ANZ Sustainable Finance Insights, Q4 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 Bloomberg/BloombergNEF and includes original and tapped issuance, unless otherwise noted.

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

Notes:
Comprises Sustainability-Linked Loans, Green Loans, Social Loans, Sustainability Loans and Transition Loans.

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Source: Bloomberg/BloombergNEF, for the period ended 31 December 2025 (sourced 9 January 2026)
Bloomberg / Bloomberg NEF implemented changes to the BNEF sustainable debt dataset during the 3rd quarter of 2025. These changes have significantly increased reported issuance volumes in Social Bonds from the US mortgage-backed securities market in North America.

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Source: Bloomberg/BloombergNEF, for the period ended 31 December 2025 (sourced 9 January 2026)
Bloomberg / Bloomberg NEF implemented changes to the BNEF sustainable debt dataset during the 3rd quarter of 2025. These changes have significantly increased reported issuance volumes in Social Bonds from the US mortgage-backed securities market in North America

Key transactions

Notable ANZ-supported transactions

• Deal Spotlight: Australia’s Victoria Power Networks’ debut green bond

• MTRC closes landmark HK$30 billion seven-year syndicated green loan. With the support of 57 banks, MTRC has signed a HK$30 billion seven-year syndicated green term loan facility, the largest unsecured international syndicated green term loan (excluding project finance) in Asia, the Middle East, and North Africa by a Hong Kong corporation with a tenor equal or longer than 7 years. The successful completion demonstrates the market’s recognition of MTRC’s capabilities and standing as well as its pivotal role in Hong Kong’s railway infrastructure. The proceeds will be utilised to finance and refinance eligible green investments as defined in MTRC’s Sustainable Finance Framework, signifying the continued prominence of Hong Kong as a leading international ESG finance hub, as well as contributing directly to the sustainable development of Hong Kong.
  
  
• The Hong Kong Mortgage Corporation Limited (HKMC) has successfully completed a multi-currency public benchmark bond issuance totalling HK$25.3 billion. This offering consists of four tranches: a HK$10 billion 2-year bond, CNH 5 billion 3-year bond, and US$1 billion 5-year bond, all issued in conventional bond format, as well as a HK$2 billion 30-year bond issued as a social bond. Notably, the 30-year Hong Kong dollar social bond tranche is the first of its kind in Asia Pacific, with proceeds allocated to support the HKMC’s Reverse Mortgage Programme (RMP), which provides essential financing for elderly residents in Hong Kong.
  
  
• Louis Dreyfus Company Suisse S.A.(LDC) raised a new US$790 million sustainability-linked 3-year revolving credit facility from a syndicate of banks. The loan is tied to KPIs related to absolute reduction of LDC’s Scope 1 & 2 greenhouse gas emissions, and to reduction of carbon emissions intensity for certain agricultural commodities sourced by LDC for selected Countries/Commodities.
  
  
• Military Commercial Joint Stock Bank (MB) announced the successful closing of its three-year $500 million inaugural green term, marking a significant milestone in the bank’s sustainable financing journey. Proceeds from the facility will be allocated to eligible green projects in line with the Green Loan Principles and MB’s Green Loan Framework, further advancing the bank’s sustainability agenda and supporting Vietnam’s transition to a low-carbon economy.
  
  
• ANZ as Lender supported The Living Company (TLC)’s refinancing of A$2.8 billion in Scape Core Fund Sustainability-Linked Loans. The transaction builds on progress made under the existing structure which was put in place in 2023, a first of its kind in the Australian PBSA sector. The updated terms strengthen two existing sustainability performance targets and introduce a new target to improve environmental outcomes at the design and development phase, raising the bar in line with TLC’s journey to become the Earth’s Best Living Company. Targets focus on renewable electricity, progressive electrification and improved Green Star Performance rating outcomes for operational assets, while a development focused target incentivises lower embodied carbon, onsite solar and PassivHaus feasibility. With more than A$3.2 billion now in sustainability-linked and green labelled format TLC continues to embed ESG across its financing platform.

Notable transactions globally

• The World Bank has issued its first ‘outcome bond’ linked to carbon credits issued under Article 6 of the Paris Agreement, in a deal that could pave the way for similar transactions. The $200 million Clean Cooking Outcome Bond will see part of its coupon linked to the sales of carbon credits from cleaner cookstove projects in Ghana and sold to Switzerland as Internationally Transferred Mitigation Outcomes (ITMOs). It attracted 11 investors, including BlueBay, Nuveen, Rathbones, Velliv Pension, Skandia, Mackenzie Investments and new buyers Legal & General. Under the innovative structure, the AAA-rated World Bank (IBRD) guarantees the repayment of the principal and offers a coupon of roughly 1.1%. Some of the coupon that investors would normally expect to receive from a World Bank sustainable bond is sacrificed to allow $30.5 million to be pumped into UpEnergy projects, distributing more than 400,000 cleaner cookstoves in Ghana, offering a variety of health and environmental benefits.
  
