The Week in Corporate Sustainability: SEC abandons defence of climate rule

Your weekly summary of corporate sustainability news.

The US Securities and Exchange Commission (SEC) has confirmed it will not defend its climate disclosure rule. The incoming requirement for companies to report on their climate risks was facing legal challenges from states, companies and NGOs. The regulator, which has shifted to the right since Donald Trump returned to office, wrote to the court this week withdrawing its defence.  

The International Standards Organisation is turning its net-zero guidance into an official global standard for companies. As well as input from ISO’s national members, the standard is being informed by groups including the Voluntary Carbon Markets Initiative, the World Business Council for Sustainable Development and the We Mean Business Coalition. A consultation is slated for later this year, with the aim of publishing the final version by early 2026. 

The UK’s safeguarding minister, Jess Phillips, reportedly told companies this week that the government expects them to find modern slavery in their supply chains, due to its prevalence. Phillips was speaking at the launch of updated statutory guidance from the Home Office on how businesses should report on modern slavery, and ways they can tackle it. 

The International Sustainability Standards Board (ISSB) has launched a new tool to support regulators and market participants adopt or use its reporting standards in their jurisdictions. 

Shell, Equinor and TotalEnergies will invest $700m into expanding a carbon storage project in western Norway. The second phase of the Northern Lights project is expected to increase transport and storage capacity from 1.5 million tonnes of carbon dioxide per year to more than five million from 2028.