ENVIRONMENTAL
EPR Packaging and Recycled Content Laws Continue to Trend as Legislatures Consider Policies to Address Packaging Waste Challenges
February 27, 2025
A growing number of states are adhering to Extended Producer Responsibility (EPR) and Recycled Content policies for plastics and packaging materials. B&D closely tracks EPR and packaging developments, upcoming deadlines, and business implications arising from these legal requirements.
Source: Beveridge & Diamond PC
Climate and Energy Executive Orders: Implications for Corporate Sustainability
February 19, 2025
On January 20, 2025, the president signed three significant climate and energy-related executive orders—“Declaring a National Energy Emergency,” “Unleashing American Energy,” and “Putting America First in International Environmental Agreements”—and rescinded several executive orders from prior administrations, including those focused on reducing emissions and expanding clean energy infrastructure. This article analyzes the key provisions of each order and their potential impact on corporate sustainability practices.
Due in March: EPCRA Tier II and Greenhouse Gas Reporting
February 14, 2025
Two important environmental reporting deadlines bookend the month of March—chemical inventory reporting under the EPCRA on March 1, and greenhouse gas (GHG) emissions reporting under the Clean Air Act on March 31.
Source: Lion
How the EU’s Sustainability Due Diligence Directive Could Reshape Corporate America
February 5, 2025
One of the most important developments in corporate governance is the growing divide between the US and the EU on issues of corporate social responsibility. The starkest example of this divide comes from the new EU Directive on Corporate Sustainability Due Diligence (CS3D). The Directive holds large corporations legally accountable for protecting various human rights and addressing environmental issues, such as forced labor, collective bargaining, biodiversity, and pollution. In fact, companies are required to prevent and remediate these social and environmental harms not just in their own operations, but also in the operations of their subsidiaries and even their suppliers and distributors. Importantly, the CS3D directly applies also to American corporations that generate significant revenues in the European market.
EPA Proposes Updated General Clean Water Act Industrial and Construction Permits
February 4, 2025
Update: On February 3, 2025, EPA extended the comment period on the 2026 Multi-Sector General Permit to April 4, 2025.
Source: Beveridge & Diamond PC
EPA Finalizes TSCA Risk Management Rules for PCE and TCE
February 4, 2025
Update: On January 28, 2025, EPA published a final rule delaying the effective date for the TCE risk management rule until March 21, 2025. EPA stated that, due to a temporary stay of the effective date by the Court of Appeals for the Third Circuit, the rule never went into effect and is subject to President Trump’s 60-day Regulatory Freeze Pending Review. Also, on January 22, 2025, H. J. Res. 27 was introduced to “disapprove” the TCE rule under the Congressional Review Act. No votes have been taken on the resolution yet.
Source: Beveridge & Diamond PC
Latest Updates on Regulatory Freeze for EPA Rules
February 4, 2025
Following the President's Executive Order to freeze new and pending regulations, US EPA delayed the effective dates and comment periods of several rules.
Source: Lion
EPA Proposes Updated General Clean Water Act Industrial and Construction Permits
February 4, 2025
On February 3, 2025, EPA extended the comment period on the 2026 MGSP to April 4, 2025. Industrial facilities covered by the existing MSGP should consider how to engage in public comment by April 4, 2025 to ensure EPA adopts a reasonable final permit with the best information available and consistent with the law.
Source: Beveridge & Diamond PC
The Citizens Are Coming: Citizens Groups Are Better Funded Than Ever and Will Take Over Where Biden Left Off
February 3, 2025
We expect newly-confirmed EPA Administrator Lee Zeldin to quickly follow through on President Trump’s promises to draw down federal enforcement efforts, particularly in the arena of air emissions. While this reprieve may feel like welcome news to some, companies should keep in mind that most federal environmental statutes, e.g., the Clean Water Act, Clean Air Act, and Resource Conservation and Recovery Act empower citizens to act as “private attorneys general” to bring enforcement actions for regulatory violations, and in some cases, order a defendant to abate an endangerment to human health or the environment.
Source: Beveridge & Diamond PC
Court's Denial of Review Leaves Open Questions of CEQ Authority
February 3, 2025
The U.S. Court of Appeals for the District of Columbia Circuit on Jan. 31, 2025, declined a request to review its decision that challenged the authority of the Council for Environmental Quality (CEQ), leaving open questions regarding the validity of CEQ's existing regulations and likely disrupting the National Environmental Policy Act (NEPA) framework that has been relied upon for decades.
