Despite federal pullback on ESG requirements, state and international ESG mandates persist, with new obligations coming into play in 2026. For corporate directors and ESG officers, compliance failures may carry both financial penalties and potential personal liability under established legal standards.
Corporate board members should ask themselves: What are the legal obligations here? Does the board and the C-suite understand ESG in today’s environment? Are there still compliance obligations given the current administration’s stance? What actions does my company need to take in 2026?
Even without US federal mandates, companies have reporting and other obligations under state and international law. For example, Thousands of US companies doing business in California and meeting certain revenue thresholds are subject to California's climate disclosure laws following the California Air Resources Board’s (CARB’s) issuance of proposed reporting regulations. And these reporting deadlines
