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Nov 6 2024 #assurance, #climate, #compliance, #environment, #esg, #human-rights, #investors, #social, #supply-chain
Political Pressure Building in EU to Scale Back CSRD
The EU is arguably the world leader in sustainability legislation with the European Green Deal being at the forefront of global ESG regulations. However, passing and implementing environmental policy has not come without a political cost. This summer, right-wing candidates...
Nov 6 2024 #climate, #compliance, #environment, #esg, #supply-chain
New Insurance Available for Carbon Offset Fraud
It’s an interesting time for insurance in the voluntary carbon market (VCM). Yesterday, I wrote about concerns with VCM buffer pools, which act as a type of insurance for VCM buyers and project developers; last week, I blogged on considerations...
Nov 6 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Is an Alternative to Voluntary Offsets Coming?
Since we’re on the topic of offsets… It’s been a tough couple years for voluntary GHG offsets, what with claims of fraud, turmoil in market players and the rise in greenwashing claims. Even so, advocates argue that doing something about...
Nov 5 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
CSOs Need to Improve Their Credibility With CFOs
A new report from EY How can CFOs be confident in value creation without confidence in reporting? offers interesting perspectives based on new survey data. CFOs are doing more than they ever have – moving from purely managing numbers to...
Nov 5 2024 #assurance, #climate, #compliance, #environment, #esg, #supply-chain
More Offset Controversy – This Time, It’s Buffer Pools
The old saying goes “the only inevitable things are death and taxes.” These days, we should add “voluntary carbon offset controversy.” A new existential problem with the voluntary carbon market (VCM) rears up almost monthly. Bloomberg reported on a particularly...
Nov 5 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #investors, #social
Hidden Benefits of Materiality Assessments
Materiality assessments are at the center of many disclosure frameworks. These serve the obvious purpose of setting out the topics to be covered in company disclosures, but they may also have hidden benefits. A recent article in ESG Today discusses...
Oct 31 2024 #assurance, #compliance, #environment, #esg, #human-rights, #investors, #social
The Bizarre Tale Of A VW Social Audit
Thanks to Andrew Britton for the heads up on this article in his newsletter. Germany’s Der Spiegel magazine published a fascinating piece (in English) about a social audit of VW’s operations in operations in Xinjiang, China. A bit of background...
Oct 31 2024 #climate, #environment
New Chemistry Innovation Could Make DAC A Reality
Many scientists believe that in order to make meaningful progress in slowing climate change, we must remove excess CO2 out of the ambient air. There are a few (massive and expensive) projects that purport to do just that. This technology...
Oct 31 2024 #climate, #compliance, #environment, #esg, #investors, #social, #supply-chain
New This Week on PracticalESG.com
PracticalESG.com is widely known for our blogs, but that is only a small part of what we do. We provide credible, up-to-date information exclusively focused on practicality and usefulness to ESG/sustainability professionals (in-house staff, external advisors and legal counsel) in...
Oct 30 2024 #climate, #compliance, #environment, #esg, #investors
Are Hypothetical Climate Risks Really Hypothetical in SEC’s Eyes?
When Meredith and I were drafting our sample disclosure based on the final SEC rules (members can access that here), she brought up an interesting point about physical risks – business exposures (e.g., property damage or loss) resulting from weather...
Oct 30 2024 #climate, #compliance, #environment, #esg, #investors
Trial Begins in Santos Shareholder Greenwashing Suit
Greenwashing suits are becoming more commonplace as consumers and regulators hold companies’ feet to the fire on sustainability claims. In Australia, a greenwashing case against energy company Santos is headed to trial and shareholders are behind the litigation. We don’t...
Oct 30 2024 #climate, #compliance, #environment, #esg
ADM’s Carbon Injection Well Leaks and Risk Confirmed
Speaking of hypothetical versus actual climate risk … I’m not shy about my cynicism of underground injection of carbon (carbon capture and storage, or CCS). My concerns are borne out of having direct experience with industrial wells used for hazardous...
