With the third quarter coming to a close and year-end reporting just around the corner, public companies should be giving careful thought to the evolving landscape for climate-related disclosures. While it did not promulgate any new rules in 2021 regarding these disclosures, the SEC has been actively commenting on climate change disclosures, and new rules are almost certainly on the way.
Tag Archives: ESG
On June 16, 2021, the U.S. House of Representatives passed legislation that would impose new ESG due diligence and disclosure requirements on publicly traded companies. H.R. 1187 – the ESG Disclosure Simplification Act of 2021 – would require publicly traded companies to disclose their commitments to ensuring that environmental, social (human rights), and good governance standards (ESG) are reflected in their operations, activities, and supply chains.
The Legislation’s Impact on ESG Due Diligence and Disclosure
President Biden’s “Climate-Related Financial Risk” Executive Order Pushes Forward on the Administration’s ESG Commitments
On May 20, 2021, President Biden signed an Executive Order to address predicted financial instability in the federal government as a result of climate change. This Executive Order showcases a dramatic change in how the Biden Administration’s stance towards climate-finance and environmental, social, and governance (ESG)-based investments will differ from the previous administration.
The Executive Order, titled “Climate-Related Financial Risk” seeks to “bolster the resilience of our rural and urban communities,… More
As anticipated, the pace of change around the Climate and broader ESG landscape is accelerating rapidly. In this timely webinar, we discussed:
- The multiple market developments leading towards a rationalized corporate reporting system
- The role of the board and governance around the ESG agenda
- Practical steps to navigate the changing ESG landscape
New E.U. Measure on Environmental and Human Rights Due Diligence Has Far-Reaching Implications for Companies Operating in Europe and Beyond
On March 10, 2021, the European Parliament approved a legislative measure by an overwhelming 504-79 majority that paves the way for a landmark set of regulations setting a corporate duty of care regarding environmental protection and sustainability, internationally recognized human rights principles, and good governance practices – collectively referred to as ESG standards. Although the Parliament’s measure is not legally binding, it is expected that the European Commission will adopt regulations in general accordance with Parliament’s legislative measure by the end of the year.… More
Watch Now: Beyond Compliance: Privacy, Artificial Intelligence, and the Ethical Implications for Businesses
Rapidly-shifting regulatory requirements affecting data privacy often leave businesses struggling not only to keep up with immediate compliance needs, but also wondering how they can “future proof” their businesses to account for increasingly robust laws. And as the technology around artificial intelligence increases in sophistication and ubiquity, lawmakers and consumers are taking notice and action. How should businesses be thinking about these changes beyond mere compliance? What are the ethical implications around data use affecting how individuals and regulators are thinking about data use?… More
New U.S. Policy, Same Human Rights Expectations: Companies Sourcing from the Western Sahara Are Still Obligated to Respect International Law
On December 10, 2020, President Trump formally announced that the Government of Israel and the Kingdom of Morocco will normalize their bilateral relationship, marking the fourth Arab country that recognizes Israel as a result of the Abraham Accords. Over the coming months, the new agreement will allow the two countries to resume full diplomatic relations, increase cooperation on security and economic matters, and open up regular flights between Morocco and Israel.… More
On December 16, 2020, the Securities and Exchange Commission issued a new regulation that revises and reinstitutes a previously-repealed SEC regulation to implement Section 1504 of the Dodd-Frank Act.
The new rule is the culmination (for now) of a long process to implement the ten-year old Section 1504, which Congress included in Dodd-Frank with the intent of making payments to foreign governments by oil, gas, and mining companies more transparent.… More
As the United States Targets China’s Human Rights Abuses, Companies Should Prepare for Stricter Due Diligence on Forced Labor
As the United States seeks to take more forceful action punishing China for its escalating human rights abuses against Muslim ethnic minorities in the Xinjiang autonomous region and the citizens of Hong Kong, international businesses whose supply chains intersect with China should be prepared for new legislation and regulatory enforcement that could result in penalties. Companies will need to take additional steps to ensure their due diligence processes account for potential human rights risks associated with forced labor in Xinjiang and elsewhere in the country.… More
Toward a Credible and Universal Concept of Rights: How Racial Injustice in America Affects U.S. Human Rights Practices Abroad
The Murder of George Floyd on May 25th by a white Minneapolis police officer did not happen in a vacuum. It was not an aberration in an “otherwise functioning” justice system. Countless black men and women in America have suffered similar fates at the hands of a criminal justice apparatus that often sees black people as material threats before seeing them as human. Floyd’s death is just the most recent symptom implicating a justice system in the United States that many experts and activists consider out of control,… More