ANZ Sustainable Finance Insights, Q2 2025

Global market issuance — At a glance  |  Key transactions  |  Policy and governance updates: Global, Australia, New Zealand, Asia, Europe, North America  |  ANZ news and updates

Global market issuance — At a glance

All market data is sourced from BloombergNEF and includes original and tapped issuance, unless otherwise noted.

Graph 1 and 2: Sustainable debt issuance broadly consistent, driven by bond markets

{CFINFOGRAPHIC: sf-q2-chart-1.svg}
Source: BloombergNEF, for the period ended 30 June 2025 (sourced 10 July 2025)

{CFINFOGRAPHIC: sf-q2-chart-2.svg}
Source: BloombergNEF, for the period ended 30 June 2025 (sourced 10 July 2025)

Key transactions

Notable ANZ-supported transactions

• In April 2025, ACEREZ reached financial close on a green project finance loan to support the delivery of the Central-West Orana Renewable Energy Zone (REZ) in New South Wales — Australia’s first REZ. Led by a partnership between ACCIONA, COBRA, and Endeavour Energy, ACEREZ has been appointed by EnergyCo as the network operator to design, build, finance, operate, and maintain the REZ’s transmission infrastructure for 35 years. The green loan achieved Pre-Issuance Certification under the Climate Bonds Standard, marking a significant milestone in Australia’s sustainable finance market. The Central-West Orana REZ is a critical part of the NSW Government’s energy transition plan, targeting a 50% reduction in emissions by 2030. By 2028, the REZ will deliver at least 4.5 GW of new network capacity, enabling the connection of 7.7 GW of wind, solar and battery projects—enough to power more than two million homes annually. The REZ is expected to attract billions of dollars in private investment and create up to 5,000 jobs during construction. The project aims to work closely with landowners, indigenous communities, councils, and other stakeholders to ensure sustainable development. ANZ acted as Joint Green Loan Coordinator and as Mandated Lead Arranger.
  
  
• In May 2025, Contact Energy Limited (New Zealand) priced an AUD 400m senior unsecured green bond with 6.5-year tenor, limited to institutional investors. Proceeds from the BBB-rated issuance (S&P) will be allocated to eligible green energy generation projects under Contact Energy’s November 2022 Sustainable Finance Framework, which is aligned with ICMA Green Bond Principles. BBB Contact Energy issued the first corporate Green Bond in NZ in 2019, and have regularly issued green bonds and sustainability-linked loans since. ANZ acted as Joint Lead Manager.
  
  
• Silver Fern Farms raised a new Sustainability Linked Loan with four KPIs covering: increased adoption of the NZFAP Plus Assurance Programme, reduction of GHG emissions, reduction of total waste to landfill (including organic waste) and biodiversity (focussing on the development of biodiversity data and biodiversity action plans for farm suppliers). The inclusion of a biodiversity KPI is a first for the company and one of the first in the New Zealand sustainable finance market. ANZ acted as Joint Sustainability Coordinator.
  
  
• The Government of the Hong Kong Special Administrative Region (HKSAR) issued a quadruple-currency bond transaction, which included a 5-year USD-denominated Green tranche, an 8-year EUR-denominated Green tranche, a 30-year HKD-denominated Infrastructure tranche, and 20-year Green & 30-year Infrastructure CNH-denominated tranches. Net proceeds of this issuance will be allocated to eligible green projects under the categories of Green Buildings, Water and Wastewater Management, and Climate Change Adaptation as defined in the HKSAR Government’s Green Bond Framework. The successful execution of this multi-currency, multi-tranche green/infrastructure bond offering marks ANZ's second mandate from the HKSAR government. ANZ acted as Joint Lead Manager (all) and Joint Bookrunner (HKD only).
  
  
• Korea Housing Finance Corporation (KHFC) has successfully issued AUD 700m in 5-year social kangaroo bonds. This transaction underscores KHFC's strategic efforts to diversify its funding sources and strengthen its Australian debt market presence. Net proceeds of the social bond will be allocated to Eligible Social Projects under the category of “Affordable Housing” as defined in KHFC’s Sustainability Financing Framework issued in September 2023. ANZ acted as Joint Lead Manager and Bookrunner.
  
  
• Industrial Bank of Korea (IBK) issued two tranches of USD-denominated social bonds under its Global Medium Term Note Programme, raising a total of USD 1b. Both bonds were issued as “SME Empowerment and Relief Themed Social Bonds”, reinforcing IBK’s mission to support small and medium-sized enterprises through sustainable finance. ANZ acted as Joint Bookrunner and Lead Manager.
  
