April 2026: SNB pressed to disinvest from Palentir, EC announces clean energy package, calls for ISSB nature-related disclosure standard, and more

Key highlights from April 2026 in the sustainability space.

1-Minneapolis campaigners press Swiss National Bank to disinvest from Palantir

On April 24, a delegation from Minneapolis urged the Swiss National Bank to divest their $1.1 billion stake in Palantir due to human rights concerns about its surveillance technologies. The data analytics firm signed a contract with the U.S. Department of Homeland Security in 2025 to support immigration and customs enforcement operations, whose agents are linked to the death of two Minneapolis-based activists and the arbitrary detention of several thousand migrants. The delegation, alongside Swiss campaign group BreakFree Suisse, argued that the investment violates the National Bank’s own policy, which proscribes investment in entities that violate human rights or Swiss values.

While Switzerland only represents 0.4% of Palantir shareholders, it is one of the only countries whose financial institutions have a direct public stake in the company. The Minneapolis delegation’s advocacy, alongside similar action in Norway and Britain, represents a powerful lever in ESG advocacy: holding not only companies but also their investors accountable for human rights violations linked to their investments.

2-European Commission announces policy package to fast-track clean energy

The European Commission has unveiled a new policy toolbox that aims to support energy transition and independence amidst rising fuel costs and fragilized global markets for clean energy. The Accelerate EU package aims to provide immediate relief for rising fuel costs, while also structuring the Union’s long-term clean energy strategy. Among the policy tools is the Commission’s 2026 Investment Strategy, which mobilizes private funds for energy technologies in partnership with the European Investment Bank Group, which has pledged over 75 billion for clean energy projects.

3-Sustainability leaders urge ISSB to implement global reporting standards

In an open letter addressed to the International Sustainability Standards Board, nineteen global leaders in conservationism and climate science called on the ISSB to adopt a dedicated standard on nature. The letter follows the ISSB’s decision to develop optional nature-related disclosures, rather than mandatory global standards.

The signatories assert the materiality of nature as a key climate and economic stabilizer, while noting the World Economic Forum’s 2026 finding that nature represents 44 trillion in economic value generation, whereas biodiversity losses represent 2,7 trillion in global annual costs. Beyond its climactic impacts, nature-related financial materiality is increasingly recognized as a key factor for responsible and profitable investments. 

4-IBM reaches $17M settlement with the DOJ to resolve DEI allegations

IBM has agreed to a $17 million settlement with the U.S. Department of Justice following a probe into the company’s DEI practices. The case represents the first resolution under Attorney General Todd Blanche’s Civil Rights Fraud Initiative, launched in 2025, which allows the DOJ to investigate recipients of federal funds that knowingly violate civil rights laws.

While IBM was not found guilty of noncompliant DEI practices, the legal risks associated with such programs has increasingly dissuaded companies, prompting some to scale back their policies in response to heightened enforcement.

The settlement comes in the wake of a March 2026 Executive Order establishing new rules for anti-DEI compliance, which apply to federal contractors and subcontractors and cover guidelines for reporting, contract terms, implementation and enforcement. The Order also mandates that all federal agencies review its implementation within 120 days, signaling increased scrutiny and assessment of companies’ internal policies.

5-African Energy Chamber joins amicus curiae in advisory proceeding before the AfCHPR

Following a request by the Pan-African Lawyers Union in March 2025 for a landmark advisory opinion from the African Court on Human and Peoples’ Rights (AfCHPR), the African Energy Chamber has joined a growing list of NGOs and private entities participating in the proceedings as amicus curiae.

The petition, filed in May 2025, calls on the Court to clarify the human rights obligations of African States under the African Charter on Human and Peoples’ Rights in the context of climate change, particularly where harm is caused by third parties such as multinational corporations.

Taking into account the differentiated responsibilities of CO2 emitters and the continent’s particular vulnerabilities, factors largely unaddressed in the ICJ’s advisory opinion, the proceedings could pave the way for mandatory due diligence, emissions disclosure requirements, and greater corporate accountability under Article 21(5) of the Charter, which obliges State Parties to eliminate foreign economic exploitation. 

- Content prepared with the help of Amanda Alden.

March 2026: California’s GHG disclosure rules, Vigilance ruling against Yves Rocher, Australia’s sustainable finance taxonomy guidelines, and more

Key highlights from March 2026 in the sustainability space.

