■ Law
LESSONS IN LEADERSHIP
■ Law
that the adopted rules do not go far enough , especially after the SEC decided to abandon the Scope 3 requirements .
The Impact on Businesses
Although the new SEC regulations only apply to publicly traded companies and are currently under fire , the entire stream of commerce will be impacted . The immediate impact of the new regulations is on the publicly traded companies , as investors will be armed with more information about the climate risks associated with certain corporations . Requiring companies to disclose GHG emissions could lead to public pressure on companies to take meaningful action to address climate pollution . Until recently , it was left to the companies to set targets to slash emissions and self-report their progress . The new regulations call for companies to create credible plans to meet their goals because both the regulators and the investors and stakeholders will hold them accountable .
Beyond the publicly traded companies , there are substantial legal concerns regarding ESG initiatives over disclosure that impact the entire stream of commerce . Since the term ’ s inception , the global practice has been for companies to provide their own figures and disclosures for ESG initiatives . As a result , companies can be viewed as engaging in “ greenwashing ,” which refers to unsubstantiated , false , or inaccurate statements by entities about their GHG
reduction actions in the past and present , as well as plans for GHG reduction in the future .
Greenwashing litigation is likely to continue and will expose companies to public scrutiny as well as liability for making unsubstantiated , false , or inaccurate statements . One high profile matter was a class action lawsuit filed against Nike , Inc . It was alleged that Nike was inappropriately advertising their use of sustainable materials when manufacturing its sustainable collection . Specifically , Nike advertised such actions to show their commitment to environmental sustainability – a central tenet to ESG . The litigants claimed , however , that the clothing and products at issue were not made from sustainable materials and therefore not beneficial to the environment . Another high-profile matter is the class action lawsuit filed against Delta Air Lines in May 2023 accusing the prominent airline of misleading its consumers by overstating its progress in decreasing GHG emissions . Specifically , the putative class alleges that Delta was not truthful regarding its claim of being the first airline to have zero-carbon emissions through its purchase of GHG offsets .
As evidenced by the Nike and Delta examples , greenwashing litigation is evolving before our eyes . Over time , these matters have expanded to large scale class action lawsuits challenging supply chain integrity , sustainability practices , human rights practices , animal rights practices , and other environmental and social issues . The Nike class action is a prime example of the recyclability of its products that are marketed as such being strongly challenged . These actions are a direct impact to the rise in prominence of ESG initiatives , and the public ’ s growing interest in holding businesses accountable for not only its products , but its entire process for making such products . As regulatory disclosures become mandatory and greenwashing lawsuits gain steam this will have an impact on all businesses in the entire stream of commerce .
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LESSONS IN LEADERSHIP
Agree to Disagree
By Steve Adubato , PhD Freelance Contributor
While it may be challenging to be open to other points of view , it is an essential communication and leadership skill that will help break down walls and build trust with those around you . Let ’ s consider some tips and tools to becoming more flexible in our approach to navigating these waters :
◾ Let go of emotional baggage . We all have an engrained belief system that has been built upon years of experiences . The key is to view new experiences from a fresh lens and make new decisions based on that perspective .
◾ Compromise . Negotiation and compromise in leadership are essential to building trust in your relationships . Being flexible and open-minded in your interactions with others will help ensure that those around you feel their point of view is valued .
◾ See shades of gray . Seeing the world only in black and white is dangerous . We need to understand that our reality is just that , our reality and only ours , as opposed to a universal reality that everyone else must buy in to .
◾ Find common ground . Too often it is easier to see the differences when engaged in a spirited discussion regarding something you feel passionately about . Look to find the similarities or overlap between two different points of view . It is all about truly listening with an open mind .
◾ Agree to disagree . When all else fails and you have reached a stalemate , take the high road and agree to disagree . This doesn ’ t mean that you are giving up your principles . You are simply taking a different approach to communicating that will help improve your relationships while still staying true to yourself .
Steve Adubato , PhD , is the author of five books including , “ Lessons in Leadership .” His sixth book , “ Lessons in Leadership 2.0 : The Tough Stuff ,” will be released in summer 2023 . He is an Emmy ® Award-winning anchor with programs airing on Thirteen / WNET ( PBS ) and NJ PBS . He has also appeared on CNN , NPR and NBC ’ s Today Show . Steve Adubato ' s “ Lessons in Leadership ” video podcast with co-host Mary Gamba airs Sundays at 10:00 a . m . on News 12 +. For more information visit www . Stand-Deliver . com
Photo : Getty Images / iStockphoto / Wasan Tita
May 2024 COMMERCE 21