  
• The Korea Development Bank (KDB) has successfully issued an AUD 750m 3-year dual tranche green bond. The transaction marks ANZ’s third consecutive AUD mandate from Korean Policy Banks in 2025, following IBK’s AUD 700m and KEXIM’s AUD 1b offerings earlier in the year. ANZ acted as Lead Manager.
  
  
• Vietnam Prosperity Joint Stock Commercial Bank (VPBank) successfully executed a USD 1b sustainable syndicated loan in May 2025. This transaction represents the largest syndicated loan ever raised by a Vietnamese bank and marks the largest foreign loan to date dedicated to advancing sustainable finance in Vietnam. Since 2020, the total volume of VPBank’s sustainable capital mobilisation has reached approximately USD 2.8b, which has been effectively deployed to support the growth of women-led businesses, green projects, and other socially responsible initiatives. ANZ acted as Joint Lead Manager and Bookrunner.
  
  
• Keolis has refinanced part of its debt by securing a new EUR 700m sustainability-linked syndicated loan with a five-year maturity. The interest margin is tied to performance against three ESG targets aligned to Keolis' strategic priorities: increasing gender diversity in management, reducing greenhouse gas emissions, and improving workplace health and safety. ANZ acted as Lead Arranger.
  
  
• Nokia has signed a new EUR 1.5b five-year multicurrency revolving credit facility, replacing a previous EUR 1.412b agreement from 2019. The facility includes two 1-year extension options, and a pricing mechanism linked to Nokia’s progress on key sustainability targets: reducing absolute Scope 1 and 2 greenhouse gas (GHG) emissions, and reducing Scope 3 GHG emissions. This aligns with Nokia’s broader sustainability strategy, including its Net-Zero 2040 goal approved by the SBTi, and builds on prior sustainable finance initiatives. ANZ acted as Mandated Lead Arranger.

Notable global transactions

• Auckland Council issued a NZD 250m three-year Sustainability-Linked Bond (SLB), the first of its kind from a government-sector entity in Australia or New Zealand. The bond is linked to a sustainability performance target (SPT) focused on native ngahere (forest) restoration, requiring the planting of at least 1,000,000 native stems in the regional park network by 31 December 2027, starting from a baseline of 87,000 stems planted as of 31 December 2022. The bond also includes a donation mechanism, under which 0.25% of the issue amount will be donated on two occasions — 30 September 2028 and 30 September 2029 — to organisations that support native ngahere restoration within the Auckland region.
  
  
• Slovenia became the first European country to issue a sovereign SLB, following the publication of its inaugural SLB Framework in February 2025. The framework, supported by a second-party opinion from S&P Global, outlines ambitious targets including a reduction in total GHG emissions by 2030 and 2033, an increase in renewable energy consumption by 2030, and a cap on final energy consumption to enhance efficiency. The EUR 1b, 10-year bond was met with strong investor demand—six times oversubscribed—allowing Slovenia to tighten pricing by 9 basis points to MS+61. Notably, the bond features a rare two-way pricing adjustment: a 50bp step-up if Slovenia fails to achieve a 35% GHG reduction by 2030 (from a 2005 baseline), and a 50bp step-down if it exceeds a 45% reduction.
  
  
• Nippon Yusen Kaisha (NYK Line) launched its 49th Unsecured Corporate Bond, a transition bond valued at up to JPY 20b (circa USD 134m), with a 5-year maturity. This issuance continues NYK Line’s pioneering role in issuing the world’s first green bond in the shipping industry in 2018 and Japan’s first transition bond in 2021. The proceeds will fund projects aligned with NYK Line’s medium-term management plan, Sail Green, Drive Transformations 2026, including investments in LNG-fuelled vessels and other low-carbon maritime technologies.
  
  
• The People’s Republic of China (PRC) government issued its inaugural RMB-denominated green sovereign bonds in April 2025. The Ministry of Finance of the People’s Republic of China completed its inaugural offshore issuance of RMB-denominated sovereign green bonds, totalling CNY 6b (circa USD 825m). This marked the first time the Chinese central government issued sovereign green bonds. The issuance was structured in two tranches: a 3-year bond and a 5-year bond, each valued at CNY 3b (circa USD 413m), with coupon rates of 1.88% and 1.93% respectively. The bonds were issued under the PRC Sovereign Green Bond Framework, which was released in February 2025.
  
  
• Germany’s State of North Rhine-Westphalia (Land Nordrhein-Westfalen) priced its 12^th Sustainability Bond, a EUR 1.25b 5-year transaction under its updated Sustainability Bond Framework, which supports social and environmental projects across sectors including education, healthcare, and infrastructure. Strong investor demand saw the orderbook reach EUR 7.8b (6.2x oversubscribed), allowing pricing to tighten 3bps from IPTs to MS+21bps. The updated framework was assessed by ISS Corporate, including for alignment with the EU Taxonomy Regulation for its green activities.
  