1- California advances new GHG emissions reporting rules for $1B+ firms

On March 23, the California Air Resources Board (CARB) held a public workshop laying out reporting requirements for $1B+ firms following the adoption of Senate Bill 253. The legislation, passed in 2023, represents one of the most extensive corporate climate disclosure laws in the US.

Beginning in 2026, companies must report on Scope 1 and 2 emissions resulting from direct emissions from sources owned by a company or due to generation of purchased energy. From 2027, this will also apply to Scope 3, covering indirect emissions from distribution, purchased goods, or use of sold products. By expanding these requirements to the full value chain, SB 253 establishes reputational exposure for carbon-heavy entities who will need to reevaluate their production, procurement, and supply chain through an emissions lens.

In light of reporting complexity, the Board is considering several regulatory options, including broad applicability across reporting entities; sectoral phase-in with an initial focus on transportation, technology and energy; or category phase-in beginning with most reported categories such as business travel and purchased products. These open questions reflect uneven data availability and collection practices across sectors, as well as ongoing uncertainty regarding the feasibility and materiality of certain emissions categories.

2- Yves Rocher Group found in violation of due diligence obligations

On March 12, 2026, the Tribunal of Paris found the Yves Rocher Group liable for failing to meet its due diligence obligations in relation to a Turkish subsidiary. The plaintiffs, supported by Action Aid and Sherpa, were wrongfully terminated in 2018 following unionization.

The tribunal held that France’s 2017 Due Diligence Law establishes mandatory provisions which the legislature expressly intended to encourage responsible and sustainable management of French supply chains and enable victims to seek redress before French jurisdictions. By failing to assess and prevent risks of human rights violations within its subsidiary, the Yves Rocher Group breached its obligations and was ordered to pay pecuniary and moral damages to the Turkish workers’ union as well as several individual workers involved in the case.

Crucially, the Tribunal determined that the imperative character of the Diligence law qualifies it as an overriding mandatory provisions covered by article 16 of the EU Rome II regulation. Accordingly, French companies cannot shield themselves under more favorable local laws to avoid due diligence obligations. The ruling constitutes a first condemnation for commercial activities abroad, as several other multinationals, including TotalEnergies and BNP Paribas face similar proceedings.

3- Lawsuits filed in D.C. Circuit challenge EPA Greenhouse Gas Endangerment finding

A coalition of 24 U.S. states has sued the Environmental Protection Agency for its recent repeal of the 2009 Endangerment Finding underlying GHG regulations in carbon-intensive sectors, previously reported on here. The case is one of several targeting recent EPA rollbacks, including a coalition of states and health and environmental groups contesting the repeal of Mercury and Air Toxics Standards, as well as a second suit against the Endangerment filing appeal brought by the American Public Health Association, American Lung Association, and the American Academy of Pediatrics, among others.

As federal courts review and, in some instances, stay or remand major regulatory rollbacks, regulatory uncertainty is increasing for both public and private actors. This evolving litigation landscape may delay enforcement outcomes as stakeholders await definitive judicial rulings before adjusting compliance strategies or operational activities.

4- Australia introduces Sustainable Finance Taxonomy guidelines for debt issuance

The Australian Sustainable Finance Institute (ASFI) has released new guidance to support application of the country’s Sustainable Finance Taxonomy in debt instruments. Developed in cooperation with the Australian Treasury, New Zealand Treasury, and public debt managers, the framework focuses on use-of-proceeds structures such as sustainability bonds, aiming to establish consistent terminology, disclosure standards, and technical screening criteria for climate finance.

The guidance comes amid continued growth in the market, with Australian sustainable debt issuance reaching $53.8 billion in 2025, an 11% annual increase. ASFI CEO Kristy Graham emphasized that the taxonomy has already been tested with several financial institutions to ensure its applicability within key sectors such as mining and agriculture, representing an important step toward integrating traditionally hard-to-abate industries into climate finance frameworks.

5- TotalEnergies relinquishes offshore wind leases in U.S. Department of the Interior settlement

TotalEnergies has relinquished two offshore wind leases in a settlement agreement negotiated with the U.S. Department of the Interior. Under the agreement terms, TotalEnergies will be wholly reimbursed and invest 928 million in conventional oil and shale gas projects in Texas.

