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TheCorporateCounsel

TheCorporateCounsel.net

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

DealLawyers

DealLawyers.com

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

Section16.net

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

California often pushes the envelope with its sustainability and environmental legislation. The state has an extended producer responsibility (EPR) law for the textiles industry. Additionally, the state recently enacted strict regulations for recyclability labeling, although these face active litigation. However, the governor drew the line this legislative session, vetoing a new law that would expand the documentation required to make recyclability claims. SB 2253 would have required all companies making recyclability claims to provide the same documentation currently required for plastic products. The governor states his reasoning for vetoing the new recycling law in a letter to the California State Assembly:

“This bill would require certain recycled-content documentation obligations to apply to all products making recycled-content claims, beginning in 2030. I share the author’s goal of ensuring that environmental marketing claims are accurate and that consumers can trust the products they buy. However, I am concerned that expanding these documentation requirements will unduly burden manufacturers and suppliers already facing economic headwinds caused by federal tariff and trade policy actions.”

This is becoming a familiar fact pattern as governments across the world cool their regulatory ambitions. In the face of global economic turmoil, many lawmakers are hoping to prioritize stability and the cost of living. We saw the Prime Minister of Canada provide this same justification last year when he announced that mandatory climate reporting was indefinitely postponed. Additionally, the governor of New York cited the cost of living as a main factor in scaling back the state’s carbon management strategy. While it’s important to be practical, sacrificing ambition to ease present hardship can be problematic if left unchecked. Environmental degradation accelerates economic uncertainty. If emissions and pollution go unmanaged to ease the short-term cost of living, these issues will eventually manifest as a series of crises that will drastically increase the long-term cost of living.

Our members can learn more about recycling laws here.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile