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A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

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An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

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Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

There is more to the story about CARB’s December 5, 2024 Enforcement Notice (see this Ropes & Gray memo)… Looks like the California legislative sponsors of SB 253 (the Climate Corporate Data Accountability Act) reached their boiling point with the California Air Resources Board (CARB) and their lack of attention to/urgency in implementing the law. CARB’s delay didn’t sit well with the lawmakers, who sent the proverbial “strongly worded letter” to Chair Liane Randolph.

“It is vital that California provide clear signals to the business community that our state remains committed to pursuing emissions transparency through a robust disclosure regime on the timeline enacted in 2023. However, the Notice does not appear to require full compliance with the law, which is unacceptable.

We also are beyond frustrated at the lack of progress CARB has made to implement the legislation. The 2024-25 budget, passed in June, appropriated $8.4 million earmarked for implementing these laws, mainly hiring of staff to craft the regulation. Unfortunately, six months later, CARB has yet to post a job description on CalCareers.ca.gov for that new staffing… it is critical that this landmark policy proceed in a robust and timely manner to preserve California’s historic role as a leader and a backstop in the fight against the climate crisis.

We do not ask for a written response to this letter. We instead ask for fast action and marked progress towards implementing the law. We will be closely monitoring CARB’s progress in hiring the staff needed to implement the law, and taking other public steps to promulgate regulations to implement SB 253 according to the timeline established in statute. Should we fail to see timely action on these critical steps, we will look to bring CARB leadership before the Legislature for Oversight hearings in 2025.”

We’ll monitor for CARB’s response and action.

Members can learn more about climate disclosures here.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile