February 2026 Newsletter

Latest sustainability stories for February 2026.

FCA proposes alignment with ISSB on climate disclosures

The UK Financial Conduct Authority (FCA) has launched a consultation to overhaul sustainability reporting requirements for listed companies, proposing mandatory adoption of the UK’s forthcoming IFRS‑based Sustainability Reporting Standards (UK SRS) from 2027. The changes would expand reporting beyond current TCFD‑aligned climate disclosures, aiming to provide investors with clearer, more consistent information on sustainability risks and opportunities. The FCA intends to phase in more complex elements such as Scope 3 emissions on a “comply or explain” basis to reflect companies’ readiness. The proposal aligns UK reporting with international ISSB standards and aims to reduce duplication for overseas issuers. Read our full article here.

Momentum builds for sustainable investing and SFDR Articles 8 and 9

Momentum behind SFDR Article 8 and 9 funds is accelerating, driven by renewed investor interest and strong sustainable finance activity. In 2025 Deutsche Bank reported its strongest year for sustainable finance since 2021, citing €98 billion in ESG and sustainable investments and highlighting “renewed demand” across business lines. At the same time, a Morgan Stanley report found that assets in Article 8 and 9 funds surpassed $10.2 trillion in 2025, rising 23% on continued inflows and market appreciation. Despite outflows from some Article 9 products, Article 8 funds saw broad-based inflows, signalling sustained investor appetite for ESG‑aligned strategies and strengthening the overall momentum behind SFDR‑classified funds.

New York passes Bill requiring Scope 1–3 emissions disclosure for large companies

New York lawmakers have passed the Climate Corporate Data Accountability Act, requiring large U.S. based companies with over $1 billion in revenue to annually disclose their Scope 1, 2, and 3 greenhouse gas emissions. The Department of Environmental Conservation will develop implementing regulations, with reporting phased in beginning in 2027. The bill aligns with California’s SB 253 and is part of a broader set of environmental measures targeting toxic chemicals and air quality. It now awaits Governor Kathy Hochul’s signature. Supporters say the law will strengthen oversight, close data gaps, and improve climate transparency for consumers and regulators.

New lease of life for NZAM

In 2025, the Net Zero Asset Managers initiative (NZAM) entered a new phase after a major update to its commitment statement, removing explicit 2050 targets to reflect diverse regulatory environments. In late January 2026, a group of 42 asset owners representing over $2.3 trillion urged other managers to join NZAM, emphasising that the revised framework strengthens science‑based, fiduciary‑aligned climate commitments and sends a clear market signal of credible net‑zero ambition. The Brunel‑led Asset Owner Statement reinforces that NZAM remains a vital tool for managing climate‑related financial risks, calling for transparent disclosures, robust stewardship, and integration of climate considerations into investment decisions.

Court overturns Texas anti‑fossil fuel boycott rule

A federal judge in Texas has overturned the state’s anti‑fossil‑fuel boycott law, Senate Bill 13, ruling it unconstitutional for violating the First and Fourteenth Amendments. The law had barred state agencies from investing in or contracting with financial firms deemed to “boycott” fossil fuel companies, using on a state‑maintained blacklist. The court found the statute unconstitutionally vague and punitive toward protected speech, noting companies could be penalized merely for climate‑related viewpoints or affiliations. The decision halts enforcement of the law, which critics said cost Texans millions and blacklisted reputable firms.

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