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Navigating the NEXT.
Corporate Sustainability, Climate Change & ESG
Climate change is no longer solely the concern of scientists. Governments, businesses, and individuals are making a concerted effort to change their patterns to protect the environment. Especially as economies around the world rebuild from the COVID-19 pandemic, many private and public entities are following the example set by the United Nations to take climate-positive actions by creating green jobs, encouraging green investments, and making environmental, social, and governance (ESG) and corporate sustainability central parts of their operations.
Navigating evolving incentives and global requirements require a watchful eye to keep up with all the developments. The ESG, corporate sustainability, and climate change teams at Morgan Lewis do just that on a global scale.
Insights
While the Net Zero Asset Managers Initiative commitment (the NZAMI Commitment) is a clear signal to the market of an asset manager’s commitment to addressing the risks and challenges of climate change, it is a significant undertaking for asset managers and has several regulatory implications. This White Paper discusses these associated challenges and provides a roadmap that asset managers can follow to help ensure NZAMI Commitment compliance.
Partners Daniel Skees and Stephen Spina and associate Arjun Ramadevanahalli authored an article for Law360 about the recently passed Infrastructure Investment and Jobs Act.
President Joseph Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act (the Act) on November 15, 2021, which allocates $550 billion in new spending over the next five years to improve US infrastructure, including critical investments in the energy sector. These investments will cover power grid infrastructure, electric vehicles and charging stations, renewable energy, nuclear power, hydropower, and cybersecurity with the goal to strengthen the energy industry, support emission-free power generation, and bolster emerging technologies.
The Chancery Lane Project, a UK-based nonprofit network of legal professionals, has published a “Net Zero Toolkit” to help organizations achieve net zero goals. The toolkit includes 100 “climate clauses” aligned with the 2015 Paris Agreement goals.
Morgan Lewis partner Vasilisa Strizh and associate Anastasia Kiseleva co-authored the Russia chapter of The Legal 500’s 2021 edition of its Blockchain Country Comparative Guide, a country-specific Q&A that provides readers an overview of blockchain laws and regulations applicable in Russia.
The US Department of Labor on October 14 published in the Federal Register a “Notice of Proposed Rulemaking on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights.” The proposed rule, if adopted in its current form, would be a significant revision of two controversial regulations adopted at the end of the administration of US President Donald Trump that were perceived by some as imposing new hurdles when considering environmental, social and governance (ESG) factors in making fiduciary investment decisions for US retirement plans and investors subject to ERISA.
The IRS recently issued guidance on the utility of and weight to be afforded informal “frequently asked questions” (FAQs) published on its website—clarifications that became necessary given the IRS’s heavy reliance on FAQs as the preferred form of guidance throughout COVID-19 in its attempt to swiftly clarify and interpret standards of newly enacted relief programs often administered by the IRS and the US Department of the Treasury.
The Centers for Medicare and Medicaid Services (CMS) announced that it had restarted the Targeted Probe and Educate (TPE) audit process, effective September 1, 2021. More recently, the Medicare Administrative Contractors for hospice have targeted “claims with revenue code 0656 [General Inpatient Care] greater than or equal to 7 days submitted with dates of service on or after January 1, 2020” for active, pre-pay medical review.
The US Department of Labor (DOL) released on Wednesday, October 13, a Notice of Proposed Rulemaking on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights (the proposed rule), which would amend a prior regulation (the 2020 rule).
The Department of Labor (DOL) released on October 13, 2021, a Notice of Proposed Rulemaking on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights (Proposed Rule), which would amend a prior regulation (the 2020 Rule). This blog post provides a high-level summary of the Proposed Rule and outlines how it may affect environmental, social, and governance (ESG) investing for ERISA plans.
Partners Elizabeth Goldberg, Michael Richman, Julie Stapel, and Lance Dial, along with associates Rachel Mann and Gena Yoo, authored an article for Practical Guidance on a recent proposed regulation from the US Department of Labor.
As the Biden-Harris administration, state governments, and utilities prioritize addressing climate change through reduction of carbon emissions, the United States could soon rival Europe in its use of offshore wind turbines, explained partners Ella Foley Gannon and Dan Skees and associate Scott Clausen in an article written for Reuters.
A report presented on September 23, 2021, into the February 2021 power outages in Texas and the US Midwest caused by extreme cold weather identified the causes of the outages and outlined a series of recommendations. Commenting on the report, jointly authored by the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corp. (NERC), FERC Chairman Richard Glick stated FERC “must take these recommendations seriously, and act decisively, to ensure the bulk power system doesn’t fail the next time extreme weather hits.”
