Recent policy initiatives in EU competition law have included sustainability among relevant considerations in EU competition policy. In July 2025, the European Commission (the Commission) issued three pieces of guidance outlining the role of competition law in achieving sustainability goals. Notably, the guidance suggests the Commission is taking a pragmatic approach to aligning competition enforcement with broader climate objectives. Whilst sustainability goals and targets fall outside the competition law field, the Commission aims to minimise legal uncertainties that could undermine steps towards the net zero economy and decarbonisation. This approach applies across the key pillars of EU competition law: State aid, horizontal agreements, and merger control. Regarding State aid, the Commission has significantly facilitated Member States’ measures to support the EU’s environmental and climate objectives through the new Clean Industrial Deal State Aid Framework (CISAF). For horizontal co-operation agreements, the revised Horizontal Guidelines adopted in June 2023 clarify that ‘competition policy does not stand in the way of horizontal co-operation agreements that pursue genuine sustainability

These Precedent sustainability definitions, produced by The Chancery Lane Project (TCLP) as part of its climate change glossary, provide definitions for key sustainability definitions, such as 1.5°C Aligned, 100% Renewable Energy and Renewable Energy Sources, Abatement Measures, Adverse Climate Outcome (ACO) and Adverse Social Outcome (ASO), Air Quality, Alternative Fuel, Avoided Emissions, Base Year, Beyond Value Chain Mitigation Measures, Biodiversity and Biological Diversity or Biodiversity Loss, Carbon Budget, Carbon Capture, Carbon Capture Storage (CCS) and Carbon Capture Usage and Storage (CCUS), Carbon Dioxide Equivalent (CO2e or CO2eq), Carbon

UK government sustainable development strategy The UK has reiterated its commitment to sustainable development for two decades and developed its own understanding of the concept in various national sustainable development strategies. As is the case with the sustainable development definition, the UK-wide strategy has been a continuous work in progress. The UK sustainable development strategy outlines policies to progress towards each of the 17 Sustainable Development Goals (SDGs). Scotland, Wales and Northern Ireland are responsible for implementing policy in areas of devolved competence. For more on sustainable development in the UK, see Practice Note: Sustainable development—definition and application at UK level. The Greening Government Commitments (GGCs) sets out the actions UK government departments and their agencies will take to reduce their impacts on the environment. This is part of a drive to enhance transparency and alignment with national and international sustainability commitments but given the disparity in progress, funding and training (for carbon literacy and adaptation, carbon accounting and sustainable procurement), many public bodies have started this journey from different points. A key target of the GGCs

The Council of the EU and the European Parliament have provisionally agreed to a two-year delay of the adoption of European sustainability reporting standards (ESRS) for certain large third-country undertakings that have turnover in the EU and ESRS for specific sectors.

Ireland-Banking & Financial Services analysis: This article was written by A&L Goodbody’s ESG & Sustainability, Corporate Advisory Team. It explores the introduction of Sustainability Risk Plans under Directive 2009/138/EC (Solvency II) and what (re)insurance firms will need to consider ahead of the January 2027 implementation.

What does this Practice Note cover? This Practice Note sets out what a sustainability-linked bond (SLB) is, describes the Sustainability-linked Bond Principles (SLBPs) published by International Capital Market Association (ICMA) and how they work. It also considers what the future looks like for SLBs. For latest news and key developments in sustainable finance (including SLBs), see Practice Notes: Sustainable finance—recent news and Sustainable finance and ESG—timeline. For general introduction to sustainable finance, see Practice Note: Introductory guide to sustainable finance and ESG for finance lawyers. What are sustainability-linked bonds? SLBs are bonds whereby the proceeds from the issuance are not ring-fenced to green or sustainable purposes (unlike ‘use of proceeds’ green bonds or sustainability bonds) and are intended to be used for general purposes. Instead, the SLBs are linked to the performance of certain key performance indicators (the KPIs) in achieving pre-defined sustainability performance targets (SPTs), and depending on whether this is achieved, certain characteristics of the SLBs may vary (for example, coupon ratchet). Therefore, issuers are committing explicitly to future improvements in sustainability

This Practice Note provides information on sustainability linked loans (SLL) and key issues to consider when drafting and negotiating a sustainability-linked loan agreement. It focuses on the Sustainability-Linked Loan Principles SLLPs published by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), as updated from time to time. For an introductory guide to sustainable finance for transactional banking and finance lawyers, see Practice Note: Introductory guide to sustainable finance for banking and finance lawyers—this explains the key concepts and challenges around sustainable finance and also covers the regulatory environment around sustainable finance in high-level terms. See: Types of ESG finance—overview for the materials on other types of ESG finance, such as green loans and bonds, social loans and sustainability linked derivatives. What is meant by a sustainability-linked loan? Sustainability linked loans (SLLs) are described in the SLLPs as: ‘Any types of loan instruments and/or contingent facilities (such as bonding lines, guarantee lines or letters of credit) for which the financial and/or structural characteristics can vary depending

means activities that meet the needs of the present without compromising the ability of future generations to meet their own needs, including the conservation of resources, all of which are assumed to be finite.

2018 News Date News story 4 January 2019 Commission publishes draft rules requiring investment firms and insurance distributors to consider sustainability issues when advising clients—LNB News 04/01/2019 66 20 December 2018 AFME calls for creation of clear and responsive classification framework for sustainable finance—LNB News 20/12/2018 158 19 December 2018 Council of the EU agrees position on low carbon benchmarks and disclosure requirements—LNB News 19/12/2018 76 18 December 2018 Council of the EU compromise text on a proposal for a regulation on disclosures relating to sustainable investments and sustainability risks—LNB News 18/12/2018 133 17 December 2018 UN Environment publishes Sustainable Finance Progress Report and consultation—LNB News 17/12/2018 52 13 December 2018 ECON adopts report on proposed regulation amending BMR on low carbon benchmarks and positive carbon impact benchmarks—LNB News 13/12/2018 163 12 December 2018 HM Treasury updates House of Commons EU Scrutiny and Union Committees on progress of proposed Regulation on disclosures relating to sustainable investments and sustainability risks—LNB News 12/12/2018 28 11 December 2018 LMA, APLMA and LSTA

This Precedent on Sustainable Soil Management Obligations is a set of sustainable soil management obligations allowing businesses to manage their reliance on soil, its functions and related ecosystem services. The drafting is easily transferable to other purposes that mitigate climate impacts. It brings sustainable soil management to the fore as a material

On 12 December 2020, the European Commission presented its ‘Sustainable and Smart Mobility’ together with an Action Plan of 82 initiatives sets out for the next four years. This strategy lays the foundation for how the EU transport system can achieve its green and digital transformation and become more resilient to future crises.