ANZ Sustainable Finance Insights Q2 2026

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

Global market issuance, at a glance

Notes: Sustainable Finance debt market comprises of Green Bonds, Social Bonds, Sustainability Bonds, Sustainability-Linked Bonds, Transition Bonds Sustainability-Linked Loans, Green Loans, Sustainability Loans, Social Loans and Transition Loans

Cumulative global sustainable finance issuance

Global sustainable finance debt issuance in Q2 2026 reached a quarterly record of USD631.6bn, bringing the total market cumulative issuance to approximately USD13.7trn. Sustainable finance debt issuance in Q2 2026 recorded 5% YoY growth on the Q2 2025 issuance and a 9% quarter-on-quarter (QoQ) growth on Q1 2026. Green bonds represented the largest share of total sustainable finance issuance at 40%, closely followed by social bonds at 37%. On a half yearly basis, 1H 2026 recorded 4% half on half growth compared with 1H 2025.

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Source: Bloomberg, for the period ended 30 June 2026 (sourced 2^nd July 2026)
Note: Bloomberg 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.
 

Regional sustainable finance issuance^disclaimer

Europe led global sustainable finance issuance growth in Q2 2026, with volumes increasing 17% YoY to USD247.8bn from USD211.6bn in Q2 2025, driven primarily by green and social bond issuance. North America remained the largest market, accounting for 42% of global issuance for Q2 2026 and recording 5% YoY growth to USD262.8bn.

Australian issuance increased 40% YoY to USD15.3bn in Q2 2026 from USD11.4bn, led by green bonds.

On a cumulative basis, Europe accounts for 40% of total issuance followed by North America (35%) and Asia (20%). Australia accounted for 2% of the total cumulative issuance.

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Source: Bloomberg for the period ended 30 June 2026 (sourced 2 July 2026)
Note: Bloomberg 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: SA Power Networks issued first fully aligned Australian Sustainable Finance Taxonomy green bond

• ANZ issued EUR750m Sustainable Development Goal (SDG) subordinated bond in May 2026. This represents the latest transaction under its updated SDG Bond Framework (November 2024) and followed the publication of its annual Use of Proceeds and Impact Report in December 2025. The issuance reinforces ANZ’s commitment to aligning its funding program with its AUD100bn Social and Environmental Sustainability Target. ANZ acted as Sole Lead Manager and Bookrunner.
  
  
• South Australian Government Financing Authority (SAFA) issued AUD2bn 10-year senior unsecured sustainability bond in May 2026. The transaction aligns with SAFA Sustainability Bond Framework (November 2023). Proceeds will be allocated to eligible environmental and social projects supporting the Government of South Australia's sustainability objectives. ANZ acted as Joint Lead Manager.
  
  
• Enliven successfully closed a AUD480m syndicated social loan in April 2026. This represents Enliven’s first labelled social loan dedicated to specialist disability accommodation in Australia. Proceeds from the facility will support ownership, development and an acquisition pipeline of specialist disability accommodation apartments, houses and villas. ANZ acted as Agent, Lender and Sole Sustainability Coordinator.
  
  
• Investa through ICPF Finance Pty Ltd secured a AUD250m 7.5-year green AUD medium-term note in May 2026. The issuance was certified under the Climate Bonds Standard and continues Investa’s strong track record in labelled issuance, with ICPF’s inaugural CBI certified green bond issued in 2017. ANZ acted as Joint Lead Manager and Joint Sustainability Co-ordinator.
  
  
• AIMS APAC REIT (AA REIT) secured SGD450m and AUD160m sustainability-linked loan facilities, together with a AUD115m unsecured syndicated facility that includes a AUD50m green loan tranche linked to the 5.5-star NABERS-rated Optus Centre. The sustainability-linked loan is tied to sustainability performance targets including Scope 2 emissions reduction, solar energy deployment and increased green lease adoption. The transaction supports AA REIT’s ongoing sustainable financing strategy while enhancing funding diversification and extending debt maturity. ANZ acted as Joint Mandated Lead Arranger and Lender.
  
