
Recent Publications
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A Guide to the SEC’s Proposed Climate Disclosure Requirements
As we reported earlier, the SEC recently proposed significant new requirements to enhance and standardize climate-related disclosures. Registrants would be required to detail climate-related risks, risk mitigation plans and goals and oversight processes; greenhouse gas emissions; and climate-related financial metrics, as part of a new climate-related disclosures section and separate footnote to financial statements in their annual report. We offer a more detailed guide to the proposal and its implementation timeline.
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SEC Proposes New Climate Disclosure Requirements
The SEC has proposed significant new requirements to enhance and standardize climate-related risk disclosures. These new requirements would include prescriptive, specific line-item disclosure, unlike the current largely principles-based current climate and ESG disclosure requirements. Comments are due by the later of 30 days after publication in the Federal Register or May 9, and we expect debate to be contentious.
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Sustainability & ESG: 2021 Year in Review — Key Takeaways
In 2021, ESG issues assumed greater prominence and consideration by regulators, employees, customers and other stakeholders, with record investment in ESG, ESG disclosures by major organizations, and filings of ESG-related shareholder proposals. Rulemaking and reporting standardization was also a major focus in the U.S. and globally. We examine key ESG trends in 2021 and what to expect in the year ahead.
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Department of Labor Proposes Rule to Remove Barriers to Considering ESG Factors in Plan Management
The Department of Labor recently proposed amendments to its “investment duties” regulation under Title I of ERISA. The proposal attempts to address several stakeholder concerns, including the current regulation’s perceived bias against ESG investing and voting proxies. To that end, the proposal clarifies that ESG factors may often be appropriate considerations for ERISA plan fiduciaries when making investment or proxy voting decisions on behalf of ERISA plans.
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SEC Division of Corporation Finance Publishes Sample Climate Disclosure Comments
The SEC Division of Corporation Finance recently issued a sample comment letter regarding a company’s climate-related disclosures. The comments highlight the SEC’s focus on risk and MD&A sections, and indicate that the SEC will review disclosures in corporate social responsibility/sustainability reports and compare them to those in SEC filings.
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SEC Approves Nasdaq Board Diversity Requirements
The SEC recently approved Nasdaq’s board diversity requirements, which will apply to all Nasdaq-listed companies, including non-U.S. issuers, smaller-reporting companies and controlled companies. This is a significant step by a U.S. stock exchange, and likely the first of more ESG-related rules to come, as the SEC has indicated its intent to take up board diversity rulemaking in the next year.
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IOSCO Issues Final Report on Sustainability-related Issuer Disclosures
The International Organization of Securities Commissions (IOSCO) has published a report that sets out a vision for a global baseline for sustainability standards for issuers. The report sets out expectations for an ISSB that would sit alongside the International Accounting Standards Board, building on and integrating the content and recommendations of existing frameworks, principles and guidance, and incorporating a “building blocks” approach that would enable certain jurisdictions to set reporting requirements beyond the ISSB’s baseline.
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President Biden Calls on Federal Government to Mitigate Climate-Related Financial Risk
President Biden recently issued an Executive Order on Climate-Related Financial Risk that calls on the federal government to take concrete steps to mitigate the growing physical and transition risks of climate change on the U.S. economy, workers and families. This client alert, part of a series focused on ESG disclosure and regulatory developments, highlights key aspects of the order.
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SEC Highlights Compliance Issues Related to Investment Advisers Offering ESG-Related Investment Products
The SEC’s Division of Examinations published a Risk Alert highlighting observations of deficiencies and internal control weaknesses from recent examinations of investment advisers offering products, including private funds, whose investment strategies incorporate environmental, social and governance factors.
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President Biden Sets Out Ambitious American Jobs Plan with Significant Climate-Related Proposals
President Biden recently set out his administration’s ambitious approximately $2.25 trillion American Jobs Plan to create jobs, rebuild the country’s infrastructure, address the climate crisis and better position the country to compete with China. Our alert summarizes the climate-related aspects of the proposal.
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CFTC Continues to Move Forward on Climate Change
Acting CFTC Chairman Rostin Behnam recently announced the establishment of a Climate Risk Unit to focus “on the role of derivatives in understanding, pricing, and addressing climate-related risk and transitioning to a low-carbon economy.”
Introduction to ESG
Introduction to ESG
“ESG” describes a set of environmental, social and governance factors used to evaluate investment and company impacts beyond traditional financial measures. ESG topics are now the subject of significant focus by asset managers, asset owners such as pension funds and insurance companies, and other investors, as well as by proxy advisory firms, index providers, regulators and rating agencies.
ESG Disclosures
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ESG Disclosures: Frameworks and Standards Developed by Intergovernmental and Non-Governmental Organizations
As ESG matters have increasingly become the focus of investors and regulators, standards of disclosure created by intergovernmental and non-governmental organizations, as well as industry participants, have gained market prominence. While most ESG disclosure is made on a voluntary basis, that is beginning to change, particularly in Europe.
