Practice News:
- Sustainability and ESG Partner and Practice Lead Leah Malone moderated a panel at the 13th Private Equity New York Forum, “Sustainable Investing: Strategies for Long-Term Success,” on May 14.
- Sustainability and ESG Counsel Emily Holland spoke on ESG & sustainability regulatory developments, shifts and decentralization to sustainability professionals in the Trellis Network on May 13.
- Emily Holland presented on an ABA Business Law Section Spring Meeting Corporate Sustainability Law Committee panel addressing EU, U.S. and state-level legislative, litigation and antitrust-related developments on April 26.
Upcoming Events:
- Emily Holland will join in-house practitioners for a Business and Human Rights Lawyers Association conversation, “Finding the Throughline: How In-House Counsel Are Managing Diverging Expectations of Business,” on May 21.
- Leah Malone will be featured at the Practicing Law Institute’s upcoming full-day program “ESG 2025: What It Means for Boards, Management and Counsel” on June 10 in New York City. For more information and to register, see here.
- Emily Holland will present at a Business and Human Rights Lawyers Association event in Washington D.C., “Business and Human Rights in Practice: Three Law Firms, Three Perspectives On Opportunities For First and Second-Year Associates,” on June 24.
- Sustainability & ESG Partner Matt Feehily and Emily Holland will co-host a webinar in partnership with Sphera, “Supply Chain Due Diligence Through a Sustainable Procurement Lens,” on June 25. For more information and to register, see here.
Upcoming Reporting Deadlines:
- May 31: U.S. Conflict Minerals Rule filings for calendar year 2024 due.
- May 31: Reporting deadline for Canada’s Fighting Against Forced Labor and Child Labor in Supply Chains Act reports for the previous financial year ending before May 31.
- June 30: Australian Modern Slavery Act, Swiss Conflict Minerals and Child Labor Due Diligence and Reporting, and Norwegian Transparency Act reports for the prior calendar year due.
- June 30: Sustainable Finance Disclosure Regulation (SFDR) reports for the prior calendar year due.
Americas
NYC Pension Systems Request Net-Zero Plans From Asset Managers for Investments Closing After June 30, 2025
On April 22, New York City Comptroller Brad Lander announced new climate-related standards that will apply to assets managed on behalf of the New York City Employees Retirement System (NYCERS), Teachers Retirement System (TRS), and Board of Education Retirement System (BERS), each of which has established net zero targets. The requirements apply to both public and private markets managers, each of whom will be required to submit acceptable written net zero implementation plans to the Comptroller’s Office of Bureau of Asset Management. For private markets managers, the expectation applies to new funds into which the investment closes after June 30, 2025 for NYCERS and BERS, and June 30, 2026 for TRS.
Fifth Circuit Temporarily Pauses Litigation on Biden-era DOL ESG Rule
On April 28, the U.S. Court of Appeals for the Fifth Circuit granted the Department of Labor (DOL) a 30-day stay of proceedings to allow the DOL to reevaluate the Biden-era Rule on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, which permits retirement plan fiduciaries to consider ESG factors when selecting investments and has been the subject of ongoing litigation. The DOL must decide whether to maintain or rescind the Rule by May 28, 2025.
Oklahoma Senate Contracting Restriction Bill Becomes Law
On May 5, the Oklahoma Governor signed into law Senate Bill 500 (SB 500), prohibiting state governmental entities from entering into contracts with companies absent written verification that the company does not discriminate against firearms entities (including ammunitions manufacturers, distributors, wholesalers and gun ranges) or related trade associations. SB 500 will take effect on November 1, 2025. For information on enacted anti- and pro-ESG laws in U.S. states, see our Battlegrounds alert, updated monthly.
Eighth Circuit Calls on SEC to Identify Approach for Climate Disclosure Rule
On April 24, the U.S. Court of Appeals for the Eighth Circuit issued an order granting a motion to hold in abeyance the lawsuit challenging the SEC’s Climate-Related Disclosure Rules submitted by a coalition of 18 states that intervened in the litigation after the SEC withdrew its defense of the Rules and the District of Columbia. Proceedings challenging the Rules will be stayed until the SEC informs the Court of its decision, which is due within 90 days. The SEC may voluntarily stay enforcement, review or formally rescind the Rules.