Financial losses caused by recent storms, fires, hurricanes, and other natural disasters are a significant and urgent problem. Insurance industry observers predict that such extreme weather may result in losses of over $100 billion this year alone. From the fires blazing through the Pacific Northwest and California to the destruction caused by Tropical Storm Henri and Hurricane Ida across the South and Northeast, every sector of the economy has been impacted by severe weather events. Most recently, Tropical Storm Nicholas left over half a million customers without power across Texas alone. After responding to the initial, often substantial, concern for securing public safety, companies must evaluate what to do next to recover.
August 2021 proved to be a busy month for stakeholders in the electric vehicle (EV) sector. Between US President Joseph Biden's August 5 executive order to encourage the development of EVs and $15 billion in funds earmarked for EV support in the Senate-approved infrastructure legislation, the growth outlook for EVs and other zero-emission transportation is strong.
Transactions involving a Special Purpose Acquisition Company (SPAC) accounted for more than 50% of new publicly listed US companies in 2020. Described as the new way to go public, SPAC transactions have proven to be an effective way to raise capital. SPACs are used in a variety of sectors and the clean energy space is no exception, as the number of renewable energy SPACs keep growing. This article will briefly explain why “green SPACs” became so popular and why, despite the challenges in the SPAC market, the green SPAC frenzy is likely to continue.
The promotion of green finance and investment in sustainable projects continues to be a key policy of the government of the United Arab Emirates (UAE). The UAE government (with its related entities) has traditionally been the initiator of the financing of sustainable investments and initiatives; however, this is increasingly changing as the private sector becomes more involved. Given the current policies of the UAE government and the other governments within the Gulf Cooperation Council (GCC), it is extremely likely that green finance will continue to grow throughout the Middle East and North Africa (MENA).
In the eight months since Richard Glick took the helm of the Federal Energy Regulatory Commission (FERC), a number of changes to federal regulation of the development of natural gas infrastructure are in the works and several recent orders have showcased diverging positions at the Commission.
The US Department of Health and Human Services recently announced the establishment of the Office of Climate Change and Health Equity (OCCHE). Noting that the OCCHE is “the first office of its kind at the national level to address climate change and health equity,” the OCCHE will be tasked with assisting with regulatory efforts aimed at reducing greenhouse gas emissions and criteria air pollution throughout the healthcare sector.
How to best address impacts from our rapidly changing climate is an issue that has permeated almost all sectors of the global economy, traversing industries and impacting all. Governments and businesses around the world are taking action to reduce greenhouse gas emissions and adapt to or mitigate anticipated climate change impacts. These initiatives promise to drive emerging market opportunities and public demand to accelerate existing trends toward energy efficiency, jump-start alternative technologies, and prod changes in financing and tax policy.
The European Commission and the European External Action Service issued Guidance on Due Diligence for EU Businesses to Address the Risk of Forced Labour in Their Operations and Supply Chains (Guidance) on 12 July as a guide for European companies to implement effective human rights due diligence practices.
The newest edition of Morgan Lewis Spark, a quarterly update highlighting new and amended Russian legislation of importance to companies operating in the Russian energy and mining sectors.
It’s been a big week for electric vehicles. Between the Biden-Harris administration’s August 5 executive order to encourage the development of electric vehicles (EVs) and $15 billion in funds in the Senate-approved infrastructure legislation, the growth outlook for EVs and other zero-emission transportation is strong.
The US Securities and Exchange Commission (SEC) approved new disclosure rules on August 6 regarding board member diversity of Nasdaq-listed companies. Nasdaq’s new rules require most companies to tell shareholders how many of their board members are diverse in terms of race, gender, and LGBTQ+ status and, if they do not have at least two diverse directors, they must explain to shareholders why by August 2022.
In a move that the Biden-Harris administration is promoting as a partial fulfillment of a campaign promise to cut US greenhouse gas emissions (GHGs) at least in half by 2030, President Joseph Biden signed a new executive order last week setting a goal of 50% of all new passenger cars and light trucks to be zero emissions vehicles by 2030 and building on Environmental Protection Agency (EPA) proposed tailpipe emission standards that are set to begin with the 2023 car model year.
Companies doing businesses in the European Union should note an important development that could introduce a duty of care for companies. On 10 March 2021, the EU Parliament approved an outline proposal for an EU Directive on Mandatory Human Rights, Environmental and Good Governance Due Diligence (Directive).
