The Monday ECO-nomics · Issue 02

English Edition ESG · Climate · Nature · Regenerative Economy · Social Impact

78%

Corporate leaders rating climate operational risk as likely within five years

47%

Sustainability leaders seeing room for improvement in execution, up from 36% in 2025

12M ha

Degraded land Indonesia committed to restoring, with carbon credit sales planned

1.15M

Views earned by an Indian village leader's welfare access Instagram reels

Lead story · Regulatory & Policy

SEC moves to formally rescind its 2024 climate disclosure rules

The proposal, submitted on 4 May, cites concerns about statutory authority and cost-benefit balance. The rules never took effect due to legal challenges, but their formal removal signals a decisive shift in the US disclosure landscape.

The US Securities and Exchange Commission submitted a proposal on 4 May 2026 to formally rescind its 2024 climate disclosure rules, which would have required listed companies to disclose climate-related risks and greenhouse gas emissions. The rules were challenged in court before taking effect and were subsequently stayed.

The SEC's decision to rescind rather than merely defer reflects a substantive change in regulatory philosophy rather than procedural delay. For companies that had begun preparing voluntary disclosures in anticipation of the rules, the practical question now is whether investor demand sustains disclosure momentum without a legal obligation.

A Morgan Stanley survey of 300 global sustainability leaders, published the same week, shows the corporate sustainability execution picture is also weakening: 47% now see room for improvement in execution, up from 36% in 2025. Just 22% view sustainability primarily as value creation, down from 53% last year.

Why it matters: The US climate disclosure project is effectively over for this regulatory cycle. European and voluntary frameworks carry more weight as a result.

Sources: ESG Today · Morgan Stanley

This week at a glance

SEC proposes formal rescission of 2024 climate disclosure rules. Rules never took effect; move signals definitive end of the US federal climate disclosure project for this cycle.

Morgan Stanley survey: 47% of sustainability leaders see execution weakening. Only 22% still view sustainability as value creation, down from 53% in 2025.

Indonesia commits to restoring 12 million hectares of degraded land, with international carbon credit sales planned under updated trading rules.

Climate Action 100+ releases streamlined Net Zero Company Benchmark for 2026, shifting focus from process to outcomes measurement.

Upcoming

20 to 28 June 2026

London Climate Action Week, Europe's largest independent climate event, now in its 8th edition, attracting over 45,000 people annually across hundreds of partner-led sessions on finance, policy, and innovation. Details

7 to 15 July 2026

UN High-Level Political Forum on Sustainable Development, with 36 countries presenting Voluntary National Reviews including Brazil, Italy, Norway, and Switzerland. Theme: "Transformative, equitable, innovative and coordinated actions for the 2030 Agenda." In-depth reviews of SDGs 6, 7, 9, 11, and 17. Details

The Monday ECO-nomics · Issue 02 Page 2 · Policy · Market · Science · Nature

Regulatory & Policy Watch

Investor Coalitions · Net Zero Benchmarking

Climate Action 100+ updates benchmark framework for 2026

The investor coalition released a streamlined Net Zero Company Benchmark for 2026, adding the World Benchmarking Alliance as a new partner to assess climate governance and absolute emissions metrics. The framework consolidates climate policy engagement metrics under InfluenceMap to reduce duplication. Full company assessments are expected in October 2026.

Why it matters: The investor expectations framework is adapting to regulatory disclosure mandates, shifting focus from process to outcomes measurement.

Source: Climate Action 100+

Market & Corporate Moves

Climate Risk · Corporate Operations

Physical climate risk expectations spike among corporate leaders

A Morgan Stanley survey finds 78% of corporate leaders rate negative operational impacts from extreme weather, wildfires, or flooding as very or somewhat likely within five years, up from 65% in 2025. Nearly two-thirds (63%) say increased operational costs from physical climate impacts are very likely.

Why it matters: Climate risk is transitioning from a disclosure exercise to an operational planning imperative for most large corporates.

Source: Morgan Stanley

Nature, Biodiversity & Regenerative Economy

Carbon Markets · Land Restoration

Indonesia carbon credit strategy crystallises around 12 million hectare restoration commitment

Indonesia's Forestry Minister confirmed on 12 May at the UN Forum on Forests that the country will rehabilitate 12 million hectares of degraded land, potentially linking reforestation to international carbon credit sales under recently updated trading rules. The forestry ministry confirmed updated carbon trading regulations will meet high integrity standards and involve local community partnerships.

The target covers 29.65 million acres but faces scrutiny after forest loss reportedly surged 66% in 2025.

Why it matters: One of the world's largest nature-based carbon programmes is taking shape, but credibility depends on reversing recent deforestation trends.

Source: Reuters via The Star

Excellent News

A village leader in Gujarat turned Instagram into a welfare access tool for over 1,000 people

Gamit Ripin, the 33-year-old elected head of Chikalda village in Gujarat, India, has helped more than 1,000 people access government welfare schemes through one-minute Instagram reels explaining eligibility and application procedures in plain language. His 50-plus videos have garnered over 1.15 million views, with 90% driven by the platform's algorithm. Since July 2025, the approach has helped 17 families access housing subsidies, 60 widows receive pensions, and numerous students obtain scholarships.

Reasons to be Cheerful

The Monday ECO-nomics · Issue 02 Page 3 · Tool of the Week

Tool of the week

Climate TRACE Release 5.6.0

Released in April 2026, this latest version provides monthly greenhouse gas emissions data through February 2026, tracking facility-level emissions using satellite observations, AI, and machine learning across more than 90 trillion bytes of data from 300-plus satellites and 11,000-plus sensors. The platform now covers all major emitting sectors with asset-level granularity, enabling practitioners to identify specific emission sources at individual facilities rather than relying on national aggregates or self-reported data.

The open-source database is available under a Creative Commons 4.0 licence. Access at climatetrace.org/data.

Why it matters: Monthly emissions updates with a two-month lag provide practitioners with near-real-time verification capability for corporate disclosure claims and supply chain emissions tracking at unprecedented geographic and temporal resolution.