De Minimis Exemption Closure Potential Inflection Point for Uyghur Forced Labor Prevention Act (UFLPA) Enforcement
The closure of the de minimis exemption for low-value imports to the United States from China and Hong Kong, which took effect on May 2 following the issuance of an Executive Order on April 2, represents a potential shift for future enforcement of the UFLPA. Pursuant to the Order, commercial products valued at or under $800 from China or Hong Kong are now subject to the formal entry process for goods, including payment of applicable duties, taxes and fees, and could also be subject to heightened enforcement under the UFLPA (on the basis of more detailed information now required for entry).
SEC Greenlights First U.S. Green Stock Exchange
On April 11, the SEC officially approved the Green Impact Exchange’s (GIX) registration form, greenlighting the nation’s first green stock exchange, which is set to launch in early 2026. Issuers listed on other national exchanges and seeking a secondary listing on the GIX platform will be required to comply with sustainability-related governance and disclosure standards. GIX plans to offer companies the option to use GIX as their primary listing venue in the future.
Canadian Securities Administrators Pause Development of New Climate-Related Disclosure Rule
On April 23, the Canadian Securities Administrators (CSA) announced that it is pausing work on a new mandatory climate-related disclosure rule and amendments to existing diversity-related disclosure requirements. According to the CSA, the pause is meant to support Canadian markets and issuers as they adapt to the recent developments in the U.S. and globally.
Information provided by contributing law firm: Gowling WLG
Mexico Enacts New Law Incorporating ESG Into Federal Procurement Processes
On April 16, the Law of Acquisitions, Leases, and Services of the Public Sector was enacted in Mexico, incorporating sustainability and social responsibility criteria into federal procurement processes. The law promotes the participation of micro, small and medium-sized enterprises, cooperatives and social-sector organizations—particularly those focused on labor inclusion for women and vulnerable groups—through preferential advances, specific eligibility rules, and the development of sustainable supply chains. It also introduces ESG-based evaluation criteria, such as gender equality, business integrity and environmental certifications, while enabling exclusive bidding processes and prioritizing these sectors in direct awards and framework agreements.
Information provided by contributing law firm: Cuatrecasas
Mexico Publishes National Development Plan Outlining ESG Priorities
On April 15, Mexico published its National Development Plan for 2025–2030 outlining a broad sustainability agenda and addressing key ESG-related priorities. The plan promotes sustainable production models, aims to support the circular economy, and strengthen the national sustainable finance strategy with over $466 billion pesos allocated to eligible green and social programs. The plan also prioritizes diversity, equity and inclusion—particularly through gender pay equity initiatives and disability inclusion—and includes a goal to increase local content in public procurement to 65%, indirectly advancing environmental and social objectives.
Information provided by contributing law firm: Cuatrecasas
EU/U.K.
EU Commission Publishes Consultation on EU Deforestation Regulation (EUDR) Simplification
On April 15, the EU Commission published a draft on simplification of the EUDR, which is open for feedback until May 13. The proposal will amend Annex I to clarify the range of products that are not covered by the EUDR to promote legal certainty for affected operators, traders, and competent authorities on categories of products that fall within the scope of the EUDR. The proposal clarifies that waste, second-hand and used products, samples of products, and products used for examination, analysis and testing are not in scope of the regulation and clarifies circumstances in which packing materials and containers would also fall out of scope. In addition, on April 15, the Commission published updated guidance and frequently asked questions on the EUDR, including simplification measures on how to demonstrate that relevant products are deforestation-free.
FCA Announces Indefinite Suspension to Extend SDR to Retail Investors
On April 29, the U.K. Financial Conduct Authority (FCA) announced that it will not extend the Sustainability Disclosure Requirements (SDR) and investment labels regime to portfolio management, and instead focus on reviewing more broadly how firms are applying the Consumer Duty (a set of rules issued by the FCA to enhance consumer treatment in the retail financial services market) to ensure that investors are receiving relevant information. The decision is based on feedback received on the consultation to extend the SDR and the investment labels regime to portfolio managers, which reflected the need for greater clarity on scope, implementation and practical considerations of the rules. In-scope entities are still required to comply with the SDR anti-greenwashing rule, which took effect on May 31, 2024.
New German Government Approves Coalition Agreement
On May 6, the new governing parties CDU, CSU and SPD approved the previously agreed coalition agreement on April 10 (CSU), April 28 (CDU) and April 29 (SPD). The coalition agreement was signed by the governing parties on May 5. Among other things, the coalition agreement includes provisions for the abolition of the German Supply Chain Due Diligence Act (LkSG) and its replacement by the intended Act on International Corporate Responsibility, which will also implement the EU’s CSDDD into national law. The coalition agreement remains vague in terms of timing, but in a first step (only) the reporting obligation is to be abolished immediately. Companies that fall directly under the LkSG (e.g., due to a German domestic branch office) or supply large German customers that fall under the LkSG should therefore closely monitor further developments.
