The Nickel Report

In recent months, some companies have begun reconsidering their sustainability targets. This trend is influenced by a range of factors, including economic pressures and scrutiny of climate action by the current federal administration and state attorneys general. In addition, many companies with interim decarbonization goals (e.g., companies with “net zero by 2050 goals” that also set 2030 targets) are finding they are not on track to meet them. When considering revising or abandoning existing goals, it is important to consider emerging risks under the current legal landscape, and to develop and follow a deliberate strategy to mitigate those risks.

Producer associations launch Textile Renewal Alliance as a prospective PRO to implement California’s textile EPR law.

As participation in Extended Producer Responsibility (EPR) programs continues to grow in the US, the financial burden of developing recycling infrastructure is being transferred to producers of products that fall under the EPR mandates. Since our last update in January, several key developments across multiple jurisdictions have occurred, including the beginning of several state programs.

Hunton Andrews Kurth lawyers Aaron Flynn and David McSweeney discuss corporate management of external stakeholder interests in environmental social and governance issues, including climate change concerns and associated legal risks that can become presented.

In his annual letter to CEOs, Larry Fink, CEO of BlackRock expressed his belief that climate change and sustainability were important considerations in investment risk assessments. Investment based on these concepts is often captured under Environmental, Social and Governance Criteria, commonly called ESG. In his letter, Mr. Fink emphasized that he believes “we are on the edge of a fundamental reshaping of finance.”

BlackRock’s letter builds on the ever-advancing trend in corporate institutional investing over the past decade regarding the examination of corporate valuation and investment risk within the context of ESG issues, otherwise referred to as sustainable investing.

On June 24, 2019, the Equator Principles Association announced the release of the draft text of the fourth revision of the Equator Principles. Known as EP4, this document includes a number of changes intended to address perceived shortcomings regarding the manner in which the current framework is applied to different countries and to enhance the focus on issues such as climate change. These changes reflect the evolving nature of transactional diligence with respect to environment, social and governance (ESG) issues.