  
• Powerco Limited issued AUD350m 10-year senior-secured Kangaroo green bond in April 2026, marking Powerco's successful debut in the Australian debt capital market and attracted strong participation from domestic and international investors. Proceeds will support investment in electricity distribution infrastructure, helping to strengthen network resilience and enable the electrification and decarbonisation of Aotearoa New Zealand's economy. ANZ acted as Joint Lead Manager and Joint Green Bond Coordinator.
  
  
• Asian Development Bank (ADB) issued NZD1.3bn 7-year senior Kauri health bond in May 2026. The transaction represents ADB’s largest‑ever NZ‑dollar deal and marks a return to the NZ-dollar market following a three‑year absence. Proceeds will be used to finance a pool of projects related to the health sector through governments of ADB members, financial institutions or investment in private sector health projects. ANZ acted as Joint Lead Manager.
  
  
• The World Bank (International Bank for Reconstruction and Development, IBRD) issued a NZD1.3bn 7-year Kauri bond in April 2026, marking the first Kauri market issuance of 2026 and the largest 7-year bond ever issued in the Kauri market. The transaction attracted strong demand from domestic and international investors and supports the World Bank’s broader funding program for development activities that promote resilience, job creation and shared prosperity in member countries. World Bank bonds are aligned with the ICMA Sustainability Bond Guidelines. ANZ acted as Joint Lead Manager.
  
  
• New Zealand Local Government Funding Agency (LGFA) issued NZD850m of sustainable financing bonds in April 2026. The transaction attracted over NZD2.8bn of demand, and provides funding for projects aligned with LGFA’s Sustainable Finance Framework, supporting environmental and social outcomes across New Zealand local government communities. ANZ acted as Joint Lead Manager.
  
  
• International Finance Corporation (IFC) issued a HKD6bn (approximately USD766m) 3-year green wonton bond in May 2026, marking the first-ever public green bond issued in the wonton bond market for Hong Kong dollar-denominated bonds issued by non-Hong Kong entities. Proceeds will be used to finance eligible green projects, including climate change mitigation and adaptation, biodiversity conservation and restoration, and ocean and water protection, under IFC’s Green Bond Framework (December 2022). The transaction highlights the growing depth of the Hong Kong sustainable debt market and broadens access to green investment opportunities in Asia. ANZ acted as Joint Lead Manager.
  
  
• The Government of the Hong Kong Special Administrative Region (HKSAR Government) issued approximately HKD27.6bn of green bonds and infrastructure bonds in May 2026, denominated in Hong Kong dollars (HKD), Renminbi (RMB), US dollars (USD) and Euro (EUR) with maturities ranging from 5 to 30 years. Green bond proceeds will be allocated to finance or refinance eligible green and low-carbon transition projects under the Government’s Green Bond Framework (February 2022), while Infrastructure Bond proceeds will support key infrastructure projects, including the Northern Metropolis, under the Infrastructure Bond Framework (September 2024). The offering attracted strong investor demand, with total orders reaching approximately HKD239bn equivalent, representing an 8.6x oversubscription. ANZ acted as Joint Lead Manager across all tranches.
  
  
• MTR Corporation (MTRC) successfully issued HKD18.888bn of triple-tranche senior unsecured green bonds in April 2026, marking its inaugural public Hong Kong dollar bond issuance. The transaction was the largest bond issuance in the Hong Kong dollar market to date with the size of each tranche representing the largest for the respective tenors to date. ANZ acted as Joint Bookrunner and Joint Lead Manager.
  
  
• VPBank secured a USD1.44bn 3-year sustainability-linked loan in April 2026, marking its first SLL and largest-ever syndicated financing in terms of the number of MLAUBs involved. The facility links financing terms to VPBank’s Sustainability Performance Targets (SPTs) and supports the bank's strategy to diversify its medium- and long-term funding sources while advancing its sustainable finance ambitions. The transaction attracted support from 15 international financial institutions, highlighting continued international investor appetite for sustainability-linked financing in Southeast Asia. ANZ acted as Mandated Lead Arranger and Bookrunner, Underwriter, and Joint Sustainability Coordinator.
  