As of July 15, 2021, both Federal Collegiate Courts in Administrative Matters Specialized in Economic Competition (Tribunal Colegiado en Materia Administrativa Especializado en Competencia Económica, Radiodifusión y Telecomunicaciones) have issued decisions lifting two permanent suspensions of the Amendments to Mexico’s Power Industry Law (the Amendments). However, the Amendments remain unenforceable due to injunctions with general effect granted in other amparo constitutional proceedings presented before Mexican district courts.
While the future of private investment in Mexico’s power industry remains uncertain, renewable energy investors should be aware of current proceedings regarding changes to the law.
The US Environmental Protection Agency (EPA) reversed a Trump administration decision involving use of nuclear materials. On June 30, the EPA announced that it was “withdrawing, revoking and rescinding” its conditional approval of The Fertilizer Institute’s (TFI) request to approve the use of phosphogypsum (PG) in road construction. PG is a radioactive byproduct of fertilizer production and is regulated by the EPA. This action follows the EPA’s earlier announcement that it is reviewing a Trump administration decision on cleanup standards for radionuclide-contaminated effluent at a Tennessee Superfund site, which we reported on. Together, the two decisions confirm that the EPA continues to scrutinize prior agency decisions and to more strictly regulate radioactive materials.
The US Environmental Protection Agency (EPA) recently announced a site-specific review that has broader implications for Superfund site cleanups with radionuclide contamination. The EPA is reviewing a Trump-era decision on the applicability of water quality regulations for radionuclide-contaminated effluent from a Tennessee Superfund site. This review could result in reversing the prior determination that the Clean Water Act’s (CWA’s) technology-based effluent limits do not apply. If the EPA reverses this decision, it could signal that the EPA is looking to impose more stringent standards for the cleanup and discharge of radionuclide-contaminated water at other sites.
On June 16, Connecticut joined seven other states—California, Massachusetts, New Jersey, Nevada, New York, Oregon, and Virginia—in adopting an energy storage deployment goal as a strategy to address climate change. In furtherance of Connecticut’s move toward 100% carbon-free power by 2040, Governor Ned Lamont enacted Public Act No. 21-53, which establishes a goal to deploy one gigawatt (GW) of energy storage by 2030. The act also sets interim targets of deploying 300 megawatts (MW) of storage by the end of 2024 and 650 MW by the end of 2027.
On June 11, 2021, the US Department of the Interior’s (DOI’s) Bureau of Ocean Energy Management (BOEM) issued a proposed sale notice to sell commercial wind energy leases on the Outer Continental Shelf (OCS) in the New York Bight. The New York Bight is an area of shallow waters located between Long Island and the New Jersey coast that is adjacent to the greater metropolitan tristate area, which is home to more than 20 million people. BOEM proposes to offer for sale eight lease areas and to complete the lease sale by holding a public auction.
The environmental, social, and governance (ESG) landscape is being shaped by the establishment of various ESG standards and frameworks, many of which have been adopted on a voluntary basis by funds, investment managers, and the companies in which they invest. Although, as of June 2021, there are currently no ESG-specific regulations or rules in the United States, there are many existing securities laws that apply to ESG investing and related claims, and the Securities and Exchange Commission (SEC) is focused on ESG investing from policy, regulatory, examination, and enforcement perspectives. There are a number of steps that funds and their investment managers can, and should, take to assess and address the potential issues presented by ESG investing.
Hydrogen has been widely touted as a solution to achieve ambitious emissions reduction goals. But in order to unleash hydrogen’s potential as a viable energy source to meet current targets, it needs to be produced in larger quantities than it is today without generating large amounts of undesirable emissions during the production process, and at a cost that is not prohibitive.
In this article, we provide a high-level overview of the regulatory regime and key trends in green finance in the Europe, Middle East, and Africa (EMEA) region. This Part 1 addresses the European Union (EU), the United Kingdom, Russia, and Kazakhstan; we will continue with other key jurisdictions in Part 2 in a future issue.
The US energy storage industry is experiencing rapid growth, with approximately 3.5 gigawatt hours (GWh) of energy storage installed in 2020, which is greater than the aggregate 3.1 GWh of energy storage installed from 2013 through 2019. In 2021, the annual deployment of energy storage in the United States is expected to reach nearly 4 GW as a result of large-utility scale procurements, and this number is expected to grow to nearly 7 GW by 2025.
Partners Kirstin Gibbs, Jennifer Josefson, Felipe Alice, Olivier Chambord, Hao Su, and Tsugu Watanabe authored a Petroleum Review article about the global energy transition to net zero emissions.
