Skip to main content

McAlan Blog

Information

Is ESG Really a “Dirty Word” in Corporate America?

In an article that was first published by the Wall Street Journal on January 9, and that was later republished by MSN News, a pair of Journal columnists suggested that after “years of simmering investor backlash, political pressure and legal threats ... a number of business leaders are now making a conscious effort to avoid the once widely used acronym…
Michael Kraten
May 22, 2024
ESG/SustainabilityValue Chain Sustainability Laws

California Headed toward Implementaton of Its Climate Laws

Last year, California enacted two major pieces of climate legisation, SB 253 and SB 261 (See https://mcalan.com/momentous-california-climate-accountability-laws-await-governors-signature.)  However, in January Governor Newsome’s proposed 2024-2025 budget did not include funding for their enforcement. That led to consternation and questioning by many environmentalists of the Governor’s commitment to those laws and indeed to the cause of halting climate change.
Allen Campbell
May 16, 2024
ESG/Sustainability

EarthX 2024 Congress of Conferences, a Noteworthy Event

This week I attended the EarthX Congress of Conferences here in Dallas. It was well-organized, interesting and factual. I’m sure everyone appreciated the healthy blend of urgency and optimism. Topics included Clean Energy Choices, the Circular Economy, Partnerships for the United Nations Sustainable Development Goals (SDGs), Rotary Club initiatives, How Public and Private Partnerships Can Solve the Climate Crisis, Towards…
Allen Campbell
May 1, 2024
Information

Modeling Extreme Meteorology (Weather) Risk for the Gulf Stream

Dr. Rudi Dornbusch, the long-time international economics professor at the Massachusetts Institute of Technology (MIT), once described a phenomenon regarding momentum. Now known as Dornbusch’s Law, it posits that crises can take much, much longer to materialize than one might expect; however, once they do occur, they can then generate catastrophic outcomes extremely quickly.
Michael Kraten
April 17, 2024
ESG/SustainabilityValue Chain Sustainability Laws

SEC Puts Its Own Climate-Related Disclosure Rules on Hold

SEC Puts Its Own Climate-Related Disclosure Rules on Hold By Allen Campbell, JD, MBA On March 6, 2024, the US Securities and Exchange Commission amended its controversial rules that will require registrants to provide climate-related information in their registration statements and annual reports (the “Final Rules”). But less than a month later, on Thursday, April 4, 2024, the SEC said…
Allen Campbell
April 10, 2024
ESG/SustainabilityValue Chain Sustainability Laws

The European Union Corporate Sustainability Due Diligence Directive (CSDDD) Approaches the Legislative Goal Line – or Does It?

CSDDD, the world’s most consequential piece of sustainability legislation, appears to be proceeding to enactment. This is happening even though the legislative process seemed to have stalled out in February, after being subjected to contentious lobbying. If enacted, it will be the pre-eminent example what I call Value Chain Sustainability, in that it will impose several ESG obligations, notably (i)…
Allen Campbell
March 28, 2024
ESG/Sustainability

SEC Adopts Final Climate Disclosure Rules

Last Wednesday, March 6th, the US Securities & Exchange Commission (SEC) released its final climate disclosure rules, formally known as The Enhancement and Standardization of Climate-Related Disclosures for Investors (the Final Rules). 886 pages long (!), they require publicly listed U.S. companies and certain foreign companies to disclose climate-related information in their registration statements and annual reports.
Allen Campbell
March 13, 2024
ESG/Sustainability

European Union Lawmakers Approve Nature Restoration Law

On Tuesday, February 28th, the European Parliament voted, by a narrow margin, to adopt the Nature Restoration Law. Enacted against a backdrop of concern that natural places have been degraded, the core concept of the law is that protecting remaining natural places will not be sufficient; also needed is large-scale restoration. The goal of the law is to rehabilitate at…
Allen Campbell
February 28, 2024
Information

Did The COP28 Global Climate Summit Do More Harm Than Good?

A person with a severe case of diabetes visits his physician. “Doctor,” he says, “I constantly feel tired and thirsty. I’m also losing weight. What’s wrong?” The physician replies “What’s wrong? You have diabetes! It sounds like you’re eating too much sugar. What did you have for lunch today?” “Three doughnuts and a jumbo-sized cola.” The physician rolls his eyes.…
Michael Kraten
February 21, 2024
Information

Why Do Canadian Forests Burn So Easily?

