September 2026 Newsletter: Reporting Rules Simplify, Data Centers Face Scrutiny
September showed a clear pattern. Reporting rules in Europe, the UK and the US are being reshaped, India continued to build its climate infrastructure and green capital markets, and data centres moved from being a technology story to an ESG story.
Like always, we have divided the newsletter into sections so you can jump straight to the topics that interest you. Each news piece carries source links for further reading, and where we have written a detailed blog on a topic, we have linked that too. We would love to hear your feedback at info@esgityadvisors.com or in the comments section below.
In this issue: Compliance Updates (1–4) | Policy & Industry Updates (5–7) | Investor Updates (8–9) | India Updates (10–15)
Happy Reading!
COMPLIANCE UPDATES — how are sustainability related regulations and compliances changing?
The European Commission has published the revised European Sustainability Reporting Standards (ESRS 2026), adopted on 3 July and published on 21 September 2026. The revision closes a process that began with the Omnibus simplification package in February 2025. Mandatory datapoints are down by more than 60% and total datapoints by more than 70%, leaving a framework of roughly 320 datapoints. The Commission expects reporting costs to fall by more than 30% per company on average.
Despite lobbying to move towards a financial-materiality-only lens, double materiality has been retained. Companies can now run the assessment top-down based on an assessment of their strategy, sector and geography, instead of assessing every impact, risk and opportunity one by one. The revision also brings targeted reliefs, such as timing relief for acquisitions and disposals, partial reporting scope for certain metrics and a narrower microplastics metric. A separate voluntary standard for smaller companies caps what large companies can ask of their value chain. The standards enter into force on 10 November 2026, applying to reporting periods starting in 2027. It can however be adopted early for 2026.
For reporting teams, the work now shifts from building new data to pruning existing data, so those who built their systems around the 2023 standard should run a gap analysis and retire the datapoints they no longer need. The value chain cap should also limit open-ended data requests to smaller suppliers, including Indian suppliers of EU reporters, while closer alignment with ISSB standards helps groups that report in more than one jurisdiction.
Covered in detail on our blog: ESRS 2026: What Actually Changed in the Revised Sustainability Reporting Standards? For the non-EU angle, see item 2 of our July–Aug newsletter.
California’s SB 253 requires companies with global revenue above US$ 1 billion that do business in California to report their greenhouse gas emissions in line with the GHG Protocol. The first report is due on 10 November 2026, deferred from the original August date. In the first week of September, the California Air Resources Board (CARB) released a voluntary reporting platform and guidance explaining how companies can use existing data and which formats it will accept.
CARB will use enforcement discretion in year one. Companies can file Scope 1 and 2 data they already held on or before 5 December 2024, or submit a documented non-reporting statement if they were not collecting such data. Formats are flexible and include existing CDP responses. No specific emission factors are mandated, and assurance is not required for 2026. The filing fee is estimated at about US$ 3,000. From 2027, full enforcement begins, limited assurance on Scope 1 and 2 starts, and Scope 3 reporting begins with five categories.
The relief is a one-year window rather than a new normal. Companies relying on the non-reporting statement will still need a full inventory in 2027. Scope 3 will be the harder part, since spend-based methods may be difficult to assure, a concern assurance providers have already raised. For Indian groups with large US subsidiaries, SB 253 becomes a group-level reporting question, and as the first mandatory corporate climate disclosure regime in the US, it will shape expectations even as federal action recedes.
Covered in detail on our blog: California SB 253 Compliance
On 7 September, the UK government published a consultation titled “Modernising Corporate Reporting to support long-term economic growth”. It closes on 30 November 2026, with an outcome expected within six months of the close. The government wants to reduce complexity in the reporting framework and refocus annual reports on the needs of investors and creditors.
The draft would replace most strategic reporting requirements with five baseline narrative disclosures. It would remove the explicit legal requirements on environmental, employee, social, community, human rights and anti-corruption matters, as well as the Section 172 statement, although companies would still be expected to cover these topics where they are financially material. The draft also tests a higher threshold for “very large” companies, with simpler rules for smaller firms. Decisions on mandating the UK Sustainability Reporting Standards and transition plans are deferred, and a separate consultation on energy and carbon reporting is due later this year.
