Global CSR Trends

We’ve called efficiency the unsung hero of the energy transition in the past. While the energy transition will happen first through the transition of energy usages, like the shift with transport, from internal combustion engines to electric vehicles, or from fuel or gas boilers to heat pumps, we cannot ignore the utmost priority of the energy transition: efficiency. Efficiency is the greatest path to reduce our energy use, our impact on the world’s climate through CO2 emission reduction, and very importantly, the best way to make solid and practical savings. In its most historical form, energy efficiency is about better insulation, to reduce heating (or cooling) loss in buildings like family homes, warehouses, office high rises, and shopping malls. This is useful, but expensive and tedious to realize on existing installations. Digitizing home, buildings, industries and infrastructure brings similar benefits at a much lower cost and a much higher economic return. The combination of IoT, big data, software and AI can significantly reduce energy use and waste by detecting leaky valves, or automatically adjusting heating, lighting, processes and other systems to the number of people present at any given time, using real-time data analysis. It also allows owners to measure precisely progress, report automatically on their energy and sustainability parameters, and benefit from new services through smart grid interaction. And this is just the energy benefit. Automation and digital tools also optimize the processes, safety, reliability, and uptime leading to greater productivity and performance.

39 countries have now adopted or are actively developing sustainability taxonomies (as of Dec 2025). Yet during the #Omnibus debate, policymakers argued that the EU is becoming isolated with its regulatory ambitions. This overview by Datamaran shows how taxonomy frameworks are rapidly evolving globally. While only 11 taxonomies are currently mandatory, the direction of travel is clear: many non-EU countries are moving to close the gap in sustainability regulation. We see a similar trend in sustainability reporting where major jurisdictions have released standards (e.g. China just very recently) and the ISSB's standards are gaining traction in many countries. 👉 In a global regulatory environment, it is vital to move early and keep pace. First movers shape standards, influence market practice, and create reference points that others build upon. Otherwise, the sustainability rules for EU companies will be written elsewhere...

The world isn’t ready for what’s coming next in sustainability data. We’re quietly living through the creation of a financial infrastructure for sustainability—and it’s happening faster than most realize. Over 2,000 sustainability regulations have emerged globally in the past decade, with a 155% surge in ESG-related rules since 2018. This isn’t just about compliance—it’s a fundamental shift in how we define value, risk, and performance. What’s driving it? • EU: CSRD & ESRS will impact over 50,000 companies, embedding double materiality. • India: BRSR Core is mandatory for top 1,000 listed firms. • China: CSDS expands carbon reporting in high-impact sectors. • California: SB 253/261 reshape U.S. climate disclosures. • Australia: AASB S2 aligns with IFRS S2, effective in 2025. • Brazil: CVM 193 adopts IFRS-aligned sustainability standards. • And more: Japan, Canada, Singapore, Nigeria, Turkey—all aligning with global standads. We’ve entered a phase where climate, nature, and transition risks are becoming embedded in financial decision-making—from underwriting and M&A to risk pricing and insurance modeling. In the real estate sector, GRESB has made third-party verified performance data (GHG, energy, water, waste) a best practice. ESG metrics are now more embedded in due diligence for loans, equity, and new acquisitions. Yes, today’s data is often backward-looking. And yes, we still need science-based thresholds and stronger assurance. But this foundational work is what allows us to get there. Without reliable, standardized, machine-readable data, we can’t scale action, track progress, or hold anyone accountable. Just as GAAP and IFRS created trust in financial markets, IFRS S1/S2, CSRD, and the GHG Protocol are setting the stage for credible, comparable sustainability data. It will not be a “parallel system.” in the future. We are building the groundwork for full integration into the global financial system. This shift will transform: • How we price risk • How capital is allocated • How resilient companies are rewarded • How we define long-term value creation It’s messy. It’s political. It’s imperfect. But it’s also historic. If you’re in this space, you’re not just reporting data—you’re helping build a new operating system for business and capital markets. One that rewards transparency, resilience, and climate alignment. Let’s keep building—with more rigor, more ambition, and more impact.