Though TotalEnergies’ statement indicates that the decision reflects concerns about power affordability for consumers, the buyout comes on the heels of attempts by the Trump administration to halt five offshore wind projects already underway and as the company faces proceedings for violating its due diligence violations, previously reported on here.

- Content prepared with the help of Amanda Alden.

February 2026: Historic US regulatory rollback, EU emissions to reduce by 90%, TotalEnergies in court, and more

Key highlights from February 2026 in the sustainability space.

1- EPA repeals federal regulations of motor vehicle GHG emissions

On February 12th, 2026, the Environmental Protection Agency rescinded the 2009 Endangerment Finding and eliminated all subsequent federal standards on motor vehicle GHG emissions, thereby enacting the largest deregulatory action in U.S. history. The action follows an EPA review of the Obama-era Endangerment Finding, which had determined that motor vehicle GHG emissions contribute to air pollution and may reasonably be considered to endanger public health under the Clean Air Act. The agency concluded that the Clean Air Act does not bestow the EPA with regulatory authority and that the obligations emanating from it are therefore invalid.

The state of California has already announced its intention to sue the Trump administration in an aim to restore the Endangerment finding, whose rescission paves the way for abrogation of federal tailpipe, power plant, and fuel economy standards. Meanwhile, the removal of federal standards may enable states to set their own GHG rules, underscoring the pivotal role for courts in mediating political ideology and climate standards, as well as the potential for state coalitions to counteract environmental deregulation.

2- EU to reduce greenhouse gas emissions by 90% in 2040 compared with 1990 levels to reach a climate neutral EU by 2050.

On February 10th, the European Parliament voted an amendment to the EU Climate Law that includes a binding 2040 emissions reduction target of 90% compared to 1990 levels, with the aim of achieving climate neutrality by 2050. The legislation provides for multiple forms of emission reduction, including high-quality carbon credits, EU-based carbon removals, and other existing or  future net-zero energy technologies.

While the 2040 goal is ambitious, political resistance remains strong across several Member States, particularly as economic strain has pushed climate change to the political back seat. The Commission will therefore play a decisive role in both proposing relevant legal and financial instruments and encouraging Member States to align their domestic policies with the Union’s climate objectives.

3- Merits of lawsuit against TotalEnergies heard in Paris court

On February 19th and 20th, the Paris Judicial Court heard the merits of the case brought against TotalEnergies by a coalition of environmental NGOs. Plaintiffs argue that the company's carbon output and expansion projects violate the duty of vigilance, a concept enshrined in a 2017 French law that obliges companies to conduct due diligence and implement mitigation measures for human rights issues and environmental harms. This case marks the first ruling on the law's application to climate change, highlighting TotalEnergies' involvement in at least 30 major fossil fuel projects that represent over half of the remaining carbon budget to limit warming to 1.5 degrees Celsius. 

While similar cases such as those brought against Shell have not imposed reduction obligations, the suit against TotalEnergies is one of the first to come before the courts since the ICJ's historic advisory opinion in July 2025. The scope of TotalEnergies’ influence in fossil fuel expansion will therefore be examined at a time when courts are increasingly holding major greenhouse gas emitters accountable for their role in climate change, representing an opportunity for the judiciary to directly intervene in favor of environmental protection.

4- EU gives final approval to CSDDD Rollbacks

After a series of negotiations between EU governments and the European parliament, member states gave final approval to a rollback of corporate sustainability rules in a series of amendments to the Corporate Sustainability Due Diligence Directive. Under the revised framework, addressing human rights and environmental risks will only be obligatory for EU companies with over 5,000 employees and annual revenues above 1,5 billion euros. Foreign entities generating equivalent turnover within the EU will also fall under the Directive.

The legislation is part of the Omnibus Directive, developed in an optic of regulatory simplification and increased competitivity, whose modifications to the CSRD we have previously reported on here.

5- SB13, Texas anti-ESG law, struck down by federal judge.

A federal judge has ruled that Texas Senate Bill 13, which required public investment funds to divest from firms determined to be boycotting fossil fuels, violates the First and Fourteenth Constitutional amendments. The decision considered that the definition of a boycott, covering “any action that is intended to penalize, inflict economic harm on, or limit commercial relations” was unconstitutionally vague, thereby curtailing free speech and limiting due process for firms deemed to be non compliant.