Partner Bryan Killian spoke with Harvard about his path to becoming an environmental lawyer and the types of matters in which he supports clients.
US President Joseph Biden issued the Executive Order on Climate-Related Financial Risk on May 20, 2021, directing federal agencies across the US government to take action addressing climate-related financial risk.
Vineyard Wind has received approval from the Bureau of Ocean Energy Management (BOEM), the US Army Corps of Engineers, and the National Marine Fisheries Service for its 800 megawatt offshore wind farm located about 15 miles off the coast of Martha’s Vineyard. The approval is likely to facilitate the development of additional projects and has been touted as helping achieve President Biden’s ambitious climate change goals.
Just over 100 Days into the Biden-Harris administration, the course being charted by the government for automobile emissions and emerging automotive mobility technologies is becoming clearer. It includes retooling the current approach toward emissions regulations, including the Corporate Average Fuel Economy (CAFE) standards and the California Waiver as well as revitalizing the federal government’s sustainability efforts to achieve or facilitate clean and zero emission vehicles for federal, state, local, and tribal government fleets. But with new and existing legal and regulatory pitstops along the way, companies attempting to leverage these developments should consider the updates below before shifting into gear.
In a recent Lawflash, our colleagues Ken Kulak and Ariel Braunstein reported that at the Leaders Summit on Climate, hosted by the Biden-Harris administration on April 22 and 23 in Washington, DC, President Joseph Biden set aggressive goals for reducing greenhouse gas emissions in the United States and set forth his aim to encourage the investment in and use of new green technology and to explore pollution reduction strategies.
US President Joseph Biden and Vice President Kamala Harris have consistently framed their policies with what they call the four major “crises” facing the nation: COVID-19, the economy, climate, and inequity.
During the Leaders Summit on Climate, hosted by the Biden-Harris administration on April 22 and 23 in Washington, DC, President Joseph Biden set aggressive goals for reducing greenhouse gas (GHG) emissions in the United States.
The Biden-Harris administration has set its sights on an ambitious environmental policy agenda, focusing on climate change and environmental justice as key initiatives, and intends to implement its agenda through an “all of government” approach. The all-of-government strategy, first deployed in the United Kingdom in the late 1990s, employs a coordinated, multi-department, multi-agency approach to address particularly complex problems.
A team of independent legal counsel issued a legal opinion (the Opinion) on 14 April on Directors’ Responsibilities and Climate Change under Singapore law, concluding that directors of corporations in Singapore are obliged to consider climate change risks as part of their duties to act in the best interests of the company. This LawFlash summarizes the key issues in the Opinion.
The pace of regulatory and legislative developments in climate change and renewable energy over the past few years has been dizzying. With a new US presidential administration now focused on energy issues, examples set from forward-thinking states, and recent lessons learned on the importance of grid stability, here are some of the expected federal actions aimed at achieving energy goals in the “new abnormal.”
Partner Levi McAllister authored a Law360 article about the threshold issues of which market participants affected by electric vehicle (EV) penetration should be aware. In the piece, Levi discussed current growth trends and projections, the Biden-Harris administration’s agenda related to EVs, and practical issues in the sector.
In the US Securities and Exchange Commission staff’s most recent guidance addressing environmental, social, and governance (ESG) investing, the staff of the Division of Examinations released an April 9 Risk Alert noting observations made during recent examinations of investment advisers and funds (both registered and private) engaged in ESG investing.
The education industry, like many others, saw a fundamental shift in 2020 as remote learning challenged some of the long-held traditions of institutions, educators, and related companies. From federal support of reopening in-person classes to changes in college athletics to overall financial challenges, here are some of the trends we could see defining the industry for the rest of 2021.
Consistent with the Biden-Harris administration’s “whole of government” approach to climate change as announced in its Day 1 and Day 7 executive orders, on March 29 the administration announced a variety of concrete initiatives that executive agencies will be taking to accelerate the development, permitting, and construction of US offshore wind projects and boost the already-growing industry as a whole. In addition to highlighting the importance of offshore wind in lowering carbon emissions and addressing climate change, the announcement emphasized the substantial collateral benefits that the administration expects offshore wind growth will bring, including jobs, investment, and related infrastructure improvements.
