Each month, JWS reports on a handful of the most interesting ESG headlines in Australia and abroad, canvassing developments across legislation, policy, standards, litigation and other headline-making projects.
Through our reporting, here are some of the broader trends we’ve seen on the ESG front over the past 12 months:
1. Escalating and novel climate litigation
Climate-related litigation is the most consistent ESG trend seen over the last year. Claims are becoming more sophisticated and are targeting broader groups including directors, pension funds (Canada, October 2025), and ‘enablers’ of emissions. Courts and regulators are increasingly questioning the responsibility of countries to combat climate change. This has been explored in the:
- International Court of Justice (ICJ) Advisory opinion on climate change obligations (July 2025);
- Pabai Pabai Federal Court ruling (July 2025);
- Greenpeace and Woodside settlement (April 2026); and
- the legal opinion on potential action against company directors in Australia for climate change pursuant to the ICJ Advisory Opinion (April 2026).
Challenges to project approvals have also continued, including the Mount Pleasant mine approval appeal (July 2025, December 2025, and currently awaiting a decision from the High Court), the Scarborough challenge (June 2025) and the UN's unprecedented bid to intervene in North West Shelf court cases (November 2025).
2. Nature positive
Over the year, Australia’s focus on ‘nature positive’ has also progressed, fundamentally underpinned by significant reforms to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). In June last year, Environment Minister Murray Watt made comments signalling the Government’s commitment to a nature positive agenda, with the Government then announcing that the overhaul of the existing environmental laws would be more ambitious than previously anticipated (August 2025). The EPBC Bill proposed sweeping changes to Australia’s national environmental framework, including establishing a new National Environmental Protection Agency (NEPA). This was introduced to Parliament in October 2025 and was passed in November 2025. The NEPA commenced on 1 July 2026 (June 2025).
For more information, please see our updates on the EPBC Act reforms, the National Environmental Standards, and article on the NEPA.
3. Continued greenwashing focus
The ACCC continues to prioritise greenwashing, alongside ASIC, whose recent focus has largely been on ESG investment funds (October 2025). The dismissal of the Santos greenwashing case (February 2026) was a critical development, providing guidance on what constitutes reasonable grounds for forward-looking climate statements. This was the first time an Australian court has ruled on a private greenwashing action concerning net zero targets and transition plans. The ASIC v Bekier decision (March 2026) put company boards on notice and signalled that governance accountability for ESG claims remains in regulators' sights.
4. Mandatory climate and sustainability reporting
The transition from voluntary to mandatory sustainability disclosures was a key focus for many large companies in Australia. ASIC released sustainability reporting guidance for smaller companies (January 2026), and also published guidance following publication of the first mandatory climate-related financial disclosure reports in 2026 (May 2026). This regime aligns closely with the standards of the International Sustainability Standards Board (ISSB). Internationally;
- Spain introduced mandatory climate disclosures (October 2025);
- Hong Kong added climate transition to its Sustainable Finance Taxonomy (January 2026); and
- the European Central Bank intensified monitoring of physical climate risk impacts (January 2026).
However, the US moved in the opposite direction, with climate reporting developments stalling and the Security and Exchange Commission's rules effectively abandoned.
In what is likely to be the next frontier of mandatory reporting, the Taskforce on Nature-related Financial Disclosures (TNFD) has also progressed significantly over the last year. Recently, the TNFD released its final recommendations, providing a comprehensive framework for organisations for identifying, assessing, and disclosing nature-related dependencies, impacts, risks and opportunities (June 2026).
5. AI and energy demands
The intersection of artificial intelligence and sustainability has been a clear theme over the last year. Developments including the Australian Government's AI expectations (March 2026), the National AI Plan setting sustainability standards (January 2026) and concerns around AI’s energy use (April 2026) have intensified scrutiny on how AI consumes energy and the balance that needs to be struck in attracting investment in Australia. The NSW Parliament is currently conducting an inquiry into Data Centres, with public hearings currently taking place. NSW has also released a paper titled the ‘NSW Data Centre Consultation Paper’, with the Government currently considering submissions. Notably, in the most recent NSW Budget, Treasurer for NSW, Daniel Mookhey, attributed growth in the economy to an increase in investment in data centres and renewable energy projects (June 2026).
6. Modern slavery
There was also an increase in momentum in the modern slavery space across multiple jurisdictions. The Commonwealth Attorney-General’s Department released a consultation paper indicating the government’s intent to strengthen the regulatory framework (July 2025), with the Anti-Slavery Commission also releasing its recommendations for reforming the regime (February 2026). The private sector was also affected, with a first of its kind case launched against a major retailer over the risk of forced labour in its supply chains (August 2025). Internationally, New Zealand has proposed its own modern slavery framework, which would introduce mandatory public reporting and proposed pecuniary penalties and director liability for breaches (May 2026).
