Climate-Related Disclosures Rule Litigation and More…
- Joyce Kristiansson
- Mar 30
- 9 min read
ENVIRONMENTAL
Statement by Commissioner Crenshaw Regarding Climate-Related Disclosures Rule Litigation
March 28, 2025
The SEC purports to walk away from the Climate-Related Disclosures Rule. In building the rule, Harvard Law School Forum on Corporate Governance journeyed up a mountain. The Commission spent at least four years taking input – Harvard Law School Forum on Corporate Governance issued requests for information, made a proposal, opened and reopened comment periods when stakeholders asked for more time or the ability to provide more input, reviewed thousands of comment letters, carefully balanced the interest of investors, markets and issuers, and dutifully tailored a final rule in-line with Harvard Law School Forum on Corporate Governance's mission and statutory authority. It was an arduous process that led to a sound and strong result.
EPA Seeks Stakeholder Feedback for Implementation of WOTUS
March 24, 2025
On March 24, 2025, EPA and the U.S. Army Corps of Engineers (together, the Agencies) announced plans to engage stakeholders in the Trump administration’s latest effort to pare back the definition of “waters of the United States” (WOTUS) under the Clean Water Act. The Agencies will hold a series of listening sessions in April and May on specific topics to gather perspectives on defining and regulating WOTUS.
Source: Beveridge & Diamond PC
Twelve TSCA Developments to Expect in 2025
March 24, 2025
Twelve TSCA Developments to Expect in 2025. Expect significant changes to the TSCA program under the Trump EPA relatively soon. To date, however, EPA has suggested that it may revise many of the TSCA actions taken by the Biden EPA, while delaying definitive announcements of changes.
Source: Beveridge & Diamond PC
EPA Postpones Effective Date for TCE Workplace Protections
March 24, 2025
EPA is postponing, until June 20, 2025, the effective date for workplace conditions imposed on uses of trichloroethylene (TCE) that are exempt from the 2024 Final Rule to prohibit all uses of the chemical.
Source: Lion
Congressional Disapproval of 2024 Waste Emissions Charge Final Rule
March 21, 2025
On March 14, 2025, the President signed a joint Congressional resolution that disapproved the 2024 Waste Emissions Charge (WEC) final rule that was promulgated on November 18, 2024 (89 FR 91094). Based on this action, the WEC rule which established a charge for excess methane emissions from certain petroleum and natural gas facilities is no longer enforceable and is not in effect. However, the text of the 2024 WEC Rule will remain in the Code of Federal Regulations until further agency action is taken to remove it.
Source: EPA
CCR Final Rule Withdrawal
March 21, 2025
EPA is withdrawing its January 16, 2025, direct final rule (90 FR 4635), which provided corrections and clarifications to the regulatory text for legacy coal combustion residuals (CCR) surface impoundments and CCR management units. EPA will move forward with a parallel proposed rule (90 FR 4707) that was published on the same day as the direct final rule.
Source: EPA
EPA Extends Reporting Deadline Under the Greenhouse Gas Reporting Rule
March 21, 2025
EPA is extending the reporting deadline for annual greenhouse gas (GHG) reports for 2024 reporting year data from March 31, 2025 to May 30, 2025 to ensure that entities have adequate time to prepare and submit reports due to a delay in the launching of the electronic reporting system. This final rule does not change reporting deadlines for future years and does not change the requirements for what entities must report.
Source: EPA
Key Takeaways on Updated EPA Enforcement Priorities
March 20, 2025
On the heels of its March 12 major announcement about 31 deregulatory actions, EPA also issued an important Memorandum honing the National Enforcement and Compliance Initiatives (NECI) adopted under the Biden administration and providing guidance to EPA’s civil and criminal enforcement staff on implementing existing NECIs. Authored by the acting Assistant Administrator for Enforcement & Compliance Assurance, the guidance may provide some tea leaves worth considering during these early days of the Zeldin EPA. Here are some key takeaways.
Source: Beveridge & Diamond PC
These States Are Picking Up the Corporate Climate Disclosures Slack
March 20, 2025
The European Union is scaling back its landmark CSRD corporate climate disclosure law, while the SEC recently stopped defending in court its corporate emissions disclosure law. But as a result of existing and on-the-way state-level laws, companies will have to keep moving forward with plans to monitor and report Scope 1, 2 and 3 emissions.
