Upcoming: NatWest to host “Women in Sustainability” event in The Netherlands for the first time

On Thursday 9 October at Simmons & Simmons’ Amsterdam office, the inaugural Women in Sustainability event in The Netherlands will be bringing together female leaders in the Dutch sustainability sector. 

This first edition will explore the power of adaptation and resilience, both from a personal and professional perspective. 

Register here

UK Government developing UK-specific Sustainability Reporting Standards (UK SRS) Framework

The UK Government is developing a UK SRS framework aligned with the ISSB’s (International Sustainability Standards Board) IFRS S1 and S2, aiming to replace TCFD (Task Force on Climate-related Financial Disclosures) and provide consistent, comparable disclosures.

A phased implementation is planned, with mandatory climate-related disclosures starting in FY2026 or FY2027 for listed companies and financial institutions, and full sustainability reporting—including Scope 3 emissions—required from FY2028.

The consultation, which closed September 17, 2025, explored extending UK SRS beyond FCA-regulated entities to companies under the Companies Act 2006.

Proposed amendments include removing timing reliefs to align with financial statements, extending climate-first reporting relief, and allowing flexibility in industry classification beyond Global Industry Classification Standard.

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UK Transition Finance Council launches new reports

On 15th September the Transition Finance Council (TFC) presented their two new reports at their Autumn Showcase in London:

• Mid-Year Progress Report which captures the first six months of the Council’s work, progress against the Transition Finance Market Review recommendations, and the path ahead.
• Finance Playbook is a practical guide to embedding finance in sector transition plans and mobilising investment for real-economy decarbonisation

Transition Pathway Initiative (TPI) publishes State of Corporate Transition 2025 Report

TPI published their State of Corporate Transition 2025 report on 17th September, an analysis of over 2,000 publicly listed companies which has found that they lack the core components of credible transition plans.

The TPI Centre assessed companies on their Management Quality (MQ) and Carbon Performance (CP), two distinct but connected types of analysis of companies’ progress on the low-carbon transition. Management Quality focuses on governance processes, while Carbon Performance focuses on benchmarking the emissions reduction targets of companies against Paris Agreement goals.

98% of companies have not disclosed plans to shift capital away from carbon-intensive assets or to align spending with their long-term decarbonisation goals.  

Publicly listed companies across high-emitting sectors are set to exceed the 1.5°C global emissions intensity budget by 61% between 2020 and 2050 on their current trajectory.   

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MSCI Research finds higher ESG ratings translate to more indexed capital 

Companies with the highest MSCI ESG Ratings (AAA) attracted significantly more indexed investment—15 times more than those rated CCC—highlighting how stronger sustainability credentials can drive capital flows. 

Firms aligned with a 1.5°C Implied Temperature Rise (ITR) received more than double the passive investment compared to those with ITRs above 5.0°C, showing that climate alignment is becoming a key factor in investor decision-making. 

With over $1 trillion in assets benchmarked to MSCI’s Sustainability & Climate Indexes, the financial impact of strong ESG performance is increasingly tangible, influencing both capital access and borrowing costs. 

These findings suggest that companies aiming to attract passive investment and gain financial advantages should strategically focus on benchmarking and improving their sustainability metrics.

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SBTi launches draft net zero standard for the power sector

The Science Based Targets initiative (SBTi) has released a draft Net-Zero Standard for the power sector, aiming to guide companies across generation, transmission, distribution, and retail in setting science-based targets aligned with 2050 climate goals.

The draft includes fossil fuel phase-out requirements, asking companies to disclose transition plans for unabated coal, oil, and gas assets, with region-specific retirement timelines and a halt to new investments in such capacity.

It also introduces sector-specific criteria such as sustainable biomass sourcing by 2030 and limited exemptions for non-baseload natural gas assets needed for grid stability, reflecting the power sector’s enabling role in broader decarbonisation.

The release comes amid political scrutiny in the U.S., including investigations into SBTi’s practices, and is accompanied by a public consultation open until 3 November, 2025.

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TVO issues inaugural buclear EU GBS

NatWest acted as a bookrunner on TVO’s €500 million, 7.5-year inaugural EU Green Bond Standard (EUGBS) transaction, marking the first EUGBS deal to finance nuclear energy; 42% of orders and 57% of allocations came from ESG-focused investors based on NatWest’s proprietary ESG scoring tool.

TVO has issued €970 million in green instruments since 2023, spanning medium-term notes (MTNs), U.S. private placements (USPPs), and public bonds.

According to the EU Green Bond Factsheet, 100% of proceeds from the bond will (re)finance EU Taxonomy-aligned nuclear energy projects, specifically activities 4.27 and 4.28 related to new and existing nuclear power generation.

TVO’s 2024 green bond report confirms that all funds from the EUGBS transaction were used to refinance the OL3 nuclear power plant investment.

Welsh Water Issues 12-year GBP sustainability bond

Welsh Water launched a 12-year GBP sustainability bond under its August 2024 Sustainable Finance Framework, with approximately 92% of proceeds allocated to water management, pollution control, and climate adaptation, with NatWest acting as Active Bookrunner.

Investor demand was strong among ESG-focused accounts, with 76% of allocations going to investors with strong (64%) or moderate (12%) ESG commitments, based on NatWest’s proprietary ESG scoring tool.

