On September 15, 2021, the Central Bank of Brazil (BCB) released its first “Report on Social, Environmental and Climate-related Risks and Opportunities”. Based on the recommendations by the World Economic Forum (WEF), the Task Force on Climate-related Financial Disclosure (TCFD), and the Network for Greening the Financial System (NGFS), the publication highlights the potential impacts of social, environmental, and climate-related issues on Brazil’s economy and financial stability, and details the initiatives aimed at assessing, disclosing and managing ESG risks and opportunities within the BCB structure and in the financial system.

Continue Reading Brazil’s Central Bank and National Monetary Council Publish New Rules on Disclosure and Management of Social, Environmental and Climate-related Risks

Just months after we discussed a recent climate lawsuit filed in Brazil against a rural landowner due to alleged illegal deforestation in the Amazon, a new chapter in Brazilian climate litigation unfolds and reinforces the trend of climate change lawsuits against public and private entities. In this Blog Post, we take a look at this new precedent and how it further impacts climate change discussions in the context of carbon-intensive activities.

Continue Reading Climate Litigation in Brazil: New Lawsuit Seeks to Bring Climate Change Discussions to the Core of Environmental Licensing of Carbon-Intensive Activities

On August 31, 2021, the Federal Insurance Office (FIO) of the US Department of the Treasury published a request for information (RFI) on the insurance sector and climate-related financial risks for the FIO’s future work on:

  1. insurance supervision and regulation,
  2. insurance markets and mitigation/resilience, and
  3. insurance sector engagement.

Citing its role

On August 6, 2021, the US Securities and Exchange Commission (SEC) approved Nasdaq’s board diversity rule. Nasdaq originally proposed its rule in December 2020 and subsequently amended the proposal to reflect feedback submitted by commenters.

The rule requires Nasdaq-listed companies to have, or explain why they do not have, at least two diverse

On June 24, 2021, US Customs and Border Protection (“CBP”) issued a Withhold Release Order (“WRO”) on silica-based products made by Hoshine Silicon Industry Co., Ltd. (“Hoshine”), a company located in Xinjiang, and its subsidiaries. This WRO is based on information that CBP alleges “reasonably indicates” that Hoshine used forced labor to manufacture silica-based products. As a result, CBP personnel at all US ports of entry have been instructed to immediately begin detaining shipments that contain silica-based products made by Hoshine or materials and goods derived from or produced using those silica-based products. China is by far the world’s largest producer of silicon and silica-based products.

Continue Reading US Customs Issues WRO on Silica-based Products Produced by Xinjiang Manufacturer

On June 21, 2021, US financial regulators met with US President Joe Biden to discuss the US economy and update him on their efforts to address climate-related risks.  According to the White House readout of the meeting, the regulators said “they were making steady progress” on implementing President Biden’s executive order on climate-related risk. The briefing follows last week’s passage of HR 1187, the Corporate Governance Improvement and Investor Protection Act, by the US House of Representatives1 by a vote of 215 to 214. HR 1187 would mandate that the SEC create an ESG disclosure regime for public companies and provides numerous statutory requirements for those disclosures, including climate-related disclosures. Although the bill is unlikely to become law due to expected opposition in the US Senate, which requires a 60-vote supermajority to pass legislation, the passage of the HR 1187 by the House – combined with President Biden’s focus on climate-related risks in his meeting with financial regulators –  should bolster and influence the US Securities and Exchange Commission’s (SEC) ongoing development of new ESG disclosure requirements for US public companies under its existing statutory authorities. With regulators telling President Biden that they are “making steady progress,” new disclosure requirements for US public companies appear to be just around the corner.

Continue Reading The US Moving Toward Adopting New Climate Disclosures

Earlier this year, the US Federal Housing Finance Agency (“FHFA”) issued a Request for Input (“RFI”) on the risks of climate change and natural disasters to the national housing finance markets.1 As we discussed in our prior Legal Update, the RFI posed 25 questions on how FHFA can best identify, assess and respond to those risks for the entities FHFA regulates (Fannie Mae, Freddie Mac and the Federal Home Loan Banks) and the housing finance markets in general. Comments were due on April 19, 2021. The RFI is one of a series of recent actions by the federal government to address the financial risks posed by climate change.2 Most recently, on May 20, 2021, President Biden issued an executive order requiring the federal government to take several actions to identify and address the financial risks posed by climate change.3

Continue reading for our discussion on the comments in response to the RFI.


Continue Reading Update on FHFA’s Request for Input on Climate Change and Natural Disaster Risks

On Thursday, May 20, 2021, US President Biden signed an Executive Order, entitled “Climate-Related Financial Risk” (Climate Risk EO), that sets the stage for the US federal government, including its financial regulatory agencies, to begin to incorporate climate-risk and other ESG issues into financial regulation. The Climate Risk EO further demonstrates the

On April 26, 2021, the Central Bank of Brazil (BCB) launched a new public consultation (No. 86/2021, the “Consultation”) on a proposed regulation for mandatory disclosure of social, environmental, and climate risks by financial institutions.

Climate-related risks must be disclosed in accordance with the TCFD Recommendations (“Recommendations”), including both