Climate Costs Are Compounding, But So Is the Response.

In response to unprecedented climate risk, capital is moving at scale. Ten multilateral development banks delivered a record $163 billion in climate finance last year, reports Sustainability Online — up 19% overall and 21% for low- and middle-income countries. The Green Climate Fund is quadrupling its own lending capacity through a revised balance-sheet approach, unlocking an additional $4 billion, according to ESG Today. This is despite the U.S. walking away from the Fund earlier this year, leaving other backers to fill the gap.

Regulatory momentum ramped up on three continents in a single week. South Korea’s Financial Services Commission has proposed a roadmap that would require its largest KOSPI-listed firms, assets above roughly $20 billion, to begin ISSB-aligned reporting in 2028, per Corporate Disclosures. Canada opened comment on a draft finance taxonomy that would create an “Abatement” category rewarding oil and gas producers for cutting emissions from existing assets, reports ESG Today. And the European Commission proposed overhauling its Emissions Trading System (ETS) toward a 90% cut by 2040, tying free allowances to companies’ decarbonization roadmaps, per Carbon Herald.

In other news, AI is moving from promise to practice. Robert Eccles, SASB’s founding chairman, and Columbia University’s Shivaram Rajgopal put four large language models to work mapping ExxonMobil’s disclosed risks to specific financial line items. They write in Harvard Business Review that a 100-hour manual analysis took roughly an hour with AI assistance. The UN’s International Methane Emissions Observatory has applied the same logic to emissions monitoring: its AI-assisted alert system now screens over 1.3 million satellite measurements across 30 instruments, letting a small team verify 12 to 15 times more data than before, reports Sustainability Magazine.

Finally, G&A’s latest brief unpacks the latest progress by the Taskforce on Inequality and Social-related Financial Disclosures, which is developing a new TCFD-style framework for the “S” in ESG. Our brief proves useful reading for how disclosure obligations can go beyond climate and nature. For companies navigating that expansion, G&A’s advisory services cover the reporting frameworks driving it.

Elsewhere in this issue: CSO headcount at U.S. public companies fell for the first time in 15 years, most S&P 500 firms with climate targets aren’t cutting emissions, and a federal judge blocked California’s packaging “truth in labeling” law.