A few years ago, as the skies over San Francisco darkened into a nightmarish toxic orange color, many assumed that the city’s proximity to California’s forest wildfires made it uniquely vulnerable to such occurrences. But then, last year, the skies over New York City underwent the same lethal transformation because of wildfires in the Canadian forests. That’s when many realized…
Michael Kraten
February 14, 2024
ESG/Sustainability

Financial Valuation Models: The Air Versus The Sea

Recently, the Norwegian government legalized large-scale commercial sea mining. Many expected environmentalists to applaud the sea floor production of natural elements like lithium and cobalt, elements that are used to create large batteries for the storage of renewable energy. After all, one major complaint about solar and wind power is that energy production dwindles on cloudy days and evenings when…
Michael Kraten
February 7, 2024
ESG/Sustainability

ESG Litigation Risk Is the Leading Litigation Risk in 2024

ESG started off as a choice. Grounded in the sentiments of Corporate Social Responsibility and Ethical Investing, ESG meant that you chose to act in accordance with your values and not merely for the sake of financial profits. Those days are long over.  Today many investors and customers expect or even require companies to “do ESG”. What had been “voluntary”…
Allen Campbell
January 31, 2024
Greenwash California
ESG/Sustainability

New California Anti-Greenwashing Law Is Now in Effect

For at least a decade or so, hearing that they need to be better stewards of our planetary environment, many companies have responded with public and investor relations campaigns showcasing their environmental virtues. Unfortunately, many of the alleged virtues are exaggerated, misleading or outright falsehoods. Critics call it “greenwashing”.
Allen Campbell
January 17, 2024
ESG/Sustainability

Climate Tipping Points (CTPs) and Flood Risk Models

By Michael Kraten, PhD, CPA Data analysts who develop flood risk models for property insurers, land developers, and government zoning officers have a new variable to plug into their data sets. Climate Tipping Points (CTPs) are now becoming important factors in risk forecasts. The two most famous CTPs, of course, were introduced to the general public during the 2015 United…
Michael Kraten
December 26, 2023
ESG/Sustainability

The “Double Counting” Argument Won’t Stop California From Mandating Scope 3 Carbon Emission Disclosures

Business lobbyists, in their efforts to persuade regulators to decline to require Scope 3 carbon emission disclosures, have been leaning heavily on the argument that the category is inherently impractical because it double-counts what it purports to measure. The argument, though, has failed to prevent the State of California from adopting that very disclosure requirement.
Michael Kraten
December 13, 2023
deforestation
ESG/Sustainability

European Companies’ Supply Chains That Incorporate Seven Important Commodities Will Be Impacted by the European Union Deforestation Regulation (EUDR)

Once again leveraging its position as the world’s third largest economy, the EU continues to lead the world in protecting the global environment. The EU Deforestation Regulation (EUDR), which became effective on June 29, 2023, will impact agricultural, forestry and business practices around the world.
Allen Campbell
November 8, 2023
deforestation
ESG/Sustainability

New Canadian Modern Slavery Law

The Fighting Against Forced Labor and Child Labor in Supply Chains Act was enacted on May 3, 2023, and becomes effective in January 2024. It requires in-scope companies and all government organizations in Canada to provide annual reports on how they manage forced labor/child labor risks – in their own operations and their product supply chains.
Allen Campbell
October 25, 2023
Information

Apple And Overstock: The Value Of A Name

Although all Americans celebrate Independence Day on July 4, those who own Apple stock may be rejoicing more than others this year. On the final trading day before the holiday weekend, Apple became the first publicly traded company to achieve a $3 trillion market value.
Michael Kraten
October 11, 2023
ESG/Sustainability

Do Citizens Have a Constitutional Right to a Clean and Healthful Environment?

Over 1500 cases have been filed in courts around the world seeking relief from climate change. These cases have been based on various legal theories. A recent, highly unusual theory is that such rights are grounded in a state’s constitution. This constitutional theory has successfully argued in four noteworthy cases, one in Montana, the second in the Netherlands, the third…
Allen Campbell
October 4, 2023
ESG/Sustainability

And The Pigs Shall Lead!