  
• Korea Land & Housing Corporation (LH) issued an inaugural AUD500m 3-year Kangaroo social bond in May 2026, marking its first issuance in the Australian dollar market. Proceeds from the transaction will be allocated to public rental housing and other eligible social projects under LH’s Social, Green and Sustainability Bond Framework (September 2023), supporting housing afforsdability and access to housing across Korea. The issuance also diversifies LH’s funding sources and expands its access to international capital markets. ANZ acted as Joint Bookrunner and Joint Lead Manager.
  
  
• ICBC Financial Leasing successfully issued dual-currency Reg S senior-unsecured sustainability notes, consisting of a USD600m 3-year floating-rate tranche and a CNH1bn 5-year fixed-rate tranche in May 2026. ANZ acted as Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager.

Notable transactions globally

• The Government of Japan issued JPY250bn 5-year climate transition bonds in May 2026 as part of its ongoing Green Transformation (GX) Economy Transition Bond program, under which the Japanese Government plans to issue JPY20trn of transition bonds over 10 years to mobilise more than JPY150trn of public and private investment towards decarbonisation and industrial transformation. The bonds are aligned with the new ICMA Climate Transition Bond Guidelines (CTBG) published in November 2025, with proceeds allocated under Japan’s Climate Transition Bond Framework (November 2023). The framework was revised in January 2026 based on the GX2040 Vision approved by the Japanese Cabinet in February 2025. The issuance reflects continued growth in transition-labelled finance and the mobilisation of capital towards hard-to-abate sectors.
  
  
• Acea successfully issued an inaugural EUR500m 6-year blue bond in June 2026, marking the first Italian public issuance in blue bond format. Issued under the company’s Green & Blue Financing Framework (February 2025), the bond was more than three times oversubscribed, reflecting strong investor demand for blue finance. Proceeds from the transaction will be allocated to projects supporting the sustainable management and security of water resources, including reducing water network losses, strengthening climate resilience of water infrastructure and improving wastewater treatment and water reuse. The transaction highlights the increasing use of labelled debt instruments to finance water-related environmental outcomes.
  
  
• Henderson Land Development has secured Hong Kong’s first biodiversity-linked loan totalling HKD100m to support biodiversity-enhancing initiatives at its flagship Central Yards development. The transaction supports urban biodiversity restoration, conservation and enhancement, including the establishment of an urban forest, ecological corridors, and biodiversity monitoring. The facilities align with the Green Loan Principles of the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA). The facilities mark a significant step towards nature-positive finance and provide a benchmark for integrating biodiversity considerations into real estate financing.
  
  
• Ireland has raised EUR2bn through the syndicated tap of its 2043 Irish sovereign green bond. The transaction attracted strong investor demand, with orders exceeding EUR35bn from more than 200 investors. Proceeds will finance eligible expenditures under Ireland's Sovereign Green Bond Program, including projects supporting climate action, clean transport, biodiversity and environmental sustainability objectives.

Policy and governance updates

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

Global

• Climate Bonds Initiative (CBI) has launched a revised Climate Bonds Taxonomy that expands coverage to include assets, measures and selected resilience activities, broadens sector coverage to areas such as aviation, alternative proteins and methane abatement, and incorporates criteria from selected external taxonomies where Climate Bonds criteria do not yet exist. Alongside updated Waste Management Criteria and Climate Bonds Resilience Taxonomy Methodology publications, the changes signal a broader focus on transition and adaptation finance and greater interoperability across sustainable finance frameworks, while underlying technical thresholds remain largely unchanged as they continue to be governed through separate sector criteria.
  
  
• International Capital Markets Association (ICMA) has released a suite of updates to its sustainable finance guidance, including new FAQs for Climate Transition Bonds (CTB), enhanced guidance on the Green Bond Principles, comparisons with the EU Green Bond Standard, and analysis of investor demand for sustainable bonds. The CTB FAQs provide greater clarity on transition finance, including how transition projects differ from green projects and how the framework applies across issuer types, helping to improve market clarity and support uptake. The updates reinforce rising expectations for transparency, standardisation and credible transition pathways to maintain investor confidence.
  
  
• The Science Based Targets Initiative (SBTi) has released Version 2.0 of its Corporate Net-Zero Standard, positioning the update as a more practical implementation framework for companies moving from target-setting to delivery.V2.0 also includes an “illustrative requirement”, to be confirmed in a future V3.0, which proposes that from 2035, large companies must cover at least 1% of their Scope 1, 2 and 3 emissions through eligible carbon removals, rising linearly to 100% by their net zero target year (2050 at the latest).
  
