Ministry of Environment launched a green-collar talent training programme offering course subsidies to young people and low-income participants in response to demand for sustainability professionals. For current talent demand and vacancy trends, see green-collar jobs and AI plus sustainability talent.

Carbon Pricing, Carbon Markets and Net-Zero Targets

The quarter's carbon management themes were the launch of carbon fees and the recalibration of targets. Taiwan began implementing carbon fees, Japan proposed new medium- and long-term reduction targets, and SBTi revised its net-zero standard. Some businesses adjusted timelines that had proved overly optimistic.

Taiwan launches carbon fees and encourages voluntary reduction incentives (Week of 10–16 February 2025) Taiwan's carbon fee system formally took effect, initially covering high-emitting businesses. The Ministry of Environment encouraged companies to apply for preferential rates through voluntary reduction plans to lower their fees. Supply chain businesses also needed stronger carbon management to avoid costs being passed on to them. For rates, coverage and payment dates, see What is Taiwan's carbon fee?; for applications, see the voluntary reduction plan application guide.

Japan updates its nationally determined contribution (Week of 3–9 March 2025) Japan updated its nationally determined contribution (NDC) under the Paris Agreement, targeting a 60% reduction in greenhouse gas emissions by fiscal year 2035 from fiscal year 2013 levels, while moving towards net zero by 2050 and emphasising renewable energy and hydrogen technologies. (Correction: The original weekly report stated a 75% reduction by 2040. Japan's submission to the United Nations sets a fiscal year 2040 target of a 73% reduction from fiscal year 2013. Source: Japan's NDC document on UNFCCC.) For the new round of national NDCs and business responses, see From COP30 and NDC 3.0 to CBAM.

SBTi begins revising its Corporate Net-Zero Standard (Week of 3–9 March 2025) The Science Based Targets initiative (SBTi) established an expert working group to revise its Corporate Net-Zero Standard, focusing on Scope 2 and Scope 3 target setting and standardising carbon removal and neutralisation measures. (Update: On 18 March 2025, SBTi released the initial draft of Corporate Net-Zero Standard version 2.0 for public consultation. Source: SBTi official announcement.) For scope definitions, see Scope 1, 2 and 3 emissions.

SBTi and CAFA partner to advance corporate climate action through industry associations (10 March 2025) SBTi partnered with CAFA to encourage businesses to advance climate action through their trade associations and set science-based emissions reduction targets.

ClimeFi launches a forward-looking carbon removal project assessment tool (10 March 2025) ClimeFi launched a tool offering forward-looking assessments of carbon removal projects, helping businesses and investors evaluate potential removal initiatives. For the basic rules on credits and offsets, see Taiwan's carbon credit system and a comprehensive guide to global carbon market systems.

Heineken reports 2024 sustainability progress (21 February 2025) Global brewer Heineken released its 2024 sustainability progress, stating that it would continue increasing its share of renewable electricity. (Correction: The original weekly report said it “planned to reduce Scope 1 and 2 emissions by 34%”. Heineken's 2024 full-year results presentation shows that 34% was the reduction already achieved in 2024 against the 2022 Scope 1 and 2 baseline. Source: Heineken 2024 full-year results presentation.)

Global furniture retailer postpones its zero-emission delivery vehicle target (12 March 2025) A global furniture retailer revised its zero-emission vehicle delivery target, originally set for 2025, to 90% by 2028, illustrating the need to consider practical implementation conditions when setting decarbonisation goals.

Apple establishes a RMB720 million clean energy fund in China (24 March 2025) Apple established a new clean energy fund in China worth RMB720 million, approximately US$99.22 million, describing it as part of its goal to transition its supply chain to 100% renewable energy by 2030. For the impact of supply chain decarbonisation requirements on Taiwan businesses, see supply chain ESG requirements.

US Department of Energy supports sustainable aviation fuel capacity expansion (Reported on 12 February 2025) The US Department of Energy supported expansion of sustainable aviation fuel (SAF) capacity at a Calumet refinery through a loan guarantee, advancing aviation decarbonisation. (Correction: According to the Department of Energy's Loan Programs Office, the loan guarantee for US$1.44 billion in principal to Calumet subsidiary Montana Renewables closed in January 2025; it was not first approved on 12 February. Source: US Department of Energy LPO.)

