The withdrawal aligns with the SEC’s “back to basics” approach, but it does not preclude scrutiny of ESG in asset managers’ strategies, marketing, and fund documentation....more
6/27/2025
/ Asset Management ,
Corporate Governance ,
Disclosure Requirements ,
Enforcement Actions ,
Environmental Social & Governance (ESG) ,
Greenwashing ,
Investment Companies ,
Investment Funds ,
Investment Management ,
Proposed Rules ,
Registered Investment Advisors ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC)
A preliminary injunction motion is set for May, the judge issued a scheduling order, and CARB announced a public workshop to kick off a rulemaking to implement the laws....more
5/22/2025
/ California ,
Climate Change ,
Commercial Litigation ,
Constitutional Challenges ,
Disclosure Requirements ,
Environmental Litigation ,
Government Agencies ,
Greenhouse Gas Emissions ,
Greenwashing ,
Litigation Strategies ,
Preliminary Injunctions ,
Regulatory Requirements ,
Reporting Requirements ,
Rulemaking Process
Paramount to the ruling in the upcoming May 5, 2025, hearing is the likelihood that strict scrutiny will apply to the plaintiffs’ First Amendment claims against SB 253 and SB 261....more
3/10/2025
/ California ,
CARB ,
Chamber of Commerce ,
Climate Change ,
Constitutional Challenges ,
Disclosure Requirements ,
Environmental Policies ,
First Amendment ,
Greenhouse Gas Emissions ,
Preliminary Injunctions ,
Regulatory Requirements ,
Strict Scrutiny Standard
CARB will not penalize reporting entities for incomplete Scope 1 and 2 emissions disclosures under SB 253, irritating lawmakers and raising the specter of oversight hearings....more
1/2/2025
/ CARB ,
Climate Change ,
Comment Period ,
Corporate Governance ,
Disclosure Requirements ,
Financial Reporting ,
Governor Newsom ,
Greenhouse Gas Emissions ,
Proposed Amendments ,
Risk Assessment ,
Rulemaking Process ,
Time Extensions
In-scope entities should keep preparing for compliance with Senate Bills 253 and 261 as the lawsuit proceeds past an initial summary judgment motion....more
11/19/2024
/ CARB ,
Chamber of Commerce ,
Clean Air Act ,
Climate Change ,
Constitutional Challenges ,
Corporate Governance ,
Disclosure Requirements ,
Discovery ,
First Amendment ,
Greenhouse Gas Emissions ,
Motion for Judgment ,
Pending Litigation ,
Risk Assessment ,
Supremacy Clause ,
Task Force on Climate-related Financial Disclosures (TCFD)
In the December 2023 edition of Regulatory Updates in Asia ESG we provided an update on how jurisdictions across Asia are responding to the International Sustainability Standards Board (ISSB) standards. Several regulators in...more
9/3/2024
/ Asia ,
Climate Change ,
Consultation ,
COP ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Greenhouse Gas Emissions ,
Hong Kong ,
IFRS ,
International Regulatory Standards ,
International Sustainability Standards Board (ISSB) ,
IOSCO ,
Regulatory Standards ,
Sustainability ,
Sustainable Business Practices
Private capital providers, investors, asset managers, and financial institutions will likely continue to face a fragmented regulatory landscape on ESG matters.
Various US states have taken and continue to take action on...more
6/24/2024
/ Asset Management ,
Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Investors ,
New Legislation ,
Private Equity ,
Proposed Legislation ,
Sustainability ,
Sustainable Business Practices
Questions around the governance of artificial intelligence (AI) have come to the fore via recent, prominent US shareholder proposals and first-of-their kind enforcement actions, which we describe in depth here. It is in this...more
The Eighth Circuit is poised to determine the fate of the SEC’s final climate regulation, potentially by the end of the year.
On March 21, 2024, the US Court of Appeals for the Eighth Circuit was selected as the court that...more
4/9/2024
/ Administrative Procedure Act ,
Case Consolidation ,
Chevron Deference ,
Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
EU ,
Final Rules ,
Greenhouse Gas Emissions ,
Rules of Civil Procedure ,
Securities and Exchange Commission (SEC) ,
Statutory Interpretation ,
Sustainable Business Practices
The long-awaited rules, already at the center of political debate and litigation, represent another global regulatory effort to integrate climate considerations into financial reporting.
On March 6, 2024, nearly two years...more
The court’s decision is the latest development in the litigation over the SEC’s final rules, which have faced numerous legal challenges since their adoption.
