In the article, “H&M class action: what lawyers told us”, featured in Apparel Insider, Partner Jason Stiehl commented on a recent class action complaint filed against H&M over its use of Higg Sustainability labels and its justification to charge premium prices for sustainable clothing. Stiehl provided insight on the importance to tighten internal systems
In the recent AdAge article, ESG Advertising Demands More Than Mere Legal Compliance, Chris Cole shares his thoughts on the five best practices for how companies advertise their ESG efforts:
- Advertise honestly about accurately measurable improvements
- Qualify with reference to metrics or uncertainty to put statement into context
- Use well-established standards for communication
Earlier this month, New York State Assemblywoman Kelles and State Senator Biaggi introduced the Fashion Sustainability and Social Accountability Act in the New York State Assembly and Senate. If the legislation becomes law, it would amend New York’s general business law to require fashion companies to publicly disclose extensive information about their environmental, social, and governance (“ESG”) policies, impacts, and targets for improvement.
Specifically, the Act would require all fashion retail sellers and manufacturers doing business in New York that have annual worldwide gross receipts surpassing $100 million to disclose:
- ESG due diligence policies and processes;
- ESG outcomes, including actual or possible negative environmental and social impacts; and
- Binding targets for prevention and improvement of ESG outcomes and policies.
At the end of 2021, the California Statewide Commission on Recycling Markets and Curbside Recycling (the “Commission”) sent a letter to The California Department of Resources Recycling and Recovery, also known as CalRecycle, and California Attorney General Rob Bonta, asking them to investigate illegal labeling of plastic bags as recyclable by retailers. The Commission is alleging that businesses in the state are falsely implying that their bags are capable of being recycled through curbside collection with the “chasing arrows” logo and words such as “recyclable” and “recycle.” The Commission believes this labeling is impeding the curbside recycling process.
Continue Reading California Recyclability Labeling Scrutiny Poised to Increase Retailers’ Liability Risk
A recent survey of top decision-makers by Crowell & Moring finds that nearly 80% of responding companies have identified and adopted environmental performance goals beyond what regulations require. Fewer than half of those surveyed measure their company’s performance against those goals—and in some cases are experiencing challenges implementing them.
The survey of 225 respondents, including in-house counsel and compliance, ESG, and sustainability professionals, is detailed in a new report, “ESG Survey: Environmental Performance and the Stakes for Your Business.”
The report finds that 44% of respondents say their organizations are measuring their carbon footprint, and 13% are measuring their environmental impact on ethnically and racially diverse communities on an ongoing basis. Both are likely to be key areas of focus of the current U.S. administration’s regulatory and enforcement activities.
Continue Reading Crowell & Moring Survey Finds Companies Are Setting Environmental Goals, But Questions of Measurement Persist
Brussels – Whereas more than half of the EU consumer population is found to be receptive to green claims, only one-fifth appears to actually trust the sustainability claims made by brands. More and more, the market is realizing that “sustainability” is more than a buzzword and green claims should be substantiated by clear and transparent data. The reputation and trustworthiness of the brand can be at stake.
Continue Reading ESG in fashion (2) : the EU framework on greenwashing in the fashion industry
On November 2, 2021, Crowell & Moring attorneys Judith Bussé, Ryan MacFarlane, Nicole Janigian Simonia, and David Stepp will be presenting a webinar to address the top 5 ESG challenges and opportunities for international companies and organizations.
Climate change is a global challenge that demands a global response. Global standards are vital in a number of areas to tackle the cross-border problems that many organizations face from forced labor issues, global initiatives, and disclosure requirements to greenwashing. Among the pressing issues are how plastic packaging and waste is regulated on a global level, how the recent EU initiatives apply to companies established outside of the EU territory, x, and x. Level-setting will need to go beyond what environmental, social and governance (ESG) basics address and so called “green” or sustainable investments that claim to pursue environmental goals will begin to see more scrutiny. Governments around the globe are working on numerous voluntary standards and a wave of new ESG regulation calls for more extensive and detailed corporate disclosures including that ESG risks are appropriately managed by third parties, such as supply chains and other business relationships.
Continue Reading Webinar: Top 5 ESG Challenges and Opportunities for International Companies and Organizations
Lithium cell and battery manufacturers long have been required by the U.S. Department of Transportation (U.S. DOT) and international hazardous materials/dangerous goods transportation regulations to prove that lithium cells and batteries meet UN testing, specifically Sub-section 38.3 of the UN Manual of Tests and Criteria. Last year, the U.S. DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a rule that will help each entity along the distribution chain easily know that the lithium cell or battery meets UN testing. (85 Fed. Reg. 27810 (May 11, 2020)).
Continue Reading Are You Ready for the U.S. DOT’s January 1, 2022 Deadline for Lithium Battery Test Summaries?
Retailers need to prepare for a major shift in chemical regulation policy recently announced by the U.S. Environmental Protection Agency (EPA) that could affect a broad range of products currently being sold in the US. Under this sweeping new policy, EPA plans to address chemical risks by directly regulating articles that are manufactured with those chemicals. Crowell environmental attorneys, Warren Lehrenbaum and Jennifer Giblin, addressed this and other important developments at EPA in a wide-ranging question and answer session with the Retail Industry Leaders Association on Tuesday, October 5, 2021.
Continue Reading EPA’s Shift In Chemical and Hazardous Materials Regulation and What Retailers Can Expect
Brussels – More and more fashion companies are announcing programs with ambitious (some more than others) goals in relation to environmental, social and governance criteria. Recently ASOS launched its ‘Fashion with Integrity’ (FWI) 2030 programme, committing to achieve Net Zero across the full value chain by 2030. Also consumer demand is not lagging behind, urging fashion companies to change the way they run their businesses and minimizing environmental impact while keeping track of human rights and labour practices across the production and supply chain.
Continue Reading ESG in fashion: a general overview of the EU framework on environment, social and governance criteria in the fashion industry