Clean energy investment: Tata Power, Renaissance Fusion and HSBC (12 February and 10 March 2025) India's Tata Power planned to invest US$5.6 billion in 7 GW of clean energy projects in Andhra Pradesh. Renaissance Fusion secured €32 million in Series A financing. On 12 February, HSBC Asset Management announced an investment in SP Mobility, Singapore's largest electric vehicle charging network operator, to expand local charging infrastructure.

Sustainable Finance and US Anti-ESG Pressure

Financial institutions' ESG positions diverged sharply this quarter. US institutions withdrew from alliances or abandoned targets under political pressure, while Europe, Japan and Australia continued strengthening ESG data and greenwashing oversight.

EY survey: investors prioritise short-term returns but see worsening greenwashing (5 February 2025) EY released an institutional investor survey in which 92% of respondents were unwilling to sacrifice short-term returns for long-term ESG benefits. A further 85% considered greenwashing worse than five years earlier, while 93% remained confident that companies could achieve sustainability and decarbonisation targets.

MSCI highlights reputational risks (Week of 3–9 February 2025) MSCI noted that potential conflicts of interest and anti-ESG sentiment exposed companies to reputational and credibility risks that, if mishandled, could affect business and financial performance.

UK FCA sustainability fund labels: Schroders announces adoption (Reported on 11 February 2025) Asset manager Schroders announced its adoption of the UK Financial Conduct Authority's (FCA) four sustainability labels and portfolio adjustments, potentially encouraging stricter ESG asset classification across the market. (Correction: The FCA's Sustainability Disclosure Requirements and labelling regime did not launch on 11 February; firms had been able to use the labels since 31 July 2024. Source: FCA press release.)

US lawmakers investigate the Net Zero Asset Managers initiative (Week of 24 February–2 March 2025) US House Judiciary Committee Chairman Jim Jordan and other lawmakers sent letters to institutions including Capital Group, State Street Global Advisors and J.P. Morgan Asset Management, questioning whether their coordination within the Net Zero Asset Managers initiative (NZAM) raised antitrust concerns. BlackRock had already withdrawn from NZAM.

Republican state treasurers oppose Vanguard board candidates (Week of 24 February–2 March 2025) Eight state treasurers jointly refused to support a slate of board candidates they considered too ESG-friendly, singling out directors focused on climate-related financial risk and diversity. The move illustrated how ESG had become a political risk for US investment institutions.

Wells Fargo abandons its 2050 financed-emissions net-zero target (28 February 2025) Wells Fargo said it would no longer pursue net-zero emissions across its financing and investment portfolio by 2050, citing insufficient policy, technology and market conditions. It retained a carbon neutrality target for its own operations but faced criticism from environmental groups.

White House DEI enforcement threats and Apple's shareholder vote (Week of 12 March 2025) The White House said it would take enforcement action against diversity, equity and inclusion (DEI) programmes at private businesses, drawing criticism as viewpoint-based discrimination. Reports around the same time noted that Apple shareholders rejected a conservative think tank's proposal to end DEI with more than 97% of the vote. (Correction: The vote took place at Apple's annual shareholders' meeting on 25 February 2025, not 12 March. Source: Apple's Form 8-K filed with the SEC.) For developments in Taiwan's human rights and diversity framework, see Taiwan's new human rights due diligence system.

Japan's GPIF selects Impact Cubed for ESG data (18 March 2025) Japan's GPIF, the world's largest pension fund, selected Impact Cubed to provide ESG data and analytics, highlighting the importance of data quality in investment decisions.

Australia's Active Super fined A$10.5 million for greenwashing (18 March 2025) Australia's Federal Court fined Active Super for claiming its ESG screening excluded certain industries while continuing to hold related investments. (Correction: The original weekly report stated US$10.5 million. According to the Australian Securities and Investments Commission announcement, the penalty was A$10.5 million. Source: ASIC 25-042MR.) Corporate sustainability claims must match the underlying data.