Sustainability = Collaboration 🌎 Sharing my latest article with Inc. Magazine on why advancing sustainability requires collaboration, not imposition. Too often, companies default to pushing requirements down their supply chains, asking for reports, certifications and strict deadlines without providing the support needed for real transformation. Most suppliers are small and medium businesses with limited capital and technical expertise. Transferring responsibility onto them without shared investment creates fragility across the value chain. The consequence is predictable. Suppliers exit, disruptions grow, and climate targets become harder to meet. What looks like progress in the short term undermines resilience in the long run. Collaboration changes the dynamic. It strengthens suppliers, communities and companies alike, turning sustainability into a source of shared value rather than imposed burden. Examples show this clearly. Farmer training that raises incomes and productivity, open sourcing of ethical sourcing models, and collective access to renewable energy that lowers costs for SMEs. The question is not whether suppliers comply, but how businesses can invest with them to unlock capacity. This requires shifting from control to partnership. By asking who is most affected, what benefits are created, and where joint investment makes the greatest impact, sustainability becomes both achievable and enduring. #sustainability #business #sustainable #esg

The European Commission closed 70 infringement cases in April, but opened or escalated action across environment, energy, digital, finance, labour rights and corporate governance. The signal for businesses is clear: EU compliance is moving from policy ambition to enforcement reality. In environment, Poland faces action over the Oder River, where toxic algae blooms killed more than 360 tonnes of fish in 2022 and over 100 tonnes again in 2024. Spain has been referred to the Court of Justice over urban wastewater treatment failures, while Ireland is under pressure to complete its marine Natura 2000 network. For companies, water resilience is no longer only an environmental issue. It is becoming a regulatory, operational and reputational risk. Energy and climate enforcement also remains active. Croatia, Poland and Portugal have been urged to transpose the EU’s electricity market design rules, intended to make prices more stable and less dependent on fossil fuels. Greece, Malta and Portugal have been referred to the Court for failing to fully transpose reinforced renewable energy rules. The package also highlights governance and disclosure gaps. Nine Member States have been urged to fully transpose EU rules on gender balance in company boards, which set targets of 40% for the under-represented sex among non-executive directors and 33% among all directors in large listed companies. In financial services, Spain, the Netherlands, Portugal and Sweden were urged to transpose rules linked to the European Single Access Point, a key mechanism for improving investor access to comparable corporate information. The broader message is that EU sustainability policy is entering a stricter implementation phase. For businesses, the risk is not only future regulation. It is inconsistent national implementation, delayed legal certainty and growing exposure to enforcement across supply chains, infrastructure, finance and governance. The question for boards is no longer whether EU rules will tighten, but whether their compliance systems are prepared for enforcement at this pace. #regulations #policy #sustainability

I’ve been watching with interest the new agreement between KSrelief and Reef Saudi, and it strikes me as a meaningful turning point. Too often, agricultural support in fragile settings is framed as #aid. This move shows how we can shift toward #capability, #ownership, and #growth. At its core, this partnership reflects the evolution from traditional collaboration to a Public Private Philanthropy Partnership #PPPP model that aligns national programs, private innovation, and humanitarian institutions around shared impact. A few things stand out: - Integration of local #techtransfer and #capacitybuilding, not just giving seeds but sharing tools and skills. - The launch of Bathraa, aiming to transform vulnerable communities from dependents to producers. - Embedding #monitoring and #evaluation with joint planning, signaling that impact will be tracked, not promised. This type of #ecosystem creates fertile ground for entities like Kearney PERLab (Product Excellence Renewal Lab) , where product innovation and localization can turn craftsmanship into scalable industry. When local producers gain visibility, competitiveness, and access to digital tools, sustainability becomes more than a vision, it becomes an exportable capability. If done well, this could become a blueprint for how humanitarian work evolves into lasting economic resilience, driven not by charity but by collaboration and innovation. https://lnkd.in/dS7YubPS #humanitariansupport #agriculture #ruraldevelopment #innovationforgood #socialimpact #PPPP #sustainability #CenterForSustainableFuture Bharat Kapoor Elie El Khoury Debashish Mukherjee Ahmad El-Husseini Dr Darren Perrin Dragos Fundulea Valentin Lavaill

