ESG Update : Five Considerations Driving Environmental Regulation ( No Matter Who Wins the Election ) | ArentFox Schiff

In the lead-up to a presidential election, environmental regulation is influenced by several key political trends. Firstly, judicial limits on state and federal regulation are shaping the landscape. The Supreme Court s decisions in Loper Bright Enterprises v. Raimondo and Corner Post v. Board of Governors of the Federal Reserve System have emphasized the need for agencies to provide a convincing rationale for their statutory interpretations, potentially affecting environmental, social, and governance (ESG) issues. Secondly, there is an increased focus on public input in regulatory processes. The Biden Administration and the Environmental Protection Agency (EPA) have made efforts to enhance public participation, with the EPA s final Achieving Health and Environmental Protection through EPA’s Meaningful Engagement Policy formalizing processes to bolster public involvement. Thirdly, while ESG has become a political issue, non-ESG-related sustainability efforts continue to proliferate. State and local governments are addressing climate issues through various initiatives, including building codes and tort litigation. Fourthly, legal balkanization related to product regulation is likely to persist. The Supreme Court s decision in National Pork Producers Council v. Ross allowed state regulations to remain in place despite challenges from businesses operating in other states. This trend may lead to manufacturers and retailers facing increasing challenges due to a hodgepodge of potentially applicable regulations. Lastly, concepts of generational equity are gaining public salience. Legal victories and increased public attention to climate change are likely to spawn efforts ranging from lobbying to litigation to address climate issues. In summary, environmental regulation in a presidential election year is shaped by judicial limits on regulation, increased public input, sustainability efforts, legal balkanization, and generational equity. These trends will continue to drive environmental regulation, regardless of the election outcome.

Source: jdsupra.com
Published on 2024-09-12