【ESG News】Global Trends Biweekly Newsletter Issue 63 (2026.7.6-2026.7.19)

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Hong Kong ESG trends

Asia Climate Summit (ACS) returns in 2026

Organised by IETA and co-hosted by the Financial Services and the Treasury Bureau (FSTB), Securities & Futures Commission of Hong Kong (SFC), and Hong Kong Exchanges and Clearing Limited (HKEX), ACS2026 was successfully held on 7-9 July. The Summit convened senior leaders from business, government, finance, and civil society to shape the next phase of carbon markets across Asia. Combining regional insights with global perspectives, the Summit focused on how market-based solutions can drive credible climate action, investment, and sustainable growth.

Key themes will include:

• CBAM: Understanding Carbon Border Adjustment Mechanisms and their regional implication
•  CORSIA: Advancing aviation decarbonisation and global climate commitments
• Article 6: Enabling market integration and cross-border cooperation
•  Carbon pricing and taxes: Strengthening incentives and real-economy impact
•  Voluntary carbon markets: Scaling high-integrity credits that deliver measurable outcomes 
• Digital infrastructure: Leveraging interoperable data, MRV, and verification technologies to support transparent, efficient markets

Source: https://www.ieta.org/events/asia-climate-summit-acs-2026

Lianhe Green Insights

The inaugural hosted 2026 Asia Climate Summit (ACS) in Hong Kong underscores the city’s core position as a hub for green finance and cross-border carbon trading in the Asia-Pacific. Focusing on key issues in global carbon rule reforms, the Summit addresses cutting-edge topics including the EU CBAM, aviation decarbonisation, and Article 6 cross-border transactions under the Paris Agreement, bridging international standards with Asian local markets. Jointly co-hosted by the Hong Kong SAR Government, the SFC, and HKEX, the event signals strong policy synergy. It is set to enhance regional digital carbon infrastructure, standardise voluntary carbon credits, and enable mainland and international capital to leverage Hong Kong for cross-border low-carbon investment and financing—accelerating the development of an integrated carbon market in Asia.

International ESG trends

Korea Expands Mandatory Sustainability Reporting to More Companies

Korea’s Financial Services Commission (FSC) announced the release of its finalized roadmap for sustainability (ESG) disclosure, significantly lowering thresholds and expanding the mandatory scope compared to its initial draft. Under the new regulations, mandatory disclosure thresholds have been directly lowered: starting in 2028 (based on 2027 data), KOSPI-listed companies with assets exceeding KRW 10 trillion (approx. USD $6.7 billion) will be the first required to report in line with Korea Sustainability Standards Board (KSSB) standards aligned with the ISSB (IFRS S1 and S2). In 2029, coverage will further expand to companies with assets of KRW 5 trillion, bringing the number of subject companies in the first and second phases to over 290 and 3,100, respectively. Furthermore, following a review in 2028–2029, authorities plan to consider lowering the threshold to KRW 2 trillion starting in 2030.

The roadmap includes transitional reporting reliefs: Scope 3 greenhouse gas emission disclosures for all companies will be postponed by three years, while small businesses that are not high-carbon emitters will be fully exempted. For the first three years, companies will be exempted from legal liabilities such as damage compensations or criminal penalties regarding their disclosure content, though intentional greenwashing will still be strictly penalized. Additionally, third-party verification requirements for reporting will take effect starting in 2030.

Source: https://www.mcee.go.kr/home/web/board/read.do?boardId=1876300&boardMasterId=939&menuId=10598

Lianhe Green Insights

South Korea’s lowered ESG disclosure threshold and alignment with ISSB standards reflect a clear commitment to enhancing capital market transparency and global competitiveness. While the three-year grace period and delayed Scope 3 requirements provide essential compliance breathing room, strict stance against "intentional greenwashing" remains uncompromised. By balancing short-term corporate relief with a structured long-term roadmap, Korea effectively paves the way for high-quality sustainability reporting, reinforcing its standing in Asia-Pacific green finance.

EC Issues Formal Notices to All 27 Member States on Energy Performance of Buildings Directive

The European Commission has launched infringement procedures and sent formal notice letters to all 27 EU member states for failing to fully transpose the revised Energy Performance of Buildings Directive (EPBD) into national law by the May 29, 2026 deadline. The directive mandates zero-emission status for all new public buildings by 2028 and all new residential/commercial buildings by 2030, while targeting a complete phase-out of fossil fuel boilers by 2040. It also sets binding renovation targets for existing property stocks, including a 16% reduction in average primary energy use for residential buildings by 2030. Member states now have two months to respond, complete their legislation and notify the Commission. If their responses are inadequate, Brussels may issue reasoned opinions and later refer cases to the EU Court of Justice.

Source: https://energy.ec.europa.eu/news/commission-calls-eu-countries-transpose-reinforced-rules-energy-performance-buildings-2026-07-15_en

Lianhe Green Insights

The EU’s collective infringement action against all member states exposes a notable disconnect between the bloc’s top-down building decarbonisation policies and national implementation progress. The updated EPBD establishes a phased low-carbon framework, requiring zero-fossil emissions for new public buildings by 2028 and all new buildings by 2030, alongside a full phase-out of fossil boilers by 2040 to achieve zero-emission building stock by 2050. This enforcement move demonstrates the EU’s firm stance on unifying regional green building standards. In the long run, this policy will reshape the low-carbon transformation landscape of Europe’s construction sector and consolidate the foundation of the EU’s overarching carbon neutrality and fossil fuel phase-out strategies.

Mainland China ESG trends

Notice on the Issuance of the "15th Five-Year" Plan for Solid Waste Pollution Prevention and Control

Six government departments, including the Ministry of Ecology and Environment, issued the "15th Five-Year" Plan for Solid Waste Pollution Prevention and Control. The goal is to achieve significant results in special solid waste rectification in key sectors and achieve full coverage of the solid waste informational supervision "single network" across key fields by 2030. This marks China's first five-year special plan dedicated to solid waste pollution prevention and control.

Source: https://www.mee.gov.cn/xxgk/hjyw/202607/t20260701_1160745.shtml

Lianhe Green Insights

The "15th Five-Year" Plan for Solid Waste Pollution Prevention and Control, jointly released by six departments, establishes quantified management targets covering all categories of solid waste governance, including industrial waste, hazardous waste, and decommissioned renewable energy equipment. Utilizing remote sensing smart controls to construct a region-wide supervision network, the plan advances the remediation of historical piles and expands "zero-waste cities." By resolving solid waste environmental risks through closed-loop, full-chain control, it balances pollution reduction with resource utilization, reinforcing the ecological safety barrier for a Beautiful China.

Six Departments Issue Plan to Protect Soil, Groundwater, and Agriculture and Rural Ecological Environment

Six departments led by the Ministry of Ecology and Environment have jointly released the 15th Five-Year Plan for the Protection of Soil, Groundwater and Agricultural & Rural Eco-environment. The plan states that by 2030, soil environmental safety of agricultural and construction land will be effectively guaranteed, soil and groundwater quality will maintain steady improvement, green agricultural development will be significantly advanced, and major breakthroughs will be achieved in building beautiful villages.

Source:   http://big5.www.gov.cn/gate/big5/www.gov.cn/lianbo/202607/content_7075968.htm

Lianhe Green Insights

The 15th Five-Year Plan on soil, groundwater and rural ecological protection rolled out by six departments improves diversified assessment indicators and arranges six major treatment projects. It coordinates soil and groundwater remediation with beautiful village development, safeguards the bottom line of food and drinking water safety, and lays a solid foundation for advancing the Beautiful China initiative.