  
• Tideway—the company behind London’s super sewer—has issued the first GBP-denominated blue bond by a corporate, with a GBP 250m 8-year bond to provide additional liquidity during the project acceptance period for the Thames Tideway Tunnel. More than 7Mt of sewage has already been diverted away from the Thames in less than 12 months.

Policy and governance updates

Global  |  Australia  |  New Zealand  |  Asia  |  Europe  |  North America

Global

• The Executive Committee of the Green, Social, Sustainability, and Sustainability-Linked Bond Principles, supported by ICMA, released Sustainable Bonds for Nature: a Practitioner’s Guide. This guide offers thematic guidance for using green and sustainability bonds to finance nature-related projects and introduces the optional “Nature Bond” label. It also encourages the integration of nature-related KPIs in sustainability-linked bonds. This was accompanied by updates to the Green Bond Principles, new checklists, frequently asked questions (FAQs) to both the Guidelines for Sustainability-Linked Loans financing Bonds (SLLBs) and the Guidance for Green Enabling Projects, impact metrics for social bonds, and an expanded KPI registry. A consolidated allocation reporting guide and an updated Q&A Handbook were also published.
  
  
• The 2025 edition of the Green Bond Principles (GBP) retains the same four core components—Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds, and Reporting—while introducing key updates. These include the addition of "Green Enabling Projects”, which supports the development or scaling of eligible Green Projects, even if they do not directly yield environmental outcomes, and the expanded definition of Green Projects to include "activities" in addition to assets, investments, and related expenditures. The new edition also references the Green Enabling Projects Guidance document published in 2024.
  
  
• The Net-Zero Banking Alliance (NZBA) has approved changes to the alliance framework, allowing banks to adopt a “wider range of net-zero pathways that align with the temperature goals of the Paris Agreement to limit global temperature rise to well below 2°C and to strive for 1.5°C”. Updated Guidance for Climate Target Setting for Banks has now come into effect.
  
  
• The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) signed a Memorandum of Understanding to strengthen collaboration on nature-related financial reporting. This partnership supports the integration of TNFD’s recommendations – including biodiversity and ecosystem guidance—into the relevant work by the ISSB. The initiative also aligns with global biodiversity goals, including Target 15 of the Kunming-Montreal Framework.
  
  
• The Basel Committee on Banking Supervision released a voluntary framework to guide global banks in disclosing climate-related financial risks. The framework uses a materiality-based approach, allowing banks to report only on relevant sectors.
  
  
• The Science Based Targets initiative (SBTi) recently advanced climate action in key sectors by launching a public consultation on its draft Automotive Sector Net-Zero Standard, which introduces tailored criteria for vehicle manufacturers and parts suppliers, including new emissions indicators and regional pathways. In addition, SBTi invited companies to pilot test its draft Corporate Net-Zero Standard Version 2.0, enabling real-world validation of the updated framework through a two-phase process. These efforts aim to refine sector-specific guidance and enhance the practicality of net-zero standards across industries.
  
  
• The Global Reporting Initiative (GRI) released the updated Climate Change and Energy Standards. The new requirements include reporting on climate transition and adaptation plans, emissions reduction targets, and progress. They also emphasise “just transition” principles, requiring disclosures on how transition strategies affect workers, communities, and vulnerable groups, as well as the use of carbon credits and GHG removals.
  
  
• The International Air Transport Association (IATA) has launched the global Sustainable Aviation Fuel (SAF) Registry. The Registry will “record the environmental attributes of SAF purchases in an immutable way, safeguarding against double counting”, and is intended to enable a global market for SAF that will accelerate the transition to net zero emissions.
  
  
• The International Maritime Organisation (IMO) approved the IMO Net-Zero Framework, introducing the first legally binding global fuel standard and emissions pricing mechanism for international shipping. Supported by 63 countries, including the EU, China, the UK, India, and Canada, the regulation requires ships which exceed emissions limits to offset their emissions through surplus or remedial units. Proceeds from these transactions will fund the IMO Net-Zero Fund, which supports low-emission technologies, infrastructure, and capacity building in developing countries. The US exited the negotiations before the vote.