The Biden-Harris administration announced its American Jobs Plan, a legislative framework laying out an ambitious $2 trillion investment in physical and human infrastructure, on March 31. The bulk of the proposed spending is directed to rebuild US infrastructure in the form of physical improvements on roads, bridges, airports, and ports, with additional investment and tax credits to support clean energy generation and storage, electric vehicles, and energy efficiency.
Since the 2015 Paris Agreement, countries around the globe have been analyzing their energy and development strategies and planning to meet their commitments. While some countries have made progress by, among other things, implementing new technology and examining different energy sources in an effort to achieve their commitments, other countries have been slower to implement any change. However, the events of 2020 appear to have breathed fresh air into the climate change dialogue.
Since the 2015 Paris Agreement, countries around the globe have been analyzing their energy and development strategies and planning to meet their commitments. While some countries have made progress by, among other things, implementing new technology and examining different energy sources in an effort to achieve their commitments, other countries have been slower to implement any change. However, the events of 2020 appear to have breathed fresh air into the climate change dialogue.
Partners Carl Valenstein and Celia Soehner authored a Bloomberg Law Insight column about the need for companies to be cautious and exact when they are drafting mandatory or voluntary environmental, social, and governance (ESG) disclosures. In the piece, they outline the US Securities and Exchange Commission’s areas of focus and best practices for developing an ESG program and disclosures.
Morgan Lewis’s 15th annual 2020 Year in Review and a Look Forward provides a comprehensive overview and analysis of key 2020 US Securities and Exchange Commission (SEC) enforcement and examination developments, notable broker-dealer cases, and anticipated enforcement priorities for 2021, including under the potential leadership of SEC chair nominee Gary Gensler.
In a somewhat expected development, the US Department of Labor’s Employee Benefits Security Administration (EBSA) issued an enforcement statement on Wednesday announcing that it will not enforce the recently published final rules on “Financial Factors in Selecting Plan Investments”—commonly known as the ESG Rule—and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights” (Proxy Voting Rule).
President Joe Biden signed an executive order on February 24 to address possible vulnerabilities in the supply chains of critical national economic sectors, including the energy sector. The executive order directs various executive departments and agencies to complete, in coordination with private stakeholders, a series of assessments to evaluate the resiliency of supply chains in those key sectors. In his prepared remarks, President Biden explained that the order was prompted partly by concerns surrounding shortages in semiconductors, which are vital components of electronic devices used in everything from mobile phones to motor vehicles.
FERC announced on February 22 that it will open a new proceeding to examine the threats of climate change and extreme weather to electric reliability. The investigation will assess how grid operators prepare for and respond to extreme weather events, including, droughts, extreme cold, wildfires, hurricanes, and prolonged heat waves. The proceeding will include a technical conference with an opportunity for parties to submit comments in advance of that conference.
President Joe Biden has been in office for 34 days and his nominee for Secretary of Labor, Marty Walsh, has not yet been confirmed. So far, Mr. Walsh has not publicly stated much regarding his views or intended priorities with respect to ERISA, although it is known that he has a background in labor organizing and the pension issues related to labor unions.
The Federal Energy Regulatory Commission (FERC) issued a Notice of Inquiry (NOI) on February 18 seeking new information and comments on whether it should revise its policy statement on the certification of new interstate natural gas transportation facilities (Policy Statement). In light of environmental justice concerns raised in certificate proceedings and President Joe Biden’s directives in the Executive Order on Tackling the Climate Crisis at Home and Abroad, which we discussed in our January 28 LawFlash, FERC added environmental justice as a fifth area of examination.
FERC Chairman Richard Glick announced his plans on February 11 to better incorporate environmental justice and equity concerns into FERC’s decisionmaking process.
The US Department of Energy submitted a report to the president last month on “Economic and National Security Impacts under a Hydraulic Fracturing Ban.” This 80-page report analyzed the effects of a hypothetical United States ban on high-volume hydraulic fracturing technology used with any new or existing onshore wells starting in 2021 through 2025.
The US Department of Energy submitted a report to the president last month on “Economic and National Security Impacts under a Hydraulic Fracturing Ban.” This 80-page report analyzed the effects of a hypothetical United States ban on high-volume hydraulic fracturing technology used with any new or existing onshore wells starting in 2021 through 2025.
The inauguration of US President Joe Biden on January 20, 2021, marked the beginning of what will surely be a major transition across the US legislative and regulatory landscape—including the laws and regulations governing financial services firms in the United States.
In 2020, a growing number of lawsuits and other legal developments potentially associated with climate-driven impacts continued to challenge owners of permitted facilities, including energy infrastructure. Increasingly, owners are accused of failing to prepare for the effects of climate change, including larger floods, stronger hurricanes, and more extreme storm surges.
