News in the spotlight: ISSB Updates IFRS S2 to Ease Climate Disclosure for Finance Sector
The International Sustainability Standards Board (ISSB) has issued targeted amendments to the greenhouse gas (GHG) emissions disclosure requirements in IFRS S2 Climate-related Disclosures. These changes address specific application challenges encountered by companies implementing the Standard.
Products and Services
Osmosis Debuts USD 80 Million Emerging Markets Fund Targeting Resource Efficiency
Osmosis Investment Management has launched the Osmosis Emerging Markets Core Equity Transition Fund, a UCITS-compliant vehicle targeting resource-efficient companies in emerging markets. The fund debuted on December 10, 2025, with USD 80 million in seed capital from the IMAS Foundation. This initiative stems from a three-year research effort to standardize environmental data on carbon, water, and waste across emerging market sectors, enabling quantitative portfolio construction previously hindered by data limitations. The strategy mirrors Osmosis’s established USD 15 billion developed markets approach, selecting firms that outperform peers in resource efficiency, which correlates with superior management, profitability, and lower leverage. It aims to beat the MSCI Emerging Markets benchmark while slashing exposure to carbon, water, and waste by about 60 percent, offering a nuanced alternative to exclusionary low-carbon tactics. Emerging markets, responsible for over two-thirds of global CO₂ emissions and rising energy demand, underscore the fund’s climate relevance.
Gresham House secures EUR 250m first close for global sustainable forestry strategy
Gresham House, a specialist alternative asset manager, has achieved a first close exceeding EUR 250 million for its Sustainable International Forestry Strategy Platform. The initiative garnered anchor commitments from Worcestershire Pension Fund and NGS Super, marking the inaugural investment by an Australian superannuation fund in a Gresham House strategy. Announced on 10 December 2025, the platform emphasizes long-term opportunities in sustainable forestry and natural capital. Classified as an Article 9 product under the Sustainable Finance Disclosure Regulation (SFDR), the strategy embeds environmental, social, and governance (ESG) principles across the investment lifecycle through Gresham House’s Forestry Charter. It prioritizes sustainable forest management, carbon sequestration, biodiversity enhancement, and community benefits, in line with global standards advanced by the firm’s role in the International Sustainable Forestry Coalition. These efforts support climate change mitigation and rural economic development.
Bound4blue raises USD 44 million to expand wind propulsion tech for greener shipping
bound4blue, a developer of wind propulsion systems, secured USD 44 million in funding on 9 December 2025 to scale its eSAIL suction sails for maritime decarbonisation. The round, led by OCTAVE Capital and Katapult Ocean, drew participation from maritime corporates, shipowning families, and climate investors including Motion Ventures, Odfjell family office, ReOcean Fund, Shift4Good, GTT Strategic Ventures, KAI Capital, and CDTI (Innvierte SICC). Suction sails harness wind to generate thrust, reducing engine loads, fuel consumption, and CO2 emissions by up to 40% on voyages, as verified independently on vessels like Ville de Bordeaux and Odfjell’s Bow Olympus. The technology supports regulatory compliance under CII, EEXI/EEDI, FuelEU Maritime, and EU ETS frameworks, offering immediate retrofits for existing fleets and integration into newbuilds amid the industry’s “retrofit decade”. Leading shipowners such as Maersk Tankers, Eastern Pacific Shipping, Odfjell, Klaveness Combination Carriers, and BW Epic Kosan have adopted the solution, with seven installations completed and twelve vessels in the orderbook.
Regulations, Law and Frameworks
ISSB Updates IFRS S2 to Ease Climate Disclosure for Finance Sector
The International Sustainability Standards Board (ISSB) has issued targeted amendments to the greenhouse gas (GHG) emissions disclosure requirements in IFRS S2 Climate-related Disclosures. These changes address specific application challenges encountered by companies implementing the Standard. The amendments stem from feedback gathered during the ISSB’s earlier consultation. They offer reliefs and clarifications to facilitate compliance while preserving the decision-usefulness of information for investors. Disruption to jurisdictions adopting or using ISSB Standards is minimized. Effective for reporting periods beginning on or after 1 January 2027, early application is permitted. Consequential amendments align financed emissions metrics in three SASB Standards with the updated IFRS S2 requirements. ISSB Vice-Chair Sue Lloyd emphasized that the amendments deliver timely relief without compromising investor-relevant data. Documents are accessible via the IFRS Sustainability Standards Navigator and the project page for Amendments to Greenhouse Gas Emissions Disclosures.
