Legal ESG1 MIN READ
EU negotiator proposes directing 75% of ETS revenue to industrial decarbonisation
Source: ReutersLegal RiskLegal ESGLegal Operations
CARB issued a 15-day notice proposing to defer California's first SB 253 (Climate Corporate Data Accountability Act) reporting deadline from August 10 to November 10, 2026, and simultaneously announced targeted proposed revisions to the initial regulation — changes it intends to finalise before the new deadline. The November 10 deadline applies to Scope 1 and Scope 2 emissions only; Scope 3 report
TotalEnergies formally appealed (July 27) the landmark Paris Judicial Court ruling that ordered it to revise its climate vigilance plan to include Scope 3 emissions — upstream and downstream from its own operations. The appeal does not suspend the lower court's decision: TotalEnergies must still submit a revised climate vigilance plan before the end of December 2026, with judicial review scheduled
CMS Law (July 30) reports that two Commission Delegated Regulations implementing the EU ESG Ratings Regulation were published in the Official Journal on July 29: Commission Delegated Regulation (EU) 2026/871 (specifying elements of ESG rating products to be disclosed to the public, to users, rated items, and issuers of rated items) and Commission Delegated Regulation (EU) 2026/872 (specifying meas
Morgan Lewis's Summer 2026 ESG Investing Update (July 30) documents the full scope of the US regulatory reversal on ESG. The SEC has proposed rescission of its 2024 climate-related disclosure rules, citing cost concerns and statutory authority questions — the rule was already stayed in April 2024 pending judicial review and the administration withdrew its defense after the 2024 elections. Separate
Jones Day's analysis (July 28) of the European Commission's June 26 Forced Labor Regulation guidelines is the week's most operationally significant compliance document for supply chain counsel. The EU FLR imposes what the Guidelines describe as an "obligation of result" — an unconditional and absolute duty that no product placed on the EU market has been produced with forced labor at any stage of
Texas AG Ken Paxton filed suit (July 29) against proxy advisory firms ISS and Glass Lewis, alleging deceptive trade practices in connection with ESG-related voting recommendations — joined by AGs from Iowa, Nebraska, and West Virginia. The lawsuits allege that the firms' ESG-oriented recommendations violate consumer protection laws and improperly influence corporate governance decisions. This is t
The European Commission finalised the revised ESRS (European Sustainability Reporting Standards) on July 3, 2026, and they are now in a two-month parliamentary scrutiny period (extendable to four months) before entering into force. The key changes from the Omnibus package: mandatory datapoints reduced by more than 61%; total datapoints reduced by more than 70%; scope threshold raised to at least 1
Oxford Law Blogs' Business Law Blog published analysis (July 30) making the critical legal point that the EU Omnibus package's weakening of statutory CSRD obligations does not neutralise the surrounding legal landscape. Tort litigation, human rights jurisprudence, sector-specific financial regulation, and national due diligence regimes continue to shape corporate climate obligations independently
The EU Deforestation Regulation (EUDR) — which requires operators to ensure commodities are produced without link to newly cleared forests — has been postponed again, with the European Commission citing that "businesses and partner countries need more time to prepare the new supply chain traceability system." The Commission has also proposed exempting some beef products from the regulation's scope
The Oxford Law Blog analysis (July 30) has direct implications for how ESG practice groups should be advising clients on voluntary commitments. The thesis is that companies that published climate transition plans under CSRD Wave 1, TCFD, or investor engagement — even voluntarily — have created published commitments that plaintiffs are now testing as legally binding in tort, vigilance, and human ri
The European Commission adopted the revised European Sustainability Reporting Standards on July 3, 2026, cutting mandatory datapoints by more than 60% and total datapoints by more than 70%, while reducing reporting costs by an estimated 30% per company. The revised standards apply to financial years beginning on or after January 1, 2027, with Member States required to transpose the revised CSRD by
The UK government endorsed ISSB standards IFRS S1 and S2 and issued the UK Sustainability Reporting Standards with limited modifications. The FCA simultaneously proposed two significant changes: CP26/5 would realign listed issuers' TCFD disclosures with the new UK SRS from January 1, 2027 on a "comply or explain" basis; CP26/17 would remove TCFD product-level reporting requirements for asset manag
The EU ESG ratings regime went live on July 2, 2026, with ESMA supervising methodology transparency, governance, and conflicts of interest. Most ratings providers must apply for authorisation by November 2, 2026; ESMA's endorsement guidelines for third-country ratings providers apply from August 2, 2026. Separately, the SFDR overhaul remains in trilogue, with final text unlikely before end of 2026
The Paris Judicial Court's June 25, 2026 judgment in a climate-related duty of vigilance case against a major oil and gas company is the week's most consequential climate litigation development for corporate counsel. The court held that climate risks fall within the scope of France's 2017 duty of vigilance law and that Scope 3 greenhouse gas emissions — approximately 90% of the company's total at
The Seventh Circuit's July 16, 2026 ruling keeping Chicago's climate-deception lawsuit against fossil fuel companies in state court is a significant procedural win for municipal climate plaintiffs. The fossil fuel accountability litigation strategy has consistently sought federal removal as a defense tactic; keeping these cases in state court typically favors plaintiff-friendly procedural rules an
New York Governor Kathy Hochul signed an Executive Order on July 14, 2026 pausing environmental permits for new hyperscale data centers for one year while the state develops a regulatory framework. The moratorium reflects intensifying tension between AI infrastructure buildout and state-level climate commitments — data centers represent a rapidly growing share of grid demand and carbon intensity.
