ESG

The European Union's sixth Capital Requirements Directive introduces significant changes to third-country undertakings providing banking services in the EU, requiring branch establishment by January 2027. Ireland's Central Bank advances its innovation agenda through AI-focused regulatory engagement, while EIOPA publishes comprehensive guidelines on insurance recovery and resolution frameworks.

A federal court has issued a preliminary injunction blocking California's enforcement of SB 343, the state's recyclability labeling law, just months before its scheduled October 2026 enforcement date. The court found that key provisions of the statute are likely unconstitutionally vague and that the law impermissibly restricts protected commercial speech under the First Amendment. This decision significantly impacts companies that have been preparing compliance strategies for the law's strict recyclability

A federal court has temporarily blocked California's SB 343, a law restricting recyclability claims on product packaging, finding it likely violates constitutional protections for commercial speech. The ruling raises questions about how states can regulate environmental marketing claims and whether disclosure-based approaches might be more constitutionally sound than outright prohibitions.