Join Morgan Lewis for the first semester of the 2021 Global Public Company Academy, launching on February 10.
The US Court of Appeals for the DC Circuit held that EPA’s interpretation that emissions controls under Section 111 of the Clean Air Act must be limited to those that can be applied “at” and “to” a stationary source was inconsistent with the Clean Air Act.
Immediately following his inauguration on January 20, US President Joseph R. Biden, Jr. began taking executive action to enact many of his administration’s initial priorities, which included a number of executive orders, memoranda, and directives to cabinet agencies to address policies he detailed during his campaign, including the COVID-19 pandemic, climate change, equality, and the global economy. To help clients navigate potential changes from these actions, Morgan Lewis has provided a quick analysis of many of these orders and their impact. We will release more detailed pieces as the president unveils additional specifics of his First 100 Days plan.
As the 46th president of the United States, Joe Biden took significant steps on his first day in office to advance the energy and climate initiatives of his administration. This LawFlash provides a brief summary of several key actions, including the notice of the United States’ intention to rejoin the Paris Agreement, cancellation of the federal permit for the Keystone XL Pipeline Project, and directives by President Biden to certain federal agencies, as well as an overview of key members of his climate team who will be advancing administration policies.
The US Congress has adopted the first extensive update to US federal energy policies in over a decade in the Energy Act of 2020 (Energy Act), which President Donald Trump signed into law on December 27 as part of the Consolidated Appropriations Act, 2021. The Consolidated Appropriations Act also includes the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Taxpayer Act), which includes tax provisions important to the energy sector.
Morgan Lewis partners Michael Richman, Julie Stapel, Elizabeth Goldberg, and Craig Bitman authored a Lexis Nexis Practical Guidance article about the US Department of Labor’s (DOL’s) proposed three ERISA regulations and one prohibited transaction class exemption, including the newly finalized Financial Factors in Selecting Plan Investments.
The Senate Environment and Public Works Committee voted to send S. 4897, the American Nuclear Infrastructure Act of 2020, to the Senate floor on December 2. Senator John Barrasso (R-WY) sponsored the bill, with Senators Mike Crapo (R-ID), Cory Booker (D-NJ), Sheldon Whitehouse (D-RI), and Shelley Moore Capito (R-WV) as bipartisan cosponsors.
The US Securities and Exchange Commission (SEC) announced that it voted on November 19, 2020 to adopt rules to modernize, simplify, and enhance certain financial disclosures required of public companies under Regulation S-K.
A new US presidential administration brings new priorities across various areas and industries, including regulation and enforcement of activities that affect the environment. With President-Elect Joe Biden expected to assume the presidency on January 20, 2021, there are a number of considerations for companies tracking potential changes to the law governing the use of chemicals and antimicrobials.
The US Department of Energy (DOE) has released the Hydrogen Program Plan, a strategic framework that intends to “accelerate research, development, and deployment (RD&D) of hydrogen and related technologies in the United States.”
The US Department of Labor’s final ERISA regulation generally follows its proposal but without the focus on environmental, social, and governance investing.
A recent report from the US Commodity Futures Trading Commission encourages financial regulators to consider the risks climate change poses to the US financial system and includes recommendations for addressing these risks.
With a recent executive order, California is the first state in the nation to commit to ending the sale of fossil fuel–powered vehicles. The order also directs the expedited regulation and closure of oil extraction and production facilities.
Keeping up the steady stream of new and proposed guidance coming from the US Department of Labor (DOL), the Employee Benefits Security Administration issued a proposed regulation on September 4, 2020 that would require significant changes in how ERISA fiduciaries consider and approach proxy voting and the exercise of other shareholder rights.
As environmental, social, and governance (ESG) considerations continue to gain traction with investors, asset managers are confronted with varying levels of regulation that they must balance with the wide array of ESG demands being made by investors. Our global investment funds team has prepared a White Paper as a regulatory framework to navigate such considerations across the United States, United Kingdom, European Union, Hong Kong, and Singapore.
The US Department of Labor has issued guidance on private equity in 401(k) plan designated investment alternatives and a proposed regulation on environmental, social, and governance investing.
When considering acquisition of land from a municipality or other government agency for purposes of development, it is imperative to determine whether the desired land is held in the public trust. That could significantly derail development plans.
Morgan Lewis partners Ayesha Waheed, Chadi Salloum, Jennifer Josefson, and Richard Filosa authored an article for Project Finance International on the adoption of environmental, social, and governance criteria for project finance lenders and investors seeking more responsible investment opportunities.
