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French Regulator Calls For Regulation of Providers of ESG Ratings and Other Services

The AMF, the stock market regulator in France, recently reiterated its call for stricter regulation on a Europe-wide basis of the entities providing ESG ratings and other services. Specifically, the AMF stated that the...more

As Part of Global Crackdown on Greenwashing, German Prosecutors Raid Asset Manager

The international news media have publicly reported that German law enforcement has raided an asset manager concerning a "whistleblower's allegations that [the asset manager] sold investments as 'greener' or 'more...more

Republican States Resist Credit Rating Agencies' Use of ESG Criteria

Recently, the States of Idaho and Utah --both controlled by the Republican Party--sent letters to S&P, one of the three major credit rating agencies, objecting to its inclusion of ESG criteria in its assessment of the...more

SEC Announces Disclosures and Rules Changes Intended to Combat "Greenwashing"

Today, the SEC issued two complementary press releases announcing certain proposed rules. First, the SEC announced "proposed amendments to enhance and modernize the Investment Company Act 'Names Rule'" that would "extend the...more

Organizations Taking Into Account Increased Wildfire Risk Due to Climate Change

A non-profit research group, First Street Foundation, recently released data that calculates the wildfire risk for each property in the United States (excluding Alaska and Hawaii). Notably, according to First Street...more

SEC Climate and ESG Task Force Issues First Enforcement Action

The SEC's Climate and ESG Task Force has now issued its first enforcement action. The SEC has brought a 76-page complaint in federal district court against Vale, S.A., a Brazilian mining company, alleging that Vale "ma[de]...more

SEC Chairman Gensler Re-Affirms Support for Mandatory Climate Disclosures

In a speech delivered on May 6, 2022 to the Annual Conference on Financial Market Regulation, SEC Chairman Gensler again re-affirmed his support for the SEC's recent proposed mandatory climate disclosures. ...more

Political Criticism by Congressional Republicans of SEC Proposal on Mandatory Climate Disclosures

The SEC has received two comment letters from members of Congress--one from the House of Representatives and one from the Senate--criticizing its proposal for mandatory climate disclosures....more

Climate Risks Prompting Shifts By Real Estate Investors

The prospect of climate change, and the corresponding elevated risks to various forms of property and investments, are increasingly beginning to be priced in to widening swathes of the economy. While the energy...more

SEC Chairman Gensler Defends Proposed Climate Disclosures

SEC Chairman Gensler delivered a set of prepared remarks at the Ceres Investor Briefing on April 12, 2022, in which he defended the SEC's newly proposed rule concerning climate disclosures. As expected, Chairman...more

SEC's Proposed Climate Disclosures Receive Support from Bank of America

According to Paul Donofrio, the head of sustainability at Bank of America, the SEC's proposal for climate disclosures is "constructive and headed in the right direction." Donofrio voiced further support for the SEC's...more

Senator Manchin Criticizes Proposed SEC Climate Disclosures

Senator Joe Manchin (D-WV) has issued a public letter criticizing the SEC's recent proposal for mandatory climate disclosures. Specifically, Manchin questions the need for such a rule based on the fact that a majority of...more

SEC Announces ESG as Examination Priority

Following-up on the extensive new mandatory climate disclosures the SEC issued last week, the SEC has now announced that "ESG" will be the second enforcement priority of its examination division during 2022. Specifically,...more

A Brief Summary of the SEC’s Proposed Climate-Related Rules

On March 21, 2022, the Securities and Exchange Commission (“SEC”) unveiled its long-anticipated proposed rules on climate disclosures, entitled “The Enhancement and Standardization of Climate-Related Disclosures for...more

FERC Chairman Glick's Job at Risk After Advancing Efforts to Combat Climate Change

The Federal Energy Regulatory Commission ("FERC"), which regulates the transmission and wholesale sale of electricity and natural gas, and also oversees the U.S. pipeline infrastructure, including the review process for...more

SEC Issues Proposed Regulation on Mandatory Climate Disclosures

On March 21, 2022, the SEC finally issued a proposed rule on mandatory climate disclosures. This proposed rule has been expected for some time--it was widely anticipated to be a centerpiece of the Biden Administration's...more

Shareholder Lawsuit Filed Against Shell Board of Directors in the UK Concerning Failure to Prepare for Climate Change

ClientEarth, an environmental law organization, has filed a shareholder derivative lawsuit in the United Kingdom against Shell's board of directors for an alleged failure to adequately prepare Shell for the impact of climate...more

Raskin Nomination for Federal Reserve Torpedoed by Conservative Objections to Potential Climate Regulations

Yesterday, Sarah Bloom Raskin, who had previously served as a Federal Reserve governor and deputy Treasury secretary during the Obama administration, withdrew her nomination to be the Federal Reserve's vice chair of...more

SEC to Propose Rules Concerning Mandatory Climate Change Disclosures on March 21

According to media reports, the SEC has announced that it will "propose rules mandating disclosure from publicly traded companies about climate change and associated risks" on March 21st....more

SEC Begins to Issue Comment Letters on Climate Disclosures

As indicated by the sample comment letter provided by the SEC in September 2021, the SEC has begun issuing comment letters to companies concerning climate disclosure issues in their filings. To date, there do not appear to...more

Red States Move to Penalize Companies That Consider Climate Change When Making Investments

A number of conservative-leaning states, particularly those with a significant fossil fuel industry (e.g., Texas, West Virginia), have begun implementing polices and enacting laws that penalize companies which "pull away from...more

Internal Dissension at SEC Delays Climate Change Disclosure Regulations

The Biden Administration has clearly announced that addressing the issue of climate change is one of its key policy priorities. One of the central aspects of this policy was intended to be an array of new regulations by the...more

SEC Commissioner Lee Suggests Role for ESG in Executive Pay

SEC Commissioner Alison Herren Lee recently availed herself of the opportunity presented by the re-opening of the comment file on the Dodd-Frank rule "requiring companies to disclose the relationship between executive...more

Biden Nominee for Federal Reserve Under Fire For Promoting Climate Change Regulations

Sarah Raskin, the Biden Administration's nominee to be the Federal Reserve's vice chair for supervision, has faced significant questioning by Republican senators based upon her past remarks concerning the role of financial...more

Oil & Gas Drilling Licenses Canceled by Federal Judge Due to Climate Change Concerns

Yesterday, Judge Contreras of the D.C. District Court vacated oil and gas drilling licenses for the Gulf of Mexico issued in connection with a sale by the Department of the Interior. Specifically, the court held that the...more

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