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

The EU Corporate Sustainability Reporting Directive (“CSRD“) entered into force on 5 January 2023 and the associated European Sustainability Reporting Standards (“ESRS“) were adopted by the European Commission on 31 July 2023. Together, the CSRD and ESRS create detailed sustainability reporting requirements that will apply to a significant number of EU and non-EU companies and substantially increase the scope of their sustainability reporting.

Application of the rules is now imminent and, for some, CSRD reporting periods will begin from 1 January 2024.

In this update, we take a look at the implications of the CSRD for non-EU companies and what companies can do to prepare.

Continue Reading The EU Corporate Sustainability Reporting Directive is upon us – what non-EU companies should know and do

At the Summer 2023 National Meeting of the US National Association of Insurance Commissioners (“NAIC”), a number of sessions were focused on environmental, social and governance (“ESG”) initiatives, led by the Special (EX) Committee on Race and Insurance (the “R&I Committee”) and the Climate and Resiliency (EX) Task Force (“C&R

On 31 July 2023, the European Commission adopted the European Sustainability Reporting Standards (“ESRS“). EU and non-EU entities subject to the new EU Corporate Sustainability Reporting Directive (“CSRD“) will be required to report against the ESRS, making the development of interest to entities preparing for reporting under the CSRD regime.

Continue Reading European Commission adopts the European Sustainability Reporting Standards

Given the ambitious targets for offshore wind in support of the UK’s net zero ambitions, it is recognised that the existing grid connection infrastructure may be inadequate and that it is likely that provision needs to be made for more co-ordinated grid connections that incorporate the additional capability required to connect future offshore generation projects.

On 26 June 2023, the International Sustainability Standards Board (“ISSB”) issued its long-awaited inaugural global sustainability disclosure standards: IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) (together, the “Standards”). The ISSB also released a related Sustainability Standards Navigator tool and a three-minute video. The

A new requirement for most developments to achieve a minimum level of “biodiversity net gain” will come into force in November this year.  For some this will be an additional burden when preparing planning applications, but others will see it as an opportunity to create value through enhancing biodiversity whilst burnishing their “green” credentials.

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On 8 June 2023, during their Ministerial Council Meeting in Paris, the Organisation for Economic Co-operation and Development (“OECD”) launched an updated version of its Guidelines for Multinational Enterprises (the “Guidelines”). This is the first update to the Guidelines since 2011 and the changes represent substantial and far reaching new expectations for multinationals, particularly in relation to areas of their operations or business which may have human rights or environmental implications. This update sets out a brief overview of the OECD Guidelines and some of the key updates since the 2011 Guidelines.

Continue Reading A new era for human rights and environmental due diligence: the OECD launches updated Guidelines for Multinational Enterprises