  
• On November 11, the Hong Kong Special Administrative Region Government successfully issued approximately HK$10 billion in digital green bonds denominated in four different currencies. This third issuance under the Sustainable Bond Programme attracted subscriptions exceeding HK$130 billion. Notable innovations included the utilisation of tokenised central bank money for settlement and the introduction of Digital Token Identifiers (DTIs).
  
  
• Cebu Landmasters raised PHP4b (USD68m) from sustainability-linked bonds (subscriber access required) linked to short- and medium-term targets related to building new affordable home units, where the bond coupon will step up by 7.5 basis points whenever a target is not achieved. The proceeds would help the group deploy over 16,000 additional affordable homes. The firm is aiming to build 8,500 new affordable housing units by the end of February 2027 and 16,000 by February 2029.
  
  
• Emirates Islamic has pioneered the issuance of a Sustainability-Linked Financing Sukuk (SLFS) (subscriber access required) aligned with the ICMA Sustainability-Linked Loan Bond (SLLB) guidelines published in 2024, drawing strong investor interest and setting a regional benchmark for credible sustainable finance. The SLFS relies on rigorous, loan-by-loan independent assessments verified by second-party opinions, ensuring alignment with international principles and market transparency. While a portfolio-based approach is allowed under the guidelines, individual loan assessment is seen as providing greater credibility at this early stage, and is expected to remain the norm for now. Emirates Islamic remains open to further sustainable sukuk and SLFS issuances, although no timeline is confirmed. The broader Middle East, especially the Gulf, shows growing interest in SLLBs, with other banks preparing frameworks but yet to issue deals, indicating the potential for future market growth as transparency and investor understanding increase.
  
  
• BMO has launched Canada’s first “Indigenous Bond” (subscriber access required), raising CAD200 million ($144 million) to finance sustainable projects that support Indigenous communities and businesses. The four-year bond, driven by growing investor demand for Indigenous-focused investments, reflects BMO’s long-standing commitment through its Indigenous Banking Unit and careful project selection that excludes fossil fuels, cannabis, and alcohol to ensure credibility and social impact. Proceeds will fund essential community infrastructure and mixed-use developments, with an emphasis on supporting Canada’s critical mineral supply for the low-carbon transition. The bond was significantly oversubscribed, highlighting strong investor interest, and BMO sees potential to expand this bond structure to other sectors and regions in the future.
  
  
• Korea Hydro and Nuclear Power (KHNP) has successfully issued Asia’s first nuclear-focused green bond (subscriber access required), raising HKD1.2 billion ($154 million) to fund research and development in nuclear power plant safety and next-generation nuclear technologies such as small modular reactors. The three-year bond, managed solely by Crédit Agricole Corporate & Investment Bank, attracted significant investment from major global institutions and marks a pivotal moment in the acceptance of nuclear power as a sustainable energy source, especially as it aligns with EU and Korean green taxonomies. This issuance, under KHNP’s updated 2024 green bond framework, received an ‘Excellent’ sustainability rating from Moody’s, further validating nuclear energy’s role in carbon neutrality and the evolving landscape of green finance.
  
  
• On October 24, the Tokyo Metropolitan Government priced a EUR 300m (JPY 53b) five-year Resilience Bond. This is the first resilience-labelled bond in the world certified under the Climate Bonds Resilience Criteria and Taxonomy. Funds are used for climate adaptation and resilience projects, such as upgrading small and medium-sized rivers, coastal protection facilities for Tokyo Bay and remote islands.
  
  
• The Inter-American Development Bank (IDB) has issued its first Amazonia Bond, raising $100 million to fund high-impact sustainable development projects across the Amazon region. The bond was structured in accordance with the Amazonia Bond Issuance Guidelines, co-developed by the IDB and the World Bank, and the IDB's Sustainable Debt Framework, the bond follows rigorous standards for use of proceeds, impact measurement, and transparency. Proceeds will support projects that improve local livelihoods, strengthen economic resilience, promote sustainable forest management, and protect biodiversity.
  
  
• Nordic Investment Bank (NIB) has issued its inaugural Sustainability-Linked Loans financing Bond (SLLB), becoming the first supranational, sovereign and agency (SSA) issuer to launch such an instrument in the global capital markets. This bond has been issued under NIB’s SLLB Framework which will finance or refinance a portfolio of SLLs (September).
  

Policy and governance updates

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

Global

• Following the launch of the Guide to Transition Loans by the APLMA, LMA, and LSTA, the UK's Transition Finance Council also published draft Transition Finance Guidelines in November and ICMA has published Climate Transition Bond Guidelines (CTBG) introducing the use of the Climate Transition Bond (CTB) as a standalone label for use-of-proceeds bonds.
  
