Upcoming Events:
- On September 30, Simpson Thacher will host a roundtable breakfast event in collaboration with the Global Infrastructure Investor Association entitled “Sustainability in the U.S. Market: Policy Shifts, Risk and Opportunity.” The session will focus on the shifting sustainability landscape in the United States and what this means for infrastructure investors. For more information and to register for the event, please see .
- On September 30, Emily Holland will be presenting on a Business and Human Rights Lawyers Association webinar, “Managing Human Rights Risks In A World Of Widespread Use of AI.”
Practice News:
Americas
California Air Resources Board Provides New Guidance on Climate Reporting Laws
On August 21, 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), offering new guidance and updates. CARB officials announced the scheduled release date of October 14, 2025 for proposed regulations and a proposed June 30, 2026 deadline for entities to report Scope 1 and 2 emissions pursuant to SB 253. Following the workshop, CARB also posted a Draft Checklist for SB 261 reporting, providing clarifications on potential reporting entity exemptions, parent/subsidiary reporting and other requirements. For more information on the laws, CARB workshop and related developments, see our alerts here, here and here.
Texas Federal Judge Grants Preliminary Injunction in Suit Against Proxy Advisers
On August 29, a Texas federal judge entered a preliminary injunction in favor of proxy advisors Institutional Shareholder Services (ISS) and Glass Lewis against Texas Senate Bill 2337 (SB 2337), preventing the law from going into effect on September 1. The parties challenged the law on the basis that it limited their ability to advise shareholders on diversity, environmental and governance-related practices. The law imposes disclosure obligations on proxy advisors with respect to voting recommendations made on the basis of “non-financial” factors, including ESG or DEI considerations. In granting the preliminary injunction, the federal judge reasoned that the plaintiffs were likely to succeed on the merits of their challenge, that the law (i) discriminates based on viewpoint and content in violation of the First Amendment, (ii) is preempted by ERISA and (iii) is unconstitutionally vague.
U.S. and EU Trade Deal Implicates EU Sustainability Frameworks
On August 21, U.S. and EU officials issued a joint statement on an Agreement on Reciprocal, Fair, and Balanced Trade, which includes easing regulatory burdens on U.S. companies under the EU Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR). The statement signals potential changes afoot for CSDDD in terms of administrative requirements it imposes, the proposed harmonized civil liability regime and climate transition plan-related obligations. The framework does not address commitments relating to the EU Digital Markets Act or EU Digital Services Act.
State Attorneys General Target SBTi’s First Financial Institutions Net-Zero Standard
On August 8, a group of 23 state attorneys general sent a letter to the Science Based Targets initiative (SBTi) seeking information about the organization’s net-zero standards and programs by September 8. Led by Iowa’s attorney general Brenna Bird, the probe specifically targets SBTi’s Financial Institutions Net-Zero Standard, a new framework for banks, asset owners and managers, private equity firms and other financial institutions to set science-based net-zero targets and establish goals to achieve net-zero emissions by 2050. The attorneys general allege that companies’ agreements with SBTi may violate federal and state laws and harm the economy and consumers by raising energy costs and imposing other consumer hardships.
SEC Releases Spring 2025 Regulatory Agenda
On September 4, the Securities and Exchange Commission (SEC) released its Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions (commonly referred to as the “Reg-Flex Agenda”), which identifies the SEC’s rulemaking priorities for the year. Among the priorities, the SEC will focus on rules related to crypto assets, public registration processes, Securities Act exemptions under Rule 144A and Form N-PORT amendments. Notably, the SEC’s Agenda excluded any reference to prior ESG-related rulemaking initiatives including relating to board diversity, climate-related, conflict minerals, resource extraction issuer payment and human capital management disclosures.