A UK House of Lords Private Members' Bill introduced June 17, 2026 would impose mandatory human rights and environmental due diligence on commercial organisations with annual turnover of £36 million or more. Modelled on the Bribery Act 2010's "failure to prevent" structure and broadly mirroring the EU CSDDD, the bill includes civil liability for value-chain harms, financial penalties of up to 10%
The Higher Regional Court of Cologne (Case No. 6 U 68/25) prohibited an airline on July 8, 2026 from advertising that customers can "reduce flight-related CO2 emissions directly during the booking process" by paying a surcharge for sustainable aviation fuel. The court held that the claim constituted unfair advertising under the German Act against Unfair Competition (UWG) because it withheld materi
The European Commission's public consultation on CSDDD implementation guidelines closes today, July 24, 2026 (midnight Brussels time). The consultation covers how companies should conduct due diligence, use data sources, and apply digital tools. First-tranche guidelines are due by July 26, 2027; second-tranche guidelines by July 26, 2028. The amended CSDDD — scope now limited to companies with 5,0
Japan's Financial Services Agency and Tokyo Stock Exchange finalized the 2026 revision of the Corporate Governance Code on July 21, 2026. The revision consolidates previously dispersed sustainability provisions into a new Principle 4-4, explicitly designating sustainability oversight as a board responsibility for improving long-term corporate value. The code also elevates internal diversity from a
Two new US class actions filed the week of July 13 illustrate the expanding scope of greenwashing litigation beyond climate-specific claims. Driscoll's faces a class action over alleged PFAS-related pesticides and sustainability claims; AriZona beverages faces a class action over "All Natural" labeling. Both cases reflect the same enforcement logic: a company's public sustainability or naturalness
The European Commission published detailed implementation guidelines for the EU Forced Labour Regulation (FLR) on June 26, 2026. The headline rule is unambiguous: products made using forced labour at any point in the supply chain — any tier, any jurisdiction — cannot be placed on the EU market. There are no country exemptions, no industry exemptions, and no minimum threshold. The guidelines flag t
PwC's July 21, 2026 resource on board oversight of sustainability strategy reframes the ESG governance question: sustainability is not a standalone ESG exercise but a core strategic and long-term value issue. The report recommends that boards identify which sustainability topics are most strategically significant — using lenses including evolving regulatory requirements, physical and geopolitical
Baker McKenzie published its Annual Sustainability Report 2026 on July 23, 2026, covering the firm's sustainability efforts and achievements during 2025. The report reflects the firm's progress toward science-based emissions reduction targets approved in 2024, and continued commitment to transparent governance, responsible business practices, and collaboration with the UN Global Compact, WBCSD, an
On July 3, 2026, the European Commission adopted the revised European Sustainability Reporting Standards and a parallel voluntary standard for companies outside the CSRD's scope. The revised ESRS reduces mandatory data points by over 60%, total data points (including voluntary) by over 70%, and is projected to reduce per-company reporting costs by over 30%. Wave 1 companies — those with more than
The California Air Resources Board announced on June 24 a three-month delay to the initial reporting deadline under SB 253, the Climate Corporate Data Accountability Act. The deadline for in-scope entities to report Scope 1 and Scope 2 GHG emissions relating to 2025 shifts from August 10, 2026 to November 10, 2026, with CARB stating that limited regulatory changes are intended. Scope 3 reporting r
Two Paris Judicial Court decisions issued in the same week represent the sharpest European climate litigation signal of 2026. In the first, the Paris Judicial Court found Volvic liable for "misleading commercial practices" and ordered the company to pay €75,000 in damages and €10,000 in legal costs to a consumer protection association, holding that the claims "carbon neutral" and "100% recycled" w
On July 14, New York Governor Kathy Hochul signed an executive order imposing the nation's first statewide moratorium on large-scale data center construction. The order takes effect immediately and directs the Department of Environmental Conservation not to issue discretionary permits for new data centers with a power demand of 50 megawatts or more for up to one year, while state regulators develo
U.S. Customs and Border Protection issued comprehensive Forced Labor Enforcement Operational Guidance for Importers on June 12, superseding the prior 2022 UFLPA guidance. The 79-page document consolidates CBP's enforcement framework under three legal authorities — the Uyghur Forced Labor Prevention Act, the Countering America's Adversaries Through Sanctions Act, and the general forced labor import