Do you remember George Orwell’s classic novel Animal Farm? In that fable of a farm that is managed by its own livestock, the pigs become the leaders of the rural community. Although that didn’t quite occur last week, a pig protection law did manage to survive a Supreme Court decision that may impact the future of sustainability regulation.
Michael Kraten
September 27, 2023
ESG/Sustainability

Arizona’s Slow Motion Disaster

In the 2004 film The Day After Tomorrow, a trio of meteorological “super storms” triggers a global descent into a second Ice Age. How much time do the storms need to destroy the planet? A few days to a week is all they require to wreak havoc on the world.
Michael Kraten
September 13, 2023
ESG/SustainabilityValue Chain Sustainability Laws

Mandatory Reporting of Opportunities under the European Union Corporate Sustainability Reporting Directive (CSRD)

This is another blog post in our series on Value Chain Sustainability. In a Nutshell: The new Corporate Sustainability Reporting Directive (CSRD) of the European Union will mandate in-scope companies to disclose “opportunities related to sustainability matters”. This is questionable public policy for many reasons and should be reconsidered. 
Allen Campbell
August 23, 2023
ESG/SustainabilityInformation

Sustainability Standards: Is This An Improvement?

by Michael Kraten, PhD, CPA What is the most common complaint heard about the current state of sustainability reporting standards? It may be the bloated number of free-standing, independent, overlapping, and often conflicting standards. Regrettably, no single entity has yet emerged as the clear consensus choice for defining corporate disclosures. There were hopes, though, that this situation would have improved two weeks…
Michael Kraten
August 15, 2023
ESG/SustainabilityValue Chain Sustainability Laws

Game Changer: The European Union Corporate Sustainability Reporting Directive (CSRD)

Game Changer: The European Union Corporate Sustainability Reporting Directive (CSRD) This is another blog post in our series on Value Chain Sustainability. In a Nutshell: The Corporate Sustainability Reporting Directive (CSRD) will require nearly 50,000 EU companies -- and about 11,000 non-EU companies -- to report on ESG matters. Beginning in 2024, companies will have to report, if material, on…
Allen Campbell
March 30, 2023
ESG/SustainabilityInformationValue Chain Sustainability Laws

Groundbreaking lawsuit against BNP Paribas

French banking giant sued for financing fossil fuel companies This is another post in our series of blog posts on Value Chain Sustainability laws. Several non-governmental organizations (NGOs) filed a summons against BNP Paribas on February 23, 2023. At issue is whether the bank’s climate risk plan is inadequate, in violation of the French Duty of Vigilance law. The plaintiffs…
Allen Campbell
March 10, 2023
ESG/SustainabilityValue Chain Sustainability Laws

German Supply Chain Due Diligence Takes Effect January 1, 2023

This is another blog in our series of blog posts on Value Chain Sustainability laws. Germany’s landmark Act on Corporate Due Diligence Obligations in Supply Chains (“Gesetz über die unternehmerischen Sorgfaltspflichten zur Vermeidung von Menschenrechtsverletzungen in Lieferketten”) goes into effect January 1, 2023. It will apply to all companies whose head office, main branch or statutory seat is in Germany, if…
Allen Campbell
December 28, 2022
Negotiations
ESG/SustainabilityValue Chain Sustainability Laws

European Council Adopts Negotiating Position on Corporate Sustainability Due Diligence Directive

We have been closely following the legislative progress of the EU draft Directive on Corporate Sustainability Due Diligence (“CSDD”). Please see our previous posts on the subject of Value Chain Sustainability. The legislation took a big step forward on November 30, 2022, when the Council of the European Union (the “Council”) adopted a  “negotiating position” on the European Commission’s CSDD…
Allen Campbell
December 21, 2022
Value Chain Sustainability Laws

Get Ready for Big Changes in Global Commerce

By Allen Campbell, Founder and CEO McAlan Published on the website of World Trade Center, Palm Beach Have you heard about Expected European Union Mandatory Due Diligence (EUMDD)? Based on high-minded ethical principles, impending EUMDD legislation will be revolutionary. It will introduce new compliance burdens, and also provide new opportunities for business success.   Read the Full Article Here
Allen Campbell
January 13, 2022
Value Chain Sustainability Laws

Proposed European Value Chain Legislation Will Affect Companies Around the World

Getting Ready for EUMDD By  Allen Campbell, JD Published in CPA Journal, January, 2022 U.S. business owners and their accounting professionals may be surprised to learn about a proposed European legal regime that will have a major impact on global business. Their surprise might turn to shock when they learn that businesses they own or serve will become subject to legal…
Allen Campbell
January 7, 2022
McAlan Overview

Coping with the COVID-19 Pandemic: Taking Care of Business, Taking Care of Yourself, Taking Care of Your People.

This is our first blog post focused on the COVID-19 pandemic, and it deals with the three dimensions to surviving and thriving any crisis: the well-being of your organization, the well-being of yourself, and the well-being of your people. Thus our Survive and Thrive workbook is uniquely divided into two parts: Business Resilience and Personal Resilience. Business Resilience is the…
Allen Campbell
September 17, 2021