ESG

Contact: Kelly Thomson

ESG

EU's ecodesign for sustainable products regulation

On 18 July 2024, the EU's new Ecodesign for Sustainable Products Regulation (ESPR) entered into force, setting a framework for new eco-design rules in the EU. This will include minimum eco-design requirements for specific product categories (with an initial focus on textiles), the introduction of mandatory digital product passports to increase transparency and help consumers make more informed choices, and requirements for companies to report the number of unsold discarded products. The ESPR will also introduce an outright ban on the destruction of unsold apparel, clothing accessories and footwear in the EU from 19 July 2026. For medium sized companies (ie those with 50-250 employees and €10-50m annual turnover) this ban will take effect from 19 July 2030. Companies face the risk of fines, consumer claims and reputational damage for non-compliance.

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EU Deforestation Regulation

The EU Deforestation Regulation (EUDR) will be coming into effect in December, and with it comes the requirement for businesses to carry out supply chain due diligence before a product is placed on the EU market. This is part of the EU's guarantee that its citizens are not consumers of deforestation-contributing products.

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ESG

Regulatory measures tighten as water companies underperform

The Environment Agency has released its annual report on the environmental performance of England's nine water and sewerage companies for 2023. While there was some improvement in star ratings under the Environmental Performance Assessment (EPA), most companies continue to underperform. Three companies achieved four stars, one received three stars, and five were rated as requiring improvement with two stars. The report highlighted an increase in serious pollution incidents and total pollution incidents, as well as ongoing issues with wastewater discharge compliance. In response, the Environment Agency plans to strengthen its regulation of the water industry by increasing inspections, investing in new monitoring systems, and expanding its enforcement workforce. The agency emphasises the need for water companies to improve their environmental performance more rapidly and extensively.

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Ofgem announce new Strategic Innovation Fund (SIF) process

Ofgem's new approach to the SIF aims to steer progress towards net zero by 2030. This process will allow innovators more opportunities to apply or re-apply to the SIF and gain funding faster than previously possible. SIF projects back endeavours to end high energy bills, excessive carbon emissions and energy insecurity by speeding up the shift towards clean energy.

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The Corporate Sustainability Due Diligence Directive (CSDDD) expert briefing

The Corporate Sustainability Due Diligence Directive (CSDDD) was adopted on 24 May 2024 in the EU. On 5 July 2024 the law was published in the Official Journal of the EU and entered into force on 26 July 2024, applying from 2027. CSDDD will have a seismic effect on many companies, requiring those in scope to conduct due diligence to identify, prevent and mitigate the adverse environmental and human rights risks and impacts of their business operations and supply chains. It will also require companies to adopt and implement a net zero transition plan in line with the 1.5°C target in the Paris Agreement.

While this law is primarily targeted at large European Union companies it will also impact certain non-EU companies operating in the Union meeting specific turnover and employee thresholds. For a deeper dive into the specifics of the CSDDD our expert briefing which answers FAQs, including:

what are the key obligations under the CSDDD?
which companies are in scope?
when will the new rules apply?
what are the risks of non-compliance?

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ESG

Ofgem publishes response to May's consultation: CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement

In May 2024 Ofgem published a consultation seeking views from stakeholders on their proposed CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement. The aim was to ensure that their enforcement processes were understandable. Ofgem have now published their response to the stakeholders, as well as the final versions of the CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement.

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ASA publishes research on green claims in food & beverage industry

After looking into green claims being made about the meat, dairy and plant-based alternative food and drink products, the ASA did not find anything to call for enforcement action. However, the research did identify that certain claims could cause consumers to make associations and arrive at claims never made on the face of the advert, allowing the ASA to find that a misleading claim has been made even if it is not explicitly mentioned. It is vital that businesses consider the overall impression of their adverts, and whether they might be taken to mean more than they say outright.

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Updated guidance for complying with the Energy Savings Opportunity Scheme (ESOS)

Organisations that meet the criteria for a large UK undertaking are required to comply with ESOS. This guidance gives a rundown of who qualifies, how to comply, how to notify the Environment Agency that your organisation is compliant, when the compliance deadline is, and the penalties for failing to comply.

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