The European Commission launched a consultation on draft implementation guidance for the Corporate Sustainability Due Diligence Directive this week, following the Omnibus I amendments that fundamentally reshaped the directive's scope and obligations. The Omnibus I package, which entered into force on March 18, 2026, reduced the CSDDD's scope by approximately 70% — to companies with over 5,000 empl
The EU Pay Transparency Directive (EU 2023/970) entered into force on June 6, 2026, with transposition required by all Member States by June 7, 2026, and first gender pay gap reports due in 2027 covering calendar year 2026. Companies with more than 250 employees must report annually; companies with 100–250 employees must report every three years. Employers must disclose salary ranges in all job ad
The U.S. Equal Employment Opportunity Commission voted on June 30, 2026 to rescind its Affirmative Action Interpretive Guidelines and the related Compliance Manual on Affirmative Action — guidance established in 1979 that provided the framework for evaluating voluntary affirmative action plans and a good-faith compliance safe harbor for employers implementing such plans. The EEOC stated that the g
Senken's July 13 analysis of corporate greenwashing risk in carbon credit markets — citing Max Planck Institute research — found that more than 68% of DAX40 companies that purchased carbon credits ended up supporting projects with no real climate impact. The Max Planck Institute separately found that 84% of carbon credits across the broader market are high-risk. The enforcement consequence is alre
FTI Strategic Communications' July 16 ESG+ Newsletter synthesized three developments with direct ESG practice implications. First, the SEC issued new guidance requiring activist investors to disclose the identities of their clients in regulatory filings — a governance transparency measure that will affect the ESG activist engagement strategies clients use to engage portfolio companies on climate a
Holland & Knight announced on July 16 the addition of Jeff Salinger as a partner in its New York office — a leading environmental transactions partner focused on project finance, M&A, and regulatory matters in the energy transition, renewable energy, and environmental remediation sectors. The lateral hire follows Holland & Knight's July announcement of the Colorado HB26-1421 guidance covering ABS
The Paris Judicial Court ruled on June 25 that TotalEnergies must disclose the climate risks tied to emissions from its oil and gas products — including Scope 3 emissions from end users' combustion of its fuels — and revise its statutory vigilance plan within six months to address them, applying France's 2017 duty of vigilance law to climate risk for the first time. The court stopped short of orde
The SEC's proposal to rescind its 2024 climate-related disclosure rules, published in the Federal Register on June 3, keeps its formal comment window open through August 3, 2026, with a final rescission vote unlikely before late 2026 or early 2027. Crucially, the rescission does not eliminate existing materiality-based obligations: Regulation S-K Items 101, 103, and 105, along with MD&A requiremen
Regulation (EU) 2024/3005 became fully applicable on July 2, 2026, placing every ESG rating provider operating in the EU — regardless of where headquartered — under direct ESMA authorization and supervision for the first time in any jurisdiction. Existing providers such as MSCI, Morningstar Sustainalytics, ISS, and S&P Global must notify ESMA of intent to continue operating by August 2 and file fu
Oregon state court judge Adele Ridenour heard two full days of arguments this week in Multnomah County's roughly $52 billion lawsuit against Chevron and other fossil fuel companies over the 2021 Pacific Northwest heat dome, which killed 69 people. Defense counsel Theodore Boutrous argued federal law preempts the claims and that defendants' Oregon contacts are insufficient for the case to proceed t
The European Commission's required Article 11 guidance packages — covering investigation procedures for competent authorities, due diligence expectations for economic operators, and complaint procedures for civil society — along with a public forced-labour risk database, were due June 14, 2026, but had not appeared as of late June, with no official explanation offered by the Commission. Enforcemen
The Commission opened a stakeholder consultation on June 14 seeking input to shape the implementation guidelines for the Corporate Sustainability Due Diligence Directive, covering due diligence processes, stakeholder engagement, and penalties, with a response deadline of July 24, 2026, ahead of planned guideline adoption in Q1 2027. The questionnaire specifically invites comment on which scoping t
A federal judge in the Southern District of Indiana granted a preliminary injunction on June 26 blocking a state law that would have required proxy advisers ISS and Glass Lewis to disclose a "written financial analysis" whenever recommending votes against company management, finding the law amounted to unconstitutional viewpoint discrimination. The ruling marks the third such injunction — followin
While the standalone Green Claims Directive proposal remains dormant amid political backlash, the already-adopted Empowering Consumers for the Green Transition Directive (ECGT, Directive 2024/825) becomes directly enforceable across all 27 member states on September 27, 2026, banning unsubstantiated generic claims like "eco-friendly" or "sustainable," prohibiting offset-based "carbon neutral" prod