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ESG Disclosures: Task Force on Climate-related Financial Disclosures
Since their publication in 2017, the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for voluntary disclosures by companies concerning their climate-related financial risks have emerged as a leading international framework for climate-related disclosures. This client alert, part of a series focused on ESG developments, summarizes the aims of the TCFD and its disclosure recommendations.
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ESG Disclosures: The Push for Consistent and Comparable Standards – Europe
The European Union has taken a leading role in advancing ESG disclosure requirements across the full spectrum of sustainability topics. Some of the initiatives are focused largely on climate issues, while others address broader sustainability concerns. This client alert, part of a series that reviews developments in the ESG disclosure landscape, provides an introduction to the current ESG regulatory disclosure frameworks of the European Union.
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ESG Disclosures: The Push for Consistent and Comparable Standards – United Kingdom
The United Kingdom has been an early adopter of ESG regulations and guidelines; a number of recent initiatives in the United Kingdom highlight the extent to which a focus on ESG among corporates, investors and financial institutions has become a “new normal.” This client alert, part of a series that reviews developments in the ESG disclosure landscape, provides an introduction to the current ESG regulatory disclosure framework in the U.K.
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The U.S. Regulatory Framework for ESG Disclosures
The SEC takes a principles-based, materiality-focused approach to disclosure that applies equally to environmental, social and governance (ESG) disclosures. This client alert, part of a series that reviews developments in the ESG regulatory landscape, provides an introduction to the current ESG regulatory disclosure framework in the United States.
ESG in Conversation
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Takeaways – ESG Intersects with PE: Practical ESG Considerations for Private Equity
On October 27, Paul, Weiss hosted a virtual, senior-level roundtable, “ESG Intersects with PE: Practical ESG Considerations for Private Equity,” with general counsel, chief compliance officers and other C-suite executives from top private equity firms.
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Dave Curran Interviewed on Litera TV About Lawyers Leading Social Change
Chief Sustainability and ESG Officer Dave Curran was featured on an April 23 Litera TV episode of “Lawyers Leading Social Change,” with host Alma Asay, a domain expert for legal workspace technology company Litera and former Gibson Dunn attorney.
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Takeaways – ESG and Board Diversity, Equity & Inclusion: Connecting Aspiration to Action
Paul, Weiss hosted a roundtable, “ESG and Board Diversity, Equity & Inclusion: Connecting Aspiration to Action.”
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Takeaways — Bridging the Divide of ESG: Linking Business and the Legal & Risk Ecosystems
On February 3, Paul, Weiss hosted a joint webinar with the NYU Stern School of Business’s Center for Sustainable Business, titled “Bridging the Divide of ESG: Linking Business and the Legal & Risk Ecosystems.”
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Paul, Weiss Hosts ESG Virtual Webinar “Bridging the Divide of ESG”
Paul, Weiss recently hosted a virtual webinar, “Bridging the Divide of ESG: Linking Business and the Legal & Risk Ecosystems,” in collaboration with the NYU Stern Center for Sustainable Business.
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Takeaways – Attorney General Loretta Lynch in Conversation with Thomas Kim
On November 4, Paul, Weiss and Thomson Reuters hosted a fireside chat with litigation partner Loretta Lynch. The discussion was facilitated by Paul, Weiss Chief Sustainability and ESG Officer Dave Curran and Thomson Reuters Chief Legal Officer and Company Secretary Thomas Kim.
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Takeaways – Spotlight on the “G” in ESG: Societal Shifts Collide with Traditional Corporate Governance
On October 6, 2020, Paul, Weiss and Nasdaq organized a joint roundtable via Zoom leading over 40 general counsel, heads of sustainability, corporate secretaries and board members in a discussion regarding how societal upheavals, such as COVID-19 and Black Lives Matter, have accelerated the collision between ESG considerations and traditional corporate governance.
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Takeaways: Reflecting Forward – A View from the Inner Circle
Paul, Weiss recently hosted almost 50 senior Legal, Compliance, and Sustainability executives, directors and academic leaders in a closed-door roundtable discussion via Zoom to discuss how companies are adapting to the rapidly expanding ESG challenges.
ESG Lexicon
Paul, Weiss’s Sustainability and Environmental, Social & Governance (ESG) Advisory Practice helps clients develop integrated ESG strategies that safeguard corporate reputation, mitigate risk and leverage opportunity.
Events & Publications
David Fein Describes How Financial Institutions Can Combat Wildlife Trafficking Through ESG Initiatives in Law.com Column
- Feb 15, 2023
- Publications
David Fein Describes How Financial Institutions Can Combat Wildlife Trafficking Through ESG Initiatives in Law.com Column
Litigation special counsel David Fein published an “Expert Opinion” column in Law.com, “How Financial Institutions Can Help Combat Wildlife Trafficking Through ESG Initiatives,” on February 15.