Selected Global Reads for Sustainable Finance

• The IFRS Foundation introduced tools and updates to support global adoption of its sustainability standards, including a Roadmap Development Tool to help regulators implement IFRS S1 and S2 with localised guidance, and educational materials clarifying climate-related disclosures under IFRS S2. It also published an exposure draft with proposed amendments to IFRS S2, offering relief from disclosing Scope 3 Category 15 emissions tied to derivatives and complex instruments, with final rules expected soon.
  
  
• The Financial Markets Standards Board (FMSB) finalised its Statement of Good Practice to strengthen governance of sustainability-linked products (SLPs) in wholesale financial markets. It outlines six principles for service providers and users, covering governance, KPIs, product labelling, and contract terms, and includes a Risk Register to help firms manage risks. The guidance complements existing voluntary frameworks from ICMA, LMA, ELFA, and ISDA.
  
  
• The TNFD released several key publications to advance nature-related risk assessment and disclosure. These include an evidence review highlighting the financial materiality of nature-related risks; collaborative case studies with the Global Reporting Initiative (GRI) showcasing how companies identify nature-related dependencies and opportunities; and final sector guidance for water utilities and services, fishing, marine transportation, and cruise lines to support nature-related reporting. TNFD also published a discussion paper on measuring ocean-related issues, inviting feedback and case studies to refine its guidance, with submissions open until October 1, 2025.
  
  
• LMA has launched its latest insights on SLLs, emphasising their growing role in sustainable finance. The report highlights the evolution of the market since the first SLL in 2017 and the introduction of the SLL Principles in 2019, which provided a robust framework for credibility and consistency. The latest guidance outlines six core governance principles and addresses key areas such as KPI selection, target setting, and contractual terms. It also reflects market momentum and offers direction for borrowers and lenders navigating the SLL landscape in 2025.
  
  
• S&P Global Sustainable1 estimates that, by 2050, the annual financial impact of physical climate risks on the companies within the S&P Global 1200 index could reach USD 1.2t, assuming no adaptation strategies are implemented and without accounting for future inflation. The most significant contributors to these costs are expected to be extreme heat and water scarcity. Among the sectors affected, utility companies are projected to bear the highest costs, with the average electric utility potentially incurring USD 4.6b annually in the 2050s.
  
  
• The Methane Finance Working Group released the Guidance for Including Methane Abatement in Oil and Gas Debt Structuring, recommending Use of Proceeds or KPI-linked financing to support rapid, measurable reductions. Eligible projects include methane and flaring abatement technologies aligned with decarbonisation goals and strict criteria for permanence and verification. KPI-linked facilities should track science-based reductions in methane intensity, emissions, and flaring, backed by robust data and safeguards against greenwashing.
  
  
• The EU Platform on Sustainable Finance released a report in April 2025 recommending updates to the EU Taxonomy and Climate Delegated Act. The report focuses on improving usability, refining technical screening criteria, and expanding eligible economic activities for climate mitigation and adaptation. It introduces new DNSH criteria for adapted activities and emphasises the need for regular reviews of transitional activities. The Platform also highlights collaboration across sectors to align financial practices with the EU’s 2030 and 2050 climate goals.
  
  
• During London Climate Action Week 2025, the UK Transition Finance Council released two key publications: the “Discussion Paper on Establishing Credibility and Integrity in Transition Finance”, which proposes high-level voluntary guidelines to support entity-level transition strategies and boost investor confidence; and the “Call for Evidence on Scaling Transition Finance through Sectoral Transition Roadmaps”, which seeks input on how tailored roadmaps can unlock finance for high-emitting sectors and climate solution developers. 
  
  
• The Singapore Sustainable Finance Association’s Natural Capital & Biodiversity workstream has launched its inaugural white paper titled “Financing our Natural Capital”. It serves as a practical guide for financial institutions in Southeast Asia to begin integrating nature-related risks and opportunities into their decision-making. The report highlights the economic dependence on natural capital and outlines actionable strategies for nature-positive financing. It bridges global frameworks with regional realities, offering case studies and tools to help FIs align with sustainability goals while unlocking investment opportunities in sectors like agriculture, manufacturing, and real estate.
  
  
• The Grantham Institute released its annual snapshot on Global Climate Litigation Trends. The report highlights a rise in scrutiny of corporate actors, with about 20% of 2024’s climate cases targeting companies or their senior leadership. A growing number of these cases challenge the credibility of carbon credits used for emissions offsetting—over one-third of climate-washing cases filed between 2015 and 2024 involved such claims.

Australia

• In June 2025, the Australian Sustainable Finance Institute (ASFI) released the nation’s first sustainable finance taxonomy—a landmark framework aligning investment with Australia’s net zero goals. It provides a science-based, Paris-aligned classification system for green and transition finance, tailored to Australia’s economic and environmental context. The taxonomy will be piloted by major financial institutions and other market participants—to test its application in real-world investment decisions. The Climate Bonds Initiative will also expand its certification scheme to include aligned elements from the taxonomy, intended to support global standardisation and investor confidence.
  