Source: Trellis
New Clean Water Act Guidance on WOTUS Released
March 17, 2025
US EPA recently issued new guidance concerning Clean Water Act implementation and announced plans to revise, again, the definition of Waters of the United States (WOTUS).
Source: Lion
Calling all LQGs/SQGs
March 17, 2025
The January 22, 2025 deadline for large and small quantity generators to set up an e-manifest account via RCRAInfo has come and gone. Are you in compliance? Approximately 100,000 of you are, but many are not. To see if your site has set up an account and selected someone with site manager capabilities, check out EPA’s RCRAInfo Public Extract. After clicking “Download List” under “e-Manifest Third Rule Compliance Check,” you can view the .csv file to confirm your facility is good to go. But why is an e-Manifest account even necessary? Amongst other things, designated facilities are no longer required to mail a copy of a signed manifest back to generators confirming receipt of a hazardous waste shipment. You need that e-Manifest account to meet your recordkeeping requirements.
Source: McCoy Review
RMP Rulemaking Redux
March 17, 2025
The U.S. Environmental Protection Agency’s (EPA) Risk Management Program (RMP) regulations, 40 C.F.R. Part 68, appear to be headed back to rulemaking. These much-debated provisions have been amended, rescinded, and reinstated. EPA will now reassess them, according to a recent EPA filing in the D.C. Circuit and an EPA statement. This reassessment is one of 31 actions EPA plans to undertake according to Administrator Lee Zeldin’s March 12 announcement. EPA expects to publish a final rule in late 2026. Companies subject to RMP should stay alert for developments.
To get a fuller picture of what’s going on, this alert provides a brief history lesson on RMP rulemaking.
Source: Beveridge & Diamond PC
EPA Announces Deregulatory Initiative to "Power the Great American Comeback"
March 17, 2025
U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin announced a major deregulation initiative in response to President Donald Trump's executive orders. The announcement mainly consists of EPA providing notice of its intent to reconsider existing EPA regulations, but the agency will be required to carry out a formal rulemaking process to revoke or amend such rules, which can take months or even years to complete.
EPA will exercise substantial discretion in deprioritizing enforcement to advance the president's Deregulation Initiative. Rolling back the endangerment finding is likely the top priority that will facilitate "reconsideration" of other rules.
Source: Holland and Knight
The Future of NEPA Implementation Without CEQ Regulations
March 13, 2025
On February 19, 2025, the Council on Environmental Quality (“CEQ”) announced an Interim Final Rule rescinding its longstanding regulations implementing the National Environmental Policy Act (“NEPA”) and issued a new Memorandum on the Implementation of NEPA (“Guidance”) to all federal departments and agencies.
Source: The National Law Review
Impacts for US Companies of the Proposed EU Omnibus Package
March 10, 2025
On February 26, 2025, the European Commission (Commission) published a proposed ‘Omnibus package’ to streamline some of the recently adopted European Union (EU) sustainability laws. The laws in scope of the proposed Omnibus package are the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM).
The Omnibus package is a legislative proposal and could still change before being adopted. It will now pass to the European Parliament and member states in the European Council for negotiation. Both the Parliament and the Council have the power to amend any of the provisions in the proposal. This is worth tracking closely for US companies that are in scope of these laws since it could have a significant impact on their EU legal compliance obligations.
EHS Inspections: Focus on Stormwater Compliance
March 4, 2025
Ensure your facility's compliance with stormwater regulations by understanding the essentials of stormwater management and best practices for maintaining effective stormwater inspections.
Source: Dakota Software
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SOCIAL
U.S. Transportation Secretary Sean P. Duffy Advocates for Enhancing Pipeline Safety in New Advisory
March 25, 2025
U.S. Transportation Secretary Sean P. Duffy announced that the Pipeline and Hazardous Materials Safety Administration (PHMSA) will be encouraging all regulated pipeline owners and operators to voluntarily adopt new safety management systems (SMS). The utilization of SMS will enhance pipeline safety and is supported by the National Transportation Safety Board (NTSB).
Source: Federal Register
Is It Recordable? Diagnosed Mental Illness
March 25, 2025
Recently, an employer cited by OSHA for alleged injury and illness recordkeeping violations challenged those citations and asked a Federal appeals court “to narrowly define which medical professionals can diagnose mental-health illnesses.”
