The recent decision (20 February 2024) of the High Court in R (Rights Community Action) v Secretary of State is a rare example of an NGO succeeding in a climate change legal action under English law.  In the case, Rights Community Action persuaded the High Court to overturn a finding by the Secretary of State’s Planning Inspectors that a local authority’s “net zero” policy was unlawful.Continue Reading NGO successfully challenges planning inspectors’ report on energy performance standards

On 20 December 2023, the Council of the EU reached an agreement on its negotiating mandate on a proposal for a regulation on ESG ratings  (the “Proposed EU Regulation“). This builds on the European Commission’s proposal, which was published on 13 June 2023.

The EU’s desire to regulate ESG rating agencies is a response to increasing concerns from a variety of stakeholders about the reliability, comparability and transparency of ESG ratings and the data behind these ratings.Continue Reading Council of the EU agrees on proposal to regulate ESG ratings providers

On 28 November 2023, Baroness Young of Hornsey introduced the Commercial Organisations and Public Authorities Duty (Human Rights and Environment) Bill (the “Bill”) to the House of Lords.  If passed, the Bill would introduce mandatory human rights and environmental due diligence (“HREDD”) into UK law.

The description of “reasonable” HREDD set out in the Bill is consistent with the standards set out in the UN Guiding Principles and existing and draft legislation in other jurisdictions (including the EU Corporate Sustainability Due Diligence Directive, “CS3D”, as outlined in our previous blog here).  Companies with international footprints, including through their direct operations and supply chains, should already have in place a plan to implement enterprise HREDD processes that meet existing soft law standards and emerging hard law HREDD requirements.

While it is unclear whether the Bill would be supported by the UK Government, companies should already be taking steps to anticipate and prepare for HREDD.  The direction of travel is undoubtedly trending towards HREDD legislation and stakeholder expectations around how companies should respond continue to increase.  In particular, several jurisdictions have already adopted laws that require companies to identify, address, prevent, mitigate and remedy harms in their operations and supply chains (e.g. France, Germany, Norway, Switzerland, the Netherlands) in advance of CS3D which will directly apply to many large non-EU based companies given its broad extraterritorial application, while others are considering such laws (e.g. CS3D) (e.g., see our previous blogs here and here).Continue Reading Business and Human Rights – could the UK adopt mandatory human rights due diligence?

A new California ”anti-greenwashing” law comes into effect on January 1, 2024.  The law – called the Voluntary Carbon Market Disclosures Act (AB 1305) (VCMDA) – casts a wide net over companies participating in the California voluntary carbon market or that make certain “green” claims within California.  The VCMDA applies regardless of revenue thresholds if

This mini Q&A series will follow COP28, providing you with a quick and easy way to stay informed as the discussion evolves. Our coverage will highlight significant and recent developments from a legal perspective, allowing you to assess the impact of these on your business. 

In this video, Tim Baines (Environmental partner, London, and founding

On 28 November 2023, the UK’s Financial Conduct Authority (“FCA“) published its “Sustainability Disclosure Requirements (“SDR“) and investment labels” policy statement (PS23/16) (the “Policy Statement“). The Policy Statement introduces a set of new rules aimed at tackling greenwashing, including investment product sustainability labels and restrictions on how terms

On 27 September 2023, Brazil’s Supreme Court concluded the trial of Extraordinary Appeal No. 1,017,365, which discussed a cut-off date for indigenous occupation as a requirement for demarcation of indigenous lands. Based on a strict interpretation of the Brazilian Constitution, the time limit thesis tried to implement a cut-off date to restrict indigenous land claims, arguing that only indigenous lands occupied on the date of the 1988 Constitution promulgation could be demarcated by the Federal Government. In reviewing the appeal, the Supreme Court not only rejected the time limit requirement, but also established a broad set of criteria covering other relevant aspects to the demarcation of indigenous lands.Continue Reading Brazil’s Supreme Court rejects time limit requirement for indigenous land demarcation

Brazil’s draft Sustainable Taxonomy Action Plan (the Action Plan), prepared by the Ministry of Finance, is currently under public consultation and receiving contributions and comments for its improvement. The deadline for taking part in the public consultation is October 20, 2023.

The development of a sustainable taxonomy seeks to address Brazil’s main environmental and social

UK Prime Minister, Rishi Sunak, has announced a major U-turn on the UK’s “net zero” policies.  This amounts to 3 key policy changes:

  • Electric vehicles – 3 years after announcing a ban on the sale of new petrol and diesel vehicles from 2030, the ban has been delayed to 2035;
  • New exceptions to ban on sale of new domestic gas boilers from 2035 – although the ban on the sale of new gas boilers from 2035 remains, new exceptions will be introduced to help poorer households, although the details are to follow.  The sale of oil, LPG and coal boilers for off-grid homes is to be delayed to 2035;
  • Tougher EPC requirements to be scrapped – from 2025, no residential property was to be let unless it achieved a “C” rating for energy efficiency.  This has been scrapped.  Mr Sunak said that this could have led to a requirement to invest around £8,000 per property.  No announcements were made regarding commercial properties.

The changes have met with a mixed response, with some commentators highly critical of Mr Sunak’s U-turn, warning that introducing uncertainty could severely undermine investor confidence in the UK.Continue Reading UK rolls back “net zero” ambitions, carbon offsets face renewed attack and the spotlight falls (again) on policing carbon markets