The UK is following the EU Omnibus playbook, with fewer companies reporting, except encouraging reports to lean towards financial materiality. That reduces cost, but it also reduces visibility on human rights, workforce and community impacts, which investors and NGOs may then seek elsewhere. Multinationals will face different rules in the UK, the EU and ISSB-based regimes, so they should plan for a common reporting core. The consultation window is also a chance for companies and investors to make their case.
The Institute of Chartered Accountants of India (ICAI) has finalized SSA 5000, the General Requirements and Framework for Sustainability Assurance Engagements. It is aligned with the IAASB’s global ISSA 5000, with carve-outs for the Indian context. The standard applies to financial years starting on or after 1 April 2027, and once in force it replaces SSAE 3000 and SAE 3410.
SSA 5000 is principle-based and covers sustainability disclosures on topics such as climate, labour practices and biodiversity, while accommodating different reporting frameworks with the same rigour. ICAI’s leadership described it as placing India on par with global practice. It also complements SEBI’s BRSR framework, where BRSR Core assurance is set to expand from the top 500 to the top 1,000 listed companies in FY 2026-27.
For companies, assurance will move from a narrow BRSR Core exercise to a wider engagement standard. This raises the bar on evidence, controls and documentation. Companies should test their processes well before April 2027, and assurance providers need to invest in training and methodology now. A common standard should also help Indian reports gain acceptance with global investors and lenders.
Related reads on our blog: BRSR Series Part 2: BRSR Core Audits | BRSR Series Part 3: Value Chain Partner Reporting
POLICY & INDUSTRY UPDATES — global moves shaping the transition
Germany published a national roadmap on 23 September in which it commits, for the first time, to “transitioning away” from coal, oil and gas by 2045. Earlier pledges only spoke of carbon neutrality. Germany is the third EU country to publish such a roadmap, after France and the Netherlands, and the task is large, as fossil fuels still met about 65% of its energy consumption in 2024.
The plan targets 80% renewable electricity by 2030 and keeps the official coal exit at 2038, with room to bring it forward to 2035. It also focuses on methane cuts and the electrification of transport, heating and industry. New flexible gas plants are to be converted over time to climate-neutral fuels such as green hydrogen. Campaigners called the roadmap a notable shift, but criticised the economy ministry’s push for more gas plants.
Massachusetts has told large data centers to bring their own clean power. Governor Maura Healey’s order covers facilities above 25 MW of peak demand, which must generate clean power on site, fund new nearby clean generation or pay into a ratepayer protection fund. The governor’s office says they must meet 100% of their demand with clean energy. The state is also pausing a data centre sales tax exemption and discouraging non-disclosure agreements with communities. It is the third state in three months to act, after New York in July and Texas in August.
Public opinion is moving the same way. A new AP-NORC and University of Chicago poll found that 53% of Americans are extremely or very concerned about AI’s environmental impact, up from 41% in 2025. The grid is also under strain, with the Center for Public Enterprise estimating a US$ 600 billion investment gap, much of it in high-voltage transmission. In Michigan, a gigawatt-scale project went ahead in Saline Township despite local pushback, and the legal fight there could set a precedent for developers overriding local zoning.
Data centers are now an ESG risk topic and not just a technology topic, because power source, water use, grid costs and community consent will decide which projects get built and how fast. Developers should expect higher costs and slower approvals, and investors in data centers and the utilities serving them should add these factors to due diligence. Companies buying AI services will also face questions about the footprint of their compute, and other states and countries are likely to follow.
EcoVadis and CO2 AI have announced a partnership to speed up supply chain decarbonisation by combining EcoVadis’ supplier carbon ratings and primary emissions data with CO2 AI’s footprinting engine. The aim is to move companies beyond spend-based estimates for Scope 3.1, purchased goods and services, a category where many still rely on industry averages.
The tie-up is part of EcoVadis’ Carbon Data Network, a data exchange that lets procurement teams pull suppliers’ own emissions data into their Scope 3 reports. EcoVadis has signed similar partnerships with other carbon accounting platforms. Corporate and product-level footprints collected through EcoVadis will flow directly into the CO2 AI engine, which counts large consumer goods companies among its clients.
