Recently, the U.S. Securities and Exchange Commission (“SEC”) Division of Corporation Finance issued a sample letter advising companies on their potential need to disclose direct and indirect impact of Russia’s invasion of Ukraine and the related international response on their operations. Sample letters generally do not create any new legal obligations; instead, they signal the areas of potential scrutiny by the SEC and illustrate the types of risks the SEC may view as material. Therefore,…
On Monday the SEC released its long-awaited proposed rule changes that will require disclosure of climate-related risks that are reasonably likely to have a material impact on registrants. As noted in its press release, the SEC has focused on climate-specific rules in order to “provide investors with consistent, comparable and decision-useful information for making their investment decisions.” In sum, the Proposed Rule would require listed companies to disclose information in four key areas: (1) governance…
On 23 February 2022, the EU Commission published its proposal for a directive on corporate sustainability due diligence obligations, which aims to foster sustainable and responsible corporate behaviour throughout global value chains. Scope The new due diligence rules will apply to: all EU limited liability companies with 500+ employees and EUR 150 million+ in net turnover worldwide (“Group 1”); and other limited liability companies operating in defined high impact sectors (e.g. the textile, mining and…
Following our first short video on some of the key trends and priorities the Biden Supply Chain Policy is driving for companies across sectors and industries, Baker McKenzie is pleased to launch the second in our Biden Supply Chain Policy video series focused on the semiconductor and advanced packaging supply chain. This is one of four critical supply chains that has been a particular focus of the Biden Administration’s supply chain policies.In this video, Kerry Contini…
In a step that would significantly elevate obligations to map supply chains, disclose information identified, and impose financial penalties for companies who fail to comply, the New York State Senate this month unveiled the “Fashion Sustainability and Social Accountability Act” (“the Act”). The Act, if enacted, will require every fashion retail seller and manufacturer that does business in New York and has over USD 100 million in annual worldwide gross receipts to make a number…
In an era where supply chain disruptions and risks are regular front-page news, the Biden Administration has been undertaking a range of initiatives intended to create resilient supply chains that reflect the Administration’s policies around national security, foreign policy, human rights, and the US economy. Considering the non-stop legal and compliance developments in this space, with more on the horizon, in-house counsel and compliance professionals for companies with supply chains that touch the United States…
On September 24, 2021, the Commerce Department’s Bureau of Industry (“BIS”) published a “Notice of Request for Public Comments on Risks in the Semiconductor Supply Chain” (“Notice”). The Notice seeks responses from various parties in the semiconductor supply chain about current shortages and related issues. Comments in response to the Notice are due by November 8, 2021. The Notice was issued in response to a 100-Day Supply Chain Review (“Review”) of semiconductors and advanced packaging…
On October 8, the US Department of Labor (“DOL”) published a notice requesting information and comments on the following three reports on child labor and forced labor practices in foreign countries that are published by the US Bureau of International Labor Affairs (“ILAB”). The comments will be used in preparing the 2022 edition of the TDA Report and TVPRA List, as well as any updates to the E.O. List. The three reports are the US…
On 15 September, during the 2021 State of the Union Address, EU Commission President Ursula von der Leyen announced the European Commission’s intention to introduce a ban on the import of products made with forced labour into the EU market. In her Address, the Commission President noted that there are “25 million people…who are threatened or coerced into forced labour” and that “doing business around the world…can never be done at the expense of people’s…
On September 28, 2021, the US Department of Defense (“DoD”) published a notice of request for public comments. DOD’s request relates to Executive Order 14017, (“America’s Supply Chains” or “Supply Chain EO”). See some of our key blog posts on the Supply Chain EO for more background. As part of requiring agency reviews of key industrial bases’ supply chains, the Supply Chain EO mandated that DoD conduct a one-year review of supply chains within the defense industrial base…