Today’s ESG Updates
- EU Deforestation Law Narrowed: Updated rules focus on industries directly driving forest loss, while easing compliance requirements for leather supply chains.
- India Power Demand Hits Highs: Extreme heat is pushing electricity use to record levels, forcing coal plants to ramp up output to meet cooling demand.
- DOJ Challenges Minnesota Climate Strategy: The federal government is moving to block state-level efforts to regulate emissions through litigation, citing overreach into national energy policy.
- New Mexico Takes Meta to Court: The case targets platform design rather than isolated incidents, aiming to address systemic risks to users, especially younger audiences.
Leather industry pressures EU to ease the anti-deforestation regulations
The EU deforestation law will no longer apply to leather, since it does not fall within the range of direct drivers of deforestation. This was achieved after a series of lobbying conducted by various associations, including leather industry leaders. They argued that leather is a by-product of meat production rather than a cause of deforestation.
From December 2026, companies dealing with major agricultural commodities such as beef, soy, and palm oil will still be required to provide evidence that the supply chains for the respective products are not involved in deforestation after 2020. The regulations are not gone completely. Thereby, the company has to ensure traceability, otherwise risking heavy fines or exclusion from the market.
The new regulation aims to ensure that the drivers of deforestation are more easily regulated and traced. There should be stricter rules for products that cause deforestation; however, it seems the recent activity may signal a new strategy: legal clarity for direct operations over broad control.
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Further reading: EU Removes Leather From Deforestation Law After Industry Pressure
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India breaks power usage records due to heat
A wave of intense heat has pushed India’s power output to its highest level in two years, as demand for cooling surged across large parts of the country. The use of conditioners and other cooling requires growing electricity generation. Most of the increased demand is covered by coal.
The timing is important. India typically sees power demand rise during the summer months, but the intensity of the current heatwave has pushed the trend forward. Higher demand is also putting pressure on fuel supplies and logistics, especially coal transport.
This pattern is becoming more frequent. Extreme heat events are increasing both the level and volatility of electricity demand. In response, power systems are forced to rely on stable, dispatchable sources to avoid shortages.
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Further reading: Intense heat drives India’s power output to two-year high
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The US Justice Department battles Minnesota in court
The U.S. Department of Justice has filed a lawsuit against the state of Minnesota. The key issue that has led to the dispute concerns the use of legal action in the state of Minnesota against energy firms. Minnesota allegedly seeks to control worldwide energy generation and greenhouse gas emissions, a task that should be handled federally.
The move follows a shift in the federal government’s approach to climate regulation and domestic energy production. The current administration has shown a preference for increasing domestic energy production and reducing any climate-related regulations. This includes efforts to repeal some regulations that have already been put into place.
Minnesota, like some other states, is trying a different approach to regulating energy use and greenhouse gas emissions by using the courts to address issues that transcend national boundaries. According to the federal government, this could create confusion in national energy policy.
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Further reading: US Justice Dept targets Minnesota over global greenhouse gas emissions
The legal battle between Meta and New Mexico takes a new shape
New Mexico has requested changes in its impending litigation against Meta Platforms, in its pursuit of various charges against the tech company over its alleged role in harming its younger users. Some of the adjustments that New Mexico has proposed include alterations to how evidence is presented, as well as the claims pursued. According to its lawsuit, the social media company’s platforms’ design, along with recommendation mechanisms, have caused their users to become addicted to them and suffer mental problems in the process.
The lawsuit highlights a general approach. In fact, it does not seek to prosecute any specific incidents, but rather seeks to address issues at a structural level in order to protect users, particularly the younger ones.
Meta will likely dispute such allegations, arguing that it provides its users with safety and control tools that allow them and their parents to prevent any adverse effects, and also pointing out its experience with being sued for similar reasons in other states.
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Further reading: New Mexico seeks changes to Meta platforms in youth harm trial
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: The EU flag Cover Photo Credit: Olivier Darbonville
