Issue 10: October 13, 2022

Litigation

A federal judge in Massachusetts recently allowed a class action suit alleging greenwashing claims to proceed over defendant, Gorton's Inc.'s, motion to dismiss. Following the court's ruling, the parties settled the lawsuit, but the decision highlights the need for companies to exercise caution in the stormy seas of sustainability advertising. Regulators and consumers continue to raise legal challenges to companies' climate and sustainability statements, which also underscores the importance of proactively scrutinizing suppliers and vendors.

Regulations & Standards

SEC Chair Gary Gensler recently expressed his willingness to consider changes to the agency's proposal to require companies to disclose Scope 3 greenhouse gas emissions. Scope 3 refers to the indirect emissions from activities in a company's value chain. At an industry event, the Chair acknowledged commenters' concerns regarding the costs associated with the proposal. The SEC is expected