  
• Launched during London Climate Action Week 2026, the Global Urban Data Centres Pact sets out a shared vision from city leaders and industry representatives for the sustainable development of urban data centres. The pact establishes principles covering integration with city planning, renewable energy use, resource efficiency, community engagement and transparency, while seeking to manage impacts on electricity demand, water use and local infrastructure. It also calls for data centres to contribute to local economic development and climate objectives through investment in clean energy, infrastructure and community benefits.
  
  
• The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) has released the first draft version of its framework, which aims to improve how businesses and financial institutions understand and report impacts, dependencies, risks and opportunities related to people. TISFD states that its framework aligns structurally with the Taskforce on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD) frameworks and is designed to support a more integrated approach to disclosures across people, climate, and nature.
  
  
• The Global Reporting Initiative (GRI) and the IFRS (International Financial Reporting Standards) Foundation have issued a joint interoperability statement reaffirming how GRI Standards and International Sustainability Standards Board (ISSB) can be used together. The statement clarifies common and complementary disclosures to help entities reduce duplication when reporting to investors and broader stakeholders.
  
  
• ISSB has agreed to propose nature-related disclosure requirements as an IFRS Practice Statement, drawing on the TNFD framework and complementing IFRS S1 and IFRS S2 without amending them. An exposure draft is targeted for October 2026.
  
  
• United Nations Environment Programme Finance Initiative (UNEP FI) has published sector-specific banking guidance for climate target-setting in shipping, aviation and cement, along with policy-engagement briefs for aviation and automotive / road transport. The materials support banks in setting and implementing sectoral climate targets and engaging policymakers on transition barriers in hard-to-abate sectors.
  
  
• International Standards Organization (ISO) launched a new standard for Sustainable finance – net zero transition planning for financial institutions, ISO 32212. The standard is designed to complement SBTi financial institution net-zero standards and the ISO 14060-series of climate standards.
  
  
• The Network for Greening the Financial System (NGFS) released a new package of tools to help central banks and supervisors assess and integrate nature‑related financial risks, building on its 2024 conceptual framework and covering data, scenario modelling, and supervisory practices to strengthen financial system resilience.
  
  
• The International Union for Conservation of Nature’s (IUCN) sets targets across biodiversity, climate and nature resilience, equitable use of nature, land, ocean and freshwater. The program includes stronger pathways for policy, finance and mainstreaming nature considerations.
  
  
• A Global Environment Facility (GEF) backed nature finance project has published stakeholder materials for a private finance “nature positive” framework. The materials focus on impact measurement, target-setting and investment guidance for financial institutions.
  
  
• Carbon Disclosure Project (CDP) has opened its 2026 disclosure cycle, following publication of its 2026 questionnaires and guidance in April. The cycle continues CDP’s alignment with IFRS S2, GRI, TNFD and datapoints covering forests, water, oceans, plastics and biodiversity.

Australia

• In April, the Clean Energy Regulator (CER) released data for the 2024-25 Safeguard Mechanism reporting period. 208 facilities were covered, with total covered emissions reducing to 132.8 Mt CO₂-e from 136.0 Mt CO₂-e in 2023-24. Fifty-four responsible emitters received approximately 6.7 million Safeguard Mechanism Credits (SMCs) for reporting covered emissions below their baseline emission threshold, a reduction on last year’s SMC issuance as baselines continue to reduce. CER has also announced the approval of an “Improved native forest management method 2026” now available for state and territory governments under the ACCU Scheme. Projects under this method generate ACCUs by stopping timber harvesting in defined areas of public native forest and reducing overall harvesting across the project area.
  
  
• The Australian Sustainable Finance Institute (ASFI) has established the Australian Taxonomy Steering Committee, with representation from ASFI, Treasury and DCCEEW and Australian Securities and Investments Commission (ASIC) participating as an observer, supported by governance arrangements including an Amendments Protocol for updating the Australian taxonomy. ASFI has also advanced sustainable finance policy and market development through Climate Action Week Sydney 2026 outcomes on financing climate adaptation and resilience, and taxonomy-linked submissions on National Environmental Standards and superannuation performance test reforms. ASFI also published a series of case studies from its Taxonomy Pilot implementation program, including a case study from ANZ supporting green bond transactions for Victoria Power Networks and South Australia Power Networks.
  