  
• On December 11, the International Sustainability Standards Board (ISSB) announced targeted amendments to IFRS S2 Climate-related Disclosures to address early implementation challenges. The updates clarify GHG emissions reporting – especially Scope 3 category 15 financed emissions – and introduce compliance relief to support transparent, practical reporting. Key changes include allowing alternative industry classification frameworks, providing jurisdictional flexibility beyond the GHG Protocol, and increased flexibility in applying global warming potential values as outlined in the most recent Intergovernmental Panel on Climate Change Assessment Report. Effective for reporting periods beginning on or after January 1, 2027 (with optional early adoption), these changes aim to promote consistent standards application and reduce transitional impacts for jurisdictions implementing the ISSB Standards. In addition, consequential amendments were made to ensure alignment of financed emissions metrics in three Sustainability Accounting Standards Board (SASB) Standards with the updated IFRS S2 requirements.
  
  
• The Nature Positive Initiative (NPI), World Business Council for Sustainable Development (WBCSD), Capitals Coalition, Global Reporting Initiative (GRI), International Union for Conservation of Nature (IUCN), Taskforce on Nature-related Financial Disclosures (TNFD), and World Resources Institute (WRI) have called for a Nature Measurement Protocol to meet growing global demands for nature-related reporting and target-setting in the private sector. Regulatory bodies are increasingly requiring companies and financial institutions to disclose their dependencies, impacts, risks, opportunities, and contributions to reversing nature loss. While there is progress in developing metrics, the lack of standardised measurement methods still hinders clear reporting and widespread adoption.
  
  
• Partnership for Carbon Accounting Financials (PCAF) has launched an update to its Global Greenhouse Gas Accounting and Reporting Standard for the Financial Industry for Financed Emissions, as well as a supplemental guidance on Financed Avoided Emissions and Forward-Looking Metrics. The updated Standard includes four new financed emissions methodologies, including one for sub-sovereign debt.
  
  
• Multilateral Development Banks including World Bank, EIB, EBRD, ADB, AFDB and others have released an updated version of the MDB Common Principles for Tracking Nature Finance for consistent tracking of MDB financial flows supporting nature. The updated set of principles now includes an Annex, Common Nature Finance Taxonomy, to identify nature finance in their portfolios.
  
  
• The IPSASB has approved IPSASB SRS 1, Climate-related Disclosures, setting new requirements for public sector entities to disclose climate-related risks and opportunities. The standard is effective from January 1, 2028, with early adoption allowed. Aligned with the IFRS S2 Standard and informed by GRI 3, this incorporates public sector terms and additional materiality guidance. Disclosure requirements cover governance, risk management, metrics, targets, Scope 1-3 GHG emissions, transition and physical risks, and internal carbon pricing. Scope 3 reporting may be deferred for three years under transitional relief. 
  
  
• To help streamline global environmental reporting, GRI and CDP have launched a resource mapping CDP’s 2025 corporate questionnaire to the new GRI Climate Change and Energy Standards. This GRI-CDP mapping, based on their 2023 Memorandum of Understanding, aims to reduce duplication for companies while enhancing data consistency and value for stakeholders. The mapping shows how disclosures from GRI 102: Climate Change 2025 and GRI 103: Energy 2025 align with CDP requirements, enabling organisations to use the same data across both systems through a ‘write once, read many’ approach. 
  
  
• On 7 October, the International Organization for Standardization (ISO) released ISO 17298, a standard for assessing biodiversity dependencies, impacts, risks, and opportunities. ISO 17298 aligns with existing standards like ISO 14001 and ISO 26000, and supports the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Developed with TNFD, the standard helps organisations integrate biodiversity into governance, risk management, and sustainability reporting.
  
  
• The Taskforce on Nature-related Financial Disclosures (TNFD) released a set of eight recommendations for upgrading the nature data value chain for market participants. The eight recommendations aim to improve the quality, accessibility, and consistency of nature-related data for businesses and finance. They include principles and metadata standards for state-of-nature data, harmonised licensing to reduce access costs, and the creation of a Nature Data Public Facility for open data sharing. Companies would be incentivised to contribute proprietary data to these global commons, supported by a new Nature Data Trust to fund collection and aggregation. Additionally, a measurement protocol for core nature-related metrics and a universal data-sharing protocol are proposed to streamline reporting and enhance comparability across value chains.
  
  
• On November 6, the Science Based Targets Initiative published the second draft of its Corporate Net-Zero Standard (Version 2.0) for public consultation. The revised draft formally acknowledges beyond value chain mitigation, permitting companies to account for emissions reductions achieved through the purchase of carbon credits. This represents a notable development in corporate climate strategy and affirms the importance of high-integrity credits in progressing toward net-zero objectives. The final standard is anticipated in 2026, with implementation scheduled to begin in January 2028.

