The Sillion Briefing 17.10.2025

A fortnightly digest for corporate sustainability & communications leaders

In this edition...

  • EU to reduce companies in scope of CSRD and CSDDD

  • CCC warns UK to plan for 2°C by 2050

  • Net Zero Banking Alliance shuts down

  • ASA Rules against Red Tractor

  • ISO launches world-first biodiversity management standard


Omnibus - EU moves to apply CSRD & CSDDD to only the largest companies

EU institutions advanced the Omnibus simplification package that pares back both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). This week, the European Parliament’s Committee on Legal Affairs (JURI) backed deeper cuts to the scopes of both regimes. 

Under the proposals, CSRD in-scope thresholds would be >1,000 employees and >€450m net turnover. Non-EU companies would be expected to report where they have >€450m of net turnover from inside the EU, with no headcount threshold. CSDDD in-scope thresholds would be >5000 employees and >€1.5bn net turnover. The mandatory transition plan clause would also be removed. 

The move may not go far enough for European big business, with 46 large corporates including TotalEnergies and Siemens signing an October 6th letter urging outright repeal of CSDDD, citing competitiveness risks.

Source: ESG Today

Why this matters

The €450m EU turnover test sharply narrows non-EU parent reporting under CSRD, so we are expecting fewer third-country groups to file EU-grade sustainability statements from 2029. As the open letter underscores, there remains the possibility for further regulatory volatility here. 

Next steps

EFRAG’s technical advice on ESRS simplification is due November 30th, with datapoint cuts and materiality clarifications likely. 


Climate Change Committee warns UK to plan for 2°C by 2050

The Climate Change Committee (CCC) warned ministers that the UK must urgently adapt to at least 2°C of warming by 2050, and factor in the risk of 4°C by century’s end, citing vulnerability across health, food, infrastructure, and public services. 

Source: BBC

Why this matters

This echoes an increasing trend for organisations to focus on (and speak freely in public about) adaptation as well as mitigation. Whilst very few in the sector have expected 1.5°C of warming to be achievable, it is noteworthy that the CCC should be so stark in its communication. Scrutiny of corporate adaptation plans may follow.


Banking industry’s Net Zero Banking Alliance (NZBA) shuts down

After months of high profile exits, the UN-convened NZBA voted to cease operations immediately and shift its target setting materials into a non-membership “framework” available for banks to use independently. Reports cite legal/political risks and diverging strategies across major lenders.  

Source: Reuters

Why this matters

Whilst is has looked in jeopardy for some time, and UK signatories had already withdrawn, the collapse of the flagship finance coalition weakens peer pressure, leaving regulators to take on responsibility for bank decarbonisation discipline. Legitimate member concerns over competition law, US litigation threats, and fiduciary exposure may also be revealing the effective power limits of voluntary coalitions. 


ASA rules Red Tractor ad exaggerated environmental standards

The UK watchdog upheld a complaint that a Red Tractor television advert misled viewers by overstating environmental standards associated with its assurance mark (phrases like “farmed with care” required clearer basis). The ruling follows complaints led by River Action.

Source: The Guardian

Why this matters

Claims tied to schemes or logos must be specific, evidenced, and qualified. The ASA is especially strict on general “green” claims, and their finding against “farmed with care” underscores this. Good luck to the copywriters penning Q4 campaigns.


ISO launches the first global biodiversity management standard

ISO launched ISO 17298:2025 “Biodiversity for organizations - Requirements and guidelines” at its Kigali Annual Meeting. The standard provides a scalable framework for assessing impacts/dependencies, integrating biodiversity into governance and risk, and is interoperable with TNFD.

Source: Edie

Why this matters

Many firms have TNFD‑aligned diagnostics but lack operational controls. ISO 17298 provides auditable scaffolding to move from disclosure to management.


Thank you for reading. 

We will bring you a new edition of the Briefing in two weeks.

 

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