This decision notwithstanding, the legal and political environment remains volatile for ESG-focused companies. On February 27th, Texas Attorney General Ken Paxton announced a 29M USD settlement with Vanguard Group, as part of an eleven-state lawsuit against Vanguard, BlackRock and State Street. Vanguard Group was alleged to have unfairly driven up coal prices and deceived investors, and agreed to desist from its ESG commitments.

- Content prepared with the help of Amanda Alden.

January 2026: Hamburg Declaration, IPSASB's inaugural public sector standard, PepsiCo’s call for a sustainability reframe, and more

Key highlights from January 2026 in the sustainability space.

1- Nine countries launch the Hamburg Declaration for clean energy

On January 26, 2026, the governments of Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, and the United Kingdom signed the Joint Offshore Wind Investment Pact and the Hamburg Declaration, committing to the development of 300 GW of offshore wind energy capacity by 2050, including 100 GW through transnational cooperation projects.

In cooperation with the European Commission and the European Investment Bank, the Pact commits to the steady build-out of wind projects across the North Seas by removing regulatory obstacles to Power Purchase Agreements and implementing two-sided Contracts for Difference to facilitate investment, while also driving industrialisation and collaboration to support scalability and cost-effectiveness.

This initiative reflects broader concerns regarding Europe’s energy autonomy and its implications for regional security. While the Trump administration  terminated 7,6 billion USD in clean energy grants in 2026, U.S. companies have benefited from sanctions on Russia, as oil and gas together accounted for 58% of the EU’s energy consumption in 2025. The Pact seeks not only to establish a low-carbon counterweight that supports Europe’s energy independence, but also to strengthen regional security and defense through “increased cooperation in the framework of NATO, as appropriate, to enhance its defense, security, and resilience.”

2- EU Joint Bank Reporting committee publishes 2026 Work Programme and ESG recommendations

The EU Joint Bank Reporting Committee published its 2026 Work Programme alongside a set of ESG recommendations, making semantic integration and harmonised reporting standards a priority in 2026. The recommendations aim to standardize how European financial institutions define, categorize, and report ESG information across statistical, supervisory and resolution reporting.

The initiative aligns with the EU’s broader objective to improve data quality, reduce remediation costs for market actors, and enhance interoperability across institutions and sectors.

3- PepsiCo CEO calls for sustainability reframe

Speaking at the World Economic Forum in Davos, the PepsiCo CEO Ramon Laguarta called on companies to reframe their discussions of sustainability and growth as a question of short and long-term costs, rather than as a trade-off between sustainability and profits. His speech emphasized that business models founded on growth must determine how to generate expansion without depleting the resources necessary for future growth.

His remarks echo broader industry concerns about the impact of global warming and extreme weather on the food and beverage sectors, which are facing rising adaptation and risk-management costs while navigating regulatory tensions between the EU and the US. Against the backdrop of regulatory rollbacks in the US and a $4.3 trillion annual financing gap for SDG goals, private sector engagement is increasingly positioned as a critical investment.

4- U.S. exits the Paris Climate Agreement for the second time

On January 7th 2026, the White House published a Presidential Memorandum directing the withdrawal of the United States from 66 international organisations considered to no longer serve national interests, including the Paris Climate Agreement.

The decision, which constitutes the second withdrawal from the Agreement under a Trump administration, underscores the volatility of U.S. engagement on climate change, even as the IPCC warns that some climate systems already show signs of irreversible changes. Despite the disengagement of the world’s second largest CO2 emitter, the Secretary-General reaffirmed the UN’s commitment to limiting global temperature rise to 1.5° Celsius and emphasized its readiness to engage with the Trump administration on this issue.

5- IPSASB releases public sector standards on climate disclosures

The International Public Sector Accounting Standards Board (IPSASB) has released its inaugural public sector standard on climate-related disclosures, representing Phase 1 of its two-phase climate-related disclosures project. Phase 2 will address the regulatory and policy roles of public sector entities.

Developed in cooperation with the World Bank, the standards align closely with those issued by the IFRS for private-sector sustainability reporting, while also addressing broader stakeholder needs beyond investors. The standards emphasize the considerable financial risk that climate change represents for governments, as well as the importance of transparency and high-quality disclosures in evaluating how these risks impact public services. The standards also introduce a rebuttable presumption in favor of the GHG Protocol, establishing an expectation that entities will use this protocol for emissions reporting unless they justify the use of an alternative methodology.