Australia

• Unlocking Private Capital for the Transition: Market insights from the practical application of the Australian Sustainable Finance Taxonomy, published by the Australian Sustainable Finance Institute (ASFI) sets out three key recommendations: expanding the Australian Taxonomy to encompass climate adaptation and resilience as an immediate priority; enhancing international engagement for sectors like mining and agriculture; and establishing a public-private governance model to oversee implementation.
  
  
• The Investor Group on Climate Change (IGCC) held its IGCC Summit 2025: Decoding the Transition on 29–30 October in Sydney, bringing together nearly 400 investors, policymakers, and experts to support a net-zero economy. Keynotes by Al Gore and Saul Griffith called for faster electrification and increased private capital. IGCC also released two reports: Climate Capability for Boards, which provides five governance principles and engagement tools for assessing corporate transition readiness, and Beyond Risk to Resilience, outlining expectations for company disclosure on physical climate risks.
  
  
• On 10 October 2025, the Queensland Government published its Energy Roadmap 2025, detailing strategic objectives for the state's energy sector over the forthcoming five-year period. While state-owned coal generators will continue to remain a significant energy source into the 2030s and 2040s, the Roadmap advocates for increased investment in renewable energy, natural gas, and storage solutions to support affordability, reliability, and sustainability, indicating a measured progression towards cleaner energy alternatives.
  
  
• The Australian Government has released its fourth Annual Climate Change Statement which included progress updates: renewables now provide over 40% of electricity in Australia’s two largest grids; the Capacity Investment Scheme is set to add 40 GW of renewable energy by 2030; since July 2025, more than 135,000 batteries have been installed through the Cheaper Home Batteries Program; electric vehicles are gaining popularity, supported by the New Vehicle Efficiency Standard that began in July 2025 to reduce emissions and expand consumer options; and emissions from major facilities are falling after the first year of the updated Safeguard Mechanism.
  
  
• Australia’s Climate Change Authority released its fourth Annual Progress Report. The report shows the electricity and energy sectors led decarbonisation, paving the way for other industries. Australia will have to cut emissions by 18 MtCO2-e annually until 2030, then 20–25 MtCO2-e yearly through 2035, requiring faster approval for clean energy projects. In the past year, these sectors accounted for half of all emissions reductions, a share set to grow as renewable energy sources replace fossil fuel.
  
  
• The Australian Parliament passed the Environment Protection Reform Bills on 28 November. The reforms aim to strengthen environmental protection, improve project assessments, and increase accountability. Developed with extensive community input, the Government will continue stakeholder engagement during implementation, including transitional and rollout measures.
  
  
• CSIRO, Australia's national science agency, has published the Australian Carbon Dioxide Removal Roadmap outlining options for developing a CDR industry to support net zero goals. The report reviews three CO₂ capture methods, biological, geochemical, and chemical, and three storage processes: geological, open environment, and mineral. It summarises these approaches and their development status in Australia and worldwide.
  
  
• The Australian Government has introduced its Electricity and Energy Sector Plan, it outlines Australia's strategic plan to decarbonise its energy system by 2050, focusing on increasing energy efficiency, transitioning to renewable electricity and cleaner fuels, and expanding clean energy supply. The plan is structured in three phases spanning from the present to 2050, with the goal of delivering reliable, affordable, and healthier energy for households, businesses, and industries through a progressive reduction in fossil fuel use and an accelerated adoption of renewables.
  
  
• ASFI, UK Finance, and UKSIF held a roundtable to address taxonomy development, transition finance, and evolving regulatory frameworks. Representatives from Australia and the UK exchanged perspectives on the role of finance in supporting credible transition pathways. While policy approaches differ between countries, both face shared challenges: clearly defining transition finance, mitigating greenwashing risks, and enhancing cross-border interoperability. Institutions are increasingly adopting common frameworks, such as GFANZ, and leveraging resources like the Australian Sustainable Finance Taxonomy for guidance.
  
  
• ASFI and its Australian and Chinese partners convened in Hong Kong SAR for its third workshop in the Australia-China sustainable finance dialogue series bringing together financial institutions, policymakers and academics to advance a shared framework for sustainable finance cooperation between Australia and China. Emphasising Hong Kong's pivotal role as a gateway to China’s sustainable finance market, the workshop highlighted ongoing alignment in green finance taxonomies and showcased successful cross-border initiatives, including green bonds and capital mobilisation strategies. Insights from this event, alongside those from previous sessions in Beijing and Canberra, will shape an Australia-China Sustainable Finance Roadmap to foster continued collaboration and high-integrity investment across the region.
  
  
• The OECD published a policy paper discussing green iron opportunities in Australia. The paper examined its potential to contribute significantly to the global green iron industry, given its substantial iron ore reserves and strong renewable energy potential, and how by transitioning from a conventional "dig-and-ship" approach, the country could enhance the value of its iron ore through direct reduction processes that align with the evolving global steel sector. Key drivers for Australia include reliable renewable energy supply and integrated production models which will require Australia to expand its infrastructure, refine policy coordination, and build robust international industrial partnerships.

