We are excited to announce the launch of Akin’s Sustainability/Environmental, Social and Governance (ESG) Policy and Regulatory Update, our inaugural Speaking Sustainability newsletter. This policy and regulatory update provides a summary of key ESG topics and regulatory developments.
The update begins by highlighting the upcoming vote by the U.S. Securities and Exchange Commission (SEC) on its climate disclosure rule. It is reported that the final rule will drop its Scope 3 disclosure requirements. Akin will be available to answer questions after the release of the rule.
Institutional Shareholder Services Inc. (ISS) and Glass Lewis have recently issued their proxy voting guidance for 2024. Akin provides a client alert on this topic and offers to answer any questions regarding the implications for ESG considerations.
The European Union (EU) has announced new greenhouse gas emissions targets, aiming to reduce net emissions by 90% by 2040. The targets are intended to support the EU’s goal of achieving climate neutrality by 2050. However, the announcement has faced criticism from farmers and industrial stakeholders who argue that the cost of the climate transition is too high.
The update also discusses California’s expanding ESG-related corporate disclosure requirements. Two climate bills and one mandating diversity disclosure within the venture capital industry were signed into law in October 2023. However, these bills are currently facing legal challenges from a coalition of businesses.
The newsletter also provides updates on the 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC), which took place in Dubai. It highlights the adoption of a framework for a loss and damage fund to support vulnerable countries coping with climate change impacts.
The update further covers ESG topics, including clean vehicle tax credits, the SEC’s scrutiny of greenwashing risks, the use of artificial intelligence (AI) as a climate tool and the U.S. Treasury’s principles for net-zero financing and investment.
The policy and regulatory update concludes with a section on state legislature initiatives related to ESG, as well as upcoming ESG events.
Overall, this policy and regulatory update provides a comprehensive overview of recent ESG policy and regulatory developments, offering insights into key topics and their implications.