Oct 29 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
More SEC Regulatory Danger In Calling ESG/Sustainability Material
Earlier this year, I wrote about why ESG/sustainability professionals should not attempt to make materiality determinations on their own – at least for companies subject to SEC jurisdiction. Last week, over on TheCorporateCounsel.net, Meredith blogged about a Freshfields article that...
Oct 29 2024 #compliance, #environment, #esg, #investors, #social, #supply-chain
Sustainability Statements One of ESMAs Top Three Enforcement Priorities
The first set of reports under the Corporate Sustainability Reporting Directive (CSRD) are due on January 1, 2025. The European Securities and Markets Authority (ESMA) will be monitoring these reports closely. The regulator recently released its enforcement priorities for the...
Oct 29 2024 #climate, #environment, #esg, #supply-chain
Insuring Carbon Offsets: What CSOs Should Know
Yesterday, Trellis (formerly GreenBiz) wrote about insurance solutions for the carbon market. Given the turmoil in carbon markets – reputational problems, fraud and growing frequency/severity of wildfires – using insurance to manage risks may make sense. “Buyers can insure their...
Oct 24 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Middle Market Companies Missing Out on Sustainability Value
In business mythology, ESG/sustainability is a discretionary endeavor primarily for large companies that can afford to spend money on something with little, no or soft-dollar returns. In today’s world, that myth has been busted due to changes in regulatory mandates,...
Oct 24 2024 #climate, #environment, #esg, #supply-chain
Marriot Introduces Novel Sustainability Impact Report
As sustainability evolves, the market demands more information than ever. From investor surveys to regulatory disclosures, companies feel pressure from a variety of stakeholders to provide reliable information about sustainability impacts of their businesses. Hotel chain Marriott International is introducing...
Oct 24 2024 #climate, #environment, #esg
Oops – British Airways Calls High-Emitting Offer an “Oversight”
Professionals in ESG/sustainability talk about being siloed and not having enough exposure to or insight into company operations. That is generally true (we’ll be tackling that challenge soon), but usually the consequences don’t show themselves blatantly and publicly. Unfortunately, that...
Oct 23 2024 #assurance, #climate, #compliance, #diversity, #equity, #esg, #human-rights, #investors, #social, #supply-chain
SEC Continues to Enforce for ESG/Sustainability
It recently came to light that the SEC disbanded their ESG Enforcement Task Force. The move was met with much disappointment in ESG/sustainability circles who may not have fully appreciated SEC’s subtlety in saying that “the expertise developed by the...
Oct 23 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Green Hushing Is An Opportunity, Not a Problem
I recently ran across a LinkedIn post offering guidance to “sustainability consulting companies and climate tech start ups” whose business is negatively impacted by green hushing trends. Putting it in a broader context and through the lens of my LegalESG...
Oct 23 2024 #climate, #compliance, #environment, #esg, #investors
ClientEarth Challenges BlackRock’s “Sustainable” Funds
NGO ClientEarth has taken aim at BlackRock in alleging that European investments marketed as “sustainable” include substantial exposure to fossil fuels which misleads consumers. The NGO has sent a letter to the French Regulator Autorité des marchés financiers (AMF) seeking...
Oct 22 2024 #assurance, #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Is LinkedIn Your Go-To ESG/Sustainability Information Source? Read This
Last week’s LegalESG in NYC was excellent and one particularly surprising point came through: LinkedIn is a primary information source for ESG/sustainability lawyers, practitioners and service providers. I understand the appeal – it’s free, has international coverage and is generally...
Oct 22 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Is This The Best Carbon Offset Project Ever?
I’m not shy about my cynicism of the voluntary carbon offset market and some of the related technology/solutions, and I do take heat for that. Although the VCM has its place in carbon management, offsetting was supposed to be the...
