Climate risk disclosure regulations have been developing and expanding for some time and 2025 is going to be a key year. Some reporting requirements start now, some in 2026, as Moody’s noted this month.

But global investors want to know everything is covered no matter where they put their money, and all things climate eventually affect commercial real estate.

First up, the EU’s Corporate Sustainability Reporting Directive (CSRD). That will affect up to 50,000 entities not covered by the EU’s Non-Financial Reporting Directive, according to Grant Thornton Advisors. U.S. entities that have EU revenue or operations may find themselves with reporting obligations. CSRD established ESG (environmental, societal, governance) reporting within the management report. Whether a company comes under the requirements depends on the year of implementation (it started in 2024), the nature of the EU entity, and its size.