Following an April 2026 legal information-demand letter under new Dutch disclosure-access legislation, Greenpeace Netherlands is preparing what it describes as a precedent-setting climate and human rights lawsuit against JBS N.V. in Dutch courts, arguing the meat producer's methane emissions — estimated to exceed those of Shell and ExxonMobil combined in 2023 — and its planned $2.5 billion Nigeria
California's Air Resources Board announced on June 24 that the initial GHG emissions reporting deadline under SB 253 (the Climate Corporate Data Accountability Act) would shift from August 10 to November 10, 2026, giving large companies additional time to prepare their first Scope 1 and 2 submissions. CARB simultaneously withdrew its current rulemaking text and announced a forthcoming updated regu
The Grantham Research Institute at the London School of Economics published its Global Trends in Climate Change Litigation: 2026 Snapshot on June 25, documenting 249 new cases filed in 2025 and a total corpus of more than 3,600 cases across 62 countries — up from 17 countries a decade ago. Twenty percent of U.S. cases filed in 2025 constitute "protective litigation" resisting Trump administration
On May 22, the Department of Justice and Federal Trade Commission filed a joint Statement of Interest in the Texas Attorney General's case against BlackRock, State Street, and Vanguard — becoming, for the first time in a U.S. court filing, the federal government's explicit position that industry-wide ESG coordination can violate the antitrust laws. The agencies advanced two theories: under Section
The Paris Judicial Court ruled on June 25 that TotalEnergies' Scope 3 emissions — those generated when customers burn its oil and gas products, representing roughly 90% of the company's carbon footprint — fall within the scope of France's 2017 corporate duty of vigilance law. The court did not impose binding production cuts or a fine; instead, it ordered TotalEnergies to publish a revised vigilanc
The European Commission launched a consultation running to July 24, 2026, seeking stakeholder input on implementation guidelines for the Corporate Sustainability Due Diligence Directive following its modification by Omnibus I. The guidelines are intended to address voluntary model contract clauses, due diligence processes and risk factors, digital tools, data sources, third-party verification, and
On June 29, ArentFox Schiff published a compliance alert flagging that California's SB 343 applies to all products manufactured after October 4, 2026: companies must either verify their products meet quantitative recyclability criteria (including 60% consumer access to recycling collection and 60% of California recycling systems sorting the material) or remove recyclability claims — including the
On June 24, the Council of the European Union agreed its official negotiating position on SFDR 2.0, overhauling the sustainable finance disclosure framework around a new three-tier product classification system: Sustainable (highest standards), Transition (credible decarbonization pathway), and ESG Basics (general integration). The Council's position includes a significant concession: fossil fuel
Effective June 29, 2026, Section 250 of the UK's Crime and Policing Act 2026 (CPA) replaced the Economic Crime and Corporate Transparency Act 2023's senior manager provisions with a far broader regime: companies incorporated anywhere in the world are now criminally liable for any UK criminal offence committed by a "senior manager" acting within the actual or apparent scope of their authority. Crit
On June 29, U.S. District Judge Matthew Brookman for the Southern District of Indiana granted a preliminary injunction blocking an Indiana law — set to take effect July 1 — that required proxy advisers to attach a "written financial analysis" to any voting recommendation against company management, or disclose that no such analysis had been conducted. The court found the law constituted "viewpoint
Stinson LLP partners published an article in the *New York Law Journal* this week examining how ESG considerations are reshaping risk allocation and deal structuring in mergers and acquisitions. The analysis arrives as the regulatory environment creates genuine asymmetry between U.S. and European ESG regimes — California GHG reporting obligations, EU CSDDD supply chain liability, and potential U.S
KPMG’s June regulatory radar says the European Commission’s consultation on revised ESRS and the voluntary standard for smaller companies closed on June 3, with final standards expected imminently.
The SEC’s proposed rescission of its climate-related disclosure rules was published in the Federal Register on June 3, with comments due August 3.
CDP says it will become two distinct organisations: commercial CDP, backed by Permira, and CDP Foundation, a nonprofit focused on translating science into disclosure methods.
The ACCC commenced Federal Court proceedings alleging Grill’d misled customers about when it would donate $1 from Tuesday burger purchases to an environmental cause.
Arendt reports that Luxembourg’s law implementing Directive (EU) 2024/825 was published on June 9 and applies from September 27, 2026.
