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.