Climate change presents significant risks and opportunities for Corporate America. As a result, in-house counsel must be aware of the rapidly evolving legal developments pertaining to climate change. In this paper, the attorneys in Jenner & Block LLP’s Climate & Clean Technology Law Practice describe key legal issues in this area, including the current regulatory framework; proposed federal legislation; relevant environmental, energy, and natural resources laws; pending and anticipated litigation; implications for individuals and companies that build, buy, sell, lease, or own real estate; and securities and business disclosures. This essential information will help in-house counsel advise their clients on strategies for managing risks and assessing business opportunities presented by climate change.
Excerpt:
WHY IN-HOUSE COUNSEL NEEDS TO KNOW
In-house counsel to companies operating in the United States should be aware of the legal issues surrounding climate change for the simple reason that their clients need to be (i) advised and informed of the legal risks; and (ii) counseled as to the business opportunities that climate change presents. Corporate America already is facing multiple pressures to address climate change issues. The sources of these pressures include:
· an emerging patchwork of state laws, regulations, and initiatives with varying mandates addressing climate change
· a new Democratic majority in Congress, which has elevated climate change to the top of its agenda
· shareholder and investor demands for climate change reporting and transparency
· international demands to meet greenhouse gas (GHG) emission reduction targets
· pressure from competitors who are using climate change initiatives to seek a marketing edge
· demands for GHG emission reductions and energy efficiency from both ends of the supply chain, i.e., customers and vendors
· internal pressures to be a corporate “good citizen”
Many companies already have begun to take concrete steps to address climate change. Those steps include:
· targeting GHG reductions, either through public disclosure,1 internal benchmarks, or voluntary binding commitments, such as the federal government’s Climate Leaders Program
· developing sustainability projects to market their products and describe the company’s commitment
· investments in carbon sequestration and other offset mechanisms
· lobbying Congress about the need for and parameters of proposed federal legislation
· changing energy strategies, including using renewable energy, increasing energy efficiency, and developing alternative sources of energy
· developing a climate change task force to report to the company’s board on a strategic business response
· providing information to the public regarding climate change risk and opportunities
Though the business case for climate change initiatives is already powerful, the role of in-house counsel with respect to these initiatives may not yet be as clear. But, all corporate counsel can and should now start to identify and address the legal issues arising from climate change.