New Zealand

• The New Zealand Government has proposed changes to mandatory climate reporting legislation: lifting the threshold for listed issuers from $60 million market capitalisation to $1bn, adjusting director and company liability settings, and removing managed investment schemes from the climate reporting regime.
  
  
• The New Zealand Government released its National Adaptation Framework. The Framework outlines the Government's strategy to address increasing natural hazard risks, including floods and storms. It combines new and existing measures to strengthen climate resilience, organised around four key pillars: information-sharing on risk and response, defining roles and responsibilities, investing in risk reduction, and sharing costs before and after events.
  
  
• The government passed the Climate Change Response (2050 Target and Other Matters) Amendment Act 2025, revising biogenic methane reduction targets to 14–24% below 2017 levels by 2050, down from the previous 24–47%. A formal review is scheduled for 2040. This shift prioritises a “no additional warming” approach, aiming to stabilise emissions.
  
  
• To improve the efficiency of the New Zealand Emissions Trading Scheme (ETS), the government has proposed major changes to the Climate Change Response Act 2022 (CCRA). Planned changes include legislation to streamline ETS processes, decoupling the scheme from international climate obligations, new market governance rules for New Zealand Units trading, revised farm-forest conversion settings, and the introduction of a framework to recognise non-forestry carbon removals.

Asia

• On 28 October, China’s Central Committee issued the Recommendations on Formulating the 15th Five-Year Plan for National Economic and Social Development. The document includes a chapter on “Accelerating the Green Transition and Building a Beautiful China”, outlining a five year framework for advancing nationwide green development. It sets four priorities: strengthening pollution prevention and ecosystem optimisation, developing a new energy system, advancing carbon peaking in a steady and orderly manner, and promoting green production and lifestyles. The top-level 15th five-year plan, due to be published in March 2026, will shape GHG emissions in China – and globally – for the rest of this decade and beyond.
  
  
• On 26 November, Japan’s Financial Service Agency proposed amendments to enhance mandatory sustainability disclosure and human capital reporting for large-listed companies on the Tokyo Stock Exchange. Under the proposal, entities with an average market capitalisation of ¥3 trillion or more will begin reporting in line with Sustainability Standards Board of Japan (SSBJ) Standards for fiscal years ending on or after March 2027, with companies above ¥1 trillion following in 2028.
  
  
• On 24 November, South Korea’s Ministry of Climate, Energy and Environment announced a pilot program allowing greenhouse gas emission credits to be traded through securities firms, following a completed emissions trading system. Instead of only using the Korea Exchange, participants can now trade via accounts at securities firms. The revised Act from January 2024 expands participation to financial institutions and pension funds, aiming to boost convenience, increase trading volume, and help meet national GHG reduction goals.
  
  
• On November 18, the HKMA and DFSA released a joint report in partnership with BloombergNEF, titled "Scaling Sustainable Debt in Emerging Markets”. The report identifies growth opportunities in labelled sustainable debt within MENA and emerging APAC regions. It highlights government intervention to mitigate costs and promote broader corporate issuance as critical strategies for market expansion.
  
  
• The ASEAN Taxonomy Board released Version 4 of the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy), completing the development of ASEAN’s regional reference framework for classifying sustainable economic activities. This latest version includes the complete Foundation Framework and technical screening criteria (TSC) for all six focus (Agriculture, Forestry and Fishing; Manufacturing; Water Supply, Sewerage Waste Management and Remediation) and three enabling (Information & Communication; and Professional, Scientific & Technical Activities) sectors of the Plus Standard. With Version 4, the ASEAN Taxonomy now offers complete Plus Standard coverage across the identified focus and enabling sectors, Grandfathering rules for the Amber Tiers, and guidance on entity and portfolio assessment.
  
  
• The Securities and Exchange Commission (SEC) of Thailand has revised the principles governing the enhancement of sustainability-related information disclosure in accordance with the International Sustainability Standards Board (ISSB) standards. During the initial stage, a climate-first reporting methodology will be adopted, prioritising the disclosure of Scope 1 and Scope 2 GHG emissions alongside standardised and dependable assurance procedures. Listed companies must engage assurance providers, which may include those registered with the Thailand Greenhouse Gas Management Organization (TGO) or other providers operating in accordance with internationally recognised assurance standards. The implementation of these standards will follow a phased-in schedule, with transitional relief measures made available.
  
  
• The Securities and Exchange Commission (SEC) of the Philippines has adopted ‘Philippine Financial Reporting Standards (PFRS) on Sustainability Disclosures’ based on IFRS S1 and IFRS S2. External limited assurance of Scope 1 and 2 GHG emissions by an independent practitioner is required two years after PFRS S1 and S2 are implemented for each tier. The requirement will later shift toward reasonable assurance. Entities are encouraged to seek reasonable assurance for their full sustainability report. All external assurance must follow ISSA 5000 standards for consistency and quality.