Recent updates from Singapore amid the coronavirus (COVID-19) pandemic include elevated restrictions on what businesses are considered essential, a new facility for more affordable loans for small and medium-sized enterprises, and new research and development work.
A hot topic in the world of money management, including the management of assets in retirement plans, is the consideration of environmental, social, and governance (ESG) factors when evaluating investments.
The guidance clarifies that environmental, social, and governance factors may be relevant to a plan fiduciary’s evaluation of an investment’s economic merits.
In the News
Partner Julie Stapel spoke with Pensions & Investments about the US Department of Labor’s (DOL’s) recent proposal on environmental, social, and governance (ESG) investing, which would permit retirement plan fiduciaries to consider climate change and other ESG factors when selecting investments and exercising shareholder rights.
Partner Julie Stapel spoke with Plan Advisor about the recently proposed rule from the US Department of Labor that would remove barriers to retirement plan fiduciaries’ ability to consider climate change and other environmental, social, and governance (ESG) factors when selecting investments and exercise shareholder rights.
Partners Elizabeth Goldberg, Julie Stapel, Lance Dial, Michael Richman, and Marla Kreindler, along with law clerk Rachel Mann, authored an article for Law360 on the US Department of Labor’s recent proposed rulemaking on how retirement plans can make investment decisions that consider environmental, social, and governance (ESG) factors.
Partner Stephanie Feingold told Bloomberg Law that while it could be years before the Environmental Protection Agency publishes final rules of what constitutes safe PFAS—or “forever chemical”—levels, if an eventual regulation includes manufactured goods, it will apply to “about every manufacturing industry.”
Partner Neeraj Arora spoke with The Bond Buyer Podcast about the trends and risks in energy storage and its continued growth during the pandemic.
Partner Julie Stapel spoke with Law360 about a new US Department of Labor proposal that could break down some Trump-era barriers that discouraged ESG investing by employee retirement funds.
Partner Greg Needles and associate Michael Gorman authored an article for Law360 discussing an Issue Snapshot published by the Internal Revenue Service (IRS) reminding 403(b) plan sponsors of a compliance failure often identified by the IRS during audits of government and tax-exempt entities, including hospitals and universities.
Partner Elizabeth Goldberg spoke with Bloomberg Law about a proposed regulation from the US Department of Labor (DOL), which states that fiduciaries’ duty of prudence “may often require” consideration of the economic effects of climate change.
Partner Stephanie Feingold discussed the US Environmental Protection Agency's pending requirement that companies report their use of so-called “forever chemicals” in Law360.
Partners Conor Larkin, Celia Soehner, and Carl Valenstein authored a Lexis Practical Guidance article that provides some best practices for public companies when evaluating environmental, social, and governance disclosures. The article details Securities and Exchange Commission disclosure strategies and protocol.
Partner Duke McCall discussed a congressional plan to revive a decades-dormant tax on chemicals and possibly on crude oil with Law360.
The publication InsideEPA recently cited a LawFlash written by Morgan Lewis partners Duke McCall and Denise Fellers, of counsel Laurie Matthews, and associate Noorvik Minasian in an article regarding the US Environmental and Protection Agency’s (EPA’s) revamped model consent decree for Superfund enforcement agreements.
Partners Elizabeth Goldberg and Celia Soehner authored an article for Reuters about whether retirement plans can consider environmental, social, and governance (ESG) factors when selecting investment options.
Partner Neeraj Arora spoke with Law360 about a Congressional proposal that would provide for significant clean energy tax credits.
Partner Elizabeth Goldberg authored an article for Lexis’s Practical Guidance on how environmental, social, and governance (ESG) factors are impacting employee benefit plans.
Partner Kirstin Gibbs spoke with Law360 about the potential impact of recent hurricanes on the oil and gas industry.
Partners Carl Valenstein and Celia Soehner spoke with Law360 about best practices for companies looking to update or draft their environmental, social, and governance policies. "More so than at any time I've been practicing, we are getting a lot of questions from clients," Celia said.
Partner Levi McAllister authored an article for Law360 detailing the Biden-Harris administration’s recent executive order in support of electric vehicles and the Senate-approved infrastructure bill that earmarks funds for the development of more zero-emission transportation.
Morgan Lewis partner Carl Valenstein authored this case study on how impact investing can significantly benefit nonprofits beyond financial returns.
