Keeping up with ESG - Extended Spring Edition 2025

Hello reader 👋

Read time: 8-10 minutes

Highlights:

• Companies hold climate targets, while CDP scores collapse
• Germany scraps LkSG, its key due diligence law
• Climate risk remains a blind spot, and a business driver
• UNGC submission guide: get it done efficiently
• LME tests green price premia, new RMI standard out, and more

KEY REPORTS

Despite the pushback, companies hold the line on climate

According to the Reuters Events whitepaper, major U.S. companies aren’t walking back their commitments: 96% are sticking to climate targets, and 90% of investors continue ESG-focused strategies, regardless of the political backlash.

This just confirms that the “ESG is dead” narrative is mostly noise — a PR backlash with no real fundamentals underneath. The dogs bark, but the caravan moves on. We unpacked this in detail on the HC Commodities podcast with Paul Chapman, partner at the HC Group and the key voice in commodities. We talked about the anti-hype, why ESG isn’t dead, and what sustainability leaders should actually focus on right now. Listen to it here.

Compliance-driven sustainability doesn’t deliver value

New research from MIT CISR looked at 360 companies and confirmed what many sustainability professionals already knew: compliance-driven sustainability adds cost but little value unless tied to a broader ambition.

Their study shows that real performance gains come when sustainability goals are embedded into business strategy and backed by strong, data-driven capabilities, especially those tied to customer and stakeholder needs. If a company wants to lead, sustainability has to make business sense. Now there’s data to prove it.

CDP scores tank after surprise methodology change

The latest CDP results show a steep drop in scores. Some blame the anti-ESG wave, but that’s lazy analysis: submissions closed in October, long before the backlash picked up. The much likelier driver is a silent methodology overhaul done in 2024. CDP gave no warning and no transition period, suddenly demanding far more complex and granular data.

It’s no surprise that companies were caught off guard. Many of our clients had to submit half-filled reports simply because the required metrics had never been tracked. The drop reflects just how much groundwork is needed to build proper data systems once you know what to report. Expect a rebound, but not before the 2026 cycle to allow for proper system setup.

First CSRD disclosures: climate risk is a blind spot

EY’s new barometer analysed 200 early CSRD-aligned sustainability statements. No surprises on key material topics: 100% flagged S1 “Own Workforce,” 99.5% E1 “Climate Change,” 95% G1 “Business Conduct.”

A surprisingly high number — 78% — disclosed a climate transition plan. Yet only 8% reported the financial effects of climate risk. Either they haven’t run the numbers, or they have — and didn’t like what they saw.

It likely means that climate risk will be a core area of investment for sustainability and finance teams in 2025 and beyond: testing methodologies, building internal capability, and figuring out how to report without spooking investors. We called this in our 2025 outlook. Also expect a wave of risk mitigation spending, before the real consequences show up. Speaking of the business case, this is one of the clearest.

REGULATORY UPDATES

Germany suspends supply chain requirements

Germany’s SPD and CDU/CSU have agreed to abolish the Supply Chain Act (LkSG) and replace it with the EU’s upcoming CSDDD. Reporting obligations are suspended effective immediately (except for cases of serious human rights violations), and enforcement is on hold until CSDDD comes into force, likely mid-2028 under the Omnibus.

It’s a big regulatory shift. But don’t expect companies to suddenly stop doing due diligence. LkSG forced many to map their supply chains, understand risk, and build resilience — skills they now rely on in a world of trade wars, actual wars, and endless disruptions. Good supply chain risk management is good business.

And, I have to say, the regulatory drama is exhausting. At this point, it feels like season five of a Shonda Rhimes show: escalating plot twists just to keep us watching. Great for Sunday night TV, less so for building an effective sustainability program.

ECB pushes for lower CSRD threshold, Parliament wants higher

To add to the drama, on May 8, 2025, the European Central Bank (ECB) warned that the European Commission’s proposal to cut 80% of companies from CSRD scope could undermine financial stability, investor transparency, and climate targets. The ECB recommends keeping companies with over 500 employees in scope using simplified reporting standards, arguing that cutting them out entirely would restrict access to critical risk data.

Meanwhile, the Parliament’s lead negotiator is proposing to raise the threshold to 3,000 employees. At this point, the only rational strategy might be to stop refreshing news feeds and wait for the final text. The process now looks like this

CBAM update: Authorisation now mandatory

The European Commission has published the official rules for CBAM declarant authorisation under Implementing Regulation (EU) 2025/486. Starting 28 March 2025, importers must apply to become authorised CBAM declarants. National authorities have 120 days to approve or reject applications.

From 1 January 2026, only authorised declarants can import CBAM-regulated goods into the EU. No authorisation, no import. This is another milestone in CBAM implementation. If you’re importing affected products, make sure to apply on time.

NEW PRODUCTS AND RELEASES

UNGC CoP Guide: What you need to report and how to do it faster

The 2025 Communication on Progress (CoP) is due 31 July. For UNGC members, it’s mandatory, and the new format isn’t exactly plug-and-play. It usually involves hours of digging through documents, rewording answers, and trying to match their reporting to the UNGC questionnaire.

We created a focused guide to help sustainability teams understand what’s required, align existing disclosures, and avoid rework.

And with beSirius, you don’t need to start from scratch. Upload your existing disclosure, and the algorithm will fill out the full CoP questionnaire quickly and painlessly.

button "Download guide" - https://app-eu1.hubspotdocuments.com/documents/145365222/view/1227380730?accessId=1380d5 - #5F5DDF

‍LME tests sustainability premiums for metals

On April 23, 2025, the LME announced it’s exploring sustainability-linked premia for aluminum, copper, nickel, and zinc, to make low-carbon production financially visible and tradable. The move builds on its earlier work with Metalshub on low-carbon nickel, with plans for an independent body to set thresholds, criteria, and handle verification.

Key questions for the initiative to move forward:

• Will producers disclose product-level sustainability data, still too commercially sensitive for most?
• Can the data be trusted or compared if everyone uses a different methodology?

Without consistent measurement, comparing carbon footprints is nearly impossible, and risks penalising the most transparent players.

RMI releases new standard suite for ESG risks in supply chain

The Responsible Minerals Initiative (RMI) has launched a new standard suite to help companies assess and manage ESG and OH&S risks across their operations and mineral supply chains. Aligned with global frameworks and new regulations like the EU Battery Regulation, the suite strengthens due diligence with updated tools, trainings, and technical support.

[be]SIRIUS NEWS

beSirius: New round, new brand, same mission

In April, we announced our new round (also picked up by African Mining Indaba 👀), our new-old name (yes, you all called us beSirius anyway), and dropped our Manifesto. If you follow what we’re building, it’s worth a read.

It puts on paper what we’ve been saying for a while:

• Reporting was never the point.
• We don’t need more reports, we need data that’s structured, reusable, and actually supports decisions.
• Business cases. Budgets. Priorities. That’s what matters.

The manifesto lays out the why. ‍‍

Green Digest x beSirius: my interview in the CSO series

In case you missed it: I joined Ardit’s new Green Digest CSO interview series for a conversation on what’s actually happening in sustainability teams. No sugarcoating and bs, just a frank discussion on regulatory uncertainty and how to survive it, broken reporting systems, and why building real sustainability data infrastructure matters more than ever.
button "Read it here" - https://www.greendigest.co/p/interview-series-anastasia-kuskova - #5F5DDF