Europe

• The EU Council has adopted its negotiating mandate for revising the EU regulation on deforestation-free products (EUDR), aiming to simplify implementation and delay enforcement so businesses can prepare. In response to concerns from member states and stakeholders, the Council supports simplifying due diligence and proposes a uniform one-year postponement of the regulation’s start to 30 December 2026, with an extra six months for micro and small operators. The previously suggested grace period for larger companies is replaced by this clear extension for all. Simplification measures are maintained to ease administrative burdens without compromising regulatory goals.
  
  
• On 19 October 2025, the United Kingdom Government announced its Clean Energy Jobs Plan, aiming to generate 400,000 employment opportunities by 2030 in response to the growing need for skilled workers in the sector. The plan includes five new Technical Excellence Colleges to train young people in the clean energy sector, such as electricians, welders, and engineers. It also introduces a Fair Work Charter and extends employment protections to offshore renewable workers, improving job quality and working conditions in the sector.
  
  
• On 5 November, the EU committed to cut net greenhouse gas emissions by 90% by 2040 compared to 1990 levels, supporting its long-term goal of achieving climate neutrality by 2050. The amendment introduces flexibility and key elements for 2040 and the post-2030 framework, guiding future proposals to help member states achieve the target and support European industry and citizens during the transition.
  
  
• The European Commission has proposed amendments to the Sustainable Finance Disclosure Regulation (SFDR). The objective is to increase transparency, combat greenwashing and protect investors by ensuring that information in relation to sustainability is disclosed to investors by financial market participants. Among a number of proposed changes, the SFDR revision establishes three new product categories for investment funds with sustainability features, being Transition (Article7), ESG Basics (Article 8), and Sustainable (Article 9). “Minimum aligned investments” thresholds are proposed to be introduced, as well as updates to disclosure requirements and marketing restrictions.
  
  
• The European Council has announced negotiations will be opened with the UK to link greenhouse emissions trading systems (ETS), which they say would facilitate trading of emissions allowances between the EU and the UK, contribute to the common sustainability goals and avoid carbon leakage between the two parties.
  
  
• The European Parliament has approved an agreement that narrows the scope of companies subject to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) and removes the mandatory obligation for companies to develop climate transition plans under the CSDDD. This measure, part of the EU's "Omnibus I" simplification package, is pending formal adoption by the EU Council before it comes into effect. The revisions aim to decrease the administrative reporting requirements for companies and strengthen competitiveness within the European Union.
  
  
• The UK Government has released an updated UK Government Green Financing Framework, which has added Nuclear Energy as a Green Category. S&P Global Ratings has provided a Second Party Opinion on the updated Framework. S&P assessed this Framework to be “dark green”, their highest rating. The UK DMO has said it is planning a syndication of a new medium green gilt in February 2026.
  
  
• The Italian Treasury has updated its Green Bond Framework to focus more on adaptation and resilience, adding categories for climate and environmental investments such as biodiversity and water systems. Climate resilience is now a separate category, including measures like flood defence, wildfire prevention, and emergency response. The framework now provides detailed EU Taxonomy disclosures and has received an ‘excellent’ rating from Sustainable Fitch, which notes partial alignment with EU standards. Italy incorporated nuclear energy research and development (R&D) as an eligible use of proceeds under its green bond framework, following the UK's update in November and France's revision in May. Both France and the UK now allow funding for the construction and maintenance of new and existing nuclear power facilities, with the UK also specifically including nuclear energy-related R&D within its framework.
  
  
• On 12 November 2025, the Financial Reporting Council released ISSA (UK) 5000, a voluntary standard setting out requirements for sustainability assurance engagements. This framework aims to improve the quality, credibility, and consistency of UK sustainability reporting. Based on the International Auditing and Assurance Standards Board's model but tailored for UK ethical and regulatory needs, ISSA (UK) 5000 coincides with government consultations on sustainability reforms, indicating that assurance of sustainability information may soon become a common corporate expectation.
  
  
• On 5 November 2025, the Swiss Federal Council agreed to support Swiss SMEs on sustainability issues, fulfilling the Dittli postulate. The Council's report notes that Swiss SMEs are increasingly subject to international ESG regulations, such as the European Sustainability Reporting Directive (CSRD), the German Supply Chain Act, and the upcoming EU Supply Chain Directive. While these rules raise compliance costs, they also offer opportunities for sustainable governance. To address this, the Federal Council will make the federal CSR portal more user-friendly, provide fact sheets on regulations, and explore digital access to a voluntary European SME sustainability standard.
  
  
• On 23 October, the Climate Financial Risk Forum (CFRF), established by the UK FCA and the Prudential Regulation Authority, released its October 2025 suite of publications to support better climate risk management in financial services. Among these is a second handbook on nature risk, expanding on its 2024 guide. The aim is to help firms identify and integrate nature-related risks and opportunities into their strategies. The regulators clarify that CFRF publications reflect industry views, not regulatory guidance.