Partner Levi McAllister spoke with Law360 about an executive order from the Biden-Harris administration that set ambitious goals for electric vehicles.
Partners Miranda Lindl O'Connell and Carl Valenstein spoke with Pensions & Investments about the US Securities and Exchange Commission's recent attention on climate-risk disclosure.
Morgan Lewis partner James Tynion was quoted in a Zenger article regarding the New Jersey Board of Public Utilities’ recent approval of contracts for the development of Atlantic Shores and Ocean 2 wind farm projects.
Partner Bill Kissinger was quoted in a Utility Dive article regarding the California Public Utilities Commission’s rulemaking that would allow regulators to scrutinize the distributed energy resource (DER) sector more closely. The DER sector is expected to experience growth in California as more electric vehicles, buildings, and distributed solar are integrated into the grid, all of which could pose distribution and planning challenges.
Partner Levi McAllister and associate Patrick Pennella co-authored an article published in Pratt’s Energy Law Report regarding the Federal Energy Regulatory Commission’s (FERC’s) recent actions to remove barriers to the use of distributed energy resources.
Partners Celia Soehner and Jeffrey Boujoukos co-authored a column for Reuters regarding the dilemma of environmental, social, and governance (ESG) reporting among public companies.
Partners Ella Foley Gannon and Neeraj Arora co-authored a Reuters article regarding the Biden-Harris administration’s ambitious approach to climate policy in its first 100 days.
Partner Carl Valenstein authored a column for Pharmaceutical Executive about environmental, social, and governance (ESG) trends in the biopharma sector.
Partners Kirstin Gibbs, Jennifer Josefson, Felipe Alice, Olivier Chambord, Hao Su, and Tsugu Watanabe authored a Petroleum Review article about the global energy transition to net zero emissions.
Partners William Yonge and Rob Mailer authored an article for Investment Week that outlines considerations for environmental, social, and governance (ESG) funds.
Partners Kirstin Gibbs and Felipe Alice and associates Pamela Wu and Patrick Pennella discussed the laws and regulations that govern the siting, construction, and operation of US liquefied natural gas (LNG) projects in a recent Practical Law Oil & Gas article.
Partners Bill Kissinger, Ella Foley Gannon, and Rick Rothman authored an article for Law360 about recent US regulatory and legislative developments addressing climate change and renewable energy.
Partners Kirstin Gibbs and Ella Foley Gannon were quoted by Law360 in an article about the new US presidential administration’s efforts toward tackling climate change.
Partner Levi McAllister authored a Law360 article about the threshold issues of which market participants affected by electric vehicle (EV) penetration should be aware. In the piece, Levi discussed current growth trends and projections, the Biden-Harris administration’s agenda related to EVs, and practical issues in the sector.
Partner Ella Foley Gannon was quoted in a Utility Dive article about the Biden-Harris administration’s $2 trillion infrastructure plan proposal in relation to California. In the piece, she discussed the state’s zero-carbon electricity goals: “Even before some of this gets played out through actual legislation at the federal level, this focus, I think, will dovetail nicely with California’s articulated goals—and hopefully, will incentivize more investment.”
Partner James Tynion spoke with Law360 for an article about the Biden-Harris administration’s proposed $2 trillion infrastructure plan. In the piece, he explained the implications of the tax credit expansions on transmission investment tax credits (ITC).
Morgan Lewis partner Elizabeth Goldberg spoke with Pensions & Investments after the US Department of Labor (DOL) announced it will not enforce the “Financial Factors in Selecting Plan Investments” rule and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights” rule or take enforcement action against ERISA fiduciaries until it publishes further guidance.
A blog post authored by partner Elizabeth Goldberg and associate Lauren Sullivan was cited in an HR Magazine article about the US Department of Labor’s (DOL’s) decision to not enforce a Trump administration guideline that limited the use of environmental, social, and governance (ESG) criteria when selecting retirement plan investments.
Partner Elizabeth Goldberg spoke with Pensions & Investments about the US Department of Labor’s (DOL’s) Employee Benefits Security Administration focus on environmental, social, and governance (ESG) enforcement.
Partner Julie Stapel was quoted in a PlanSponsor article about a recent US Department of Labor proposal regarding environmental, social, and governance (ESG) investing.
Morgan Lewis partner Marla Kreindler spoke with Plan Sponsor for an article about environmental, social and governance (ESG) principle investments.
Morgan Lewis partner Marla Kreindler spoke with The New York Times about the trend of including environmental, social, and governance issue (ESG) funds in 401(k) plans.
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