Tag: ESG

EU Adopts Mandatory ESG Reporting Requirements | The D&O Diary

The SEC has not yet adopted the long-anticipated final version of its proposed climate change disclosure guidelines, although there is some speculation that the final guidelines will be adopted in the Fall. In the meantime, however, sustainability reporting standards are going into effect elsewhere, with important ramifications for all companies. On July 31, 2023, the European Commission adopted the first…

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SEC lawyers subpoena fund managers over ESG disclosures | Financial Times

The US Securities and Exchange Commission enforcement division has sent document requests, including subpoenas, to several asset managers relating to their environmental, social and governance investment marketing this year, lawyers said, suggesting a potential crackdown looming for the sustainable fund world. Among the SEC’s areas of inquiry are conventional investment funds that have repurposed themselves as ESG funds, the asset…

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SEC lawyers subpoena fund managers over ESG disclosures | Financial Times

The US Securities and Exchange Commission enforcement division has sent document requests, including subpoenas, to several asset managers relating to their environmental, social and governance investment marketing this year, lawyers said, suggesting a potential crackdown looming for the sustainable fund world. Among the SEC’s areas of inquiry are conventional investment funds that have repurposed themselves as ESG funds, the asset…

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Trends in ESG Litigation and Enforcement

Do you expect the SEC’s new climate disclosure rules, if finalized, will change the scope of its ESG-related enforcement actions? Enforcement actions covering topics that are now known as ESG-related are not new. Historically, these actions typically alleged violations of disclosure controls and procedures or material misstatements, as noted above. However, the SEC’s proposed climate rules would require detailed information…

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‘Divisive and Extreme’: Lawsuit Assailing Target’s ESG Agenda Shows How Dicey Topic Has Become | Law.com

Anti-ESG forces have opened a new line of attack in their quest to get corporate America to deemphasize priorities such as diversity and support for LGBTQ communities by suing retailing giant Target, one of the highest-profile advocates of such causes. *** The Target suit, filed this week in federal court in Florida, differs in that it parses years of the companies’…

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Why some companies are quietly hiding their climate commitments – The Washington Post

Greenhushing is the opposite of a better-known practice called greenwashing, in which companies overstate their sustainability in an attempt to market to environmentally conscious consumers. The rise of hushing reflects the fear that many corporate executives face when weighing whether to speak out on climate change, said Renat Heuberger, the co-founder and CEO of South Pole. “If you’re a CEO…

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English Court Rejects Climate Change Case Against Shell Board | The D&O Diary

In numerous recent posts, I have detailed how activist investors have been trying to use the courts to advance their ESG-related agenda, whether the groups’ goals are to advance or oppose ESG initiatives. For example, earlier this week I discussed the recent Delaware case in which activist investors sought to hold the Disney board liable for the company’s actions regarding…

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ESG Enforcement Emerges as Risk for Oil Firms, Bitcoin Miners

An SEC enforcement initiative targeting misleading ESG disclosures has become a business risk for dozen of public companies, including bankrupt Bitcoin miner Core Scientific, shale oil producer Pioneer Natural Resources and banking giant Ally. The Climate and ESG Task Force the Securities and Exchange Commission, which was launched two years ago, was mentioned among the risk factors in 30 companies’…

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Disney, Fiduciary Duties, Business Judgment, and Corporate ESG-Related Actions | The D&O Diary

As I have noted in prior posts, conflicting political views about ESG-related issues have put corporate executives in the crosshairs, a dilemma that has caused some companies to try to avoid ESG issues altogether – a phenomenon that has been described as “greenhushing.” Among other concerns troubling corporate officials about the entire ESG debate is that some politicians have publicly…

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Black Rock CEO Larry Fink “ashamed” to be part of ESG political debate

BlackRock CEO Larry Fink said he’s no longer using the term “ESG” (environment, social and governance) because it is being politically “weaponized” and he’s “ashamed” to be part of the debate on the issue. *** What he’s saying: “I’m ashamed of being part of this conversation,” Fink said. “When I write these [investment] letters, it was never meant to be…

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