North America

• On December 1, the NYS Department of Environmental Conservation finalised regulations requiring large emitters, those releasing at least 10,000 metric tons of CO₂e a year, to report greenhouse gas emissions starting in 2027. Affected facilities include electricity generators, fuel suppliers, waste haulers, and certain agricultural operations. Reporting will begin June 2027, with some entities needing third-party verification. The rules result from Governor Hochul’s directive on mandatory GHG reporting, reflecting public feedback that led to extended verification timelines and reduced requirements for closed facilities.
  
  
• The USDA announced a $700 million Regenerative Pilot Program on Dec. 10 to help farmers adopt practices that improve soil health, water quality, and long-term productivity. Administered by the Natural Resources Conservation Service, the program streamlines conservation funding through a single application process, allocating $400 million via the Environmental Quality Incentives Program and $300 million through the Conservation Stewardship Program for fiscal year 2026. Supported by the Department of Health and Human Services, the initiative also explores links between regenerative agriculture and public health, reinforcing the “Make America Healthy Again” agenda and emphasising soil restoration as a foundation for a healthier food system.
  
  
• The US Climate Alliance achieved a collective reduction in net GHG emissions of 24% between 2005 and 2023, the most recent year for which comprehensive data is available, while simultaneously increasing its gross domestic product by 34%. These results position the Alliance to meet its near-term goal of a 26%reduction in net emissions by 2025. The decline in emissions can be attributed in part to the adoption and implementation of robust state and federal policies over previous years. Although current federal administrative actions are anticipated to decelerate progress through at least 2028, initiatives led by Alliance governors are expected to sustain advancement within the coalition. Projections indicate the Alliance will continue to decrease emissions, outpacing the national average even in the face of federal policy rollbacks.

Global reads for sustainable finance

• The ISSB Symposium in London highlighted global momentum for implementing ISSB Standards, with delegates from more than 45 jurisdictions. ISSB Chair Emmanuel Faber announced the expansion of the Jurisdictional Working Group to foster multilateral discussions and enable “passporting” provisions, allowing jurisdictions to accept reports prepared under ISSB Standards with local adjustments. This approach aims to reduce fragmentation, lower compliance costs, and enhance comparability for capital markets. Around 40 jurisdictions are planning adoption, supported by a new Jurisdictional Rationale Guide and tool that outline motivations such as strengthening capital markets, improving investor decision-making, and delivering cost efficiencies for preparers.
  
  
• On November 10, the Association of Chartered Certified Accountants reported that 71% of organisations cite regulatory compliance as the main reason for sustainability reporting, but only 53% actively use sustainability data. The report, released at COP30, calls for companies to adopt global standards and integrate sustainability into stakeholder management. It provides ten recommendations highlighting agile systems and industry collaboration.
  
  
• UNEP's International Resource Panel published a report emphasising how sustainable finance must support responsible mining of minerals essential for clean energy, lithium, cobalt, graphite, rare earths, highlighting guidelines for ESG integration and capital flow mechanisms.
  
  
• The Sustainable Banking and Finance Network (SBFN), backed by IFC, released its 2025 Global Progress Report, showing strong sustainable finance growth in 72 emerging markets. SBFN members issued $790.5 billion in thematic bonds, 94% of all emerging-market issuance, and introduced 145 new ESG frameworks since 2023. Despite these advances, emerging markets still face a $4 trillion annual investment gap. The report notes progress in funding small businesses, but highlights persistent challenges like scaling adaptation finance, improving institutional capacity, and boosting data quality. Insights from its new data portal cover banking, securities, pensions, and insurance sectors.

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:

Sustainable Finance Awards

FinanceAsia Achievement Awards 2025

• Best Sustainable Finance Banker (Australia) – Bronwyn Corbet
  
  
• Best Sustainable Finance Banker (New Zealand) – Dean Spicer
  
  
• Best Sustainable Finance Banker (Hong Kong) – Stella Saris Chow

KangaNews

• Australian Sustainability Debt House of the Year
  
  
• SSA Kangaroo Bond Deal of the Year – International Development Association A$1.75 billion 4.00% August 2030 Sustainable Development Bond, ANZ as Lead Manager
  
  
• Australian Sustainability Bond Deal of the Year – Victoria Power Networks Finance A$450 million 4.714% April 2032 & A$300 million April 2032 FRN green bond, ANZ as Green Structuring Adviser and Lead Manager
  
  
• New Zealand Dollar Credit Bond Deal of the Year – Community Housing Funding Agency NZ$100 million 3.472% September 2028 & NZ$100 million 3.893% September 2030, ANZ as Lead Manager
  
  
• New Zealand Innovative Debt Deal of the Year – Community Housing Funding Agency NZ$100 million 3.472% September 2028 & NZ$100 million 3.893% September 2030, ANZ as Lead Manager
  
  
• New Zealand Issuer Offshore Deal of the Year – Mercury A$400 million 5.247% March 2031 green bond, ANZ as Lead Manager

ANZ Sustainable Finance, “Out and About”

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Panel of speakers at LMA Sustainable Finance Conference, including ANZ’s Stella Saris Chow.