  
• In July 2025, ASFI received authorisation from the Australian Competition and Consumer Commission (ACCC) to lead a five-year collaboration among financial sector participants aimed at advancing sustainable finance initiatives. The ACCC authorisation includes conditions to safeguard competition, ensuring that public benefits outweigh any potential risks. This decision enables ASFI and its partners to engage in discussions and exchange information in order to: improve the integration of natural capital data into financial decision-making; co-design and test sustainable finance products contributing environmental or social objectives (with a focus on blended finance); and identify and propose relevant regulatory reforms.
  
  
• Meat and Livestock Australia (MLA) has updated their industry goal from ‘Carbon Neutral by 2030’ to ‘contributing to Australia’s net zero ambitions’. The change came in the aftermath of the Red Meat Advisory Council advising that it was not feasible for the industry to reach the ambitious target. Originally announced in 2017 and adopted in 2019, the goal has been replaced with a focus on reducing emissions intensity rather than absolute emissions.
  
  
• With the publication of the first Nature Repair Market Method in February 2025, the key elements of the legislative architecture for Australia's Nature Repair Market are now in place (alongside the Nature Repair Act, the Nature Repair Rules and the Biodiversity Assessment Instrument). Informed by the Carbon & Biodiversity Pilot, the Replanting Native Forest and Woodland Ecosystems Method is designed to be compatible with carbon projects under the ACCU Scheme. The Ecological Knowledge System (produced by DCCEEW in partnership with CSIRO) is also live. It is intended to provide the science and environmental information underpinning Australia's Nature Repair Market.
  
  
• As recommended by the Chubb Review in 2022, amendments to the CFI rules were enacted in December 2024 which aim to improve transparency in the ACCU Scheme by mandating the publication of more data. The provisions gave the CER six months to commence publication of the additional data to the project register. In Q2 2025, crediting and permanence period dates, project activities, baseline period suppressors (if applicable), and agent information were added. The final update completed in July added estimation methods, modelling start dates for carbon estimation areas using the FullCAM or Reforestation Modelling Tools, and links to any enforceable undertakings (including those already completed).
  
  
• In April, the Clean Energy Regulator released data for the first full compliance period after the reformed Safeguard Mechanism took effect. For the 2023-24 reporting period, 219 facilities were covered, with total emissions reducing to around 136.0 Mt CO₂-e from 138.7 Mt CO₂-e in 2022-23. Sixty-two facilities received approximately 8.3 million Safeguard Mechanism Credits (SMCs) for reporting covered emissions below their baseline emission threshold, while 142 facilities had a total liability of 9.2 Mt CO₂-e for their reported covered emissions exceeding their baseline.
  
  
• To manage excess emissions, facilities surrendered approximately 1.4 million SMCs and 7.1 million Australian Carbon Credit Units (ACCUs), reducing net safeguard emissions to 127.8 Mt CO₂-e. This volume of surrendered units is a significant increase from prior periods; for example, only 1.2 million ACCUs were surrendered in 2022-23. Most facilities were subject to the 4.9% baseline decline rate, and by the end of the 2023-24 period, the aggregate headroom (the difference between baseline and covered emissions) has almost completely disappeared – see chart below (Source: CER).

{CFINFOGRAPHIC: sf-q2-chart-3.svg}
Source: CER 2023–24 Safeguard Data Insights https://cer.gov.au/document_page/2023-24-safeguard-data-insights

New Zealand

• In June 2025, the Centre for Sustainable Finance launched the first public consultation on the Aotearoa New Zealand Sustainable Finance Taxonomy. Designed to guide investment toward climate change mitigation, adaptation, and resilience, the NZ Taxonomy will incorporate principles such as “Do No Significant Harm” (DNSH) and Minimum Social Safeguards (MSS). The four-week consultation invited feedback on technical screening criteria, definitions for green and transition activities in the agriculture and forestry sectors, and the proposed governance and implementation approach.
  
  
• The New Zealand Green Building Council (NZGBC) has launched the new NABERSNZ Water tool in collaboration with the Energy Efficiency and Conservation Authority (EECA). Adapted from Australia’s NABERS methodology, the tool aims to improve water conservation in buildings across New Zealand to suit local climate and infrastructure considerations. It has been designed to allow building owners and developers to measure and certify water efficiency, reduce water waste, support carbon reduction and infrastructure cost savings, and promote resilience and sustainability in building operations.
  