BlackRock scales back ESG programmes following Republican criticism (20 March 2025) BlackRock, the world's largest asset manager, began scaling back ESG-related programmes in response to criticism from US Republicans. Taiwan's TWSE/TPEx-listed companies should monitor shifts in international investors' ESG attitudes.

Oklahoma ESG legislative proposal sparks controversy (22 March 2025) Oklahoma considered amending its Energy Discrimination Elimination Act and transferring ESG-related enforcement powers, with potential implications for energy investment and further evidence of US controversy over ESG.

Goldman Sachs launches a biodiversity bond fund (Week of 3–9 March 2025) Goldman Sachs Asset Management launched its first bond fund focused on biodiversity, targeting US$500 million to support ecosystem protection projects.

Morgan Stanley: ESG funds could add US$53 billion–119 billion in defence investment (24 March 2025) Morgan Stanley estimated that easing European restrictions on ESG fund investment in defence-related industries could channel US$53 billion–119 billion into the sector.

Amundi seeks ESG conditions in Lebanon's debt restructuring (28 March 2025) Amundi planned to push for ESG conditions in Lebanon's approximately US$30 billion debt restructuring, drawing on Sri Lanka's restructuring approach. (Correction: The original weekly report incorrectly named AXA; the originally cited Bloomberg report identified Amundi as the proponent.)

Corporate and Industry Developments

Corporate news focused on sustainability ratings, reporting and supply chain human rights. These cases reflect conditions in Q1 2025; consult each organisation's latest publications for subsequent rating results.

World Economic Forum highlights climate risks and business strategy (Week of 3–9 February 2025) The World Economic Forum's 2025 Annual Meeting in Davos released several reports highlighting unprecedented climate risks and transition opportunities for businesses and presenting seven corporate sustainability strategies.

S&P Global Sustainability Yearbook 2025: Ricoh and Hon Hai included (17 February and 25 March 2025) Ricoh announced on 17 February that it had been included in S&P Global's Sustainability Yearbook 2025 as one of 780 companies worldwide. On 25 March, Hon Hai (Foxconn) announced its inclusion and an Industry Mover award, with its ESG score improving by more than 40%.

Sustainability online buzz rankings for listed companies (20 February 2025) A DailyView survey placed TSMC and China Steel among the leaders in sustainability-related online discussion. Cathay Financial Holdings attracted attention with its “Co-creating a Better, Sustainable Future” lantern installation at the Taipei Lantern Festival.

Sustainability action by Taiwan organisations (Early to mid-February 2025) Fubon Multimedia Technology (momo) announced its first wave of 2025 ESG action plans. The Industrial Technology Research Institute released a sustainability report detailing achievements in integrity-based governance, technology R&D and green development, and incorporating the SDGs into its research culture. A 17 February report noted that Youou Design received GD Platinum certification from the Green Renovation Association.

Shein discloses child labour cases in its supply chain (Week of 24 February–2 March 2025) Responding to questions from the UK Parliament, Shein acknowledged discovering two child labour cases in its supply chain in 2024 and said it had terminated relationships with the suppliers involved. It also reported completing 4,300 audits covering 317,000 workers in 2024. Observers suggested the issue could affect its planned London listing.

French Senate report examines AI and the environment (Week of 3–9 March 2025) The French Senate released a report finding that artificial intelligence could optimise energy use and improve disaster forecasting, while stressing the need to weigh technological costs against environmental benefits.

Follow-Up: Latest Articles by Topic

This page is a historical summary of Q1 2025. To check current rules or progress on a topic, go directly to the following regularly updated articles:

• The EU Omnibus simplification proposal's impact on CSRD and CBAM
• CBAM's definitive period begins: how Taiwan exporters can respond
• IFRS third-phase adjustment and FSC transitional measures
• IFRS Sustainability Disclosure Standards FAQs: S1, S2 and adoption timelines
• What is Taiwan's carbon fee? Rates, coverage and payment schedule
• Voluntary reduction plan application guide
• Global carbon market systems and Taiwan's ETS pilot programme
• What are net-zero emissions?
• Key 2025 amendments to sustainability reporting procedures
• Green-collar jobs and demand for AI plus sustainability talent

If you are preparing a carbon inventory or sustainability report, start with What is a carbon inventory? to organise inventory boundaries and emissions data.