Practice News:
- For a second year, Simpson Thacher was recognized for Impact Investing by Chambers USA 2025; Partners David A. Shevlin and John Bennett were also recognized.
- Partner Leah Malone was featured at the Practicing Law Institute’s full-day program “ESG 2025: What It Means for Boards, Management and Counsel” on June 10 in New York City. For more information, see here.
- Leah Malone and Counsel Emily Holland co-authored an article in Law360, “Calif. Air Board Offers Early Hints on Climate Reporting” on June 4. To access the article, see here (subscription required).
- Emily Holland joined 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 moderated a panel at the 13th Private Equity New York Forum entitled “Sustainable Investing: Strategies for Long-Term Success” on May 14.
- Emily Holland spoke on ESG & sustainability regulatory developments, shifts and decentralization to sustainability professionals in the Trellis Network on May 13.
Upcoming Events:
- Emily Holland will 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:
- 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
California Air Resources Board Communicates Delay on Regulations Implementing Climate Reporting Laws
On May 29, the California Air Resources Board (CARB) held a Virtual Public Workshop on California’s climate reporting laws, SB 253 (the Climate Corporate Data Accountability Act) and SB 261 (the Climate-related Financial Risk Act), presenting initial rulemaking proposals and soliciting public feedback and commentary. During the workshop, CARB officials noted that compliance deadlines for initial reporting under both laws remain in effect, but that regulations, previously expected by July 1, will now be released before the end of the year. Litigation challenging the laws is ongoing, with a hearing on a motion for a preliminary injunction currently scheduled for July 1. For more information on the laws, CARB workshop and related developments, see our Alerts here and here.
FTC and DOJ File Joint Statement of Interest in Asset Manager Antitrust Case
On May 22, the U.S. Federal Trade Commission and DOJ Antitrust Division filed a Statement of Interest in an antitrust case in the U.S. District Court for the Eastern District of Texas alleging collusion among large institutional investors to decrease output of coal production. The statement offers agency support for arguments alleging the asset managers’ anticompetitive conduct arising from their passive ownership of stock in coal companies and urges the Court to reject the defendants’ claims.
Labor Department Drops Biden-era DOL ESG Rule
On May 28, the Department of Labor (DOL) informed the Fifth Circuit Court of Appeals that it will no longer defend a Biden-administration rule allowing the consideration of ESG factors in corporate retirement plans in the United States. As described in more detail here, the regulation allows fiduciaries to consider ESG and other collateral factors as a tiebreaker. A coalition of 26 Republican-led states challenged the rule arguing that the regulation ran afoul of ERISA and exceeded the DOL’s statutory authority. In addition to ceasing its defense, the agency’s letter states that it will also engage in new rulemaking on the topic.
EU/U.K.
FRC Publishes Updated U.K. Stewardship Code 2026
On June 3, the Financial Reporting Council (FRC) published a revised U.K. Stewardship Code 2026 for signatories. Notably, the definition of “stewardship” has been updated to mean “the responsible allocation, management and oversight of capital to create long-term sustainable value for clients and beneficiaries,” removing a prior reference to sustainable benefits for the economy, environment and society. The updated code also seeks to reduce the reporting burden on subject entities and eliminate a “box-ticking” approach to reporting. It will apply from January 1, 2026, with the first year serving as a transition year during which no existing signatories will be delisted. The FRC is currently consulting on accompanying guidance.
EBA Publishes Consultation Paper to Amend Pillar 3 Disclosures Framework
On May 22, the European Banking Authority (EBA) published a consultation on draft implementing technical standards (ITS) to amend the EBA Pillar 3 disclosures framework for financial institutions in scope of the EU Capital Requirements Regulation. The proposal seeks to extend the scope of institutions required to disclose ESG information while reducing reporting costs and simplifying sustainability reporting, by introducing different templates based on institution type. The proposal explicitly refers to aligning with the Commission’s simplification agenda under the recent Omnibus packages, and contemplates transitional provisions to allow institutions time to prepare for the amended disclosures. The paper will be published for a three-month period following which the EBA will assess the feedback before submitting the final draft to the European Commission.
European Commission Publishes Proposal to Delay Application of EU Batteries Regulation
On May 21, the European Commission published its “Omnibus IV” package, including the Commission’s latest proposals as part of the Commission’s simplification agenda. The package includes a proposal to amend the EU Batteries Regulation, which currently requires economic operators that place batteries on the EU market to fulfill due diligence obligations regarding the sourcing of specific raw materials from August 18, 2025. The Commission seeks to delay application of the due diligence obligations by two years to August 18, 2027, with the stated intention of providing battery manufacturers additional time to analyze requirements.