Cornerstone Barristers’ London Climate Action Week guide lists legal-sector events on climate literacy, banks’ potential tort liability for fossil-fuel finance, rule-of-law implications and the launch of a global climate-litigation snapshot.
Latham reports that the European Commission opened a consultation on June 14 for future CSDDD implementation guidelines, with responses due July 24.
Sidley says China’s Regulations on Industrial and Supply Chain Security took effect April 7 and create new scrutiny for activities perceived to disrupt China-linked supply chains.
Latham reports that the Fifth Circuit granted a stay of the preliminary injunction blocking Texas SB 13, which restricts certain public investments and contracts with financial institutions deemed to boycott energy companies.
Sidley reports that 19 states and the District of Columbia sued on June 10 to challenge President Trump’s Executive Order No.
The Harvard Law School Forum reports that approximately 135 ESG-related proposals had gone to votes as of May 31, representing almost 35% of shareholder proposals voted on to date.
SBTi’s Corporate Net-Zero Standard V2.
The Legal Sustainability Alliance is highlighting resources including its Small Firm Hub, carbon calculator, Climate Trunk, resource library and Climate Change Legal Knowledge Hub.
Greenpeace has demanded information from JBS about $2.
EFRAG’s Sustainability Reporting Board discussed non-EU reporting standards for CSRD, with exposure drafts expected in July, a 100-day consultation and a 70-day field test.
E3G welcomed a simplified ESRS package that preserves double materiality while cutting datapoints by more than 60%.
The DLA Piper roundup highlights Louisiana legislation that would grant broad retroactive immunity from climate accountability litigation and New Zealand proposals to preclude current and future civil climate tort claims.
New Zealand’s Financial Markets Authority has updated and renamed its ESG claims guidance as sustainability-related disclosure guidance, with principles around clear, substantiated and consistent claims and managed third-party involvement.
The FCA has opened a consultation on simplifying product-level climate disclosure requirements for UK investment products.
DLA Piper’s sustainability-law roundup flags California SB 253 Scope 1 and 2 disclosure timing, an August 3 comment deadline on the SEC climate rescission proposal and an open TISFD beta consultation through July 31.
Mayer Brown’s readout of German, Belgian, Dutch and French EUDR dry runs indicates that regulators are likely to inspect concrete due diligence evidence, shipment-level data and operational systems, not merely paper programs.
PwC reports that the USTR has identified 60 economies as failing to enforce forced-labour import bans and proposed additional duties, while a June 3 executive order prioritizes forced labour, origin, marking, IP and revenue enforcement.
A group of lawyers, academics and human-rights advocates has urged the European Commission to accelerate guidance on environmental and human-rights due diligence under CSDDD.
The EEOC has approved a FY2025-2029 National Enforcement Plan replacing its prior strategic plan and aligning enforcement priorities with the agency’s current leadership.
Gowling WLG’s real-estate analysis argues that environmental performance is now a baseline expectation for legal-sector offices, with firms prioritizing credentials, carbon performance and wellbeing amenities.
The Legal Sustainability Alliance is emphasizing its annual report, resource library, Small Firm Hub, carbon calculator and Climate Change Legal Knowledge Hub for law-firm members.
DLA Piper notes Texas litigation against ISS alleging violations of the Texas Deceptive Trade Practices Act and seeking injunctions and civil penalties.
SBTi has released Corporate Net-Zero Standard Version 2.
The SEC proposed rescinding its 2024 climate-related disclosure rules in their entirety, with a 60-day comment period after Federal Register publication.
Latham’s June UK PLC update notes that the UK-endorsed ISSB standards, now UK SRS, are moving toward FCA rules for listed companies, with a policy statement expected in autumn 2026.
Accountancy Europe said the European Commission’s revised ESRS strike a workable balance between simplification and Green Deal objectives, while warning that only practice will prove whether the burden reduction is real.
EFRAG is resuming work on a non-EU ESRS group sustainability reporting standard for groups with significant EU activity under CSRD Article 40a, with a July exposure draft, 100-day consultation and field testing.
Slaughter and May warns that ESG statements, even aspirational and forward-looking ones, are increasingly relied on by claimants and scrutinised with hindsight.
Travers Smith’s ESG library highlights the Boohoo s.
ASIC reviewed early Australian sustainability reports and flagged practical lessons on disclaimers, cross-referencing, measurement uncertainty, climate targets and material information.
Brazil’s CVM revoked the mandatory path for ISSB-based sustainability financial reporting for public companies, making the regime voluntary for fiscal years beginning January 1, 2026.