  
• In June 2025 the NZ Government announced its support for the development of a Voluntary Nature Credits Market. The initiative aims to create a transparent, measurable, and durable market that enables farmers, landowners, iwi, and conservation groups to earn income by protecting and restoring natural ecosystems. The government is backing several privately financed pilot projects across the country to test how a market could function in the NZ context.
  
  
• The New Zealand Ministry for the Environment has released an independent climate adaptation report, prepared by an appointed Independent Reference Group (IRG). The report is not intended to be government policy, but to provide additional evidence, insights and recommendations supporting the development of a national climate adaptation framework. 

Asia

• China’s Ministry of Finance released draft climate-related sustainability disclosure standards for public consultation in April 2025. These draft standards are aligned with the ISSB framework but incorporate elements specific to the Chinese market, such as national methodologies for measuring carbon emissions. According to the Ministry, China plans to introduce both basic and climate-related corporate sustainability disclosure standards by 2027, with the goal of establishing a unified national standard by 2030.
  
  
• Hong Kong Monetary Authority (HKMA) set out its 2025 key sustainability initiatives in the April 2025 release of its Sustainability Report 2024. These include thematic reviews of banks’ climate risk management, consultative sessions on compliance, and integrating climate risk into stress testing and the Supervisory Review Process. HKMA is preparing regulatory measures to adopt the Basel Committee’s Pillar 3 disclosure framework and ISSB Standards, finalising a new Supervisory Policy Manual (GS-2) on transition planning, and sharing best practices on climate risk and green fintech.
  
  
• The Taipei Exchange announces that it will introduce green stock designations in 2026 to promote green investment. These designations will be awarded to listed companies meeting specific green revenue and environmental criteria. The identification of green revenues relies on the Taiwan Sustainable Taxonomy and the EU Taxonomy, as well as green labels from third-party certifications, among other criteria.
  
  
• In April 2025, Singapore signed carbon credit agreements with Peru and Chile, enabling the transfer of carbon credits from mitigation projects aligned with Article 6 of the Paris Agreement. Under each agreement, Singapore will contribute 5% of the proceeds from its carbon credit purchases to support climate impact reduction efforts in the partnering countries.
  
  
• ASEAN finance ministers and central bank governors endorsed several regional sustainable finance initiatives. These included the ASEAN Power Grid Transition Finance Facility, the release of the ASEAN Greening Value Chain Playbook, which provides guidance on decarbonisation and supply chain resilience, and the launch of the ASEAN Simplified ESG Disclosure Guide (Version 1) for SMEs.
  
  
• Thailand’s Securities and Exchange Commission (SEC) proposed new rules requiring Sustainable and Responsible Investing Funds to disclose ESG-related details in their prospectus and factsheets, including investment strategies and alignment with global sustainability frameworks. The regulation also mandates semi-annual and annual reporting on sustainability progress and stewardship activities. The proposed framework is designed to improve transparency for investors and align with international standards, including guidance from Hong Kong’s SFC.
  
  
• India released its draft framework of a Climate Finance Taxonomy, aiming to guide investment into climate-friendly technologies and support its net zero by 2070 goal. Developed by the Ministry of Finance, the taxonomy classifies projects and technologies that aid climate mitigation and adaptation, including sectors like steel and cement. It promotes transparency and aligns with global standards while reflecting India’s unique needs. In the nearer term, it is estimated India would require circa USD 1.5t in investment by 2030 to reach its latest target of 500GW renewable energy capacity.
  
  
• The Philippine Department of Finance, with UNDP and Canadian support, launched the USD 4.5m Accelerating Green and Climate Finance in the Philippines: Nature-based Solutions (AGCF-NbS) initiative to boost sustainable enterprise through nature-based solutions that restore ecosystems and build climate resilience. Key features include the NatureNest accelerator for 10 high-potential enterprises, a climate finance lab, data platforms, gender-responsive lending policies, and systems to track green investment impacts, all aimed at mobilising private sector climate action.

Europe

• The EU approved a two-year delay for the Corporate Sustainability Reporting Directive (CSRD) and a one-year delay for the Corporate Sustainability Due Diligence Directive (CSDDD) as part of the Omnibus package in April 2025, aiming to ease compliance burdens. Large companies (currently defined as 250+ employees) will now report under CSRD starting in 2028, and listed SMEs in 2029. CSDDD rules for large and mid-sized firms will also apply from 2028. The package also includes measures to simplify sustainability reporting, especially for smaller firms.
  