German Accessibility Reinforcement Act Enters Into Force
On June 28, the Accessibility Reinforcement Act (BFSG) will enter into force and apply to certain digital products and services placed on the EU market or provided to consumers after June 28, 2025. The BFSG implements the European Accessibility Act (Directive (EU) 2019/882) and aims to enable all people with disabilities, impairments, and of different ages to participate in economic life on an equal and non-discriminatory basis. Manufacturers subject to the Act will be obliged to design and provide products and services (including certain self-service terminals, and computer notebooks, smartphones, e-books, e-commerce services, and consumer banking services) in such a way that they can be understood, operated and controlled by people with disabilities.
Information provided by contributing law firm: Gleiss Lutz
Spain Introduces Measures to Support Decarbonization
In May, Spain introduced several new energy and environmental measures, including new regulatory bases for granting aid to promote the circular economy in renewable energy capital goods (Order TED/542/2025, of May 28) and for innovative energy storage projects (Order TED/535/2025, of May 28), both aligned with EU funding and Spain’s energy transition goals. Other newly proposed initiatives include a resolution setting out the procedures and sustainability criteria for recognizing renewable fuels of non-biological origin to meet transport sector targets (Resolution of May 14, 2025, of the Secretary of State for Energy) and a resolution establishing the national average greenhouse gas emission intensity for electricity used by motorcycles and electric vehicles at 81.5 gCO2eq/MJ for 2023, to be used for regulatory reporting (Resolution of May 14, 2025 of the Secretary of State for Energy).
Information provided by contributing law firm: Cuatrecasas
AMEA
India Securities and Exchange Board Issues Sustainable Debt Securities Framework
On June 5, the Securities and Exchange Board of India (SEBI) issued a framework for the issuance and listing of social, sustainability and sustainability-linked bonds. The framework requires these securities to align with recognized international standards (including relevant ICMA Principles, the Climate Bonds Standard and ASEAN Standards), or frameworks selected by Indian financial regulators, and requires issuers to appoint independent third-party reviewers to verify compliance. In addition to pre-issuance disclosure requirements in offering documents and post-listing obligations, the Framework addresses issuer responsibilities in relation to ensuring appropriate use of proceeds and other areas.
Information provided by contributing law firm: Trilegal
Australian Sustainable Finance Capability Framework Updated
On May 27, the Australian Sustainable Finance Institute (ASFI) published its revised Sustainable Finance Capability Framework following consultation with financial sector stakeholders. The Framework sets out core competencies and capabilities required to develop a skilled workforce and leadership to accelerate Australia’s transition to a more sustainable economy. These include sustainability strategy, reporting, risk management and the development of sustainable financial products and services such as green bonds, sustainability-linked loans and blended finance. The Framework also aims to strengthen the sector’s ability to engage meaningfully with indigenous communities.
Information provided by contributing law firm: King & Wood Mallesons
Thailand Introduces Taxonomy Review and Carbon Tax
On May 27, the Thailand Taxonomy Board launched its Taxonomy Phase 2, focusing on a sustainable finance framework that targets high greenhouse gas (GHG)-emitting sectors. The taxonomy launch follows April’s introduction of a carbon tax on petroleum products to be incorporated into the country’s existing fuel excise tax structure. The measures support Thailand’s goals of achieving carbon neutrality by 2050 and net-zero GHG emissions by 2065, and serve as a transitional measure ahead of the rollout of Thailand’s Climate Change Act, which is anticipated to provide a comprehensive legal framework for climate governance.
Information provided by contributing law firm: Chandler Mori Hamada Limited
China’s Asset Management Association Releases New Fund Manager Rules
On May 9, the Asset Management Association of China released “Rules for Managers of Publicly Offered Securities Investment Funds to Participate in Corporate Governance of Listed Companies.” The rules seek to standardize fund managers' exercise of shareholder rights, including voting, guide fund managers on the fulfilment of their fiduciary duties and align China's capital markets with international standards on responsible investment and green finance. In-scope institutions are required to submit an email to the Association before June 30, 2025, on the external exercise of voting rights in 2023 and 2025.
Information provided by contributing law firm: Global Law Office
Standards
IFRS Foundation Releases Guidance on GHG Emissions Disclosures
On May 29, the IFRS Foundation released new guidance on the disclosure of GHG emissions under the IFRS S2 climate-related disclosures. The materials include details on the inclusion of Scope 3 categories, as well as resources and references to highlight the nexus between the reporting entity information used for IFRS S1 reporting, and the organizational boundary determined in alignment with the GHG Protocol.
Contributing Law Firm Information