Legal Charter 1.5 and Chapter Zero are convening non-executive directors, general counsel, senior executives and legal professionals during London Climate Actio
Legal Business, powered by Legal 500, is positioning its July ESG Summit around regulatory divergence, ESG litigation risk, governance, green claims, transition finance, responsible investment and AI’s impact on ESG compliance.
Baker McKenzie’s update on the Commission’s EUDR simplification review notes expected compliance-cost reductions of about 75%, while making clear that the regulation is not being reopened and large and medium companies still face the 30 December 2026 application date.
Recent Omnibus coverage describes a narrowed CSDDD approach, higher thresholds, delayed compliance and a more risk-based scoping exercise using reasonably available information.
Canada’s S-211 regime requires covered government institutions to report by May 31 on steps taken to prevent forced and child labour in supply chains, with reports made public and held in a Public Safety Canada registry.
Texas, Nebraska, Iowa and West Virginia sued ISS, alleging the proxy adviser failed to disclose that ESG considerations shaped voting recommendations.
The Columbia Blue Sky Blog argues that corporate racial disclosure may attract support from both sides of the political spectrum even as DEI remains contested.
The European Commission’s revised ESRS package would cut mandatory datapoints by more than 60% and total datapoints by more than 70%, while retaining a simplified double-materiality approach.
Germany’s implementation of the EU green-transition consumer rules will prohibit unsubstantiated generic claims such as “green” or “climate-friendly,” restrict sustainability labels and bar offset-based neutrality claims.
The SEC has moved toward formally rescinding its climate-disclosure rules through notice-and-comment rulemaking, with related litigation still shaping the agency’s path.
California’s first Scope 1 and Scope 2 reporting deadline remains 10 August 2026, and market commentary this week sharpened the point that the real challenge is traceable, defensible carbon data.
A new EU Law Live analysis contrasts Shell-style climate duty-of-care litigation with consumer-protection challenges to net-zero and transition claims, including Greenpeace France v.
The FCA’s good and poor practice materials for sustainable investment labels emphasize clear, concise, product-specific disclosure and warn against copying template language or using labels that do not match actual holdings.
The Commission’s EUDR simplification review points to a lighter administrative model, clearer guidance and an expected compliance-cost reduction, while keeping companies on track for application at the end of 2026.
The Chartered Governance Institute commentary frames modern slavery as a governance risk requiring board-level accountability, risk assessment, internal controls, grievance mechanisms and escalation processes.
Public Safety Canada’s reporting obligations page confirms that covered entities and government institutions must file forced-labour and child-labour reports by 31 May each year.
Mayer Brown’s analysis shows a widening gap between EU and UK comfort with structured sustainability collaboration and the more restrictive US antitrust climate.
Texas, Nebraska, Iowa and West Virginia filed state-court suits against ISS on 20 May, alleging that ESG integration in benchmark recommendations violated consumer-protection or deceptive-practices laws.
The EEOC’s suit against The New York Times, highlighted in this week’s governance roundup, alleges that DEI goals influenced a promotion decision in violation of Title VII.
Impactvise’s inaugural ESG law-firm ranking, covered by Global Legal Post, scored more than 1,000 firms using World Economic Forum stakeholder-capitalism metrics, with DLA Piper ranked first at 91 out of 100.
Legal Futures reports that Law Students for Climate Accountability has, for the first time, praised UK firms building work around renewable energy, sustainable ventures, pro-climate litigation and public-interest climate action.
Nutter’s May environment update flags 31 May and 1 June reporting and registration deadlines across multiple US packaging EPR regimes, plus a 30 June Massachusetts building-energy reporting deadline.
Baker McKenzie and the World Economic Forum frame climate litigation as a systemic business risk with direct implications for corporate strategy, governance, capital allocation and market access.
ESG Today reports that the attorneys general of Texas, Nebraska, Iowa and West Virginia filed lawsuits against ISS alleging consumer-protection and deceptive-practices violations tied to ESG and DEI-related proxy advice.
Gibson Dunn’s 6 May update tracks EEOC litigation, federal contractor clauses, state restrictions and DOJ intervention in litigation over Colorado’s AI law, all tied to discrimination, DEI or algorithmic-bias theories.
Legal Futures reports on Law Students for Climate Accountability findings that 20 UK law firms were involved in $706bn of fossil-fuel transactions from 2021 to 2025, with nearly 70% attributable to the five magic circle firms.
Ropes & Gray’s May 2026 greenwashing litigation update, published via JD Supra, covers significant U.
The FCA’s sustainable investment labels guidance says firms have been able to use SDR labels since July 2024 and highlights good practice for clear, concise, product-specific disclosures that accurately reflect what the fund invests in.
Linklaters’ analysis says the amended CSDDD will apply to all in-scope companies from 26 July 2029, with member-state transposition due 26 July 2028 and first annual disclosures due by 1 January 2030 where required.
