October Global Regulatory Brief: Green finance

The Global Regulatory Brief provides monthly insights on the latest risk and regulatory developments. This brief was written by Bloomberg’s Regulatory Affairs Specialists.

The financial sector continues to face new rules and government expectations as part of the broader effort to aid the green transition. The following green finance policy developments represent a sample of wider regulatory and policy coverage available to Bloomberg Terminal customers. Run REGS <GO> to find out more or contact your Bloomberg representative to learn more:

• EU: Parliament Moves Forward on Omnibus Negotiations
• Singapore: MAS appoints new Chief Sustainability Officer
• Switzerland: Federal Council to Align Due Diligence Law with EU CSDDD
• UK: FCA notes strengthening in sustainability-linked loan market

European parliament endorses simplified sustainability reporting and due diligence rules

The European Parliament’s Legal Affairs Committee has approved its position on the European Commission’s Omnibus simplification package. The revised draft narrows the scope of companies required to report, simplifies disclosure standards, and limits due diligence rules to the largest firms.

Context

The Omnibus proposal was presented in February 2025 by the European Commission and aims to cut administrative burdens and enhance EU competitiveness by simplifying ESG reporting from companies.

Key takeaways

• MEPs propose that only companies with more than 1,000 employees and over €450 million in annual turnover be required to undertake sustainability reporting. 
• Firms falling outside the scope would report Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy data on a voluntary basis following Commission guidance. Large companies would be prohibited from demanding sustainability data beyond these voluntary standards from smaller partners.
• Sector-specific reporting would become voluntary and European Sustainability Reporting Standards (ESRS) would focus on quantitative disclosures to ease cost and compliance burdens.
• The Commission would establish a free online portal with templates, guidelines, and reporting information to complement the European Single Access Point.
• Obligations under the Corporate Sustainability Due Diligence Directive (CSDDD) would apply only to EU firms with over 5,000 employees and €1.5 billion in turnover, or foreign companies meeting the same EU turnover threshold. 
• Companies would face national, rather than EU-level, liability for due diligence breaches, with fines capped at 5% of global turnover.
• Large firms would still be required to prepare a transition plan aligned with the Paris Agreement.

Next Steps

The European Parliament is due to adopt the position in a plenary sitting next week, after which interinstitutional negotiations with the EU Member States (Council) and Commission are expected to begin in late October or November to finalise the legislative text under the Omnibus package.

MAS appoints new Chief Sustainability Officer

The Monetary Authority of Singapore (MAS) has appointed Ms. Abigail Ng as its new Chief Sustainability Officer (CSO), effective October 6, 2025. Ms. Ng, currently the Department Head of the Markets Policy & Consumer Department, will take over from Ms. Gillian Tan, who had concurrently held the CSO role with her duties as Assistant Managing Director (Development & International) since October 2022. This transition marks the move to a dedicated CSO role as MAS’s sustainability agenda enters a more mature phase.

Key takeaways

• The leadership change reflects MAS’s decision to dedicate the CSO role as its Sustainability Group (SG) agenda matures. The outgoing CSO, Ms. Gillian Tan, will focus on her position as Group Head of the Development & International Group.
• Under Ms. Tan’s three-year tenure, the Sustainability Group spearheaded several significant initiatives to advance sustainable finance in Asia, including:
• Finance for Net Zero Action Plan: A strategy aimed at mobilizing financing to support Asia’s shift to a low-carbon economy.
• Singapore-Asia Taxonomy: An effort to establish consistent and clear standards for sustainable financing.
• Key Transition and Blended Finance Initiatives: The launch of the Transition Credits Coalition (TRACTION) and the Financing Asia’s Transition Partnership (FAST-P) to accelerate the energy transition.
• Talent Development: The Sustainable Finance Jobs Transformation Map to boost skills and competencies within the sector.
• The incoming CSO, Ms. Abigail Ng, is expected to leverage her extensive background in sustainability issues, including her experience in formulating sustainability disclosure policies and collaborating with international and diverse stakeholders, to lead the Sustainability Group in its next phase.

Next steps

Looking ahead, there would likely be continued focus on MAS’ key efforts like the Singapore-Asia Taxonomy and blended finance platforms (TRACTION, FAST-P). Given Ms. Ng’s expertise in policy, her tenure may also bring greater focus to sustainability disclosure requirements. This dedicated leadership structure reinforces the MAS’s commitment to advancing Singapore’s role as a key regional hub for sustainable finance.

Switzerland to align due diligence law with EU CSDDD

The Swiss Federal Council has announced plans to introduce a corporate due diligence law aligned with the EU Corporate Sustainability Due Diligence Directive (CSDDD). A draft legislative proposal is expected by March 2026 based on the EU’s final framework following adoption of the first Omnibus package.

Context

The initiative follows renewed political momentum in Switzerland, spurred by a popular initiative launched in summer 2025 with support from over 280,000 citizens and a broad civil society coalition. 

Key takeaways

• Swiss government will design its due diligence law in line with the EU’s CSDDD framework.
• Announcement responds to strong domestic political and civil society pressure.
• Signals convergence of Swiss and EU approaches to sustainability and responsible business conduct.
• Companies headquartered or operating in Switzerland should anticipate tighter requirements on human rights and environmental due diligence, particularly for multinationals with cross-border operations.

Next steps

• Draft legislation to be presented by March 2026.
• Text will be coordinated with the EU’s final CSDDD as amended under the Omnibus simplification package.

FCA publishes letter on sustainability-linked loans market

The Financial Conduct Authority (FCA) has published a letter highlighting progress in the overall functioning of the sustainability-linked loans (SLLs) market since its last review in 2023. The letter highlights the importance of robust internal controls, governance frameworks, and transparency in SLL arrangements. 

Key takeaways

Overall, the FCA recognises that – despite headwinds – the SLL market has matured, with firms adopting better practices and stronger product structures. Specifically, the FCA noted: 

• Improvements in the quality of SLL structuring, including more robust KPIs and stronger governance processes; 
• Post-transaction monitoring could be a tool to inform self-assessments of existing approaches to SLL provision and help ensure internal frameworks evolve to account for best practice; 
• Regulated firms should remain alert to risks of misleading disclosures and ensure sustainability claims are accurate and appropriately communicated. 

Next steps: Firms should continue to review their internal systems and governance arrangements for SLLs in light of the FCA’s observations. The FCA will continue to work closely with the UK’s Transition Finance Council as it drives forward the UK Government’s recommendations to promote a credible transition finance ecosystem.