7. Geopolitical divergence
We have seen a growth in political divisions globally with the US pulling out of major international organisations (February 2026), revoking the EPA's Climate Endangerment Finding (February 2026), scrapping GHG emissions reporting requirements (September 2025) and redirecting offshore wind projects (March 2026). Meanwhile, European countries pledged 100 GW of offshore wind (January 2026), the EU and Australia concluded a Fair Trade Agreement (March 2026) and Australia announced a new 2035 climate target (September 2025).
This fragmentation increases the challenges faced by multinational businesses in navigating global sustainability regulations.
Conclusion
These factors have all resulted in a complex legal and regulatory landscape for all stakeholders internationally. Given the pace of change across the globe, it is more important than ever, to stay up to date on ESG developments. For advice in keeping up to date and compliant with your businesses obligations, please don’t hesitate to reach out to our team.
We have compiled a list of all the topics covered over the last year in our monthly carousels below. Follow us on LinkedIn to keep up to date with all of our most recent updates.
2025-2026 ESG carousel headlines
June 2026
- TNFD releases final recommendations
- First green carbon plant opens in NSW
- New Federal EPA to commence 1 July 2026
- Western Australia extends lead with battery uptake
- NSW Budget credits data centres and renewables
May 2026
- Changes to mandatory climate disclosures
- Australia backs landmark UN climate ruling
- New Zealand proposes Modern Slavery legislation
- WestWind Wind Farm Green Light
- US Moves to Repeal Climate Reporting Rules
- TISFD Draft Consultation Paper
April 2026
- Legal opinion on potential action against company directors for climate change
- Energy Minister confirms delayed review of safeguard mechanism
- AI usage overwhelming energy efficiency
- Nestle partnership for labour rights
- Greenpeace and Woodside settlement
March 2026
- Australian Government’s AI Expectations
- ACCC announces update to priorities
- ASIC puts company boards on Notice – ASIC v Bekier [2026] FCA 196
- EU and Australia Fair Trade Agreement
- US redirects offshore wind projects
February 2026
- Santos Greenwashing Dismissed
- Anti-Slavery Commission recommends key policy reforms – modern slavery
- Australian Government consultation on sustainable financial product labelling
- US revokes EPA’s Climate Endangerment Finding
- US pulls out of major international organisations
January 2026
- ASIC releases sustainability reporting guidance for smaller companies
- National AI Plan to set sustainability standards
- European countries pledge to develop 100 GW of offshore wind
- Hong Kong adds climate transition to Sustainable Finance Taxonomy
- ECB intensifies monitoring of the physical impact of climate risk
December 2025
- Mach energy appealing to High Court
- ARENA announces funding for new renewables and EVs
- EU agrees to scale back CSRD and CSDDD
- US environmental groups sue EPA over delayed methane protections
November 2025
- ISSB announces Nature Standards
- Traditional owners claim native title over Melbourne
- UN’s unprecedented bid to intervene in North West Shelf court cases
- Soft plastic recycling scheme receives exemption from ACCC
- European Council postpones EU Deforestation Regulation
October 2025
- EPBC Bill introduced in Parliament today
- ASIC takes action against ESG investment fund
- Spain introduces Mandatory Climate Disclosure
- Young people sue pension fund in Canada
- EU Parliament rejects Omnibus deal
September 2025
- Australian Government announces new 2035 climate target
- EU’s new rules for reducing textile and food waste
- United States EPA to scrap GHG Emissions Reporting Requirements
- Battery Stewardship Council draft authorisation
August 2025
- More ambitious overhaul of environmental laws announced
- First Nation’s challenge to Brisbane’s Olympic Stadium plans
- Victorian Premier flags law enshrining WFH rights
- European Central Bank President warns against watering down sustainability reporting
- Inter-American Court of Human Rights Opinion
- ‘First of its kind’ action over risk of forced labour
July 2025
- Pabai Pabai Federal Court ruling
- ICJ Advisory Opinion – Climate Change
- Mount Pleasant approval review
- UK announcement on green taxonomy
- Modern Slavery consultation paper
June 2025
- Murray Watt comments on nature positivity
- Modern Slavery
- Scarborough challenge
- US Anti-Bribery enforcement
- Climate Reporting Developments (US and EU)
- Australian Sustainable Finance Institute inaugural finance taxonomy