The framework includes six green and one social eligible category, covering areas such as renewable energy, biodiversity conservation, and access to essential services, with a Second Party Opinion (SPO) provided by DNV.

As of March 2025, £740.8 million in net proceeds had been allocated, with the majority directed to sustainable water and wastewater management (£482.1m), pollution prevention and control (£108.1m), and climate change adaptation (£94.6m).

Snam completed redetermination for its SLBs

Snam completed a redetermination of baselines for its €750 million and £600 million sustainability-linked bonds issued in November 2024, due to changes in emissions data following an acquisition and a switch in data providers.

The updated baselines cover Scope 1, 2, and 3 emissions, were reviewed and confirmed by second-party opinion provider ISS and align with ICMA Sustainability-Linked Bond Principles.

Bondholder consent was not required for the redetermination, as the changes were procedural and validated through external review.

Western European vs. US Fund Flows – Weekly and Cumulative SRI/ESG (2024-2025ytd)

T.Rowe Price launches blue bond strategy after securing over $200m for the fund

T. Rowe Price launched its Blue Bond Emerging Markets Strategy in partnership with the International Finance Corporation (IFC), securing $200 million in initial commitments from investors including Xylem and Builders Vision.

The strategy invests in corporate bonds from emerging market companies that meet jointly developed Blue Impact Investment Guidelines, targeting projects such as marine conservation, wastewater treatment, and clean water infrastructure.

The fund was first announced in April 2024 with $75 million commitments each from T. Rowe Price and IFC, and an additional $50 million raised before the official launch.

Blue bond issuance in 2025 totals just over $2 billion, down from $4.4 billion in 2024, with notable contributions from Brazilian firm SABESP; T. Rowhe Price aims to expand this underdeveloped market segment.

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Sustainability commitments drive €29 billion away from BlackRock and LGIM, into Robeco reflecting Dutch pension fund sustainability strategy

Robeco was awarded €15.4 billion in investment mandates by PGGM on behalf of PFZW, reflecting PFZW’s strategic shift from passive investing to sustainability-focused active management under its Investment Policy 2030.

PFZW’s new policy emphasizes return, risk, and sustainability, requiring investments to meet minimum standards, support UN SDGs and the Paris Agreement, and deliver measurable social value in areas like climate, health, and biodiversity.

BlackRock and LGIM lost mandates totalling €29 billion due to their alignment with passive strategies and sustainability-related concerns, while Robeco secured mandates for equity and credit strategies co-designed with PGGM.

Robeco’s selection was based on its sustainability expertise, including proprietary tools like the SDG Framework and Climate Traffic Light, and its active engagement approach aimed at improving portfolio companies’ sustainability performance.

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UK government release on Greenhouse Gas Removal Business Model

The Department for Energy Security & Net Zero have released a Greenhouse Gas Removals Business model to provide clarity on the integration of engineered GGRs into the UK Emissions Trading Scheme which will be legislated in 2028 and operational in 2029. 

A 15-year Contracts for Difference model would guarantee a revenue stream for project developers as projects will receive a price guarantee for Qualifying GGR credits (strike price) to reflect the cost of removing 1 tonne of CO2. The strike price is to be bilaterally negotiated with projects and covers eligible operational expenses and repayment of capital expenditure plus a rate of return on capital investment. 

The model aims to instil confidence in investors to unlock private finance and enable deployment of cost-effective GGR projects which create value to the UK economy. 

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DEFRA updates to extended producer responsibility scheme (EPR) guidance 

EPR in the UK is a mandatory scheme for obligated UK organisations who import or supply packaging and holds the producers responsible for the full life-cycle of their products.  

From October 2025, invoices will be charged for packaging placed on the market in 2024. The World Bank inked integration of the voluntary plastics market to EPR schemes, though following the UN Plastics Treaty talks in Geneva in August 2025 further clarity is still required.

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Green Finance Institute: Financing Nature Podcast Series

The series produced by the Green Finance Institute showcases practical solutions to mobilise private sector finance into the restoration of nature and nature-based solutions.

Episodes include discussions and case studies around the UK Biodiversity Net Gain Market, U.S Mitigation Banking, the Taskforce on Nature-related Financial Disclosures (TNFD) and Landscape Enterprise Networks. 

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Regular articles from us on market-moving themes, and updates on what we are doing to further our ESG commitment. Read more

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Sustainability Solutions platform

We’ve launched a new climate platform to help cut costs and support businesses in their transition to become more sustainable. The main features of the platform are a focus on lower emission vehicles and solar potential. The tool has a quick calculator function where businesses can gather quick costings and estimated savings and also generate in-depth solar reports to find tailored recommendations of local suppliers. Explore the tool here. 

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Or, for Corporates looking to discuss any of the above further, please reach out to our authors:

• Caroline Haas, Head of Sustainable Finance Advisory 
• Dr Arthur Krebbers, Managing Director, Sustainable Finance Advisory 
• Rui Zu, Sustainable Finance Advisory
• Thomas Gidman, Sustainable Finance Advisory
• Daniel Bressler, Sustainable Finance Advisory
• Helen Ferguson, Sustainable Finance Advisory
• Niceasia Mc Perry, Sustainable Finance Advisory
• Isabella Crack, Sustainable Finance Advisory
• Zeyno Yurddas, Sustainable Finance Advisory