Public Safety Canada states that covered entities and government institutions must submit reports by 31 May each year describing steps taken during the previous financial year to prevent and reduce forced-labour or child-labour risk in activities or supply chains.
Simpson Thacher’s May regulatory update says the Commission published updated EUDR guidance, revised FAQs and a draft delegated act on product scope, with feedback on the draft act open until 1 June 2026 and the Commission confirming operators must keep preparing for application by 30 December 2026.
The Legal Sustainability Alliance’s “Putting the Sustainable into Procurement” guide is described as a practical guide for law firms developed by more than 20 firms and focused on tendering, contracting and data collection.
The European Commission’s official consultation says the revised ESRS would reduce mandatory datapoints by more than 60%, total datapoints by more than 70%, and per-company reporting costs by more than 30%, with feedback due 3 June 2026.
CARB’s climate-disclosure workshop page states that its 23 March 2026 workshop covered the 10 August 2026 Scope 1 and Scope 2 emissions reporting deadline and the next phase of 2027-2030 rule development, including Scope 3 options.
The IFRS Foundation says the ISSB agreed to propose nature-related disclosure requirements through an IFRS Practice Statement, with an exposure draft planned for October 2026 and TNFD informing the work.
Cleary’s 20 May update explains that the voluntary standard for undertakings with fewer than 1,000 employees creates a value-chain cap, meaning CSRD in-scope companies cannot demand information beyond that voluntary standard from protected out-of-scope partners.
OIRA’s entry lists the SEC’s “Rescission of Climate-Related Disclosure Rules” as a proposed rule under RIN 3235-AN76, received on 4 May 2026 and marked economically significant.
DLA Piper’s Omnibus I analysis says the amended CSDDD applies to very large companies only, with first application on 26 July 2029, a transposition deadline of 26 July 2028, a six-step due diligence cycle, and a uniform EU maximum penalty cap of 3% of net worldwide turnover.
Public Safety Canada states that covered entities and government institutions must submit reports by May 31 each year describing steps taken in the previous financial year to prevent and reduce forced labour or child labour risk in their activities and supply chains.
Fenwick’s analysis of the March 2026 executive order says agencies must add a clause prohibiting “racially discriminatory DEI activities,” with flow-down obligations, reporting and records access, possible termination or suspension, and potential False Claims Act theories.
A&O Shearman’s 2026 greenwashing update tracks UK and EU regulatory initiatives, ESMA work on ESG-related fund names, and UK ASA and CMA activity alongside litigation and enforcement risk.
The FCA’s SDR good-and-poor-practice guidance says firms must substantiate sustainability claims, use the correct label, ensure disclosures match the fund’s sustainability characteristics, and avoid copying generic wording from peers or regulator examples.
Oxford Business Law Blog argues that CSDDD-aligned contracts must move away from risk-shifting toward shared responsibility, targeted information requests, right-to-cure provisions, responsible exit and remediation.
Taylor Wessing reports that Germany’s LkSG reporting obligation is being retroactively abolished from 1 January 2023 and BAFA’s digital reporting form has been deactivated, but internal documentation obligations and core due diligence duties remain.
Clifford Chance says the Net Zero Lawyers Alliance includes 35 law firms across more than 40 jurisdictions, with a combined workforce of around 200,000, and that its Framework for Net Zero Alignment is built around ambition, action and accountability.
Simpson Thacher’s May update reports that 23 state attorneys general sent letters to three rating agencies over ESG-related downgrades of fossil-fuel companies, raising antitrust concerns and demanding explanations, withdrawal or disclosure of ESG commitments, methodology changes and conflict disclosures.
Gibson Dunn’s May 6 update covers an EEOC suit against The New York Times, FAR Council guidance for Executive Order 14398, a challenge to that order, and DOJ intervention in xAI’s challenge to Colorado’s AI law.
The World Economic Forum and Baker McKenzie’s April 2026 report says climate litigation has matured into a systemic business risk affecting corporate strategy, governance, capital allocation and market access.
The European Commission opened a one-month feedback process on revised ESRS, with comments due 3 June 2026.
OIRA lists the SEC’s “Rescission of Climate-Related Disclosure Rules” as a proposed rule received on 4 May 2026 under RIN 3235-AN76, and ESG Today reports that the SEC told the court it plans to reconsider the 2024 climate rules through notice-and-comment rulemaking.
CARB’s climate disclosure materials continue to point companies toward an August 10, 2026 Scope 1 and Scope 2 emissions reporting deadline under SB 253, while workshops are also developing 2027-2030 requirements and Scope 3 options.
The ISSB agreed to propose nature-related disclosure requirements in the form of an IFRS Practice Statement, with an exposure draft planned for October 2026.