IPSASB SRS 1 is effective for annual reporting periods beginning on or after January 1, 2028, with earlier application permitted.

- Content prepared with the help of Amanda Alden.

December 2025: First Swiss Climate Case, NY GHG emissions regulations, EU tackles plastics, and more

Key highlights from December 2025 in the sustainability space.

1- Swiss court declares climate case Asmania et al. vs Holcim admissible

On December 17, the Cantonal Court of Zug declared admissible a civil claim filed by Indonesian islanders against the cement company Holcim. The complaint, filed in 2023, alleges that as one of the main CO2 emitters, Holcim is neglecting its climate obligations and therefore contributing to recent flooding of low lying Indonesian islands.

The ruling rejects the company’s argument that climate protection should remain within the ambit of policy and that companies should not be subject to justiciable accountability. In doing so, the court echoes the logic of the ICJ’s July 2025 advisory opinion which established that the tangible harm induced by unchecked environmental degradation necessitates substantive and enforceable climate obligations. By affirming the admissibility of climate cases brought by civil society on grounds of objective and avoidable harm, the decision paves the way for climate justice that holds major polluters directly accountable.

2-New York announces new GHG emissions disclosure regulations

On December 1, 2025, the New York State Department of Environmental Conservation (DEC) announced new regulations for mandatory greenhouse gas (GHG) emissions disclosure, to take effect in 2027. This decision enacts part 253 pursuant to the state’s Climate Leadership and Community Protection Act, which implemented state-wide 60% reduction of GHG emissions by 2030.

The DEC’s regulations require certain entities that emit 10,000 metric tons of CO2 annually, including fuel suppliers, waste disposal, and petroleum and natural gas facilities, to provide GHG emission data reflecting the previous year’s emissions.

This advancement represents a further step towards efforts by several states, including California, Washington, Minnesota, Illinois and New York, to harmonize their disclosure legislation and thereby reinforce climate obligations for major emitters. While these states account for approximately 7% of national emissions based on 2023 data, their combined economies represented roughly 30% of U.S. GDP in 2024, making this multistate group a significant economic force in incentivizing climate action.

3- European Commission unveils pilot action for plastics

On December 24, the European Commission announced a set of pilot actions aiming to optimize plastics recycling. The implementing act, which establishes end-of-waste criteria and quality management systems to be implemented by producers, is published for public feedback until January 26 before its final adoption.

These measures are part of the upcoming Circular Economy Act, to be proposed in 2026, which will address legal certainty for chemical recycling, the implementation of the Single Use Plastics Directive, and harmonization of rules for the calculation, verification and reporting of chemically recycled plastics.

4- UK regulator bans ads over greenwashing

On December 3, the UK Advertising Standards Authority (ASA) published three rulings banning ads from Nike, Lacoste and Superdry over misleading environmental claims. In each case, the ASA found that companies’ advertising of products as sustainable were likely to mislead consumers and violated the Committees of Advertising Practice (CAP) code, which requires businesses to provide a high level of substantiation for all environmental claims.

Significantly, in the cases of Nike and Lacoste, the sole factor of products containing mainly recycled materials or certified fabrics did not constitute sufficient claim to sustainability, as the companies had not provided evidence that their products had no detrimental environmental effects when taking into account their entire life cycle.

5- Bank of England announces new climate risk policy

On December 3, the Bank of England’s Prudential Regulation Authority published Supervisory statement 5/25 that put forth updated expectations for firms’ climate risk management approaches. The statement outlines the operational and financial risks inherent to climate change and the transition to a net-zero economy, as well as strategies for a strategic management approach. Chapters include new guidelines for governance, risk management, climate scenario analysis, data and disclosures, as well as two sector-specific chapters for banking and insurance firms.

Firms are expected to conduct an internal review of their current status in meeting these expectations by June 2026, as well as to regularly update their risk assessments and climate actions. The new expectations underscore the role of financial institutions in incentivizing and facilitating climate action, not only as social responsibility, but as a long-term investment in resilience and sustainable growth.

- Content prepared with the help of Amanda Alden.