  
• In April 2025, the European Commission released updated guidance in relation to the EU Deforestation Regulation (EUDR) including a draft Delegated Act and new set of FAQs. These documents provide additional clarification and simplified procedures for companies, EU Member State authorities, and non-EU States to demonstrate that products are deforestation-free.
  
  
•  In May 2025, the European Banking Authority (EBA) launched an ESG Dashboard designed to centralise access to climate risk indicators within the EU banking sector. Drawing from Pillar 3 disclosures, it helps assess transition and physical risks, revealing that over 70% of banks have notable exposure to climate-linked counterparties.
  
  
• The UK government released exposure drafts of the UK Sustainability Reporting Standards for public consultation in June 2025. These draft standards are based on the ISSB’s IFRS S1 and IFRS S2 standards, with six proposed amendments to tailor them for application in the UK context. The consultation is part of the government's broader initiative to modernise the corporate reporting framework and assess the potential introduction of mandatory sustainability reporting requirements for certain entities.
  
  
• The UK Department for Energy Security and Net Zero (DESNZ) has launched a consultation in line with the government’s manifesto pledge to require UK-regulated financial institutions and FTSE 100 companies to develop and implement credible transition plans aligned with the 1.5°C target set by the Paris Agreement. This consultation supports the good practice recommendations outlined in the Transition Plan Taskforce’s (TPT) Disclosure Framework.
  
  
• The UK government has announced major reforms to environmental regulation aimed at boosting economic growth while protecting nature as part of its "Plan for Change" initiative. Key measures include launching an industry-funded Nature Market Accelerator to enhance green finance, establishing a single lead regulator for infrastructure projects, and streamlining environmental guidance to reduce duplication.
  
  
• France has updated its sovereign Green Bond Framework since it was established in 2017, along with a Moody’s SPO. The construction and maintenance of new and existing nuclear power facilities is now included under the low-carbon energy generation category. This includes expenditures related to safety, R&D, and production capacity. However, such funding is restricted to green bonds (OATs) issued from 2026 onward.

North America

• The One Big Beautiful Bill Act, signed into law by President Trump on July 4, 2025, modifies many clean energy and climate-related provisions originally enacted under the Inflation Reduction Act (IRA) of 2022. It includes changes to tax credits to solar, wind and nuclear energy, hydrogen and electric vehicles, rescinding unobligated funds from several IRA programs such as the USD 27b Greenhouse Gas Reduction Fund and the USD 2.8b Environmental and Climate Justice Block Grants, among others. The bill modifies the tax credit for carbon management activities—to put projects that use captured CO₂ to enhance oil and gas reservoir recovery at parity with geological storage programs—as well as boosting funding for critical mineral extraction, however, it reduces incentives for demand and processing.
  
  
• New York State introduced legislation requiring high emitting entities to begin reporting their greenhouse gas emissions in 2027, using 2026 data. This applies to facility operators, fuel suppliers, waste transporters, and electric power entities. The move follows the Climate Superfund Act, which allows the state to seek damages from fossil fuel companies, and reflects broader efforts to establish state-level climate disclosure frameworks amid delays in federal rules.
  
  
• The Canadian Securities Administrators (CSA) paused work on proposed climate disclosure rules, citing existing requirements for issuers to report material climate risks and ongoing voluntary standards from the Canadian Sustainability Standards Board.
  
  
• Canada’s Competition Bureau finalised guidelines on environmental claims to enforce new greenwashing provisions under the Competition Act. Businesses must ensure claims—especially about net-zero targets or environmental benefits—are backed by proper testing and internationally recognised methods, verified by third-party scientific sources.

ANZ news and updates

As a global bank supporting sustainable finance market growth, ANZ is working with customers to help them transition to net zero emissions by 2050. ANZ’s highlights for the quarter include:

ANZ Sustainable Finance – “Out and About”

In a very busy quarter, members of the ANZ Sustainable Finance team were active representing ANZ at various functions and events, including (but not limited to):

• Poppy Brinsley and Katrina Santos-Li of our London Sustainable Finance team participated in the ASFI delegation during London Climate Action Week 2025. The week featured a variety of events and engaging roundtable discussions, including ANZ's hosted discussion on nature and risk at our London office. See ASFI's summary comments from the week here.
  
  
• Katharine Tapley, ANZ Global Head of Sustainable Finance, along with colleagues from Singapore and Kuala Lumpur attended The Energy Nature Forum, hosted by PETRONAS in Kuala Lumpur, which attracted industry leaders, financiers, policymakers, and scientists. You can read our team’s reflections here, with a clear thematic being that valuing nature is essential to reshaping global energy systems for emissions reduction.
  