Related read: item 4 of our July–Aug newsletter on EcoVadis opening its Community platform.
INVESTOR UPDATES — news on sustainable finance and sustainability-focused investors
On 17 September, the UN-convened Net-Zero Asset Owner Alliance, which has 85 members, published an updated Call to Action to private market asset managers, following the first version issued in 2022. It sets out how general partners (GPs) should manage climate risks and opportunities across the investments they hold for asset owners.
The call makes six recommendations. The first is a credible net-zero or portfolio-transition strategy focused on value creation and preservation, and GPs are urged to take a long-term view that is not swayed by short-term economic trends or policy uncertainty. They are also asked to use their public voice and market presence to help advance market norms. The document aims to give asset owners and managers a common base for due diligence, monitoring and engagement.
Emirates NBD has launched what it calls the UAE’s first dedicated Transition Finance Framework, announced on 17 August. The framework sets a voluntary method to identify, assess and label financing that supports decarbonisation in high-emitting and hard-to-abate sectors. It covers clients that are taking credible steps to cut emissions, even if their activities do not yet qualify as fully green.
The framework draws on the ICMA Climate Transition Finance Handbook, the ICMA Climate Transition Bond Guidelines 2025 and the LMA Guide to Transition Loan Finance 2025, and DNV has provided a Second Party Opinion. It builds on the bank’s existing sustainable finance and sustainability-linked frameworks and supports its target of US$ 30 billion in sustainable and transition finance by 2030, within the UAE Banking Federation’s wider ambition of AED 1 trillion.
Transition finance is where much of the real-economy capital need sits, since steel, cement, power and manufacturing cannot be financed through green labels alone. A clear framework gives these sectors a path to funding if they have credible plans, and it puts pressure on borrowers to show targets, milestones and data. For India, where a climate finance taxonomy is still in draft, the UAE example shows that banks may set the rules before regulators do.
Related read on our blog: India Introduces Draft Climate Finance Taxonomy
INDIA UPDATES — news shaping India’s sustainability landscape
The UK has recognised India’s Carbon Credit Trading Scheme (CCTS) under its Carbon Border Adjustment Mechanism (CBAM). HM Treasury informed India’s Bureau of Energy Efficiency that the CCTS is on the UK’s indicative list of qualifying overseas carbon pricing schemes under the 2026 CBAM relief regulations. The UK CBAM starts on 1 January 2027.
UK importers of eligible Indian goods can now seek relief for the effective carbon price borne under the CCTS, but the relief is not automatic. Importers need a carbon pricing verification form from the plant or supply chain, and the amount depends on the actual carbon price and the share of emissions it covers. The CCTS was notified in 2023 and starts with energy-intensive sectors such as aluminium, cement and iron and steel. Both governments will continue talks on how the two systems interact.
This is a useful early win, because without recognition Indian exporters could face a carbon cost at the UK border on top of any domestic cost. The benefit will still depend on the CCTS carrying a real price and on verified plant-level data.
Earlier coverage: the UK’s draft CBAM in our Q2 2026 newsletter
On 16 September, World Ozone Day, the Environment Ministry launched two digital platforms in Mumbai. The first is a Net Zero Portal where Indian entities can voluntarily register net-zero commitments, declare targets, disclose emissions and update their progress each year. Scope 1 and 2 reporting is encouraged while Scope 3 is optional, and entities that declare a target receive an acknowledgement from the Ministry.
Declarations on the portal are public and form a national register of voluntary commitments. The second platform, the NAPCC Dashboard, gives a single view of progress across the eight national missions under the National Action Plan on Climate Change. It is meant to improve coordination across ministries and link domestic action to India’s international commitments, against a national target of net zero by 2070.
Although the portal is voluntary, it is public, so any declared target can be checked by investors, customers and civil society. Lenders and investors may use the portal as a reference point when assessing transition claims, and over time it could push companies to align targets with BRSR disclosures. The dashboard should make gaps in the national missions easier to see.
