On April 26, the U.S. Occupational Safety and Health Administration (OSHA) sent its Emergency Temporary Standard (ETS) for COVID-19 to the White House Office of Management and Budget for final review. The ETS, which will address workplace exposures to COVID-19, is a separate effort from other OSHA regulatory activity, such as its new COVID-19 National Emphasis Program (NEP). The timing for the review is unclear, but if and when the ETS is released, it will take effect immediately. Read more about the ETS in a previous IPC blog piece here. IPC Contact: Kelly Scanlon, director, EHS policy and research.

 

South Korea is the latest country to undergo an updated deep dive by our environmental, health, and safety (EHS) experts in 2021. Notably, an amendment of the Act on the Registration and Evaluation of Chemicals (K-REACH) was recently adopted, tightening the supervision of downstream users and sellers of chemical substances. This is just one of our nine white papers on the history of chemical regulations, current regulatory systems, and anticipated trends in the Asia-Pacific region. Let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon, EHS policy and research director. 

The European Commission (EC) on April 21 took a leap forward in strengthening sustainability reporting for companies through the adoption of a proposal for a Corporate Sustainability Reporting Directive (CSRD). The proposal confirms the pending introduction of European Sustainability Reporting Standards and comes as part of a broad package of measures on sustainable finance.

The CSRD is the successor to the European Non-Financial Reporting Directive (NFRD), which since 2018 has required large public interest companies with over 500 employees – as well as banks and insurance companies – to disclose information on the way they operate and manage social and environmental challenges. Under the existing directive, concerned companies have had to disclose information on environmental matters; social matters and treatment of employees; respect for human rights; anti-corruption and bribery; and diversity on company boards. The EC in 2017 and 2019 provided guidance on how to disclose such information, giving companies the flexibility to use international, European, or national guidelines, and leading to a plethora of reporting methods.

According to the EC, the information that companies report is often insufficient, lacking in quality, and difficult to compare from company to company. With the CSRD, the commission therefore proposes to strengthen sustainability reporting requirements, adding new areas of disclosure as well mandatory EU reporting standards. These requirements would be extended to all large undertakings and all undertakings with securities listed on EU regulated markets, including non-EU companies (excepting micro-undertakings). European subsidiaries of foreign companies would be exempted only if the parent company is reporting sustainability information in accordance with the requirements of this directive or in an equivalent manner.

The new rules are intended to provide the reporting structure for a series of related rules designed to ensure that financial market players do not “greenwash” their portfolio information and direct investment flows to sustainable activities. The CSRD also seeks to embed environmental, social, and governance objectives into companies’ practices ahead of new rules on sustainable corporate governance with mandatory human rights and environmental due diligence obligations.  

The proposal foresees the development of a first set of European sustainability reporting standards by October 2022, aiming to ensure understandability, verifiability, and comparability and to identify material topics for disclosure. A second set of standards to come in October 2023 would indicate the sector-specific information that companies must disclose.

The proposal now enters the EU negotiation process through the European Parliament and European Council. If adopted by early 2022, the standards would follow, and companies would start to report using the new standards in 2024 for the year 2023.

The commission has emphasized that European standards will build on international standard-setting developments, and it has reiterated its support for initiatives by international fora, such as the G20 and the G7, to develop a baseline for global sustainability reporting standards. In that context, the proposals of the International Financial Reporting Standards (IFRS) Foundation as well as other initiatives are relevant.

IPC will continue to track and advocate for a reporting environment that is workable for electronics manufacturers. Please let us know if you have any questions or suggestions.

This week the bipartisan, bicameral “Endless Frontier Act” was reintroduced by Senate Majority Leader Chuck Schumer (D-NY), Senator Todd Young (R-IN) and Representatives Ro Khanna (D-CA) and Mike Gallagher (R-WI) to bolster U.S. leadership and competitiveness globally.

IPC is supportive of the bill that is being called “a bold initiative to advance and solidify the United States’ leadership in scientific and technological innovation through increased investments in the discovery, creation, and manufacturing of technology critical to U.S. national security and economic competitiveness.” However, IPC is urging the U.S. Government to take a holistic approach to technology and electronics, and not focus on only specific sectors, for the United States to stay globally competitive.

Some of the key provisions of the bill include:

• A proposal to expand the National Science Foundation (NSF) with the establishment of a new Technology and Innovation Directorate within NSF to advance research and development in 10 key technology focus areas, including artificial intelligence, semiconductors, quantum computing, advanced communications, biotechnology, and advanced energy.
• $100 billion over five years for the newly-established Technology and Innovation Directorate to invest in basic and advanced research, commercialization, and education and training programs in technology areas critical to national leadership.
• An additional $10 billion would be authorized at the Department of Commerce to support regional technology strategies and to designate at least 10 regional technology hubs, awarding funds for comprehensive investment initiatives that position regions across the country as global centers for the research, development, entrepreneurship, and manufacturing of new key technologies.
• $2.4 billion in funding to enhance and expand the Manufacturing USA network to ensure global leadership in the manufacturing of key technologies. 

Although specific sectors of technology and electronics, such as semiconductors are vital to U.S. strategic interests, advancements in semiconductor technology have always been intricately linked to advancements in electronics manufacturing, such as printed circuit board (PCB) fabrication and assembly, but the interdependence is growing even greater with developments in microelectronics.

The bill is expected to evolve as it progresses through regular order with opportunities for modifications to be integrated into a final package.

 If you have any questions regarding the “Endless Frontier Act,” please contact me at KenSchramko@ipc.org.