The CS3D Digest #39
Ripple Research
Ripple Research works at the intersection of data science, behavior change, and social impact.
Welcome to the 39th edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: Australia's introduces climate-related reporting bill, SEC charges Keurig for violating greenwashing rules, UK regulator postpones the naming rules under SDR, rise in sustainability investments amid climate change concerns, and US federal agency proposes to update ecolabels.
What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
Australia's House of Representatives has passed the Treasury Laws Amendment Bill, which introduces mandatory climate-related reporting for large and medium-sized companies. This legislation aims to enhance transparency on climate risks, opportunities, and greenhouse gas emissions in alignment with the International Sustainability Standards Board (ISSB) framework. Starting in 2025, the largest companies, those with over 500 employees or $500 million in revenue, will be required to disclose their climate-related information. Medium-sized companies will follow in 2026, and smaller companies will begin reporting in 2027. This requirement is designed to provide investors with clearer insights into climate risks and support informed investment decisions.
The Securities and Exchange Commission (SEC) has fined Keurig Dr Pepper Inc. $1.5 million for misleading claims about the recyclability of its K-Cup pods. In its 2019 and 2020 annual reports, Keurig claimed that testing with recycling facilities showed the pods were recyclable. However, the company failed to disclose that two of the largest U.S. recycling firms had raised concerns about the viability of curbside recycling for the pods and did not plan to accept them at that time. The SEC found that Keurig violated Section 13(a) of the Securities Exchange Act of 1934 by not providing investors with complete and accurate information about the recyclability of its products. K-Cup pods were a major part of Keurig’s coffee system sales, and consumer research indicated that environmental impact influenced purchasing decisions. Without admitting or denying the SEC’s findings, Keurig has agreed to pay the $1.5 million fine and comply with a cease-and-desist order.
The Financial Conduct Authority (FCA) announced a delay in the implementation of certain “naming and marketing rules” for sustainability-related investment products under its Sustainability Disclosure Requirements (SDR). Originally scheduled for December 2024, these rules will now come into effect on April 2, 2025, allowing asset managers more time to comply. The SDR, introduced in November 2023, aims to help investors evaluate the sustainability aspects of investment products and minimize greenwashing risks. Products using terms like ‘sustainable’ or ‘impact’ in their names must meet specific criteria or use one of four sustainability labels. The delay was prompted by firms needing more time to meet the higher standards for using these labels or adjusting their product names and disclosures. However, the FCA emphasized that firms should comply as soon as possible rather than waiting until the new deadline.
Deloitte’s 2024 CxO Sustainability Report shows a surge in sustainability-related investments. The survey, conducted with over 2,100 C-suite executives across 27 countries, found that 70% expect climate change to significantly impact their company’s strategy over the next three years, up from 61% last year. Key concerns include shifting consumer preferences, regulatory pressures, and operational disruptions from climate-related events. Nearly half of the respondents are transforming their business models to prioritize climate and sustainability, while many others have embedded sustainability across their operations. Executives are increasingly focusing on the direct business benefits of sustainability efforts, with many companies alreadyy seeing improvements in supply chain efficiency and operational margins.
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The U.S. Environmental Protection Agency (EPA) has proposed an update to its Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing, aimed at guiding government buyers and other consumers toward environmentally sustainable products. The Recommendations currently cover 35 product and service categories and cover various attributes, such as energy and water efficiency, the use of recycled materials, and reductions in PFAS and single-use plastics. Key changes in the update include expanding the Recommendations to the healthcare, laboratory, and clothing and uniform sectors by introducing 14 new standards and ecolabels. Additionally, seven standards or ecolabels will be removed due to failing to meet the EPA’s stricter eligibility criteria or no longer being required by regulation.
Voices from this week
??Paloma Mu?oz Quick, Director of Human Rights Standards at BSR , notes that despite extensive lobbying efforts, financial institutions must comply with the CSDDD by conducting due diligence on human rights and environmental impacts within their operations, subsidiaries, and upstream value chains.
??Sophie Robinson-Tillett, Founder at Real Economy Progress , suggests that an EU Transition Plan Credibility Assessment Framework will streamline the preparation of credible transition plans while considering geographical contexts in decarbonization efforts.
??Auret Van Heerden, Founder & CEO at Equiception Business and Human Rights , that international buyers should proactively address labor rights issues in Bangladesh through ongoing due diligence, collaboration with suppliers, and engagement with affected stakeholders.
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