  
• Stella Saris Chow, ANZ Head of Sustainable Finance International, moderated a panel on ‘dominant themes in the Asian sustainable debt market’ at the 2025 Sustainable Debt Asia Conference in June, hosted by Environmental Finance and sponsored by ANZ. The GSSS issuer and investor event brought together over 200 delegates from across the finance ecosystem including banks, corporates, governments, investors and regulators. A central theme was Asia’s pragmatic and practical approach to sustainable finance.
  
  
• Dan Ota, ANZ Head of Environmental Markets, joined a two-day nature immersion led by Tasman Environmental Markets (TEM) and Wilderlands, at the Coorong Lakes project in South Australia owned and managed by Cassinia Environmental. The experience delivered an understanding of how on-the-ground action in nature can bring to life corporate environmental and financial goals – read more on this here: detailed immersion highlights.
  
  
• Dean Spicer, Head of Sustainable Finance New Zealand, attended the NZ Connect 2025 Conference in Auckland hosted by the Infrastructure Sustainability Council and spoke on the topic of private sector financing and sustainable infrastructure.

Industry Awards

• ANZ Institutional was recognised as the leading institutional bank for customer relationships in Australia by Crisil Coalition Greenwich in their 2025 Voice of Client surveys (reflecting client feedback) – marking our 16th win since 2005. ANZ was ranked #1 across all key categories, including:
  
  
  • #1 Market Leader in ESG/Sustainable Finance
  • #1 for ESG Insights & Advice
  • #1 ESG/Sustainable Finance Coordinator Market Penetration
    
• ANZ Institutional was named as the winner in three categories in the FinanceAsia Awards 2025, reflecting our activity across key markets in support of sustainable finance initiatives:
  
  
  • Best Sustainable Bank – Domestic (Australia)
  • Best Sustainable Bank – International (New Zealand)
  • Best Sustainable Bank – International (Singapore)

ANZ Sustainable Lending Target

• ANZ has a Social and Environmental Sustainability Target to fund and facilitate at least AUD 100b by 30 September 2030 in social and environmental activities through customer transactions and direct investments by ANZ. This includes initiatives that aim to help lower carbon emissions, protect or restore nature, increase access to affordable housing and promote financial wellbeing.
  
  
• As at our half-year financial results to 31 March 2025, ANZ has funded and facilitated approximately AUD 60.60b towards this target (from the commencement date of 1 April 2023). This includes AUD 21.64b allocated so far this financial year, exceeding the AUD 18.5b 2025 sub-target.

ANZ Publications and Research

• First Nations Strategy: ANZ has unveiled ‘Fuelling the Fire’, its inaugural First Nations Strategy. This initiative builds on ANZ’s reconciliation journey and sets a new benchmark for corporate Australia in supporting First Nations-led economic growth. The strategy is outlined and underpinned by two key documents:
  
  
  • Fuelling the Fire: ANZ’s First Nations Strategy (Australia) 2025-2035: Outlines the ten-year strategy to support economic self-determination for First Nations communities by embedding long-term, inclusive practices across ANZ’s operations. It outlines the bank’s commitment to working with and alongside First Nations peoples in three key areas:
    
    
    • Improving Financial Inclusion & Wellbeing: Empowering the next generation of First Nations people to be financially confident.
    • Banking the First Nations Economy: Positioning ANZ as the trusted adviser and bank of choice for a rapidly growing sector.
    • Building Cultural Intelligence: Ensuring ANZ staff can engage effectively and respectfully with First Nations cultures.
  • “Australia's $50 billion opportunity”: a report by Deloitte Access Economics projecting the First Nations economy to reach AUD 50b annually by 2035, highlighting rapid growth and entrepreneurial strength.
• “The Forgotten Fuel: Putting energy efficiency to work at home”: The third and final instalment of the Forgotten Fuel series, created by ANZ in partnership with the Energy Efficiency Council, looks at practical steps Australians can take to improve their household energy efficiency, and the climate and financial benefits of making households more sustainable.
  
  
• Pollination published the second edition of Nature Finance Focus, which showcases scalable models for financial institutions to engage with nature. Featuring global investor insights and case studies, the report highlights nature’s growing role in investment portfolios. As nature underpins economic resilience, mobilising finance for nature is now essential for long-term value creation. Katharine Tapley contributed to this edition, with more information published on ANZ’s Institutional Insights here.
  
  
• Q2 Carbon Market Chartbook: ANZ Research assesses recent trends, demand dynamics and price forecasts for various carbon markets, covering Europe (EUA), Australia (ACCU), New Zealand (NZU) and China (CCER). Market fundamentals considered include the respective policy environments, energy fuel costs, and local trends in power and industrial sectors.