Source: Holland & Knight
The Citizens Are Coming: Citizens Groups Are Better Funded Than Ever and Will Take Over Where Biden Left Off
February 3, 2025
We expect newly-confirmed U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin to quickly follow through on President Trump’s promises to draw down federal enforcement efforts, particularly in the arena of air emissions. While this reprieve may feel like welcome news to some, companies should keep in mind that most federal environmental statutes, e.g., the Clean Water Act (CWA), Clean Air Act (CAA), and Resource Conservation and Recovery Act (RCRA) empower citizens to act as “private attorneys general” to bring enforcement actions for regulatory violations, and in some cases, order a defendant to abate an endangerment to human health or the environment.
Source: Beveridge & Diamond PC
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SOCIAL
The DEI Dilemma
February 27, 2025
As companies head into proxy season, the appropriate manner and scope of that retreat has been particularly fraught for Diversity, Equity and Inclusion (DEI)-related issues. Companies are grappling with key judgment calls on how to adapt DEI policies to make them legally compliant and consistent with business imperatives, as well as how prominently to feature disclosure on those topics, if at all. For years, in response to investor feedback and proxy advisors’ corresponding focus, proxy statements and companies’ websites have highlighted the results of efforts companies have made in diversifying boards of directors, management teams, and employee bases on gender, racial, ethnic and other grounds. Following the January 21, 2025 Executive Order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, and the issuance of the Justice Department’s report “encourag[ing] the private sector to end illegal discrimination and preferences, including policies relating to DEI,” many companies and boards have evaluated the extent to which such practices and disclosures continue to be advisable.
Call It What You Want, but DEI is Really a Talent Strategy
February 27, 2025
It’s time for a bit of a reality check when it comes to DEI (diversity, equity and inclusion), says Christie Smith, PhD, former vice president of inclusion & diversity at consumer electronics giant Apple and founder of The Humanity Studio.
DEI has had its ups and downs over the years but now is a very dangerous time to question this concept, says Smith. “When we look at the skill scarcity as well as the half-life of skills, combined with the economic impact of low employee engagement, we are at a crisis situation in the workplace.”
That isn’t the ideal time to be giving up the values of DEI and risk not attracting talent to our organizations, especially if companies want to meet their revenue and growth goals, she says.
Source: EHS Today
PHMSA OK’s Use of DG Hazmat Rules for Highway, Rail Transport
February 7, 2025
An enforcement memo posted by PHMSA provides crucial flexibility for shippers of hazardous materials by highway, rail, air, or vessel in 2025.
Source: Lion
GOVERNANCE
A New Regulatory Environment for Climate and Other ESG Reporting Rules
February 8, 2025
On March 6, 2024, the SEC adopted final rules “to enhance and standardize climate-related disclosures for investors,” which included, among other things, requirements to disclose material climate-related risks and related governance policies and practices and mitigation and adaptation activities, targets and goals, Scope 1 and 2 emissions reports and financial statement effects of severe weather events and other natural conditions, including related costs and expenditures (the Climate Rule).
Anti-ESG Proposals Have Increased in Volume, but Fare Poorly
February 6, 2025
The movement for greater corporate responsibility over environmental, social and governance issues, commonly known as ESG, has become increasingly prevalent across boardrooms and shareholder meetings in recent years. However, alongside this momentum, there has been growing opposition to corporate ESG initiatives, and groups critical of these efforts have grown in tandem. The debate over ESG has been a hot-button topic for years—further exacerbated since the COVID-19 pandemic—and has only continued to grow in importance within shareholder meetings.
A recent example can be seen in Costco’s latest proxy filing, where the Company defended its DEI program against an anti-ESG proposal that criticized the initiative as financially irresponsible and discriminatory. This comes at a time when an increasing number of companies are rolling back similar programs. The pressure from anti-ESG shareholder proposers continues to grow, making its way into corporate boardrooms.
CEO and C-Suite ESG Priorities for 2025
February 3, 2025
The environmental, social & governance (ESG) landscape will grow more complex in 2025, with businesses facing increasing pressure related to climate risks, regulatory changes, and shifting societal expectations. Based on The Conference Board® C-Suite Outlook 2025: Seizing the Future, a comprehensive survey of global business leaders, this report highlights the key ESG priorities of CEOs and C-Suite executives, with a primary focus on US CEOs and additional insights from European and global perspectives— providing a strategic road map for the year ahead.
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