The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sun, 05 Apr 2026 11:30:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Sustainability Disclosures: A Complex Legal and Regulatory Environment for Boards of Directors – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Sustainability Disclosures: A Complex Legal and Regulatory Environment for Boards of Directors https://corpgov.law.harvard.edu/2026/03/05/sustainability-disclosures-a-complex-legal-and-regulatory-environment-for-boards-of-directors/?utm_source=rss&utm_medium=rss&utm_campaign=sustainability-disclosures-a-complex-legal-and-regulatory-environment-for-boards-of-directors https://corpgov.law.harvard.edu/2026/03/05/sustainability-disclosures-a-complex-legal-and-regulatory-environment-for-boards-of-directors/#respond Thu, 05 Mar 2026 12:30:49 +0000 https://corpgov.law.harvard.edu/?p=179565?d=20260304151504EST Posted by Kenneth J. Markowitz, Stacey H. Mitchell, and George O’Malley-Knowles, Akin Gump, on Thursday, March 5, 2026
Editor's Note:

Kenneth J. Markowitz and Stacey H. Mitchell are Partners and George O’Malley-Knowles is of Counsel at Akin Gump. This post is based on an Akin Gump memorandum by Mr. Markowitz, Ms. Mitchell, Mr. O’Malley-Knowles, Brecken Petty, Samantha Z. Purdy, and Jan Walter.

Executive Summary

  • As sustainability requirements increasingly become fragmented, boards should navigate divergent state, federal and international laws, regulations, policy frameworks and shareholder pressures that heighten operational, legal and political risks.
  • Climate Reporting & Disclosure Requirements. U.S. states like California and New York continue to seek to advance expansive climate reporting mandates despite federal pullbacks, while the EU, Middle East and other international jurisdictions tighten sustainability reporting and due diligence requirements.
  • ESG in the States. Companies face rising complexity as U.S. states adopt opposing pro- and anti-ESG laws that impact investment decisions, contracting eligibility and operational risk. Boards should monitor this patchwork of state level mandates, assess compliance gaps and prepare for rapid shifts in enforcement priorities driven by political change.
  • Greenwashing. Companies face mounting exposure to greenwashing claims, prompting boards to strengthen verification, assurance, carbon accounting and governance processes around sustainability disclosures and marketing statements.
  • Shareholder Activism. Activist proposals, proxy battles and derivative suits continue to pressure boards to demonstrate credible sustainability oversight and measurable progress toward stated sustainability commitments.
  • Contracts. Contracting practices increasingly embed sustainability requirements, requiring boards to consider supply chain diligence, compliance frameworks and the potential business risks associated with sustainability related contractual terms.

(more…)

]]> https://corpgov.law.harvard.edu/2026/03/05/sustainability-disclosures-a-complex-legal-and-regulatory-environment-for-boards-of-directors/feed/ 0