The Sillion Briefing 19.09.2025
A fortnightly digest for corporate sustainability & communications leaders
In this edition...
EU court upholds nuclear & gas in the EU Taxonomy
IEA cuts 2030 outlook for low-emissions hydrogen
SEC chair warns IFRS Foundation over sustainability
Spain mandates transition plans
Texas opens probe into ISS & Glass Lewis
UK Sustainability Reporting Standards consultation closes
EU General Court backs inclusion of nuclear & gas in the EU Taxonomy
The EU’s General Court rejected Austria’s legal bid to annul the Commission’s 2022 delegated act, confirming that - under strict conditions - nuclear and natural gas activities can be classified as “environmentally sustainable” within the EU Taxonomy. Austria may still appeal.
Source: Reuters
Why this matters
This solidifies a divisive part of the EU sustainable finance rulebook and will influence fund labelling, capital allocation screens, and corporate eligibility claims across Europe. It also underscores the Commission’s broad discretion on technical screening criteria - relevant for future Taxonomy updates.
IEA slashes 2030 outlook for low emissions hydrogen
The IEA cut its 2030 projection for low emissions hydrogen output to 37 Mt, down nearly a quarter from last year’s 49 Mt forecast, citing project cancellations, cost headwinds, and policy uncertainty. The cost gap with fossil-based hydrogen remains the binding constraint. Operating/committed capacity is still set to grow, but low emissions hydrogen remains <1% of total production today, per IEA’s latest review.
Source: Reuters
Why this matters
We can potentially expect more scrutiny of hydrogen linked transition plans, especially where investors have treated hydrogen as a near term decarbonisation lever.
SEC chair warns IFRS Foundation over sustainability focus - revisiting IFRS use for foreign filers
In a Paris speech and media interviews last week, SEC Chair Paul S. Atkins said the Commission could reassess the long standing accommodation allowing companies to file results using IFRS without reconciling to US GAAP. Atkins argues that the IFRS Foundation’s support and funding of the ISSB risks diverting attention and resources from core accounting standard setting. The IFRS Foundation said the SEC is an important stakeholder and that the IASB and ISSB operate and are funded independently.
Source: Bloomberg
Why this matters
A reversal would impose material reporting and audit costs on non‑US multinationals listed in the US. It also signals a harder US line on international sustainability.
Spain introduces mandatory carbon footprints and transition plans
Spain will now require companies already subject to Spain’s Non Financial Information regime to annually calculate their organisational carbon footprint and publish a reduction plan with at least a 5-year horizon.
Source: MITECO
Why this matters
For large Spain-based entities (and relevant Spanish subsidiaries), this creates national-level obligations alongside CSRD - tightening expectations on measurement and public disclosure of targets and measures.
Texas AG investigates ISS and Glass Lewis over climate/ESG actions
Texas Attorney General Ken Paxton opened an investigation into proxy advisers ISS and Glass Lewis, days after a federal judge blocked enforcement of Texas’s new proxy adviser law against the firms pending trial. The probe tests disclosures and potential consumer protection violations.
Source: Reuters
Why this matters
US Anti-ESG enforcement is shifting into market plumbing (stewardship and voting). UK and EU issuers often experience these signals via global investors who use adviser research; expect voting policy caveats and legal reviewed language this season.
UK Sustainability Reporting Standards (UK SRS) consultation closes
The UK government’s consultation on UK SRS (UK’s ISSB based baseline) closed 17 Sept. Drafts proposed six minor UK specific amendments. Decisions on endorsement and application scope/timing now move to policy drafting, with the FCA expected to consult on application to listed companies.
Source: GOV.UK
Why this matters
This is the key gate to mandatory UK sustainability reporting. FY26 planning should assume convergence with IFRS S1/S2 (subject to final UK amendments) and parallel consultations on assurance and transition plan requirements.
Microsoft books $6.2bn of 100% renewable AI compute in Norway
Microsoft agreed a five year, $6.2bn customer contract with AI infrastructure firm Nscale and Norwegian industrial group Aker to procure high performance AI computing capacity from a new site in northern Norway, with staged delivery beginning in 2026. The facility will run on guaranteed grid capacity powered entirely by renewables.
Source: ESG Today
Why this matters
As AI drives data‑center power needs sharply higher, hyperscalers are under pressure to source low‑carbon, reliable electricity. Microsoft coupling long‑term compute offtake with renewable‑rich geographies shows one route to decarbonising AI workloads while easing grid‑constraint risk. The deal complements Microsoft’s recent large‑scale clean‑power procurements (e.g., the 10.5 GW Brookfield framework) and its 2030 carbon‑negative ambition.
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