  
• The Green Building Council of Australia (GBCA) has confirmed that registrations for Green Star Buildings v1 closed on 30 April 2026, with v1.1 applying from 1 May 2026. The updated Climate Positive benchmarks include all-electric requirements. GBCA has also partnered with Data Centres Australia to establish a Sustainable Data Centres working group focused on defining best-practice sustainability outcomes across the design, construction and operation of data centres, reflecting growing attention on the sector’s energy, water and resource impacts.
  
  
• Australian Treasury has opened a second consultation on the proposed sustainable investment product labelling regime. The consultation covers scope, consumer-facing disclosures, thresholds and evidence requirements for sustainability claims.
  
  
• ASIC has published early observations from its review of the first sustainability reports under Chapter 2M and AASB S2, noting improving report quality and consistency while highlighting concerns around conflicting disclaimers, unclear assumptions and the obscuring of material climate information.
  
  
• ASIC’s Reporting and Audit Update has identified sustainability reporting, assurance and audit as key regulatory focus areas for 2026–27, including updated FAQs, lodgement resources and a further 2-year extension to the no-action position for second party opinion providers.
  
  
• Climateworks Centre has released and hosted work on an integrated national land-use framework using LUTO2 (Land Use Trade Offs Model v2) modelling. The work links climate, biodiversity, Indigenous land stewardship, economic considerations and regional transition planning.
  
  
• Queensland Treasury Corporation (QTC) has published its 2026 Sustainable Bond Framework Annual Report, as well as Annual Verification Statements from external verifier and certification for CBI Certified green bonds available from QTC's website.
  
  
• Western Australian Treasury Corporation (WATC) has released its Sustainable Bond Program Allocation and Impact Report 2026, providing an update on the allocation of green bond proceeds raised to the end of March 2026 and the outcomes being delivered across Western Australia. WATC also disclosed their contribution to the Australian Sustainable Finance Taxonomy Working Group, and the 95% alignment of their green bond project pool to the Taxonomy’s technical screening criteria.
  
  
• Bank Australia Limited published a new Sustainability Funding Framework which supersedes their existing Sustainability Bond Frameworks. Moody’s Ratings has provided a second party opinion, achieving an overall Sustainability Quality Score (SQS) 2 'Very good’.
  
  
• Treasury Corporation Victoria (TCV) has released an updated Sustainable Bond Framework, alongside an independent Second Party Opinion from Moody’s Ratings. Where applicable, technical screening criteria for Eligible Green Expenditures have been informed by the Australian Sustainable Finance Taxonomy. The Australian Sustainable Finance Institute stated “As the first semi-sovereign issuer to align with the technical screening criteria of the Australian Taxonomy, TCV is helping translate a national framework into market practice".

New Zealand

• New Zealand’s Centre for Sustainable Finance (Toitū Tahua) has released draft climate mitigation, adaptation and resilience criteria for the energy sector under the New Zealand Sustainable Finance Taxonomy. The criteria aim to establish a consistent framework for classifying sustainable and transition-aligned energy activities, with alignment to international taxonomies including the EU, Australia and ASEAN frameworks.
  
  
• New Zealand’s Financial Markets Authority (FMA) has released updated guidance for financial products with sustainability-related characteristics, replacing earlier 2020 and 2022 integrated financial product guidance. The guidance is built around four principles: claims must be clear, substantiated and consistent, and third-party involvement must be effectively managed. It also has updated its climate reporting entity information, covering who is in scope, exemptions, record-keeping, monitoring, levies and no-action relief for entities expected to be relieved from mandatory reporting.
  
  
• The New Zealand Government has announced further changes to its mandatory climate-related disclosure regime, removing health and life insurers on the basis that they are less directly exposed to climate-related risks than general insurers. The reform follows earlier amendments that increased reporting thresholds for listed issuers and removed managed investment schemes, reducing the number of reporting entities from 164 to around 67. The Government stated that the changes are intended to lower compliance costs and focus reporting obligations on larger entities considered most relevant to the regime.