Inspired by Emma Howard Boyd CBE's post from earlier today, I was reflecting on London's predicament. London stands at a crossroads in how it manages water resources & strengthens its resilience to climate change. W/ rising populations, aging infrastructure, & increasingly extreme weather patterns, the city’s ability to secure its water future & protect against floods is under huge pressure At the heart of the challenge are 2 interconnected risks: water scarcity & flooding. By the 40s, daily water deficits of up to 400m litres could threaten supply, while rising groundwater, heavy rainfall, & overwhelmed infrastructure pose flooding risks for homes, businesses, & transport networks. Climate extremes are no longer hypothetical & our systems need urgent upgrades to adapt. To future-proof London, a multi-faceted approach is essential: 🔹 Demand mgmt: reducing water consumption through efficiency measures in homes and businesses is the most immediate and cost-effective step. Education, incentives, & smart technologies can cut waste & manage supply 🔹 Nature-based solutions: urban wetlands, sustainable drainage systems (SuDS), & green infrastructure are vital. These approaches allow nature to help manage water—absorbing excess during storms, replenishing groundwater, & cooling urban areas—while enhancing biodiversity & public spaces 🔹 Infrastructure innovation: London’s Victorian-era water systems are under enormous strain. Significant investment is needed to upgrade pipelines, reservoirs, and treatment facilities to meet modern demands & withstand climate stresses. Partnerships between public & private sectors are critical to fund this long-term transformation 🔹 Climate risk integration: ensuring that every major infrastructure project incorporates climate resilience is vital. Resilience should not be an afterthought but a foundation for planning & development We need collaboration too. Water utilities, government agencies, businesses, and communities must work together to implement solutions that balance supply, demand, and risk. This means aligning incentives, investing in innovation, & embracing a holistic view of water management that protects both people & ecosystems. London has a unique opportunity to lead the way as a global city facing climate pressures. By combining smart tech, policy innovation, and nature-based solutions, it can build a water-secure future that safeguards lives, livelihoods, & the environment. Several urban areas across the UK face the dual challenges of both water scarcity & flooding, similar to London. Carbon Brief's work suggests examples include: 1. Cardiff 2. Leeds 3. Exeter 4. Newport These urban areas exemplify the broader national challenge of managing both flood risks & potential water shortages. Addressing these issues requires integrated water management strategies, investment in resilient infrastructure, & climate adaptation measures to safeguard communities & ensure sustainable water resources.

Standing in a bustling Seoul street last year, I watched something remarkable unfold. What started as a typical city block transformed into a canvas for environmental change, vibrant artwork surrounding drains, turning potential litter spots into visual reminders of our shared responsibility. This wasn't just street art. It was community engagement in action. In #SouthKorea 🇰🇷, our Philip Morris International Korea team partnered with local government, the Korea Green Foundation, and local artists to tackle cigarette butt litter differently. Instead of just organizing clean-ups, they created an ecosystem of change: 400+ volunteers collecting 300 bags of waste, students creating anti-littering artwork, and entire neighborhoods becoming part of the solution. What struck me most was the ripple effect. One clean-up event in Yangsan evolved into a year-round sustainability hub. By September, 666 volunteers had collected over 18,000 cigarette butts, but more importantly, sparked conversations that are changing behaviors. Meanwhile in #Tunisia 🇹🇳, a different challenge led to equally innovative collaboration. Young entrepreneurs at startup Wayout developed "Zigofiltres"—simple cages for drains that prevent flooding by capturing cigarette butt litter before it blocks waterways. 246 of these devices now protect one of Tunisia's most flood-prone municipalities. Two countries. Two different ways of addressing a same challenge. One powerful lesson: when business, government, local innovators, and communities work together, environmental problems become opportunities for creative solutions. #Sustainability isn't just about corporate initiatives—it's about creating platforms where local ingenuity can flourish. 🌱 ♥️ Link to full case study here ➡️ https://lnkd.in/ePU_Bwkt #CommunityEngagement Cc: Borhann Rachdi, Abla Benslimane, Hannah Yun, Miguel Coleta, Maria V Agelvis, Kelly Lavender, Euigyum Hong