Oct 22 2024 #compliance, #environment, #esg, #investors
Hong Kong Publishes Voluntary Code of Conduct for ESG Raters
Last year, we wrote about Hong Kong’s plans to adopt a voluntary code of conduct for ESG raters and data providers. Hong Kong’s Securities and Futures Commission (SFC) appointed the International Capital Market Association (ICMA) to develop the code of...
Oct 17 2024 #climate, #diversity, #environment, #esg, #social, #supply-chain
Law Firms Struggle to Walk the Walk on ESG
In the last five years, many law firms created ESG practices to help clients navigate the vast world of ESG issues. Despite advising clients on ESG best practices, it seems that many firms are taking a “do as I say...
Oct 17 2024 #climate, #compliance, #environment, #esg
Germany Twisting in the Wind Over Carbon Issues
Germany, once the manufacturing powerhouse of Europe, finds itself challenged by carbon/climate risk management developments. Here are a few examples from Clean Energy Wire: The German Advisory Council on the Environment (SRU) argued the country’s “reform plans to allow the...
Oct 17 2024 #climate, #compliance, #environment, #esg, #supply-chain
Canada Moves Closer to Mandatory Reporting for Private Companies
The Canadian Government recently announced new plans for sustainable investment guidelines and expanded mandatory climate-related financial disclosures. This year marked the first reporting period for Canadian federally regulated financial institutions to report under TCFD guidelines, and now the Canadian Government...
Oct 16 2024 #climate, #compliance, #esg, #human-rights
Switzerland Skirts Compliance with ECHR Climate Ruling
Back in April, we wrote about a groundbreaking decision by the European Court of Human Rights (ECHR) ruling that protection against climate change is a human right and finding that Switzerland did not have a credible climate plan – therefore,...
Oct 16 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Study Finds Total Number of Greenwashing Cases Down, High-risk Cases Up
Greenwashing litigation has been on the rise for years and is a major contributor to rising climate and ESG cases globally. However, a recent study from RepRisk finds that the number of these lawsuits declined for the first time in...
Oct 16 2024 #climate, #compliance, #environment, #esg, #supply-chain
New Podcast: EHS Compliance Data, Sustainability Disclosures and Public Messaging
A new podcast is now available for members. Corporate sustainability teams and external advisors frequently make statements in public and regulatory disclosures that are inconsistent with data from EPA on environmental compliance and OSHA on employee safety. Doug Parker, CEO...
Oct 15 2024 #compliance, #esg, #human-rights, #social, #supply-chain
GAO Report: Conflict Minerals Rule Ineffective in Reducing DRC Violence – But Is That Right?
The US GAO just published its latest report on the SEC conflict minerals rule to “assess, among other things, the SEC rule’s effectiveness in promoting peace and security in the DRC and adjoining countries. This report examines, among other things...
Oct 15 2024 #climate, #compliance, #environment, #esg, #supply-chain
Oregon Expands Climate Lawsuit to Name Gas Utility
Multnomah County, Oregon filed an amended complaint in its ongoing litigation against fossil fuels companies. The suit, originally filed last year, is the first of its kind to name a natural gas utility as a defendant. While it is common...
Oct 15 2024 #climate, #compliance, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
Come See Us at LegalESG in New York
Zach and I will be at LegalESG in NYC Tuesday. The day will be full of usable and practical information for not only lawyers, but other advisors and in-house ESG/sustainability leaders and staff. I will be talking with Clifford Chance’s...
Oct 10 2024 #compliance, #esg, #human-rights, #social, #supply-chain
EU Forced Labor in Supply Chains Regulation Coming Into Focus
We’ve previously written about the EU’s upcoming regulation banning the sale of products made with forced labor. The first draft of the English version of the regulation has now been published, giving us a more granular view of what the...
Oct 10 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
New Report: Good & Bad News for the ESG/Sustainability Profession
Trellis (formerly The GreenBiz Group) published their eighth biennial report “State of the Sustainability Profession” which looks at the role of sustainability leaders in today’s business world and how it has evolved. The survey, conducted November 2023 and December 2023,...