Asia

• Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group has released a Phase 1 operational guide for transition finance in the technology sector, focused on ICT. The guide focuses on entity-level financing and investment, helping financial institutions assess corporate climate transition strategies for general-purpose financing.
  
  
• The Sustainability Standards Board of Japan (SSBJ) has issued a practical standard on using disclosures under Japan’s greenhouse gas reporting system when complying with the SSBJ Climate Standard. SSBJ has also confirmed continued alignment with ISSB Standards and amended three standards in response to the ISSB’s IFRS S2 greenhouse gas emissions amendments. The changes support Japan’s staged mandatory disclosure roadmap.
  
  
• Japan’s Financial Services Agency roadmap materials show that Prime Market companies will apply SSBJ Standards in annual securities reports in stages by market capitalisation. Mandatory assurance is expected to start one year after application.
  
  
• Vietnam has issued Decree 112/2026/ND-CP, establishing domestic legal rules for participation in international carbon markets, including Article 6 transfers, corresponding adjustments, approvals and registry requirements. Vietnam has also issued Circular 48/2026/TT-BTC, guiding surveillance of trading in greenhouse gas allowances and carbon credits on Vietnam’s domestic carbon exchange, including reporting requirements for exchanges and clearing bodies. Circular 48 also establishes the domestic carbon exchange framework, covering registration, coding, custody, trading, settlement and centralised management of greenhouse gas quotas and carbon credits.
  
  
• The Monetary Authority of Singapore has issued transition planning guidelines for banks, insurers and asset managers. Although released just outside the strict April window, the guidelines remain relevant for Asia, with an effective date in September 2027 following an 18-month transition period.
  

Europe

• The European Council has agreed its position on Sustainable Finance Disclosure Regulation (SFDR) reforms, aiming to simplify disclosures, reduce administrative burden, and improve comparability of sustainable investment products. The proposals would replace the Article 8/9 regime with three new product categories – “sustainable” (Article 9), “transition” (Article 7), and “ESG basics” (Article 8).
  
  
• European Securities and Markets Authority (ESMA) has published the register of firms authorised to act as external reviewers of European Green Bonds. Only 5 external reviewers are listed: S&P, Moody’s (France and Germany), Sustainable Fitch, and ISS Corporate. This is down from 40 entities listed as external reviewers on ESMA’s transitional regime register.
  
  
• The UK’s Financial Conduct Authority (FCA) has released a report setting out its findings from a Transition Finance Pilot led by the FCA and supported by the Prudential Regulation Authority (PRA) and the Green Finance Institute (GFI). They found a set of system-level challenges that affect how efficiently capital is matched to opportunity. They identified 3 main challenges: Some climate solutions struggle to reach a commercial maturity sufficient to attract private capital. Capital is not always well-matched to opportunity, despite strong appetite. Information and capacity gaps create frictions.
  
  
• The German government has restarted a sustainable finance advisory board with the aim of helping it simplify sustainable finance regulation and bolster transition finance in the country. The group includes representatives from German banks, investors, legal advisers, and policy think tanks.
  
  
• The European Union and partner development finance institutions have signed the Global Green Bond Initiative (GGBI) Fund, a new public-private investment tool to mobilise up to EUR20bn of private capital for sustainable infrastructure projects in low- and middle-income countries. Asset management company Amundi has said that they will act as the asset manager to the GGBI Fund.
  
  
• The European Commission has launched a consultation on the draft revised European Sustainability Reporting Standards (ESRS) and a voluntary sustainability reporting standard for smaller companies. They state that the draft revised ESRS are shorter and clearer, add new flexibilities, and streamline key processes. They expect the changes to cut per‑company reporting costs by more than 30%, reduce mandatory datapoints by over 60%, and cut total datapoints by over 70%.
  
  
• The European Banking Authority (EBA) has proposed a major simplification of ESG reporting and disclosure requirements, including a significant reduction in supervisory reporting datapoints, revised Pillar 3 ESG disclosures aligned with ESRS and Capital Requirements Regulation 3 (CRR3), and a proportionate “core plus supplement” framework that streamlines requirements for larger banks while extending ESG disclosure obligations to all institutions with reduced requirements for smaller and non-complex banks. Separately, the EBA has advanced the integration of climate risk into prudential supervision through a draft methodology for the 2027 EU-wide stress test, which introduces a dedicated climate risk module covering transition and physical risks alongside macro-financial shocks.
  
