ESG Litigation and Risk Management

The transition to a more sustainable economy presents huge challenges and opportunities.

Businesses need to be mindful of the liability risks that may arise in connection with both, so that appropriate ESG risk management practices can be implemented to mitigate the risk and properly avail of the opportunities.

ESG and climate change disputes continue to be on the rise globally (see our quarterly ESG Disputes Bulletin), often as a tool to push organisations to engage with the net zero transition with greater ambition, and to improve their ESG performance (including in relation to human rights) but also to challenge how ESG issues are being addressed. Claimants are submitting novel claims, with varying degrees of success. The existence and scope of a parent company duty of care, particularly in respect of human rights harms, is regularly being argued by claimants in a number of jurisdictions. A shifting regulatory landscape globally is offering further opportunities to bring proceedings. “Greenwashing” is clearly a priority globally for both financial and non-financial regulators. Focus on corporate disclosures and product claims will increase as requirements tighten, and regulatory findings in relation to disclosure failures can encourage follow-on investor claims.

Our global multi-disciplinary ESG team advises on a wide variety of ESG-related issues and can assist businesses to engage with the ESG litigation landscape to assess their liability risk and those businesses potentially at risk of facing ESG disputes (including greenwashing claims) or regulatory investigations.