The following interview originally appeared in the National Law Journal.

What you need to know

  • One of the significant issues many of their multinational clients have is the growing divide between how they operate and what’s expected of them in the U.S. versus Europe.
  • At the same time the legal field has experienced this anti-ESG backlash over the last year in the U.S., the EU has moved full speed ahead on many ESG initiatives with significant consequences for businesses, including the EU Taxonomy, the Sustainable Finance Disclosure Regulation, the Corporate Sustainability Reporting Directive, and the Corporate Sustainability Due Diligence Directive.
  • There is also growing litigation risk because with so much more scrutiny, and so much more information in the public domain, there are a range of stakeholders and potential plaintiffs on ESG issues, from state officials to NGOs

The Biden administration has set clear policy goals to establish effective corporate net-zero strategies on the one hand, yet there has also been growing pushback against the climate aspect of ESG in many red states. How do you advise clients on climate regulation in this very fluid environment?

Jayni Hein: We are all witnessing this summer, yet again, record-breaking land and ocean temperatures and pervasive wildfire smoke. It’s undeniable that climate change is affecting how we live today and how businesses operate. How both the government and the private sector respond is critically important.

On September 7, 2023, Governor Newsom signed into law AB 1307, urgency legislation which took effect immediately and added to the Public Resources Code a new Section 21085, which reads: “For purposes of this division, for residential projects, the effects of noise generated by project occupants and their guests on human beings is not a significant effect on the environment.”

In July, the Ohio General Assembly passed the Fiscal Year 2024-2025 Main Operating Budget which included another round of $350 million in funding for the Brownfield Remediation Fund. This second round of funding builds up on the very successful launch of the program in the prior State budget.

While the structure of the program largely…

Yellow-Legged Frog

On August 31, 2023, the U.S. Fish and Wildlife Service (USFWS) issued a final rule listing four distinct population segments (DPSs) of foothill yellow-legged frog (Rana boylii) under the federal Endangered Species Act (ESA). The foothill yellow-legged frog lives in streams throughout California and Oregon, but the four DPSs identified are all located…

On September 6, 2023, EPA held a webinar relating to pesticidal devices, focused on air cleaning devices.  The webinar highlighted EPA’s expectations for data that manufacturers must have on file to substantiate efficacy claims for these devices.  This provides important additional guidance to manufacturers regarding the types of testing EPA expects to be conducted.

Governance

The EU Corporate Sustainability Reporting Directive (“CSRD“) entered into force on 5 January 2023 and the associated European Sustainability Reporting Standards (“ESRS“) were adopted by the European Commission on 31 July 2023. Together, the CSRD and ESRS create detailed sustainability reporting requirements that will apply to a significant number of EU and non-EU companies and substantially increase the scope of their sustainability reporting.

Application of the rules is now imminent and, for some, CSRD reporting periods will begin from 1 January 2024.

In this update, we take a look at the implications of the CSRD for non-EU companies and what companies can do to prepare.

At the Summer 2023 National Meeting of the US National Association of Insurance Commissioners (“NAIC”), a number of sessions were focused on environmental, social and governance (“ESG”) initiatives, led by the Special (EX) Committee on Race and Insurance (the “R&I Committee”) and the Climate and Resiliency (EX) Task Force (“C&R…