  
• The European Central Bank has updated its good-practice compendium for climate and nature-related risk management and stress testing, drawing on practices from more than 60 supervised institutions. The update highlights remaining gaps in physical and nature-related risk measurement, prudential transition planning, internal capital adequacy assessment process (ICAAP) integration and stress testing, while noting that banks now have foundational risk architectures in place.
  
  
• The European Commission has published an EU Deforestation Regulation simplification review package, including updated guidance and FAQs, Information System materials and a draft delegated act on product scope ahead of application from late 2026. The Commission indicated that simplification measures could reduce annual compliance costs by around 75%, while draft amendments also adjust covered products and downstream obligations.
  
  
• The European Commission has published draft implementing rules on how carbon prices paid outside the EU can reduce CBAM certificate obligations, covering evidence, calculation and certification requirements. EU CBAM guidance confirms that the definitive regime started on 1 January 2026, with authorised declarants required to surrender certificates and able to deduct proven carbon prices already paid in producing countries.
  
  
• The Bank of England has announced changes to the Bank’s collateral eligibility framework for the Sterling Monetary Framework (SMF) including that bonds issued by corporates that derive revenue from thermal coal mining will not be eligible as collateral. The announcement also stated that bonds issued by G10 and Australian regional and local governments and development/policy banks, of high credit quality (broadly equivalent to AA-) and meeting the Bank’s collateral and settlement requirements, will be eligible as Level B collateral from 19 June 2026.

North America

• The US Securities and Exchange Commission (SEC) has proposed rescinding its 2024 climate disclosure rules in full, returning the SEC to a materiality-focused disclosure framework and opening a 60-day comment period. The proposed rollback would remove requirements for public-company climate-related risk, governance, certain greenhouse gas emissions and severe-weather financial-impact disclosures.
  
  
• The California Air Resources Board (CARB) has advanced an initial climate disclosure regulation setting 10 August 2026 as the first Senate Bill (SB) 253 reporting deadline for Scope 1 and Scope 2 emissions. CARB’s 2026 workshop process has also covered implementation options for 2027–2030, including Scope 3 reporting, organisational boundaries, greenhouse gas accounting methods, reporting templates and assurance standards. CARB’s SB 261 enforcement remains paused pending litigation, but voluntary climate-related financial risk report submissions are being accepted through CARB’s public docket.
  
  
• Canada announced that they have established a new Taxonomy and Transition Planning Council to lead the development of a national sustainable finance taxonomy and climate transition planning guidance, with the inaugural chair and members announced on 8 April 2026 by an independent Appointment Committee. Canada’s taxonomy development process is expected to include a Methods and Frameworks report for consultation in mid-2026, with six priority sectors to be completed in phases by the end of 2027.
  
  
• New York reportedly amended its 2019 climate law during the 2026 legislative session, including changes to greenhouse gas accounting and climate target settings. Environmental advocates have argued that the changes weakened the state’s climate policy framework.

Africa

• South Africa has published a Sustainable Finance Framework to support the issuance of Green, Social and Sustainability Financing Instruments. It is supported by a Second Party Opinion provided by S&P Global. South Africa’s National Treasury has stated that it may consider issuing ZAR- and USD-denominated instruments in line with its broader funding strategy, market conditions, and investor demand. National Treasury also intends to expand the Framework to accommodate sustainability-linked financing.
  
  
• Kenya is reportedly planning to issue a Sustainability-Linked Bond, following the publication of its Sustainability-Linked Financing Framework. Targets include increasing rural electricity access to at least 82% of the population by 2030 from 68% in 2023 and limiting loss of natural forest cover to below 44,000 hectares (109,000 acres), with a step-up in coupon if Kenya misses the targets and a step-down if Kenya outperforms the targets.

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

Coalition Greenwich Voice of Client Australia Large Corporate Relationship Banking Study

• #1 Market Leader in ESG/Sustainable Finance 2021-2026.
  
  
• #1 Lead Bank for ESG/Sustainable Finance 2023-2026.
  
