The Sillion Briefing 14.03.2025
In this Briefing...
EU Omnibus – Packaging EPR Scheme
Pension Fund – BYD Europe expansion
EU Automotive plan – COP16
Stagecoach sustainability training – Japan ISSB
Policy
EU Omnibus: discussions march on, postponement to be decided by April
The EU Omnibus, a suite of regulatory rollbacks to simplify and reduce the scope of the EU’s CSRD, CSDDD, CBAM and Taxonomy, saw some of its first discussion meetings following the official release of the proposal two weeks ago. As expected, opinions remain highly divided. Some parties have argued that the rollbacks, which were significant, have destroyed the purpose of the regulations, while others have argued they haven’t gone far enough – with one Polish MEP arguing the EU needs “a chainsaw rather than a letter opener”. You can read our summary of the proposal here.
At this stage, perhaps of most note is the continuation of efforts to fast track the part of the Omnibus which would delay CSRD requirements by two years. The goal of this postponement is to avoid situations where companies set to report in FY25 or 26 would report CSRD, only to then fall out of scope by FY27 due to the Omnibus. Some sources have suggested that the postponement proposal will be decided on by April – we will keep you updated.
UK Government seeks industry experts for new packaging EPR Scheme
The UK Government has opened applications for industry experts to join advisory groups under PackUK, the administrator appointed in January 2025 to oversee the new Extended Producer Responsibility (pEPR) scheme. This scheme shifts the financial responsibility for recycling packaging waste from taxpayers to businesses, with packaging EPR fees expected to generate over £1 billion annually. PackUK is forming several advisory committees, including the Recyclability Assessment Methodology Technical Advisory Committee, the Effectiveness and Efficiency Technical Advisory Committee, and the Communications and Behaviour Change Advisory Group, to provide expert guidance on packaging sustainability, local waste management, and public engagement strategies. While the committees will not have decision-making authority, their recommendations will help shape the direction of the scheme and its implementation.
Finance
Amundi and Invesco to manage Pension Fund's £28 billion with focus on sustainability
The People’s Pension (TPP), one of the UK’s leading independent pension funds, has selected Amundi and Invesco to handle £28 billion ($35.3 billion) in assets, with a focus on responsible investment. Amundi will manage £20 billion ($25.2 billion) in equities from developed markets, utilising a climate-focused index strategy, while Invesco will take responsibility for £8 billion ($10 billion) in fixed income investments, aligning them with net-zero goals. The decision follows a reassessment of ESG policies and investment stewardship priorities, marking a shift away from the previous sole manager, State Street, which continues to manage £5 billion ($6.3 billion) of the portfolio.
Automotive
Chinese NEV maker BYD raises $5.6bn for European expansion
BYD, the world’s largest NEV (new energy vehicle) manufacturer, has sold shares totalling around $5.6bn to support plans to “put down roots” in Europe, as the company accelerates its overseas expansion. BYD is one of the key Chinese manufacturers challenging European and American automotive mainstays as the world transitions away from the internal combustion engine, with this latest move a clear reflection of the carmaker’s ambition to continue its global spread. BYD has a global market share of 22.2% of NEV sales, with Tesla coming in second with 10.3%.
EU launches action plan for automotive industry
In response to increasing competition (see the BYD story!) and the rapid turnover in technologies that marks the transition from internal combustion engine vehicles to NEVs (New Energy Vehicles), the EU Commission has this month put forward an automotive ‘Action Plan’. A suite of plans to strengthen the EU’s automotive position, the plan pledges €1.8bn to create a battery raw materials supply chain, and the establishment of a “Vehicle Alliance” for sharing software and hardware for next generation vehicles. An update to the CO2 Standards Regulation is also promised, which would allow manufacturers to meet their targets through an average over a three year period, rather than having to meet a 2025 target.
One Number: $200 billion
The UN’s COP16 biodiversity conference in Rome came to a close with a historic agreement to mobilize at least $200 billion annually by 2030. This landmark deal aims to support the global effort to halt and reverse biodiversity loss, in line with the 2022 Kunming-Montreal Global Biodiversity Framework. Despite this significant achievement, the United States remained notably absent from the talks. The focus of the resumed conference was primarily on securing funding for the ambitious goals outlined in the framework, following the previous year’s COP15 in Cali, Colombia, where negotiations failed to reach a financial agreement.
