Supply Chain

New German Government Takes Office: Key Developments in ESG and Supply Chain Laws

Posted on April 22, 2025

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

The Coalition focuses on reducing regulatory burden in supply chain requirements, achieving net zero by 2045, and voluntary measures in environmental and resource management.

By Axel Schiemann, Stefan Bartz, Joachim Grittmann, and Falko Schmidt

Following the German federal election in February 2025, the new coalition consisting of CDU/CSU and SPD (the Coalition) has reached a coalition agreement, unveiled on April 9, 2025. This agreement marks the culmination of extensive negotiations and sets the agenda for the new…

UK Government Issues Updated Modern Slavery Act Transparency Guidance: Key Takeaways for Businesses

Posted on March 31, 2025

Posted in Environmental, Social, and Governance

The guidance clarifies obligations, shares steps businesses should take, and reinforces reporting to combat modern slavery.

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

On 25 March 2025, the UK Home Office published its updated Transparency in Supply Chains (TISC): Statutory Guidance (the Guidance), which provides new and detailed recommendations to help organisations comply with Section 54 of the Modern Slavery Act 2015 (MSA). The Guidance includes clearer expectations and practical tips designed…

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…

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…

UK Government Launches Critical Imports and Supply Chains Strategy

Posted on January 18, 2024

Posted in Environmental, Social, and Governance

London skyline seen from the River Thames

The strategy aims to boost supply chain resilience of critical goods.

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

On 17 January 2024, the government launched the Critical Imports and Supply Chains Strategy (the strategy), which aims to safeguard UK supplies of goods including medicine, minerals, and semiconductors.

The strategy forms part of a wider government initiative to back businesses and grow the UK economy by helping companies build resilient supply chains and maintain supplies of critical goods and raw materials.

The strategy notes that recent global events, including the COVID-19 pandemic, geopolitical tensions, and climate change have highlighted vulnerabilities of the UK’s essential supply chains. The strategy thus focuses on ensuring reliable access to critical imports for present and future needs.

FTC Seeks Public Comments on Green Guides as Part of 10-Year Review Cycle

Posted on December 20, 2022

Posted in Environmental Regulation, Environmental, Social, and Governance

The updated Green Guides will likely impact legal liability for environmental marketing claims in the years to come.

By Jean-Philippe Brisson, Paul A. Davies, Sarah E. Fortt, Julia A. Hatcher, Betty M. Huber, Robin M. Hulshizer, Michael Dreibelbis, Michael D. Green, Danny Dvorak, Brett Frazer, Austin J. Pierce, Angela Walker, and Jacqueline Y. Zhang

Latham & Watkins presents a blog series on the Federal Trade Commission’s Guides for the Use of Environmental Marketing Claims (Green Guides). This first post discusses the evolving focus areas as well as the enforcement and litigation risks of the Green Guides.

On December 20, 2022, the Federal Trade Commission (FTC) published a notice (hereinafter, the 2022 Notice) requesting public comments on its Guides for the Use of Environmental Marketing Claims (commonly known as the Green Guides or the Guides). The FTC reviews its rules and guides on a 10-year schedule, and its publication of the 2022 Notice is in accordance with the agency’s regulatory review cycle. The Guides were first issued in 1992 and most recently revised in 2012.

The public can submit comments by using the Federal Register online submission form or by mailing comments to the FTC. The public comment period will close on February 21, 2023.

The FTC publishes the Green Guides in part to support marketers and companies in their environmental advertising decisions. Adherence to the Guides can also help companies avoid litigation involving deceptive environmental claims. Further, the Guides can inform companies in their supply chain decision-making. Per the FTC, the Guides are designed to provide guidance on (1) general principles that apply to all environmental marketing claims; (2) how consumers are likely to interpret particular claims and how marketers can substantiate these claims; and (3) how marketers can qualify their claims to avoid deceiving consumers.[1]

European Council Adopts Negotiating Position on Corporate Sustainability Due Diligence Directive

Posted on December 2, 2022

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

The Council’s position includes a number of differences from the European Commission’s original proposal, including in relation to the requirement to diligence the broader value chain.

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

On 30 November 2022, the European Council (the Council) — which comprises the views of the EU Member State governments — adopted its negotiating position on the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD would require large companies operating in the EU to undertake due diligence on their own activities and that of their suppliers, and to identify, mitigate, or avoid any actual or potential adverse impacts of their business operations. The CSDDD would also set out any penalties (including possible civil liability) in relation to the breach of such obligations.

New Senate Bill Targets US Corporate Conduct in China

Posted on March 1, 2022

Posted in Environmental, Social, and Governance, Project Siting and Approval

The bill seeks to extend certain provisions of the Foreign Corrupt Practices Act.

By Erin Brown Jones, Paul A. Davies, Nathan H. Seltzer, and James Bee

The U.S. Congress continues to take interest in implementing legislation to curb alleged human rights abuses in the supply chain in China and elsewhere, as evidenced by two new pieces of legislation introduced in the Senate this month. These bills follow the implementation of the Uyghur Forced Labor Prevention Act, or UFLPA, in December 2021. For more information on the UFLPA, see this Latham blog post.

European Commission Proposes New Supply Chain Due Diligence Rules for Large Companies

Posted on February 24, 2022

Posted in Environmental, Social, and Governance

In-scope companies would have to publicly identify “actual and potential” adverse impacts of their operations on the environment and/or human rights.

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

On 23 February 2022, the European Commission (the Commission) published a proposal for a Directive on Corporate Sustainability Due Diligence (the Directive). If approved, the Directive would require large companies based in the EU (and certain large companies based outside of (but operating in) the EU) to conduct due diligence on a number of ESG-related issues throughout their supply chain, with failure to do so leading to possible fines or civil liability.

New German Law Aims to Strengthen Global Human and Environmental Rights

Posted on June 30, 2021

Posted in Environmental, Social, and Governance

The law imposes mandatory human rights and environmental due diligence obligations on companies in Germany as of 1 January 2023.

By Paul A. Davies, Stefan Bartz, and Alexander Wilhelm

On 25 June 2021, the Bundesrat, the legislative chamber of the German Federal States, approved the Supply Chain Due Diligence Act (Lieferkettensorgfaltsgesetz). The law now only needs to be signed by the Federal President (Bundespräsident) and published before entering into force. Two weeks before, the coalition parties reached a last-minute compromise to adopt the law ahead of the end of the legislative period in September.

This blog post will examine the amendments to the prior draft law resulting from that compromise and consider how the Act will impact companies in Germany (for more information on the draft law, please see Latham’s previous blog).

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