• The Loan Market Association (LMA) Annual Sustainable Finance Conference for 2025 was held in London on 5th November 2025, themed “The Phoenix: Resilience in Action”. The conference focused on resilience and innovation in sustainable finance, regulatory engagement, and the need for pragmatic pathways to decarbonisation. Key discussions emphasised integrating social impact into ESG strategies (social targets being a 'pivotal' focus as the market evolves), advancing biodiversity and nature finance (with a particular focus on deforestation following a keynote from an investigative journalist at Global Witness), and reframing sustainability as a growth driver rather than a compliance burden (as noted by the FCA themselves). The event underscored a shift toward regulator-integrated product development, expansion of labelled products, and collective action to scale credible transition finance, with Stella Saris Chow, Head of Sustainable Finance, International, covering this topic in particular. The key catch phrase from the conference: "Let's make sustainable finance great again."

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Speakers and presentations at IGCC Summit, including ANZ’s Christina Tonkin and Paul Richards, MD Corporate Finance and Global Head of REI, as well as keynote speakers Al Gore and The Hon. Penny Sharpe, NSW Minister.

• Christina Tonkin, Managing Director, Corporate Finance presented at the IGCC Summit, held on 16–17 October at Ilumina in Sydney, which brought together nearly 400 investors, policymakers and climate leaders who discussed how policy, capital, and practice can drive a credible shift to net zero. Keynote speakers Al Gore commenced the session by emphasizing the need for both urgency and optimism; Saul Griffith encouraged investors to reconsider strategies for capital deployment that advance electrification and create opportunities; and Dr Joëlle Gergis presented a comprehensive scientific update highlighting the risks associated with inaction as well as the potential benefits of proactive leadership.
  
  
• Stella Saris Chow presented at the APLMA-ASFI-SSFA Financing Transition through Taxonomy Implementation Webinar together with representatives from Amundi, Australian Sustainable Finance Institute (ASFI), Clean Energy Finance Corporation and DBS to discuss key lessons, practical applications, and the role of taxonomies in scaling sustainable and transition finance.
  
  
• Shaina Tan presented a Sustainable Finance 101 to The Institute of Technical Education (ITE) College of Singapore as part of ANZ’s MoneyMinded initiative. Shaina shared her knowledge and expertise through a teaching on sustainable finance, with good engagement and insightful questions.
  
  
• David Simmons represented ANZ and joined panellists from National Australia Bank and Westpac at an event organised by the Australian Sustainable Finance Institute and Bank of China Sydney Branch where they discussed sustainable finance market trends alongside priorities and opportunities in the market in 2026.
  
  
• Stella Saris Chow and Jenny Fan hosted a workshop in the Australia-China sustainable finance dialogue series, organised by the Central University of Finance and Economics’ International Institute of Green Finance, the University of Western Australia, the University of Queensland, the Australian National University (ANU) and the Australian Sustainable Finance Institute (ASFI).
  
  
• Fran Burley represented ANZ as a panellist at the Good Growth event: Accelerating sustainable infrastructure investment hosted by Tonkin + Taylor, where they explored how sustainable finance could accelerate infrastructure investment in New Zealand. A recurring theme was acknowledging sustainable finance as a way of keeping long-term performance, resilience, and value, and how clear frameworks can help capital flow.
  
  
• Daniel Ota and Jonathan Bloch presented at the Biodiversity Conference in Perth on converging themes of growth in sustainable finance activity, net zero commitments, mandatory reporting and international aviation and shipping sectoral targets creating demand for new projects and technology to deliver nature-based solutions.
  
  
• Daniel Ota presented at the ALCA Conference in Cairns alongside our customer Cairns Airport, highlighting their sustainability-linked loan and its associated mangrove restoration and First Nations engagement activities.
  
  
• ASFI, UK Finance, and UKSIF held a roundtable to address taxonomy development, transition finance, and evolving regulatory frameworks. Poppy Brinsley represented ANZ and joined representatives from Australia and the UK to exchange perspectives on the role of finance in supporting credible transition pathways. While policy approaches differ between countries, both face shared challenges: clearly defining transition finance, mitigating greenwashing risks, and enhancing cross-border interoperability. Institutions are increasingly adopting common frameworks, such as GFANZ, and leveraging resources like the Australian Sustainable Finance Taxonomy for guidance.

ANZ publications and research

• November 2025 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.
  
  
• Sophie Jackman, Head of ESG Disclosures and Reporting at ANZ, published an article highlighting ANZ’s ESG approach and focus, summarising ANZ’s ESG performance against issues that identified by its stakeholders as most material.