SUSTAINABILITY DESK

Week of March 3: What’s moving the needle in sustainability, compliance, and climate action.

Table of Contents

Reporting Standards

EFRAG pushes back on GHG Protocol’s Scope 2 overhaul – supportive in principle, skeptical in practice

The European Financial Reporting Advisory Group (EFRAG) has responded to the GHG Protocol’s proposed revisions to Scope 2 emissions guidance with measured support and pointed reservations. While endorsing the goal of greater accuracy and comparability, EFRAG raised serious concerns about how the updated framework would be implemented in practice.

  • Support for Improved Accuracy: EFRAG supports the overall goal of enhancing the comparability and accuracy of Scope 2 measurements, recognizing the significant effort put into the updated guidance.
  • Concerns Over Complexity: EFRAG opposes several proposed changes, arguing that the consultation materials are overly complex and lengthy. They recommend that future standards prioritize clarity, simplicity, and ease of application.
  • Call for Cost-Effectiveness: The organization emphasizes a “balanced and proportionate” approach, urging a thorough cost-benefit analysis of ambitious proposals—such as hourly matching or highly precise emission factors—before they are implemented.
  • Emphasis on Subsidiarity and Piloting: EFRAG suggests that the GHG Protocol should remain a high-level, principles-based framework, leaving technical specifics to local jurisdictions. They also recommend piloting the revised guidance before a full global rollout.
  • Demand for Better Process: EFRAG calls for longer consultation periods (at least 120 days) and asks that future consultations be based on concrete draft amendments rather than high-level directional proposals.
Corporate Climate Strategy

U.S. companies tell investors: we’re planning past Trump

Major U.S. companies across oil, airlines, and the auto sector are signaling to investors that the current administration’s climate rollbacks don’t change their long-term planning horizon. With business strategies extending well beyond any single presidential term — and the EPA having recently repealed the Obama-era “endangerment finding” that underpinned greenhouse gas regulations — companies are navigating a widening gap between federal policy and market reality.

  • ConocoPhillips noted in its 10-K that policy swings create additional uncertainty for companies that need to plan operations lasting through multiple administrations.
  • Exxon Mobil took a bolder stance, stating that without supportive policies and innovation, net zero will remain out of reach for both society and the company.
  • Halliburton and American Airlines warned that future administrations may pursue more restrictive climate policies. American Airlines added that state and local environmental laws are already more stringent than federal requirements.
  • Ford highlighted the regulatory whiplash businesses face, noting that one administration often replaces the regulations enacted by the last.
  • Expert Warning: Angeli Patel of UC Berkeley’s Center for Law and Business warned that what may not be material under Trump could become extremely material in three years—and companies will have to shift budgets very quickly.
ESG & Investment

Vanguard pays $29.5M to settle anti-ESG suit – and agrees to go quiet on climate

Vanguard has settled its portion of a landmark multistate antitrust lawsuit brought by Republican Attorneys General, agreeing to pay $29.5 million while admitting no wrongdoing. The terms of the settlement go well beyond a financial penalty, reshaping how Vanguard can engage with portfolio companies on climate issues going forward.

  • Passivity Commitments: Vanguard pledged not to advocate for climate measures in portfolio companies, not to advise them on reducing carbon emissions, and not to join climate groups such as the Net Zero Asset Manager Initiative or UN-backed PRI.
  • Proxy Voting Reform: Vanguard will offer proxy voting to investors in funds accounting for at least 50% of assets in U.S. equity funds it advises—a first for the industry.
  • Document Disclosure: Vanguard agreed to turn over internal communications with other parties, which ESG critics hope will shed light on whether coordination occurred.
  • Ongoing Litigation: Co-defendants BlackRock and State Street remain in the lawsuit. State Street calls the suit “baseless and without merit.”
Climate Litigation

Climate court cases: NYC wins, Greenpeace loses — two rulings at opposite ends of the spectrum

Two significant climate-related court decisions landed this week, offering a reminder that the legal landscape for sustainability issues is anything but settled. One ruling preserved a major clean air and mobility program; the other imposed a judgment that could threaten the future of one of the world’s most recognized environmental organizations.

NYC Congestion Pricing Upheld

A federal judge — a Trump appointee — ruled in a 149-page decision that DOT lacked authority to kill the $9 toll. The program has raised $468M in year one, cut vehicle entries 11%, and reduced air pollution 22%. DOT is reviewing appeal options.

Greenpeace Hit With $345M Judgment

A North Dakota judge finalized a $345M judgment against Greenpeace in the Energy Transfer / Dakota Access Pipeline case (down from the original $667M jury award). Greenpeace will seek a new trial and appeal, calling it a SLAPP suit. If upheld, it could bankrupt Greenpeace’s U.S. operations

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Frequently Asked Questions

What is Scope 2 emissions measurement, and why does accuracy matter?

Scope 2 emissions refer to the indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling. Because companies don’t generate this energy themselves, measuring it accurately is more complex than tracking direct emissions. Accuracy matters because Scope 2 data feeds into sustainability disclosures required under frameworks such as CSRD reporting, CDP reporting, and GHG Protocol standards — and inaccurate figures can undermine a company’s climate commitments and regulatory compliance.

The most resilient approach is to anchor long-term strategy to science-based targets and regulatory frameworks that transcend any single administration — such as the GHG Protocol, TCFD recommendations, and SBTi targets. State-level regulations, like California’s SB 253 and SB 261, and international requirements like CSRD, often provide a more stable planning baseline than federal policy. Companies with robust carbon accounting software and documented sustainability strategies are also better positioned when regulatory environments shift quickly.

The settlement signals that large asset managers are under increasing legal and political pressure regarding how they engage portfolio companies on climate issues. For companies seeking investment or managing investor relations, it reinforces the importance of framing sustainability as a material risk management and financial value driver — rather than purely an advocacy position. It also underscores that the definition of ESG materiality is actively being contested in courts and state legislatures.

SLAPP stands for Strategic Lawsuit Against Public Participation. These are legal actions — typically by corporations or well-resourced entities — designed less to win in court and more to burden advocacy organizations with costly, prolonged litigation. The Greenpeace case is being characterized this way because the scale of the judgment, if upheld, could eliminate a major environmental organization’s U.S. operations. The case has broad implications for nonprofits, advocacy groups, and any organization engaged in public climate communication.

The ruling affirms that market-based mechanisms for reducing emissions and traffic can survive legal challenge — even under an administration that sought to dismantle them. For businesses operating in regulated urban environments, it signals that city and state-level climate programs are increasingly durable. Companies planning around emissions reductions, commuter benefits, and fleet strategies in major metros should factor in the staying power of programs like this when modeling long-term compliance and operational costs.
Corinne Hanson headshot

Corinne Hanson is VP of ESG Strategy at Greenplaces, the all-in-one sustainability platform helping businesses turn climate goals into results. She brings over a decade of experience in corporate sustainability, including leadership roles at SH Hotels & Resorts, Global Footprint Network, and the NRDC. A George Washington University grad with degrees in International Relations and Philosophy, Corinne spends her time outside the office the same way she spends it inside: trying to keep the planet in good shape.

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