August 28, 2025
Below are the top regulatory and policy updates ESG leaders should have on their radar this month.
California: CARB Clarifies SB 253 and SB 261 Implementation
In August 2025, the California Air Resources Board (CARB) held its second public workshop on the state’s landmark corporate climate disclosure laws:
SB 253 – Climate Corporate Data Accountability Act requires annual disclosure of Scope 1, 2, and 3 GHG emissions for companies with >US$1B revenue doing business in California.
SB 261 – Climate-Related Financial Risk Act requires biennial reporting on climate-related risks and mitigation strategies.
Key CARB updates:
Reporting timeline: First GHG disclosures due June 30, 2026 (SB 253); climate risk reports due Jan 1, 2026 (SB 261).
Fees: Annual filing fees set at $3,106 (SB 253) and $1,403 (SB 261). These apply cumulatively and adjust for inflation.
Minimum requirements for SB 261 (Year 1): Scenario analysis will be qualitative only; emissions disclosure not required in initial reports.
Assurance: CARB signaled a phased approach to third-party assurance, starting with limited assurance on Scope 1 and 2 emissions.
EU: Major Simplification of ESRS Reporting Framework
On 31 July 2025, the European Financial Reporting Advisory Group (EFRAG) published exposure drafts for revised European Sustainability Reporting Standards (ESRS).
Part of the EU Commission’s Omnibus Simplification Package I, the revisions aim to reduce complexity under the Corporate Sustainability Reporting Directive (CSRD).
Drafts propose a 57% cut in mandatory data points and a 68% reduction in total disclosures.
Final revised ESRS must be delivered to the Commission by 30 November 2025.
France: Draft Decrees on PFAS Reduction in Industry
On 7 August 2025, France’s Ministry of Ecological Transition opened consultations on two decrees:
Defining residual concentration thresholds under the new PFAS Restriction Law No. 2025-188.
Establishing a national plan to progressively reduce PFAS in industrial aqueous discharges.
Consultations close on 5 September 2025.
UK: Updated WEEE Regulations Guidance
On 12 August 2025, the UK Office for Product Safety and Standards (OPSS) issued revised guidance on the Waste Electrical and Electronic Equipment (WEEE) Regulations.
Clarifies scope, compliance obligations, and enforcement.
Aims to support businesses in meeting extended producer responsibility requirements for e-waste.
EU: Circular Economy Act – Consultation Open
On 1 August 2025, the EU Commission launched consultation on the proposed Circular Economy Act (CEA), open until 6 November 2025.
Seeks to strengthen the single market for secondary raw materials.
Measures include:
Revising the EU WEEE Directive.
Reforming end-of-waste criteria.
Expanding and digitalizing extended producer responsibility (EPR) schemes.
Introducing mandatory circular procurement standards.
EU: RoHS Exemptions – Updated Validity and Rolling Plan
On 28 July 2025, the EU Commission published an updated RoHS (Restriction of Hazardous Substances) exemptions plan, current as of 25 July 2025.
Summarizes validity, scope, and renewal timelines of exemptions in Annex III and IV.
Serves as a non-binding reference tool for companies managing hazardous substances in electronics.
Singapore: Climate Disclosure Timeline Extended
On 26 August 2025, Singapore’s Accounting and Corporate Regulatory Authority (ACRA) and SGX RegCo delayed the start of mandatory climate reporting for Large Non-Listed Companies (NLCos).
Threshold: annual revenue ≥S$1B (≈US$780M) and total assets ≥S$500M (≈US$390M).
Reporting begins in fiscal year 2028 (previously 2027).
Disclosures must align with the ISSB (International Sustainability Standards Board) framework, including Scope 1 and 2 emissions.
Singapore-listed issuers remain on track for FY 2025 reporting, though requirements have been fine-tuned.
Takeaway for ESG Leaders:
This month’s updates reinforce two trends: regulators are pushing forward with landmark disclosure regimes (California, ESRS, Singapore) while also tightening environmental standards (PFAS, WEEE, Circular Economy Act, RoHS). Companies should update their compliance roadmaps for 2026–2028 and prepare for assurance, fees, and scenario analysis requirements under California law.