Nasdaq Updates Board Diversity Deadlines
- Dec 23, 2022
- Publications
Nasdaq Updates Board Diversity Deadlines
Nasdaq recently amended its board diversity compliance deadlines, implementing a uniform cut-off date of December 31 in the applicable year of compliance. These revised deadlines will not practically affect the compliance schedule for …
ISS Issues Final Policy Updates for 2023 Proxy Season
- Dec 06, 2022
- Publications
ISS Issues Final Policy Updates for 2023 Proxy Season
ISS has issued final voting policy updates for the 2023 proxy season, effective for meetings on or after February 1, 2023. We highlight changes to ISS U.S. voting policies related to governance and board accountability, executive…
Harris Fischman Publishes Article on SEC Greenwashing Requirements in Corporate Counsel
- Nov 01, 2022
- Publications
Harris Fischman Publishes Article on SEC Greenwashing Requirements in Corporate Counsel
Litigation partner Harris Fischman wrote an article on potential implications for future SEC enforcement activity under the agency’s proposed greenwashing disclosure requirements, published in Corporate Counsel on November 1.
Lissette Duran Moderates Berkeley Law Discussion on DEI and Is Featured on NYCBA Podcast on Belonging and Identity
- Oct 11, 2022
- Publications
Lissette Duran Moderates Berkeley Law Discussion on DEI and Is Featured on NYCBA Podcast on Belonging and Identity
ESG associate Lissette Duran moderated a live discussion, “Diversity, Equity, and Inclusion (DEI) & Corporate Boards,” hosted by UC Berkeley School of Law and sustainability nonprofit Ceres as part of their co-developed executive…
Justin Anderson Discusses ESG Litigation Trends on In House Warrior Podcast
- Oct 07, 2022
- Publications
Justin Anderson Discusses ESG Litigation Trends on In House Warrior Podcast
Litigation partner Justin Anderson discussed ESG challenges companies face in an appearance on the podcast In House Warrior, hosted by the Corporate Counsel Business Journal.
Paul, Weiss ESG and Law Institute to Co-Host Course on the Ethical Use of AI
- Sep 22, 2022
- Events
Paul, Weiss ESG and Law Institute to Co-Host Course on the Ethical Use of AI
Paul, Weiss’s ESG and Law Institute, in partnership with the FiscalNote Executive Institute, will co-host a course “Ethical Use of AI and the Emerging Legal Landscape,” the last in a series of three continuing legal education courses…
Brad Karp to Moderate Panel on Antitrust, ESG and Post-Pandemic Litigation Developments for Practising Law Institute
- Sep 20, 2022
- Events
Brad Karp to Moderate Panel on Antitrust, ESG and Post-Pandemic Litigation Developments for Practising Law Institute
Firm chairman Brad Karp will moderate a panel on recent litigation developments as part of the Practising Law Institute’s “Hot Topics for In-House Counsel” one-day program.
Jeannie Rhee Discusses ESG Practice in LEADERS Magazine
- Jul 01, 2022
- Publications
Jeannie Rhee Discusses ESG Practice in LEADERS Magazine
LEADERS Magazine featured litigation partner Jeannie Rhee in a Q&A in its July, August, September 2022 issue.
Madhuri Pavamani to Participate in Westchester County Association’s Sustainable Business Conference
- Jul 14, 2022
- Events
Madhuri Pavamani to Participate in Westchester County Association’s Sustainable Business Conference
Sustainability & ESG Advisory Practice Director Madhuri Pavamani will participate in a panel discussion, “The Journey: Moving to the Sustainable Enterprise,” as part of the 2022 Westchester County Association’s Sustainable…
Awards & Recognition
Dave Curran Recognized in the 2022 NACD Directorship 100
- Apr 07, 2022
- Awards
Dave Curran Recognized in the 2022 NACD Directorship 100
Sustainability & ESG Advisory Practice Co-Chair Dave Curran has been recognized by the National Association of Corporate Directors (NACD) as an honoree of the 2022 NACD Directorship 100, an annual recognition of the leading…
Paul, Weiss Recognized Among the Nation’s Most Innovative Law Firms in the Financial Times Innovative Lawyers Report
- Dec 10, 2021
- Awards
Paul, Weiss Recognized Among the Nation’s Most Innovative Law Firms in the Financial Times Innovative Lawyers Report
Paul, Weiss was recognized among the most innovative law firms in North America by the Financial Times in the 2021 Innovative Lawyers Report.
Paul, Weiss Shortlisted in Five Categories for the Financial Times Innovative Lawyers North America 2021
- Nov 04, 2021
- Awards
Paul, Weiss Shortlisted in Five Categories for the Financial Times Innovative Lawyers North America 2021
Paul, Weiss was shortlisted for the Financial Times Innovative Lawyers North America 2021 awards in five categories.
David Curran Appointed Co-Chair of NYSBA ESG Committee
- Jan 07, 2021
- Awards
David Curran Appointed Co-Chair of NYSBA ESG Committee
Chief Sustainability and ESG Officer David Curran has been appointed co-chair of the New York State Bar Association’s ESG Committee. The recently formed ESG Committee aims to actively monitor ESG developments, promote discussion of…