Environmental, Health, Safety & Sustainability Newsletter
Leon Levine
February 28, 2025
Issue: February/2025
Welcome to this month’s edition of ECOthink Group’s Environmental, Health, Safety & Sustainability (EHS&S) Newsletter. Stay informed on the latest regulations, industry trends, and best practices to enhance compliance, safety, and sustainability within your business operations.
In this issue:
- EPA’s Lead Updates
- Updates to New Chemicals Regulations Under TSCA
- Changes to CT’s Remediation Rules
- OSHA’s Proposed Heat Stress Rule
- OSHA’s Updated Hazard Communication Standard
- ISO ESG Implementation Standard
- EU Corporate Sustainability Reporting Directive Updates
- SEC Updates
- Case Study: Hazardous Waste Reduction
Regulatory & Compliance Updates
ENVIRONMENTAL
Lead Pipe Replacement Mandate
In October 2024, the EPA finalized a rule requiring the replacement of lead pipes in U.S. drinking water systems within the next decade. Accompanying this mandate is $2.6 billion in funding allocated for these critical upgrades. The rule also lowers the allowable lead level in drinking water from 15 to 10 parts per billion, aiming to prevent health issues such as low birth weight, ADHD, and IQ reductions in children.
Updates to New Chemicals Regulations Under TSCA
In December 2024, EPA finalized amendments to the regulations that govern the Agency’s review of new chemicals under the Toxic Substances Control Act (TSCA) to improve efficiency and align with the 2016 bipartisan TSCA amendments under the Frank R. Lautenberg Chemical Safety for the 21st Century Act.
The final rule ensures that new per- and polyfluoroalkyl substances (PFAS) and other persistent, bioaccumulative, and toxic chemicals are always subject to the full, robust safety review process prior to manufacture by eliminating their eligibility for a low volume exemption (LVE) or low release and exposure exemption (LoREX). This rule amends the regulations by specifying that EPA must make one of the five statutory determinations for each premanufacture, significant new use and microbial commercial activity notice before the submitter may commence manufacturing or processing the new chemical substance. The rule updates the regulations to list the actions required in association with each of those determinations. The rule also makes several other changes to add efficiencies to the new chemicals review process, including clarifying the level of detail needed in new chemical notices and amending the procedures for EPA’s review of notices that have errors or are incomplete.
Connecticut
1. Release-Based Cleanup Program Implementation
In October 2024, Connecticut Department of Energy and Environmental Protection (DEEP) finalized regulations for the new Release-Based Cleanup Program, set to replace the previous Transfer Act. This regulatory change aims to streamline environmental remediation, encourage redevelopment, and align the state’s policies with 48 others that have adopted similar approaches. The RBCRs focus on requiring those responsible for pollution to clean up releases promptly, rather than complicating real estate transactions. Key elements include risk-based decision-making, reducing DEEP oversight for lower-risk cases, and empowering Licensed Environmental Professionals (LEPs) to facilitate cleanups. The new framework introduces a multi-tiered system based on the severity of contamination, with different levels of oversight and timelines for remediation.
The regulations define key terms such as “release,” “remediation,” and “discovery,” detailing responsibilities for property owners and polluters. Reporting and cleanup requirements vary depending on the level of risk, with immediate actions mandated for serious environmental hazards. The framework also includes modifications to cleanup standards, new pathways for specific pollutants like PFAS and road salts, and an auditing system to ensure compliance. Economic benefits of the transition include job creation, increased property redevelopment, and greater investment attractiveness.
HEALTH & SAFETY
Proposed Heat Stress Rule
OSHA has proposed a rule to protect workers from heat-related illnesses in both indoor and outdoor workplaces. While the final rule is pending, it is anticipated that employers will be required to provide water, rest breaks, and access to shade or air-conditioned areas when the heat index exceeds certain thresholds. Additionally, employers may need to develop Heat Injury and Illness Prevention Plans (HIIPP) and train workers on recognizing heat-related symptoms.
Updated Hazard Communication Standard
On May 20, 2024, OSHA announced a final rule updating the Hazard Communication Standard to align with the seventh revision of the United Nations’ Globally Harmonized System of Classification and Labelling of Chemicals. The updated standard requires more comprehensive and readable labels on small packaging and ensures that trade secrets do not prevent workers and first responders from receiving critical hazard information on safety data sheets. These updates took effect on July 19, 2024.
SUSTAINABILITY
ISO ESG Guidelines
ISO (the International Organization for Standardization) recently issued a standard for implementing Environmental, Social, and Governance (ESG) principles. IWA 48, ISO’s ESG Implementation Principles, provides a structured framework for organizations to integrate ESG practices into their operations and culture. It supports ESG performance management by ensuring consistency, comparability, and reliability in reporting across global frameworks. By offering standardized guidance, IWA 48 helps businesses navigate ESG complexities, fostering more transparent and accountable sustainability practices worldwide.
The principles play a crucial role in making ESG efforts more effective and globally aligned. They enable organizations to gain a competitive edge by attracting socially conscious investors and customers, enhancing reputation through improved transparency, and mitigating risks associated with environmental and social factors. By adopting these standards, businesses contribute to broader global sustainability goals, addressing critical challenges such as climate change and social inequality while fostering a more responsible and resilient economic ecosystem.