FTA Proposes to Eliminate Environmental Criteria From Capital Investment Grant Guidelines
On August 21, the Federal Transit Administration (FTA) announced a proposal to remove the “social cost of carbon” calculation as part of its rating criteria for transit grants under the Capital Investment Grants program, a discretionary grant program that focuses on funding transit capital investments, such as heavy rail, commuter rail and streetcars. The proposal would amend the calculation and evaluation of a project’s environmental benefits when estimating its effect on air quality and greenhouse gas (GHG) emissions. The FTA is seeking feedback from transit industry partners on the new standards as the FTA continues to update its policy guidance. Comments are due by September 18 at Regulations.gov.
Forced Labor Enforcement Task Force Releases 2025 Update to UFLPA Strategy
On August 19, the Forced Labor Enforcement Task Force (FLETF), chaired by the U.S. Department of Homeland Security, published its annual update to the Uyghur Forced Labor Prevention Act (UFLPA) Strategy. The revised strategy addresses the addition of new high-risk sectors for UFLPA enforcement purposes (caustic soda, copper, red dates, lithium and steel) and annual updates to the Entity List of companies known to be involved in UFLPA-prohibited practices, and communicates the Administration’s continued commitment to vigorously enforce the law.
Argentina Establishes First National Procedure for Recognizing “Other Effective Area-Based Conservation Measures”
On August 25, Argentina’s Secretariat of Tourism, Environment and Sports issued Resolution No. 446/2025 establishing the first national procedure for recognizing “Other Effective Area-Based Conservation Measures” (OMECs). Public and private entities, including Indigenous communities, may apply by submitting a form and technical report showing that a site: (i) is not already a protected area; (ii) is geographically defined, legitimately governed and effectively managed; (iii) ensures long-term, in-situ biodiversity outcomes; and (iv) maintains ecosystem services and cultural values. Approved OMECs are added to the Federal Protected Areas System and must submit five-year reports or notify of any material changes. The framework aligns with Decision 14/8 issued by the Convention on Biological Diversity and supports Argentina’s 30 × 30 conservation targets.
Information provided by contributing law firm: Beccar Varela
EU/U.K.
ESAs Reports on SFDR Principal Adverse Impacts Disclosures
On September 9, the European Supervisory Authorities (ESAs) published their fourth annual report on the extent of voluntary disclosures of principal adverse impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR) at the entity and product levels. In producing the report, the ESAs directly assessed a sample of disclosures by financial market participants and incorporated feedback received from national competent authorities (NCAs) of Member States. Overall, the ESAs observed that financial market participants published more complete information than in the previous period and noted a general improvement in the quality of information provided. The report contains an overview of good and below average practices as well as examples of non-compliance observed by NCAs, and information on the average value for each PAI indicator disclosed in the samples.
Germany Passes the Geothermal Acceleration Act
On August 6, the German Federal Government passed the Geothermal Acceleration Act, introducing a digitalized and simplified planning and approval process in an effort to hasten the expansion of geothermal plants, heat pumps and heat storage facilities, in association with EU Directive 2023/2413, or the Renewable Energy Directive (RED III). The law also includes new provisions on mining damages, which allows mining authorities to require geothermal energy companies to provide a security deposit to fully cover potential claims for damages.
Information provided by contributing law firm: Gleiss Lutz
German Supply Chain Due Diligence Act Amended
On September 3, the Federal Government passed a law to amend the German Supply Chain Due Diligence Act (LkSG), which aims to reduce reporting burdens on companies by avoiding dual reporting obligations between the German LkSG and CSDDD. The amendments seek to abolish the LkSG’s annual reporting obligations retroactively as of January 1, 2023; the remaining due diligence requirements will continue to apply in full. Violations of the ongoing requirements will only be sanctioned in cases of serious violations.
Information provided by contributing law firm: Gleiss Lutz
German Court Finds Major Tech Company Cannot Advertise Product as Carbon Neutral
On August 26, the Regional Court of Frankfurt am Main ruled that a major technology company may no longer advertise one of its prominent products as a CO2-neutral product because the claim was deemed misleading in violation of German competition law. The technology company claimed it would achieve CO2-neutrality partially from a forestry project in Paraguay; however, because 75% of the project’s land leases expire in 2029, and there is no guarantee that the contracts can be extended, the court reasoned the leases were too short to support the company’s claim.
