What Comes Next: How Climate, Nature, and Governance Rules Evolved in Q3 2025

In our latest C-Suite Guide for Q3 2025, we highlighted that regulatory activity around sustainability topics and corporate disclosure continued to move toward heightened scrutiny and sector specificity. At the same time, policymakers across many regions pursued simplification measures.

Last quarter, the EU’s efforts to streamline reporting prompted other jurisdictions to pause or align with ISSB standards. State governments in the US continued to develop more sustainable policies, contrasting with rollbacks at the federal level, especially concerning greenhouse gas (GHG) reporting.

Carbon regulation gained momentum globally, with the EU preparing for the 2026 Carbon Border Adjustment Mechanism (CBAM) rollout and a number of emerging markets advancing frameworks for carbon pricing.

Consolidation and enforcement are forthcoming, but there is still work to be done before climate, nature, and governance risks are more closely embedded in financial systems and competitive strategies. This article offers a snapshot of these key regulatory themes covered in the C-Suite Guide, along with best practices for applying policy developments.

US State Policies Respond to AI and Data Center Energy Demands

Last quarter, New York and Pennsylvania advanced energy use policies aimed at AI and data centers. New York passed acts to impose restrictions to protect ratepayers, while Pennsylvania introduced one offering incentives to drive growth. 

These actions, aligned with moves from other states like California, Texas, Maine, and Colorado, signalled that states are accelerating efforts to experiment with energy governance.

Climate and Sustainability Reporting Recalibration Continued

The EU advanced simplification measures, adopting the Quick Fix Delegated Act that reduced reporting requirements for wave one companies already disclosing under CSRD. It also released proposed revisions to the European Sustainability Reporting Standards (ESRS), which cut mandatory data points by 57%

These measures prompted pauses and adjustments across jurisdictions, reinforcing the International Sustainability Standards Board (ISSB) as the global baseline. In contrast, US progress remained highly fragmented.

Diverse Policy Instruments Helped Accelerate Global Carbon Regulation

Carbon regulation accelerated worldwide in Q3 2025. Türkiye, China, and South Africa advanced new carbon frameworks, and the EU finalized key steps toward the 2026 CBAM rollout. 

Emerging taxonomies in Asia reinforced the broader region’s alignment with climate goals, and a partnership between the GHG Protocol and the International Organization for Standardization (ISO) to unify carbon accounting marked a milestone in global emissions governance.

Best Practices for Applying Q3 Policy Developments 

Stay On Top of Regulatory Changes with Datamaran

Datamaran gives you a centralized view of how sustainability regulations change in real time, along with other insights to help you build your sustainability strategy. Global companies use our platform to navigate CSRD, ISSB, state-level climate rules, global due diligence laws, and more, providing early visibility on draft legislation and policy shifts to anticipate and respond to these changes. 

Every quarter, we use platform data to produce a Quarterly Policy Brief for clients and Harbor+ members. The exclusive report provides a comprehensive overview of policy changes, consultation timelines, strategic takeaways, and granular insights on global regulations. 

Our C-Suite Guide is a bite-sized version for leaders on global and regional policy developments and trends.