Information provided by contributing law firm: Gleiss Lutz
France Adopts “DDADUE 2025 Law” Aligning with EU Regulations
On April 30, France officially published Law No. 2025-391 following Constitutional Council approval. The extensive text aligns French law with several recent EU directives and regulations in areas including the economy, finance, environment and health. It notably introduces key provisions on green bonds allowing optional disclosure for environmentally sustainable and sustainability-linked bonds. It also reinforces gender equality on corporate boards and executive committees by expanding the French Market Authority’s role in monitoring and promoting gender balance. Finally, it adjusts the CSRD implementation calendar with second-wave companies now reporting in 2028 for 2027 and third-wave entities reporting in 2029 for 2028. The law also offers greater flexibility around business secrets, removes penalties in cases of missing or impeded assurance providers, and confirms that first-wave companies may apply Appendix C derogations from ESRS 1 if they fall below employee thresholds.
Information provided by contributing law firm: Gide Loyrette Nouel A.A.R.P.I
GRI Publishes a Report Addressing Key Questions on CSRD
On April 30, the Global Reporting Initiative (GRI) published a report addressing questions in relation to the impact of the EU Omnibus I Package and the importance of GRI’s reporting standards for companies subject to EU sustainability reporting requirements, specifically the EU Corporate Sustainability Reporting Directive (CSRD). The report describes benefits of relying on GRI standards amidst compliance uncertainties resulting from expected changes to the ESRS, GRI’s continued intention to engage with EFRAG on ensuring interoperability with the revised ESRS, and synergies between the ESRS, GRI Standards and IFRS Sustainability Disclosure Standards.
AMEA
China’s Ministry of Finance and Ministry of Ecology and Environment Publish Corporate Sustainable Disclosure Standards
On April 30, the PRC Ministry of Finance and the Ministry of Ecology and Environment published the Corporate Sustainable Disclosure Standards No.1 – Climate (Trial) (Draft for Comment) (the “Draft Climate Standards”). The Draft Climate Standards require the disclosure of Scope 3 greenhouse gas (GHG) emissions and financed emissions. The Draft Climate Standards aim to promote sustainable economic, social and environmental development to “steadily advance the construction of China’s sustainable disclosure standards system.” The comment period closes on May 31, 2025.
Information provided by contributing law firm: Global Law Office
Large Corporates Exit Australia’s Government Carbon Offset Scheme
On April 14, a growing number of large corporate participants began to exit the Australian federal government’s net zero carbon offset scheme, Climate Active. The voluntary scheme issues certificates to participants engaged in carbon abatement and allows the purchase of carbon credits to offset emissions in pursuit of net zero targets. Critics argue the scheme lacks transparency, fails to meet the evolving standards for carbon offsetting and could expose companies to greenwashing claims. A consultation process on possible reforms closed in December 2023, but is yet to announce an outcome. Calls for reform have intensified, and reports suggest the government is taking steps to address the issues.
Information provided by contributing law firm: King & Wood Mallesons
Malaysia’s ASEAN Capital Markets Forum Launches ESG Disclosure Guide
On April 11, the ASEAN Capital Markets Forum (ACMF) launched the ASEAN Simplified ESG Disclosure Guide for SMEs in Supply Chains (ASEDG) Version 1, a voluntary resource to help SMEs supply chain actors prepare ESG data for purposes of disclosure reporting, with an aim to simplify complex reporting, align with global standards, empower SMEs to assess and grow sustainability value, enhance supply chain resilience and attract investment. The guide covers 38 ESG indicators across the ESG pillars, which are divided into Basic, Intermediate and Advanced categories based on sustainability maturity.
Information provided by contributing law firm: Zaid Ibrahim & Co
Standards
ISSB Publishes Exposure Draft Proposing Amendments to IFRS 2 Climate-related Disclosures
On April 28, the International Sustainability Standards Board (ISSB) published an Exposure Draft proposing targeted amendments to IFRS S2 Climate-related Disclosures, aiming to provide relief to ease application of requirements related to the disclosure of GHG emissions. The amendments are “not focused on reductions in disclosures about GHG emissions but are instead making it easier for companies to apply these standards while retaining the decision-usefulness of information provided to investors.” The Exposure Draft will be open for comment (via survey or comment letter) for 60 days with the comment period closing on June 27, 2025, and following the stakeholder feedback period, the ISSB will finalize the amendments.
Contributing Law Firm Information