Source: Lion
GOVERNANCE
Understanding and Managing Legal Risk in Corporate DEI
March 30, 2025
Rapid legal developments in the US related to diversity, equity & inclusion (DEI) practices, programs, and policies require continuous monitoring to ensure companies have accurate, up-to-date information regarding compliance and evolving regulatory standards. As the legal landscape develops in this area, companies are identifying and evaluating the specifics of their existing programs to determine compliance with state and federal law, as well as overall program effectiveness. While “illegal DEI” remains undefined by the new administration, recent developments have provided some direction useful to the private sector.
2025 Environmental and Social Developments
March 27, 2025
President Donald J. Trump has signed a number of executive orders that target DEI, including an executive order titled, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (the MBO Order). This executive order revoked a number of prior executive orders that promoted equal employment opportunities in the federal government, including Executive Order 11246, which was issued in 1965 by President Lyndon B. Johnson and which mandated nondiscrimination and equal opportunity employment in government contracting. The new administration also ordered the Office of Federal Contract Compliance Programs in the U.S. Department of Labor to immediately cease promoting diversity, stop holding federal contractors and subcontractors responsible for “affirmative action,” and no longer allow or encourage federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.
Navigating DEI Disclosure amid Regulatory Shifts
March 24, 2025
Diversity, Equity, and Inclusion (DEI) disclosures in SEC filings evolved dynamically from 2022 to early 2025, driven by a variety of factors, including legal scrutiny, shareholder demands and numerous regulatory shifts. DEI disclosures have reached a pivotal moment. Once expanding as part of corporate governance and ESG strategies, DEI statements are increasingly scrutinized and, in some cases, strategically reduced. This summary provides an overview of key trends shaping DEI narratives in SEC filings among a selected group of ten S&P 100 companies, equipping legal, compliance, and investor relations teams with data-driven insights to navigate this evolving landscape.
This report combines DragonGC’s disclosure analytics to examine the selected disclosures, identify trends, and provide practical examples to guide DEI disclosure strategies in 2025. The report also examines the regulatory and legal context of the shifting DEI landscape and summarizes the key drivers influencing corporate DEI disclosures.
ESG: A Panacea for Market Power?
March 20, 2025
In Harvard Law School Forum on Corporate Governance's paper “ESG: A panacea for market power?,” now published in the Journal of Financial Economics, investigates a fundamental question: What happens when firms credibly pledge to treating stakeholders better than market conditions would dictate?
Consider these common examples:
Firms pledge generous compensation and favorable working conditions for employees.
Companies pledge environmental stewardship to their customers.
Businesses commit to pay “fair” prices to suppliers for inputs like coffee or cacao beans.
These types of corporate commitments have grown significantly in recent decades as market-primacy doctrine has receded. Understanding the consequences of these pledges has become increasingly important in today’s business landscape.
Historically, these pledges have appeared under various labels, most notably “corporate social responsibility.” Today, they are most closely associated with the “social” pillar of ESG policies—the terminology adopted throughout this analysis.
An Update on ESG Litigation Risks in the United States
March 13, 2025
Early in the second Trump administration, the SEC has shown a less permissive attitude to company and investor engagement on environmental, social and governance (“ESG”) matters. While litigation efforts by state and private actors challenging ESG-policies have had mixed results, successes have been achieved where plaintiffs have focused on potential faults in decision-making processes or disclosures. Any legal requirement to oversee business, and thus ESG risks, remains an open question under Delaware law.
Executive Pay Tied to ESG Metrics
March 12, 2025
A goal's importance can often be traced to how it's measured. And as ESG continues to be an important company strategic goal, it's being tied to executive pay.
A recent survey from WTW, an advisory company, found that more than three in four S&P 500 companies (77%) reported in the 2024 proxies they incorporated at least one ESG metric in their executive incentive plans.
That number is unchanged from the previous year but up sharply from 52% four years ago.
Source: EHS Today
EHS and ESG: Navigating the Changing Landscape in 2025
March 10, 2025
EHS professionals own numerous ESG-linked issues, and will navigate volatile political, policy and economic impacts in 2025.
Source: EHS Today
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