Key Topics
- U.S. To Withdraw from International Organizations – Most Impacting Sustainability Issues
- ESMA Publishes Thematic Note on Sustainability-related Claims
- CSE Publishes Guide for Sustainability Reporting Standards in the U.S.
The Details
In a presidential memorandum issued January 7, President Trump announced the United States will begin executive proceedings to withdraw from a historic number of international organizations, conventions and treaties, including the United Nations Framework Convention on Climate Change and others aimed at environmental protection and climate action.
- The announcement identifies 31 U.N. Organizations and 35 non-U.N. organizations that the U.S. will exit “as soon as possible,” claiming those agreements run “contrary to the interests of the United States,” and explicitly directs that the withdrawal includes “ceasing participation in or funding to” these organizations.
- The list also includes the Intergovernmental Panel on Climate Change, the International Renewable Energy Agency and several U.N.-affiliated bodies focused on biodiversity, oceans, migration and development.
- Following the announcement, the U.N. provided a statement that “assessed contributions to the United Nations’ regular budget and peacekeeping budget, as approved by the General Assembly, are a legal obligation under the UN Charter for all member states, including the United States.”
- The U.N. does not have a current, credible enforcement mechanism to collect these payments and the statement is with respect to the entities the U.S. is exiting.
- The potential implications for private and public companies likely vary, ranging from a fragmented regulatory environment with increasingly complex and divergent reporting and compliance obligations to less predictable engagements with stakeholders to increased frictions within supply chains.
- Akin continues to monitor developments and are available to counsel on the potential implications for clients (e.g., loss of access to markets in the green / transition energy sector, investment insecurity or impacts to global climate cooperation).
The European Securities and Markets Authority (ESMA) published a second “thematic note” regarding sustainability-related claims on ESG strategies. The note, published on January 14, 2026, addresses greenwashing risks and focuses on clearly explaining ESG integration and ESG exclusions.
- As ESMA defines it, ESG integration is generally aimed at improving risk-adjusted returns by factoring in material ESG risks and opportunities. ESG exclusions are aimed at avoiding or minimizing exposures that are prone to risks and/or at aligning the portfolio with specific values or norms.
- The note focuses on ESG strategies based around four principles: accuracy, accessibility, substantiation and timely disclosure. It does not create new disclosure requirements and serves to remind market participants about their responsibilities in making claims that are clear, fair and not misleading.
- The note includes a series of examples distinguishing among “good practices” when it comes to claims about ESG practices (e.g., regularly updating clients with respect to ESG-related strategies and risks) and “poor practices” (e.g., including ESG-related claims in marketing materials that are not explained or lack transparency in relation to whether a particular approach varies across asset classes).
On January 13, the Center for Sustainability and Excellence (CSE) published the “Sustainability Reporting Standards: A Guide for U.S. Corporations in 2026.”
- The guide explains key sustainability reporting standards that are expected to affect U.S. corporations during 2026, including double materiality assessments and external assurance procedures, and highlights why professional training is now essential, notwithstanding the rise of artificial intelligence solutions.
- CSE’s guide is based around its principal argument that “U.S. corporations now operate in a complex reporting environment shaped by global frameworks, state-level climate requirements, and international regulations such as the EU’s Corporate Sustainability Reporting Directive.”
- As companies navigate multiple sustainability disclosure frameworks and increasing scrutiny on greenwashing risk-mitigation practices, the guide seeks to assist companies maintain credibility and competitiveness in an environment where sustainability reporting has become a core element to corporate governance, risk management and investor relations.
To read the full newsletter for a comprehensive overview of other recent sustainability policy and regulatory developments and their implications, please click the link below.
