Other Notable Developments
SBTi Reaches 10,000 Companies: The Science-Based Targets initiative (SBTi) announced that it validated science-based targets for over 10,000 companies worldwide, representing more than 40% of global market capitalization.
North Sea Countries Agree to Cooperate on Increasing Wind Energy: The Hamburg Declaration – signed by the UK, Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, and Norway – aims to provide planning certainty and support investments in the offshore wind industry and to develop up to 100GW of offshore wind power through joint projects.
Hong Kong Cross-Agency Steering Group Publishes 2026–2028 Priorities: The steering group, which aims to bolster Hong Kong’s status as a hub for sustainable finance, will focus on enhancing sustainability disclosure, including by issuing best practices for transition plan disclosures and developing transition and adaptation finance capabilities and guidance.
U.S.: EPA Repeals Greenhouse Gas Endangerment Finding
On February 12, 2026, the U.S. Environmental Protection Agency (the “EPA”) finalized a rule rescinding its 2009 “endangerment finding”—the scientific determination that greenhouse gases endanger public health and welfare, and the predicate for EPA’s regulation of greenhouse gases under the Clean Air Act. The rescission removes the legal underpinning for federal greenhouse-gas standards, including rules affecting motor vehicles and, more broadly, major emitting sectors such as power generation and oil and gas operations.
The EPA asserted that the Clean Air Act permits regulation only of pollution that causes direct harm to Americans and only where the damage occurs “near the source” of the pollution. The EPA also noted that the repeal, which EPA Administrator Lee Zeldin described as the “single largest deregulatory action in the history of the United States,” would save auto manufacturers and other businesses up to $1 trillion.
The repeal has already been challenged in federal court by environmental organizations, with more challenges expected from Democrat-led states. On February 13, 2026, Democrats in the U.S. Senate launched an investigation of the EPA’s repeal, requesting by February 27, 2026, that the EPA provide related documents and information concerning its legal justification and decision-making process.
Links:
EPA Press Release
Senate Letter to EPA dated February 13, 2026
U.S.: Federal Court Rules Texas Anti-ESG Law Unconstitutional
On February 3, 2026, a federal district court in the Western District of Texas struck down a Texas law—known as Senate Bill 13—which restricted state investments with companies that seek to reduce their reliance on fossil fuels.
The court held that SB 13 restricted protected speech, was overbroad, and was unconstitutionally vague in violation of the First and Fourteenth Amendments of the U.S. Constitution.
The American Sustainable Business Council brought this challenge in August 2024. As a result of the court’s decision, SB 13 is currently unenforceable. The state’s acting comptroller said that Texas intends to appeal the ruling, but it has not yet formally done so.
Links:
ASBC Complaint
Order
Hong Kong: HKMA Publishes Hong Kong Taxonomy for Sustainable Finance Phase 2A
On January 22, 2026, the Hong Kong Monetary Authority (the “HKMA”) published Phase 2A of the Hong Kong Taxonomy for Sustainable Finance (the “Taxonomy”). The Taxonomy seeks to “build market confidence among key stakeholders, including financial institutions, investors, and corporates,” and “scale up green and sustainable finance flows.” It does so primarily by providing a common standard for identifying and classifying environmentally sustainable economic activities.
Phase 1 of the Taxonomy was published in May 2024 (for more on Phase 1 of the Taxonomy, see our previous ESG Update here). Phase 2A of the Taxonomy incorporates feedback received from a recent public consultation. This new phase builds on Phase 1 by expanding sector coverage to include manufacturing and information and communications technologies and introducing climate change adaptation as one of the Taxonomy’s core environmental objectives. The Taxonomy is currently voluntary and is intended as a guide for market participants.
In addition, the HKMA announced that the development of subsequent phases of the Taxonomy is currently underway. Under consideration for inclusion are a Water sector and a Carbon Capture, Utilisation and Storage sector, as well as the inclusion of activities involving natural-gas-fired power generation and nuclear energy power generation.
Links:
HKMA Press Release
Hong Kong Taxonomy for Sustainable Finance (Phase 2A)
HKMA Consultation Report
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