  
• #1 ESG Insights and Advice 2022-2026 (=#1 in 2022 and 2024) ranking vs majors.

ANZ Sustainable Finance, “Out and About”

• David Simmons spoke at the ‘Australia & The Pacific Ocean Business Leaders’ Summit 2026’ in Cairns, Australia discussing the growing but still underdeveloped blue finance market, and the role these instruments can play in directing more capital towards ocean and freshwater outcomes. The session highlighted the importance of the ocean economy, which contributes ~200bn in economic output for Australia, and supports more than 700,000 jobs. Discussions covered the increasing investor, regulatory and board-level attention on nature- and water-related risks, and the importance of nature-related disclosure adoption to help make the blue economy more investable over the coming years.
  
  
• Glenn Syme joined over 400 delegates at the Carbon Market Institute’s tenth annual Carbon Farming Industry Forum, held this year in Fremantle, Australia. The Forum brought together carbon project proponents, policymakers and demand-side participants under the theme “Carbon, Nature & Regional Prosperity”, to explore how the Australian Carbon Credit Unit (ACCU) Scheme can expand its support of meaningful climate, nature and First Nations outcomes. The program included insightful pre-Forum site visits to Plantrite Seedling Nursery and Biologic's Biodiverse Carbon Project.
  
  
• London Climate Action Week 2026 was hosted during the final week of June and attracted more than 75,000 participants across over 1,000 events. The program was organised around the theme “Climate Collaboration in a Fragmented World” and brought together policymakers, financial institutions, corporates, investors, civil society organisations and academics to discuss climate-related challenges and opportunities. The occurrence of exceptionally high temperatures in London during the week underscored the growing importance of climate adaptation and resilience, which featured prominently alongside discussions on decarbonisation. ANZ representatives Katrina Santos Li and Poppy Brinsley attended a broad cross-section of sustainable finance, climate risk, taxonomy, resilience, energy transition and AI-related events throughout the week.
  
  
  • Energy security and electrification remained core priorities. The launch of the Electrify Now global platform by governments, business groups, think tanks and civil society organisations aim to accelerate the electrification of the global economy whilst supporting the COP31 action agenda target of increasing electrification to 35% of final energy demand by 2035. Many of the sessions throughout the week linked resilience, energy independence and climate competitiveness.
    
    
  • Artificial intelligence and data centres were among the most prominently discussed topics. Participants examined both the potential for AI to support the energy transition and the challenges associated with growing electricity demand from data centres. Attention focused on energy efficiency, grid integration, renewable energy procurement, infrastructure investment and the role of digital technologies in enabling a more resilient energy system.
    
    
  • Insurance and protection gaps also emerged as a major theme. Discussions focussed on the growing mismatch between climate-related economic losses and insurance coverage, as well as the role of risk-transfer mechanisms such as catastrophe bonds and parametric insurance. Speakers highlighted the need for increased investment in resilience measures and the continued development of insurance and capital market solutions to address the growing financial impacts of climate-related risks.
• In June, Daniel Ota and Bronwyn Corbet hosted customers from various sectors for a roundtable discussion with the Lord Mayor of Melbourne, Nicholas Reece, and the Executive Director of C40 Cities, Mark Watts. Attendees discussed how to accelerate the translation of sustainable finance into investable, city-based climate solutions, exploring pathways for collaboration that connect global capital, national policy, and local project pipelines.

ANZ publications and research

• ANZ Research published analysis on strengthening copper demand driven by the rapid expansion of AI-related power and data centre infrastructure and renewable energy investment, despite ongoing macroeconomic headwinds. The note assesses how rising energy security concerns and supply constraints are tightening global copper market balances, with a focus on China, Asia and key copper-producing regions.
  
  
• The Commodity Call report published by ANZ Research outlines the rebalancing of global commodity markets amid energy supply disruptions, tightening critical mineral markets and ongoing geopolitical volatility. Rising energy security concerns, decarbonisation trends and investment in electricity infrastructure are increasingly shaping commodity market fundamentals, supporting demand for transition metals such as copper and nickel while reinforcing the role of renewable energy deployment, carbon market reforms and supply-chain resilience in long‑term market outcomes.