News in the spotlight: Stafford launches USD 1.2 billion global sustainable timberland fund
Stafford Capital Partners launched a USD 1.2 billion Timberland Continuation Fund on December 4, 2025, consolidating three existing core funds (VI, VII, VIII) into a perpetual vehicle holding 74 high-quality assets across 6.3 million acres…
Products and Services
Microsoft Invests in AI-Driven Carbon Removal Startup Pantheon
Microsoft has made a strategic investment in Pantheon, a nature-based carbon removal startup, as part of its broader climate commitment and goal to become carbon negative by 2030. Pantheon focuses on regenerative forestry and ecosystem restoration, using satellite data and AI to measure and verify carbon sequestration more precisely. The partnership aims to enhance the scalability and impact of high-integrity carbon removal projects. Pantheon emphasizes community-centered approaches and scientific rigor in its operations to ensure sustainable and verifiable outcomes. Microsoft’s investment reflects increasing corporate demand for durable carbon removal solutions and supports Pantheon’s efforts to integrate technology-backed monitoring, reporting, and verification (MRV) into ecosystem restoration. This collaboration also advances Microsoft’s Climate Innovation Fund mission to accelerate the development of climate solutions through early-stage investments.
STX Group Launches Platform to Streamline Global EAC Procurement
STX Group has announced the launch of its new climate tech platform, designed to streamline the procurement of Energy Attribute Certificates (EACs) for companies aiming to meet their renewable energy and decarbonization targets. The platform offers centralized access to thousands of EAC products across over 50 countries, supporting various compliance and voluntary carbon goals. Users can customize EAC selection based on technology, geography, and certification standards like EACs, RECs, GOs, and I-RECs. The tool enables greater transparency, audit readiness, and cost efficiency, while also providing detailed insights into climate risk mitigation and avoided emissions. This launch is positioned as part of STX Group’s broader mission to support over 5,000 clients worldwide in navigating clean energy procurement and environmental market strategy. The company emphasizes that the platform can facilitate impactful purchasing decisions aligned with science-based targets, ensuring both environmental and financial accountability.
Stafford launches USD 1.2 billion global sustainable timberland fund
Stafford Capital Partners launched a USD 1.2 billion Timberland Continuation Fund on December 4, 2025, consolidating three existing core funds (VI, VII, VIII) into a perpetual vehicle holding 74 high-quality assets across 6.3 million acres in the US, New Zealand, Australia, and Latin America. Backed by 73% rollovers from existing investors—including 54% from UK Local Government Pension Funds—and new commitments, the diversified portfolio offers stable returns with planned sales of 28% of assets targeting over 8% cash yields in the next decade. In 2024, it achieved net sequestration of 2.1 million tCO2e—equivalent to 500,000 cars’ emissions—projecting 17.5 million tCO2e removals over 10 years, while protecting over 200,000 hectares for biodiversity and ecosystem services.
Regulations, Law and Frameworks
FCA Proposes Oversight of ESG Ratings Providers to Boost Transparency
The UK Financial Conduct Authority has unveiled plans to regulate ESG rating providers to make sustainability scores more transparent, reliable and comparable for investors and companies alike. Triggered by new government legislation bringing ESG ratings into the FCA’s remit, the proposed regime focuses on four pillars: stronger transparency of methodologies, tighter governance and controls, robust management of conflicts of interest, and clearer rules for stakeholder engagement and complaints handling. The FCA argues that proportionate oversight will bolster trust in ESG data, support the UK’s position as a global sustainable finance hub, and deliver an estimated £500 million in net benefits over the next decade. A consultation is open until 31 March 2026, with final rules expected in late 2026 and the new framework applying from June 2028.
EFRAG Proposes Simplified Sustainability Reporting Standards for Listed SMEs
EFRAG has delivered its final technical advice to the European Commission on draft simplified European Sustainability Reporting Standards (ESRS), slashing mandatory datapoints by 61% and eliminating all voluntary ones for a total reduction exceeding 70%. Key reforms streamline double materiality assessments with clearer guidance, reduced documentation, a top-down option, and flexibility to skip full annual reviews unless significant changes occur, while easing value chain data burdens by allowing estimates over direct collection. Additional reliefs include proportionality for “reasonable and supportable” info without undue cost, phase-ins for tough disclosures like financial effects, and enhanced interoperability with ISSB standards on fair presentation and GHG boundaries. These changes, part of the EU’s 2025 Sustainability Omnibus, aim to cut compliance burdens, boost competitiveness, and uphold Green Deal goals without diluting transparency. The Commission will now draft a Delegated Act, likely applying revised ESRS from financial year 2027 onward.
PCAF Releases 2025 GHG Accounting Standard to Enhance Emissions Reporting by Financial Institutions
The Partnership for Carbon Accounting Financials (PCAF) launched an updated Global GHG Accounting and Reporting Standard for the Financial Industry on December 2, 2025, enhancing methodologies for financed emissions (Part A) and insurance-associated emissions (Part C), alongside new supplemental guidance on financed avoided emissions and forward-looking metrics. Developed by over 100 experts from PCAF’s 680+ global signatories, the revisions introduce innovative methods to cover diverse financial instruments like loans, investments, and insurance—without altering existing approaches—closing gaps in portfolio emissions tracking. Institutions can adopt these tools immediately but may phase them in with transparent disclosures on coverage and exclusions, promoting harmonized Scope 3 Category 15 accounting to boost transparency and risk management across the sector.
PRA issues PS25/25 to strengthen climate risk management in banks and insurers
The Prudential Regulation Authority (PRA) issued PS25/25 on December 3, 2025, updating Supervisory Statement SS3/19 to strengthen UK banks’ and insurers’ management of climate-related risks through enhanced governance, risk frameworks, scenario analysis, and data quality. The proportionate policy—effective immediately—requires firms to integrate climate risks into board oversight, risk registers, ICAAP/ILAAP/ORSA processes, and disclosures, tailored to business models and exposures rather than firm size. Responding to industry feedback, clarifications emphasize flexibility, such as using existing structures, judgement on materiality and litigation risks, and a six-month internal review period before supervisory scrutiny, without mandating new roles or excessive costs. This builds resilience amid rising physical and transition threats, aligning with international standards while supporting sustainable growth via the Climate Financial Risk Forum.