The PIB recently released a factsheet that gives a snapshot of India’s energy system as of 31 July 2026. Total installed capacity is about 552 GW, of which non-fossil capacity is 300.50 GW, or over 54% thus crossing the 50% benchmark. Solar stands at 164.59 GW, making India the world’s second-largest solar growth market (in 2025). Wind stands at 58.14 GW after a record 6.05 GW addition in FY 2025-26.
The factsheet also covers policy support. This includes 51.58 lakh households with rooftop solar under PM-Surya Ghar, the new PM Surya Sarovar Yojana targeting 5,000 MW of floating solar with storage, nuclear capacity of 8.78 GW with a goal of 100 GW by 2047, and around 8,000 tonnes a year of green hydrogen capacity commissioned by February 2026. It also notes that coal still meets nearly 55% of primary energy needs and supports over 70% of electricity generation.
Non-fossil capacity has crossed half of the installed base, but generation tells a different story because coal still dominates. The next phase is therefore about storage, grids and firm clean power, and not only about adding megawatts. This opens room for investors in batteries, transmission and floating solar. It also means decarbonisation claims need care, since companies buying “green” power should check whether it matches their load and time of use. For heavy industry, it is a reminder that grid emissions will fall slowly.
Premier Energies has commissioned a 7 GW solar cell plant at Naidupeta, Andhra Pradesh. The plant has begun trial runs and lifts the company’s total cell capacity to 10.6 GW, from 3.6 GW. It spans 101 acres, costs ₹3,293 crore and can make about 88,000 cells an hour.
The plant uses AI and automation to improve output and consistency, and runs on n-type TOPCon technology designed for future upgrades. Premier targets average cell efficiency of about 25.8% after ramp-up. It also has a zero liquid discharge system that helps recycle and reuse water, and it sits within a ₹12,500 crore capex programme over three years that includes expansion into ingots and wafers.
Cells have been a bottleneck in India’s solar supply chain, so large domestic capacity reduces import dependence and supports energy security. The plant is still in trial runs, however, and output, yields and efficiency will need to be proven. The next gap is upstream, in ingots and wafers. Developers and module makers should gain from more local supply, but prices will depend on how fast capacity ramps up.
Sagarmala Finance Corporation, India’s first maritime-focused NBFC, had planned India’s maiden blue bond for 28 September. The issue was planned for ₹600 crore, made up of a ₹100 crore base and a ₹500 crore greenshoe option, with a 10-year tenor and an AA+ rating from ICRA and CARE. SBI Capital Markets was the arranger, and the proceeds were meant for maritime lending, greenfield ports and coastal roads.
The issue was withdrawn on the day. Bids of ₹525 crore across 26 bids came in at coupons of 7.69% to 8.44%, against the company’s wish to price below 8%. SIDBI also called off a ₹6,000 crore issue the previous week, and reports link both withdrawals to rising yields and expectations of higher rates.
The setback looks more like a market-timing issue than a verdict on blue bonds. Even so, the label did not earn a visible pricing benefit, as investors priced it like regular paper. Future blue issuers may need stronger structures, anchor investors or credit support, because the blue economy still needs long-term capital for ports, coastal infrastructure and water. They should also be ready to show clear use of proceeds, impact reporting and external review, which is what separates a credible blue bond from a plain bond with a label.
The 9th ASEAN-India Ministerial Meeting on Agriculture and Forestry was held in New Delhi on 9 September, co-chaired by India’s Agriculture Minister Shivraj Singh Chouhan and the Philippines’ Agriculture Secretary Francisco Tiu Laurel. Ministers agreed to deepen practical cooperation on food security, climate-resilient farming and digital innovation, and looked ahead to adopting the ASEAN-India Medium-Term Plan of Action for 2026-2030.
The plan has four priorities: food security and resilient value chains, digital innovation, technology and joint research, and capacity building and farmer exchanges. Areas named for cooperation include low-emission rice, water productivity, soil health, bio-inputs, climate-resilient crops and AI and IoT applications. The plan builds on the 2021-2025 cycle, and the next ministerial meeting is set for 2028.
ALSO FROM US THIS MONTH
Climate Week NYC 2026: our read on a week that focused on proof of progress rather than new pledges.
That’s a wrap for September. See you next month.
Best Regards,
Team Esgity Advisors
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