On March 15, 2024, the US Court of Appeals for the Fifth Circuit...more
3/21/2024
/ Administrative Procedure Act ,
Annual Reports ,
Climate Change ,
Corporate Governance ,
Corporate Social Responsibility ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Popular ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Securities Regulation
On March 6, 2024, in a 3-2 vote, the US Securities and Exchange Commission (SEC) adopted final rules requiring registrants to disclose certain climate-related information in registration statements and annual reports. ...more
3/7/2024
/ Annual Reports ,
Climate Change ,
Compliance ,
Compliance Dates ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
Final Rules ,
Greenhouse Gas Emissions ,
Publicly-Traded Companies ,
Registration Statement ,
Regulation S-K ,
Regulation S-X ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Task Force on Climate-related Financial Disclosures (TCFD)
Amid new regulations, increased enforcement and litigation, and higher stakeholder scrutiny, companies will need to adopt an integrated and nuanced approach to ESG.
In some ways, 2023 was a challenging year for ESG. This...more
1/17/2024
/ Advertising ,
Artificial Intelligence ,
Business Strategies ,
Climate Change ,
Corporate Counsel ,
Corporate Governance ,
Corporate Liability ,
Corporate Social Responsibility ,
Cross-Border Transactions ,
Disclosure Requirements ,
Enforcement ,
Environmental Social & Governance (ESG) ,
Greenwashing ,
Investors ,
Popular ,
Privately Held Corporations ,
Publicly-Traded Companies ,
Regulatory Agenda ,
Shareholder Activism ,
Strategic Planning ,
Supply Chain ,
Sustainable Business Practices ,
Trade Policy ,
Transparency
The FCA’s long-awaited regime seeks to raise standards, increase consumer understanding, and reduce instances of greenwashing.
On 28 November 2023, the FCA published its Policy Statement (PS23/16) containing final rules on...more
Guidance for the largest US financial institutions is intended to promote climate risk management consistent with general safety and soundness practices.
On October 30, 2023, the three US federal bank regulatory agencies...more
11/8/2023
/ Banking Sector ,
Biden Administration ,
Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Executive Orders ,
FDIC ,
Federal Reserve ,
Financial Institutions ,
Financial Services Industry ,
New Guidance ,
OCC ,
Policies and Procedures ,
Risk Assessment ,
Risk Management ,
Strategic Planning
Venture capital firms should begin planning now for compliance to avoid monetary penalties or court action. California Governor Gavin Newsom signed Senate Bill No. 54 (SB 54) into law on October 8, 2023.
The bill is...more
Developments span the climate disclosure landscape, risk factor disclosure, and diversity-related efforts.
In advance of the annual shareholder proposal and annual reporting preparation season, we believe that a number of...more
Governor Newsom has committed to signing into law two bills that would require certain companies that do business in California to disclose their GHG emissions and climate-related financial risks.
In January 2023,...more
On September 18, 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published recommendations for organizations’ assessment, management, and disclosure of nature-related issues (the Recommendations). These...more
On June 26, 2023, the International Sustainability Standards Board (ISSB) released its first two standards for sustainability disclosures, which are designed to facilitate the disclosure of sustainability-related information...more
The legislation mirrors anti-“industry boycott” legislation introduced or passed in other US states and provides more explicit rubrics of prohibited factors.
On May 5, 2023, Florida Governor Ron DeSantis signed into law...more
The Guidance would increase expectations for regulated financial institutions to identify, measure, monitor, and control climate-related financial risks.
For the past few years, the New York State Department of Financial...more
Major federal suppliers would need to perform certain climate-related actions, resulting in potential knock-on implications, expectations, and risks.
Key Points:
..The federal government’s proposed regulations would...more
This Client Alert probes the ESG “materiality assessment” process, why it is a misnomer, when and how the assessment can be conducted, and legal and practical tips for conducting the assessment.
Companies have been...more
The call highlights the challenges in developing alignment between global ESG reporting standards.
The European Central Bank (ECB) and the International Monetary Fund (IMF), two of the world’s leading public financial...more
8/22/2022
/ Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
EU ,
European Central Bank ,
IFRS ,
IMF ,
International Regulatory Standards ,
Net Zero ,
Regulatory Standards ,
Securities and Exchange Commission (SEC) ,
Sustainable Finance ,
Task Force on Climate-related Financial Disclosures (TCFD)