GRI Opens Public Consultation on Updated Labour Standards Focused on Workforce Rights
The Global Reporting Initiative (GRI) has launched a public consultation on updated Topic Standards for workers’ rights, covering GRI 414 (Workers in Business Relationships), GRI 409 (Forced Labor), GRI 408 (Child Labor), and GRI 407 (Freedom of Association and Collective Bargaining). Announced on International Human Rights Day, December 10, 2025, the consultation period runs until March 9, 2026, following approval by the Global Sustainability Standards Board (GSSB). These revisions address ongoing global labor challenges, such as worker poverty, informal employment, gender disparities, and persistent child and forced labor, while responding to demands for enhanced value chain accountability. Proposed changes expand disclosures on due diligence, incident reporting, grievance mechanisms, worker engagement, and remediation across operations and business relationships. This final phase of the GRI Labor Project builds on prior consultations and involves a Technical Committee with tripartite representation. Global webinars are scheduled for December 16, 2025, and February 18, 2026.
Net Zero Commitments
Munich Re Sets 2030 Climate Targets for Underwriting and Investments
Munich Re has unveiled its new multi-year strategy, Ambition 2030, succeeding the nearly completed Ambition 2025, which the company expects to exceed across all financial and non-financial targets. The strategy, themed “Outpeak – Outpace – Outperform,” emphasizes superior underwriting, organizational efficiency, and market leadership through diversified growth in reinsurance and primary insurance segments. Financial objectives through 2030 include a return on equity exceeding 18 percent, average annual earnings per share growth above 8 percent, a total payout ratio surpassing 80 percent yearly, and a solvency ratio above 200 percent. These targets build on robust performance, with projected 2026 group net profit at EUR 6.3 billion, insurance revenue of EUR 64 billion, and return on investment above 3.5 percent. Earnings diversification will elevate contributions from life and health reinsurance, Global Specialty Insurance, and ERGO to approximately 60 percent of net results by 2030.
Google Signs First Ocean Carbon Removal Deal with Ebb Carbon
Ebb, a climate and water technology company based in South San Francisco, California, has signed an initial carbon removal offtake agreement with Google to remove 3,500 tons of CO2 from the atmosphere. This prepurchase deal supports Ebb’s electrochemical technology, which accelerates ocean alkalinity enhancement by processing desalination brine into alkaline solutions that capture atmospheric CO2 and store it durably in seawater. The agreement follows Ebb’s partnership with the Saudi Water Authority to deploy its system across desalination facilities, potentially enabling up to 85 million tonnes of annual CO2 removal at full scale. Ebb’s modular technology integrates with existing desalination infrastructure, intercepting brine discharge to enhance ocean alkalinity while boosting freshwater yield and generating chemical co-products for industrial use. Global desalination capacity supports billions of tonnes of potential annual carbon removal through this method. Ebb collaborates with Alphabet’s X lab to utilize the process’s acid co-product for recycling concrete waste, aiming for cost-negative sequestration and circular economy benefits.
Leadership Announcements
CalSTRS Names Nick Abel Director of Sustainable Investment Strategy
The California State Teachers’ Retirement System (CalSTRS), the world’s largest educator-only pension fund managing USD 385.8 billion in assets as of October 31, 2025, has appointed Nick Abel as director of Sustainable Investment and Stewardship Strategies (SISS), effective December 2, 2025 . Abel brings over a decade of global experience in investing, including prior roles at CalSTRS since 2020, Wespath Investment Management, RVK, Inc., and Saturna Capital. He succeeds Kirsty Jenkinson, now senior investment director of Private Markets and SISS, and reports to her. In this position, Abel leads the SISS team and portfolio, focusing on global private asset investments that deliver financial returns alongside climate solutions. His responsibilities include fostering sustainability collaborations across CalSTRS private-market classes, overseeing proxy voting per Corporate Governance Principles, engaging corporations and policymakers on stewardship priorities, and advancing the Teachers’ Retirement Board’s net zero portfolio emissions strategy .