Corporate
Stagecoach: Free sustainability training programme for suppliers
Stagecoach Group is participating in the UN Global Compact (UNGC) Sustainable Suppliers Training Programme, alongside six other large UK organisations, to advance sustainability literacy within its supply chains. As part of this initiative, Stagecoach is offering free sustainability training to its top 300 suppliers from March to September. The training consists of four modules, delivered through a mix of live sessions and online content, aimed at helping suppliers integrate sustainable practices into their operations. By enhancing the sustainability knowledge of its supply chain, Stagecoach hopes to boost engagement with and progress towards its net-zero targets. We’re seeing a growing focus on carbon literacy as an essential component within transition plan activation - hear Sillion’s founder, Tom Rayner, discuss how businesses can address the sustainability skills gap in this podcast episode with AutoTrader UK.
Disclosures
Japan issues ISSB–aligned sustainability standards
The Sustainability Standards Board of Japan (SSBJ) has issued its first-ever sustainability disclosure standards, which are in close alignment with the IFRS Sustainability Standards (ISSB Standards). This is in line with the IFRS’ overall goal for the standards, which is to have them be put into practice by each jurisdiction as their own set of national standards which remains in close alignment. For Japan to issue its first ever such standards using ISSB as a basis is a reflection of the success that the framework continues to enjoy on the world stage.
The Short List
Waitrose is launching a £500,000 fund to support over 2,000 British farmers in adopting low carbon farming practices. (Link)
Vattenfall has partnered with recycling group Gjenkraft and ski maker EVI to create skis made from upcycled wind turbine blades. (Link)
The Mercedes-AMG PETRONAS F1 Team will introduce sustainable carbon fibre composites to its W16 race car for the 2025 Formula 1 season. (Link)
The RSPB's new "Together We Fly" campaign seeks to inspire hope and raise awareness of its nature conservation efforts, encouraging everyone to take action to protect and restore nature. (Link)
Calendar
2025
UK SRS: UK Sustainability Reporting Standards (SRS) published – Q1 2025
UK SDR: UK Sustainability Disclosure Requirements (SDR) rules on labelling of sustainability-focused funds to come into force – April 2025
ESMA: ESMA Guidelines on fund names using ESG or sustainability-related terms to apply to funds which existed before the rule change – 21st May 2025
London Climate Action Week 2025 – 21st-29th June 2025
New York Climate Action Week 2025 – 21st-28th September 2025
COP: COP30, Belém, Brazil – November 2025
SBTi: Corporate Net-Zero Standard (CNZS) V2.0 to come into force – by end of 2025
2026
UK SRS: UK listed companies need to begin work on their IFRS Sustainability Standards (ISSB Standards) and transition plan reporting, in order to be ready for next year
2027
UK CBAM: UK Carbon Border Adjustment Mechanism (CBAM) comes into force, initially addressing aluminium, cement, fertiliser, hydrogen, iron and steel. 1st January 2027
UK SRS: UK Sustainability Reporting Standards (SRS) to become mandatory for FY26 reporting, making the IFRS Sustainability Standards S1 and S2 (the ISSB Standards) and transition plan reporting mandatory – FY26 reporting
2028
CSRD: (The following is based on the current Omnibus proposal but is not final) – Large companies with over 1,000 employees, including non-EU companies listed on an EU market and large EU subsidiaries of US companies, are to report CSRD. A large company or undertaking is here defined as meeting two or more of the following criteria, in two consecutive financial years: >250 employees, >€25m balance sheet, >€50m turnover – FY27 reporting.
2029
CSRD: (The following is based on the current Omnibus proposal but is not final) – Non-EU undertakings with EU branches / subsidiaries must report ESRS for the previous business year. This applies if the non-EU undertaking has a net turnover generated within the EU above €450 million, and if it has either subsidiaries that are large undertakings or SMEs with securities traded on an EU market; or if it has branches with net turnover generated in the EU above €50 million – 1st Jan 2029
Questions on the above? Contact hello@sillion.co.uk with any queries, comments or feedback.