THE RIPPLE EFFECT, FY25 - FEBRUARY EDITION

Welcome to Sodali & Co's Ripple Effect, our monthly snapshot of key industry trends and insights in the world of sustainability, ESG and corporate governance in Australia.

Here’s what’s making headlines this month.

Breaking Down the Omnibus: Implications for the CSRD

On February 26, 2025, the European Commission proposed the Omnibus package to streamline the CSRD, CSDDD, and EU Taxonomy regulations. This package, introduced two years after the CSRD’s enforcement, will significantly affect reporting eligibility, timing, and requirements for many companies. The Commission aims to simplify sustainability reporting and due diligence to address economic stagnation and reduce administrative burdens, especially for SMEs. Companies should understand the Omnibus package’s implications for their CSRD preparedness strategy.

Transforming Australia SDG Progress Report 2024 | MSDI

The Monash Sustainable Development Institute (MSDI) has released its third report assessing Australia's progress towards achieving the Sustainable Development Goals (SDGs). Findings show that more effort is needed to address climate change and biodiversity loss in Australia, along with improving social equity and wellbeing, particularly among Indigenous communities. 

TNFD Issues New Sector Guidance | TNFD

The Taskforce on Nature-related Financial Disclosures (TNFD) has released a second tranche of sector guidance to support companies as they assess, manage and disclose nature-related issues. The new guidance covers four sectors and brings the total number of sectors for which the TNFD provides guidance to 13. 

Global Risks Report 2025 | WEF

The World Economic Forum (WEF) has released its findings from the Global Risks Perception Survey for 2024-25. Survey respondents, which include leaders in business, government and civil societies, identified risk of misinformation and disinformation, extreme weather events, and state-based armed conflict as the most significant risks in the next 2 years. 

The NZIF: New Implementation Guidance for Objectives and Targets | IIGCC

The Institutional Investors Group on Climate Change (IIGCC) recently updated its recommendations for asset owners and managers when setting net-zero targets and developing related transition plans. The Net Zero Investment Framework (NZIF) is widely adopted by investors and supported by the Investor Group on Climate Change. 

Statement regarding consideration of diversity factor in US director election assessments | ISS

Following Presidential Executive Orders on DEI, Institutional Shareholder Services (ISS) announced that it will no longer consider the gender, racial or ethnic diversity of US company boards when making its voting recommendations. These changes do not impact ISS’ policy for Australian companies.