𝐀𝐬𝐢𝐚 𝐟𝐚𝐜𝐞𝐬 𝐚 𝐬𝐭𝐚𝐠𝐠𝐞𝐫𝐢𝐧𝐠 $𝟐.𝟓 𝐭𝐫𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐧𝐧𝐮𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐠𝐚𝐩 in achieving its Sustainable Development Goals (SDGs), especially in clean energy, resilient infrastructure, financial inclusion, and agriculture. 𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐛𝐥𝐢𝐜 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐢𝐬 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐬𝐮𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐝𝐮𝐞 𝐭𝐨 𝐩𝐨𝐬𝐭-𝐩𝐚𝐧𝐝𝐞𝐦𝐢𝐜 𝐟𝐢𝐬𝐜𝐚𝐥 𝐬𝐭𝐫𝐚𝐢𝐧 𝐚𝐧𝐝 𝐠𝐞𝐨𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐬𝐡𝐢𝐟𝐭𝐬. Blended Finance - which uses limited public or philanthropic capital to unlock large-scale private investment - emerges as a strategic, scalable solution. With over $4.5 trillion in private “dry powder” globally, Asia has both the urgency and the opportunity to reimagine how development is funded. 𝐁𝐮𝐭 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐫𝐞𝐦𝐚𝐢𝐧: 𝐟𝐫𝐚𝐠𝐦𝐞𝐧𝐭𝐞𝐝 𝐝𝐞𝐚𝐥 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬, 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐛𝐚𝐧𝐤𝐚𝐛𝐥𝐞 𝐩𝐢𝐩𝐞𝐥𝐢𝐧𝐞𝐬, 𝐚𝐧𝐝 𝐫𝐢𝐬𝐤 𝐩𝐞𝐫𝐜𝐞𝐩𝐭𝐢𝐨𝐧𝐬. 𝐁𝐲 𝐜𝐨𝐦𝐛𝐢𝐧𝐢𝐧𝐠 𝐩𝐮𝐛𝐥𝐢𝐜 𝐨𝐫 𝐩𝐡𝐢𝐥𝐚𝐧𝐭𝐡𝐫𝐨𝐩𝐢𝐜 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐰𝐢𝐭𝐡 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐬𝐞𝐜𝐭𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭, 𝐛𝐥𝐞𝐧𝐝𝐞𝐝 𝐦𝐨𝐝𝐞𝐥𝐬 𝐝𝐞-𝐫𝐢𝐬𝐤 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐜𝐫𝐞𝐚𝐭𝐞 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐟𝐨𝐫 𝐬𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐩𝐚𝐫𝐭𝐢𝐜𝐢𝐩𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐬𝐞𝐜𝐭𝐨𝐫𝐬 𝐭𝐡𝐚𝐭 𝐰𝐞𝐫𝐞 𝐨𝐧𝐜𝐞 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐞𝐝 𝐦𝐚𝐫𝐠𝐢𝐧𝐚𝐥𝐥𝐲 𝐯𝐢𝐚𝐛𝐥𝐞. This includes all areas with untapped potential across India and Southeast Asia. India, with its strong institutional frameworks and policy-led financial infrastructure, is uniquely placed to harness this wave. Initiatives like 𝐅𝐀𝐒𝐓-𝐏, which aims to mobilize $5 billion toward Asia’s climate transition, are already demonstrating outcomes. In Gujarat, startups supported by GIFT City’s regulatory sandbox are creating sustainable debt products tied to climate action, while NBFCs are testing blended lending models to fund electric mobility and decentralized energy projects. In Maharashtra, early-stage funds are experimenting with micro-blended models in agriculture and dairy logistics, using carbon offset mechanisms to bring commercial value to sustainability. Delhi-based startups in fintech and insure-tech are leveraging risk guarantees to serve underbanked populations in rural belts—proof that catalytic capital can activate both inclusion and innovation. And yet, barriers persist. Project preparation remains underfunded, institutional capital is still cautious, and most deal structures are tailor-made - leading to high transaction costs and slow replicability. Blended finance will only achieve scale if ecosystems are built around standardization, local capacity building, and long-term public-private collaboration. Blended finance is not just a funding mechanism - it’s India's opportunity to align innovation with inclusion. With the right partnerships, we can turn investment gaps into gateways for sustainable growth.