The revised CSDDD applies from July 2029 to EU companies with more than 5,000 employees and over €1.
Covered entities and federal institutions must submit forced and child labour reports by May 31 each year, describing steps taken in the prior financial year to prevent and reduce supply-chain risk.
Unseen UK connects April 2026 employment-rights changes with modern slavery prevention, including the Fair Work Agency, day-one protections and expanded whistleblowing safeguards.
The FCA’s good and poor practice guidance focuses on clear disclosures, correct label selection, product-specific evidence and consistency between a fund’s investments and its sustainability objective.
Bloomberg Law reports that ISS and Glass Lewis have filed challenges in Indiana and Kansas after earlier Texas litigation, arguing that laws targeting proxy advice compel speech, discriminate by viewpoint and burden interstate commerce.
Nebraska Attorney General Mike Hilgers, with other state AGs, is pressing Fitch, Moody’s and S&P over ESG factors in credit ratings for fossil-fuel companies and states.
Gibson Dunn’s May 6 DEI update tracks new EEOC litigation, federal-contractor clause implementation, lawsuits over DEI executive orders, DOJ intervention in Colorado AI-discrimination litigation and the resolution of the ABA scholarship case.
The Legal Sustainability Alliance continues to foreground sustainable procurement, TCFD guidance, carbon-calculator work and practical resources for firms of different sizes.
The Net Zero Lawyers Alliance’s publication hub points firms toward reducing their own GHG emissions, managing climate-related firm risk and using commercial legal work to support the transition.
The official OIRA listing shows the SEC submitted a proposed rule titled “Rescission of Climate-Related Disclosure Rules” on May 4, 2026.
The ISSB has agreed to propose nature-related disclosure requirements through an IFRS Practice Statement rather than immediate changes to IFRS S1 and S2.
The European Commission has launched a one-month feedback process on revised ESRS and a voluntary standard for smaller companies.
CARB’s current workshop materials continue to point to an August 10, 2026 deadline for Scope 1 and Scope 2 emissions reporting, with Scope 3 requirements developing for 2027-2030.
Baker McKenzie and the World Economic Forum frame climate litigation as a systemic business risk affecting governance, capital allocation, transition plans, value-chain oversight and market access.
Charles Russell Speechlys highlights the EU Empowering Consumers Directive, CMA supply-chain guidance, the UK DMCC regime and failure-to-prevent-fraud risk as converging pressure on environmental claims.
Public Safety Canada’s reporting guidance states that covered entities and government institutions must submit annual reports to the Minister of Public Safety by May 31, describing steps taken to prevent and reduce forced or child labour risks in activities and supply chains.
Gibson Dunn’s update points to litigation and legislative activity around shareholder proposals, proxy-adviser regulation and governance expectations.
GRI launched consultation on proposed pollution standards covering air pollution, a first soil-pollution topic standard and expanded critical-incident reporting, with consultation open until June 8.
Pillsbury’s analysis of the March 2026 executive order says federal contractors may face enforceable contract clauses around racially discriminatory DEI activities, creating potential exposure through contract remedies and False Claims Act theories.
The Legal Sustainability Alliance is highlighting a practical guide for law firms on sustainable procurement, developed by more than 20 firms in its Sustainable Procurement Working Group.
Greenberg Traurig announced that its Environmental and Real Estate practices were shortlisted for Chambers’ 2026 Environment Law Firm of the Year and Real Estate Law Firm of the Year awards.
EFRAG has submitted its 2026 Sustainability Reporting Work Programme to the European Commission, putting simplification of European sustainability reporting squarely on the legal-advisory agenda.
ESMA’s sustainability reporting materials continue to stress supervision, enforcement and fair-presentation concerns around ESRS even as the Omnibus process changes scope and timing.
Simpson Thacher’s April update notes the Australian ACCR appeal following dismissal of a greenwashing case against Santos, where the court had considered statements about clean energy, future hydrogen production and net-zero targets in investor context.
Gibson Dunn’s March ESG update reports that Germany’s Federal Court of Justice rejected climate cases against Mercedes-Benz and BMW seeking to prohibit internal-combustion sales after October 2030.
CARB’s March workshop kept SB 253 implementation moving, with an August 10, 2026 Scope 1 and Scope 2 reporting deadline and further rulemaking work on 2027-2030 requirements including Scope 3.
The GHG Protocol’s Actions and Market Instruments Phase 1 white paper proposes a multi-statement approach for physical inventories, market-based inventories, GHG impact statements and non-GHG indicators, with feedback open through May 31, 2026.
Baker McKenzie and the World Economic Forum frame climate litigation as a systemic business risk touching governance, capital allocation, market access and transition planning.