Oct 10 2024 #climate, #compliance, #diversity, #environment, #equity, #esg, #human-rights, #investors, #social, #supply-chain
New Podcast: Daniel Aronson on “Submerged Value” & Customer Buying Behavior
A new podcast is now available for members. Corporate sustainability teams are increasingly required to demonstrate the business value of their efforts and show an ROI. Most low hanging fruit is gone, making it harder to find meaningful business value...
Oct 9 2024 #climate, #compliance, #environment, #esg, #supply-chain
How to Think About Carbon Offsets Like a CEO/CFO/CLO
Sustainability professionals tend to flock together. We speak the same odd language, face the same challenges and generally find motivation in the same things. We attend the same conferences, seminars and webcasts that reinforce our world. But there are dangers...
Oct 9 2024 #climate, #compliance, #environment, #esg, #investors, #supply-chain
Carbon Project CEO Hit With SEC, CFTC and Criminal Charges, Faces 80 Years in Prison
The validity of carbon credits and carbon offsets has been an ongoing debate in ESG. It seems that every few months there’s news about an offsetting scheme or project using faulty methodologies that overstate the impact of their work. Now...
Oct 9 2024 #climate, #compliance, #environment
US Supreme Court Upholds Oil & Gas Methane Rule, Benefiting Scope 2 and 3 Disclosures
US petroleum and natural gas systems emitting 25,000 metric tons or more of GHGs per year will have to comply with EPA’s Subpart W regulations after all. According to The Hill, “The Supreme Court on Friday declined to block Biden...
Oct 8 2024 #compliance, #environment, #esg, #human-rights, #social, #supply-chain
9th Circuit: Cisco Can Be Sued for Aiding and Abetting Human Rights Violations
This is big news in the realm of corporate liability for supply chain human rights risk. Cisco Systems is being sued in California for aiding and abetting human rights violations by the Chinese government. According to the Plaintiffs, Cisco contracted...
Oct 8 2024 #climate, #diversity, #environment, #equity, #esg, #social, #supply-chain
Is There More Sustainability Business Value in B2B or B2C? (Part 1)
Calls for making sustainability a business imperative have become cliche, undermining complexities of actually doing so. There is no single, definitive business imperative – simply put, every company is different. Consumer-facing companies are flooded with survey data on the importance...
Oct 8 2024 #climate, #environment, #equity, #esg, #human-rights, #social, #supply-chain
Is There More Sustainability Business Value in B2B or B2C? (Part 2)
Continuing from the previous blog … If you are a B2B company, here is some ying to the yang of executive deprioritization of sustainability: “Sustainability is becoming increasingly important to corporate buyers … it is now one of the top...
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Featured Q&A Members Only
Reporting to SEC if Climate Disclosure Rule is Vacated
If the SEC climate disclosure rule is overturned or vacated by the court, is it correct that companies will have no legal obligation to report on climate risk management matters to the SEC?
10/31/2024, Question #25193
SEC Climate Rule Goal/Target
Regarding the new climate rule, if a company determines that a GHG emissions reduction target or goal is material, the company may also need to report and annually update the underlying Scope 1, 2 and/or 3 emissions metrics to satisfy its disclosure obligations, even if the GHG emissions metrics are not otherwise required to be disclosed.
If a company sets a goal/target, but determines that the goal/plan to achieve is immaterial – would they have to report out progress against that goal?
10/29/2024, Question #25145
Shareholder communications of general concern
How can a company discuss with shareholders, on their normal periodic outreach to the shareholders outside of the normal proxy season, to find out how the shareholders view current issues of shareholder concern generally, like compensation, ESG, CSR, the “purposeful corporation” and the advent of PBCs, without being required to file any material as proxy solicitation material?
10/29/2024, Question #25140