Download the (free) standard here
EU Corporate Sustainability Reporting Directive Updates
Recent developments in corporate sustainability guidelines reflect a dynamic regulatory landscape, particularly within the European Union (EU). On February 26, 2025, the European Commission proposed significant revisions to its environmental and corporate sustainability regulations, aiming to enhance global competitiveness. Key proposals include limiting the Corporate Sustainability Reporting Directive (CSRD) to firms with over 1,000 employees, thereby exempting approximately 40,000 companies, or 80% of the initially targeted firms. Additionally, the Corporate Sustainability Due Diligence Directive (CSDDD) would be delayed to mid-2028, with a reduced focus on direct suppliers and less frequent assessments. These adjustments are intended to simplify compliance and reduce administrative burdens for businesses.
SEC Withdraws Support for Climate Disclosure Rule
The SEC’s decision to pause litigation on the climate disclosure rule signals a significant shift under the new administration, favoring corporate interests and deregulation. Originally adopted in March 2024 under Gary Gensler, the rule aimed to enhance transparency on climate-related risks for investors. However, with a Republican administration now in power, the rule’s future appears bleak, as the SEC’s new leadership is expected to withdraw its defense, allowing courts to strike it down. Legal experts point to the Supreme Court’s “major questions doctrine” as a key obstacle, as it requires Congress to explicitly grant agencies authority for regulations with broad economic and social implications. Critics argue that the SEC lacks the statutory mandate to impose such disclosure requirements, making the rule legally vulnerable.
Reactions to the SEC’s shift are sharply divided. Business groups, including the U.S. Chamber of Commerce, welcome the move, arguing that the rule overstepped regulatory authority and imposed unnecessary burdens on companies. Conversely, ESG advocates like Ceres criticize the decision as a failure to protect investors from climate-related financial risks. They argue that transparency on these risks is crucial, especially as extreme weather events become more frequent. With the SEC likely to abandon its legal defense, the fate of climate-related financial disclosure in the U.S. now rests largely in the hands of the courts, reinforcing the growing divide between regulatory approaches to climate risk under different administrations.
Shareholder Proposals Regarding ESG
In the United States, the Securities and Exchange Commission (SEC) has introduced changes affecting shareholder proposals related to environmental, social, and governance (ESG) issues. Under the interim leadership of Mark Uyeda, the SEC has reversed a 2021 decision, imposing new obstacles for investors seeking to propose ambitious ESG resolutions at annual corporate meetings. This shift has coincided with a notable decline in support from major asset managers, such as BlackRock and Vanguard, for sustainability-related proposals, citing concerns over the quality of recent resolutions and potential interference with effective corporate management. These regulatory changes may impact the influence of shareholder activism on corporate sustainability practices.
Case Study Spotlight
Hazardous Waste Reduction at Rochester Steel Treating Works
Company Overview
Rochester Steel Treating Works (RSTW), established in 1932 in Rochester, New York, is a commercial heat-treating company offering services such as vacuum furnaces, nitrogen and oil quenching, case hardening, and induction hardening. Recognizing the environmental and regulatory challenges associated with hazardous waste, particularly from the use of trichloroethylene (TCE) in vapor degreasing, RSTW sought to implement effective waste reduction strategies.
RSTW utilized TCE for cleaning metal parts, a process that generated significant hazardous waste and posed health risks to workers. The company aimed to reduce or eliminate the use of TCE to comply with environmental regulations and enhance workplace safety.
Strategies Implemented
1. Evaluation of Cleaning Alternatives
RSTW collaborated with the New York State Pollution Prevention Institute (NYSP2I) to assess alternative cleaning methods. The evaluation focused on identifying effective substitutes for TCE that would reduce hazardous waste and improve safety.
2. Implementation of Aqueous Cleaning Systems
Based on the assessment, RSTW transitioned to aqueous-based cleaning systems. This shift involved installing equipment that utilized water and environmentally friendly detergents to clean metal parts, effectively eliminating the use of TCE.
Metrics and Results
The implementation of aqueous cleaning systems led to significant improvements:
· Hazardous Waste Reduction: Eliminating TCE use resulted in a substantial decrease in hazardous waste generation, as TCE was a primary contributor to the company’s hazardous waste stream.
· Cost Savings: The reduction in hazardous waste led to decreased disposal costs. Additionally, the company experienced savings from reduced regulatory compliance expenses and potential liabilities associated with TCE use.
· Improved Workplace Safety: Removing TCE from the cleaning process enhanced the safety and health of employees by reducing exposure to toxic chemicals.
Conclusion
Rochester Steel Treating Works’ proactive approach to evaluating and implementing alternative cleaning methods demonstrates a successful strategy for hazardous waste reduction in the manufacturing sector. By transitioning to aqueous-based cleaning systems, RSTW not only achieved compliance with environmental regulations but also realized cost savings and improved workplace safety. This case exemplifies how companies can effectively address hazardous waste challenges through collaboration and innovation.
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Have questions or topic suggestions for next month? Reach out to us at [email protected]. Let’s build a safer, greener, and more compliant future together!
ECOthink Group supports companies navigating today’s rapidly evolving, and shifting compliance and sustainability landscape. From materiality assessments and sustainability reporting, to net zero strategies, supply chain due diligence, among many other offerings, our diverse team of experts guides you throughout your ESG journey to support a more sustainable and inclusive future for your organization and the world more broadly.
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