Environmental, Social, and Governance

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EU Member States Reach Agreement on Corporate Due Diligence Directive

Posted on March 18, 2024

Posted in Environmental, Social, and Governance, European Environmental and Public Law

Following extended negotiations, the directive was endorsed with a significantly narrower scope that would reduce the number of companies affected.

By Paul A. Davies, Michael D. Green, and James Bee

On 15 March 2024, EU Member States endorsed the Belgian Presidency’s political deal on the Corporate Sustainability Due Diligence Directive (CSDDD), despite Germany abstaining from the vote.

The CSDDD would require companies to conduct due diligence to identify and assess environmental and human rights issues across their value…

China’s Stock Exchanges to Plan Sustainability Disclosure Rules for Big Companies

Posted on March 15, 2024

Posted in Environmental Regulation, Environmental, Social, and Governance

The guidelines aim to transform China’s approach to ESG by introducing sustainability disclosure rules for large listed companies.

By Hui Xu, Paul A. Davies, Jean-Philippe Brisson, and Qingyi Pan

On February 8, 2024, under the auspices of the China Securities Regulatory Commission (CSRC), each of China’s three major stock markets — Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange— unveiled draft guidelines on sustainable development reports (SDRs) (collectively referred to as the Guidelines). The Guidelines require the largest Chinese public companies to publish high-quality and standardized SDRs, and are open for public comment until February 29, 2024.

Mandatory Climate Reporting in Singapore From FY2025

Posted on March 7, 2024

Posted in Environmental Regulation, Environmental, Social, and Governance

The Accounting and Corporate Regulatory Authority and Singapore Exchange Regulation have provided details of mandatory climate reporting for listed issuers and large non-listed companies.

By Paul A. Davies, Farhana Sharmeen, Michael D. Green, James Bee, and Kevin Mak

On 28 February 2024, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) introduced regulations for mandatory climate-related disclosures (CRD) (the Regulations). The Regulations will be introduced in a phased approach in line with the recommendations from the Sustainability Reporting Advisory Committee (SRAC).

Four Stock Exchanges Collaborate to Develop the ASEAN-Interconnected Sustainability Ecosystem

Posted on March 6, 2024

Posted in Environmental, Social, and Governance, Green Finance

The stock exchanges of Malaysia, Indonesia, Thailand, and Singapore have partnered to advance sustainability in ASEAN through the development of an interregional ESG ecosystem.

By Paul A. Davies, Farhana Sharmeen, Michael D. Green, James Bee, and Kevin Mak

On February 15, 2024, Bursa Malaysia Berhad (Bursa Malaysia), Indonesia Stock Exchange (IDX), The Stock Exchange of Thailand (SET), and Singapore Exchange (SGX Group) released a joint statement announcing their collaboration on the development of the ASEAN-Interconnected Sustainability…

China Releases Carbon Allowance Trading Regulations

Posted on February 28, 2024

Posted in Carbon Offsets, China, Environmental, Social, and Governance

The regulations aim to provide a legal framework for China’s carbon allowance trading market by strengthening requirements and designating responsibilities.

By Hui Xu, Paul A. Davies, Jean-Philippe Brisson, and Qingyi Pan

On January 25, 2024, Chinese Premier Li Qiang signed a decree of the State Council, introducing the Regulations on the Administration of Carbon Allowance Trading (the Regulations). Effective from May 1, 2024, the Regulations provide a legal framework for the operation of China’s emissions trading scheme…

EU Reaches Provisional Agreement on ESG Ratings Regulation

Posted on February 27, 2024

Posted in Environmental, Social, and Governance

The European Parliament and the Council of the EU have made some significant changes to the European Commission’s proposal.

On 5 February 2024, the European Parliament and Council of the EU announced that they had reached a provisional political agreement on the text of the ESG Ratings Regulation (the Regulation). The agreed text was subsequently published on 14 February 2024. The Regulation was initially proposed by the Commission in June 2023, and seeks to introduce a new regulatory regime for ESG ratings providers “operating in the Union”. Refer to this Latham blog post for previous commentary on the proposal.

European Parliament and Council Reach Political Agreement on Right to Repair Directive

Posted on February 12, 2024

Posted in Environmental Regulation, Environmental, Social, and Governance, European Environmental and Public Law

All European Union flags in front of parliament eu

The directive aims to reduce waste and bolster the repair sector.

By Paul A. Davies, Michael D. Green, and James Bee

On 2 February 2024, the European Parliament (Parliament) and European Council (Council) reached a provisional deal on a directive promoting the repair of broken or defective goods, known as the Right to Repair Directive.

The directive was proposed in March 2023 by the European Commission[1] (Commission), seeking to deliver on environmental targets outlined in the European…

New Zealand Supreme Court Paves Way for Novel Climate Change Claim

Posted on February 12, 2024

Posted in Air Quality and Climate Change, Environmental Litigation, Environmental, Social, and Governance

On appeal of a strike out decision, the Court gives the plaintiff “his day in court” to argue that corporates owe a common law duty of care in tort to reduce greenhouse gas emissions.

By Sophie J. Lamb KC and Stephanie Forrest

On 7 February 2024, the Supreme Court of New Zealand decided to allow a novel climate change claim to proceed to trial. In Smith v. Fonterra, the Supreme Court reversed the earlier decision of its Court of Appeal…

European Commission Recommends 90% Emissions Reduction Target by 2040

Posted on February 7, 2024

Posted in Environmental, Social, and Governance, European Environmental and Public Law

The target aims to set the path for climate neutrality by 2050.

By Paul A. Davies, Michael D. Green, and James Bee

On 6 February 2024, the European Commission (Commission) presented its recommendations for the EU’s 2040 climate target, following a detailed impact assessment on potential emission reduction pathways. This publication aligns with the implementation of the EU’s Climate Law, which enshrines the EU’s commitment to become climate-neutral by 2050, alongside the 2030 target to reduce net greenhouse gas (GHG) emissions by at least 55%, relative to 1990.

The Commission recommends a 90% net GHG reduction by 2040, as compared to 1990 levels. Notably, the recommendation refers to “net” GHG reduction, and therefore opens the door for the use of carbon removal technologies within the EU to meet the target.

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