Information provided by contributing law firm: Gleiss Lutz
Czech ESG Regulation Amendments to Take Effect in 2026
On August 7, the Czech Parliament enacted Act No. 280/2025 Coll. which will require banks, credit unions and investment firms to incorporate ESG risks into their strategies, governance frameworks and risk management processes. The Act will go into effect on January 11, 2026.
Information provided by contributing law firm: Havel & Partners
Poland Launches First-Ever Greenwashing Investigations
Poland’s Office of Competition and Consumer Protection (UOKiK) initiated its first greenwashing investigations against several companies in the courier and e-commerce sectors. UOKiK claims that statements using terms such as “green fleet,” “zero-emission” and “environmentally neutral” were based on incomplete data or only referred to a fraction of the companies’ operations. The proceedings are based on several Polish competition and consumer protection laws, violation of which may result in a penalty of up to 10% of the company’s annual turnover for each contested greenwashing practice.
Information provided by contributing law firm: Osborne Clarke
Amendments to the EU Waste Framework Directive
On September 9, 2025, the European Parliament gave final approval of a Directive amending the EU Waste Framework Directive, which introduces measures to prevent and reduce waste from food and textiles (link to trilogue provisional agreement). The updates will require Member States to introduce the following food waste reduction targets to be met at a national level by 31 December 2030, compared against the amount generated between 2021-2023: (i) the generation of food waste in processing and manufacturing by 10%; and (ii) the generation of food waste per capita, in retail and other distribution of food, in restaurants and food services, and in households, by 30%. In addition, Member States will be required to ensure that producers that make textiles and textile-related products available in the EU will be subject to extended producer responsibility and will be required to cover the costs of collecting, sorting and recycling of such products. Following the Directive’s entry into force, Member States will have 20 months to transpose the rules into national legislation.
AMEA
Singapore Regulatory Authority Extends Timelines for Climate Reporting
On August 25, the Singapore Accounting and Corporate Regulatory Authority and Singapore Exchange Regulation announced an updated timeline for mandatory climate reporting requirements in Singapore to support listed companies and large non-listed companies preparing to report. For listed issuers, there will be a three-tier structure to phase in reporting obligations based on market capitalization, with Scope 1 and Scope 2 GHG emissions reporting beginning for FY 2025. For the non-listed issuers, International Sustainability Standards Board (ISSB)-based disclosures are deferred until FY 2030, and Scope 3 GHG emissions remain voluntary until further notice.
Information provided by contributing law firm: Allen & Gledhill
Standards and Associations
NZBA to Vote on Whether to Abandon Membership Model After Industry Exodus
On August 27, the Net-Zero Banking Alliance (NZBA) initiated a vote to potentially move away from its membership-based model and instead focus on establishing its guidance as a “new framework initiative.” The call for a vote comes after a wave of exits by major U.S., Canadian and European banks in 2024 and 2025. NZBA has paused its ongoing activities and will share the outcome of the vote at the end of September.
Investors Seek to Streamline Climate Action 100+ Benchmark
Following Climate Action 100+’s (CA100+) announcement that it would adjust its benchmark, which assesses the net-zero progress of the group’s 169 target companies, several investors submitted feedback to the CA100+ website detailing improvements and desired changes. Based on investor submissions, investors generally agree on the usefulness of the benchmark but are seeking a stronger assessment of corporate actions and commitments, a stronger focus on transition assessments and additional detail for the sector-specific assessments.
PRI Issues Supply Chain Guide for Private Market Investors
On September 4, the Principles for Responsible Investment (PRI) issued a new Sustainability in Supply Chains guide for use by private market investors and portfolio companies to inform, review and benchmark supply chain due diligence and management practices. PRI developed the guide following consultations with general partners, limited partners and global private market investors. The guide emphasizes articulating a clear business case for supply chain due diligence, embedding supply chain diligence across the investment lifecycle and ensuring robust supply chain frameworks at portfolio companies, among others.
Contributing Law Firm Information