Businesses face increasing ESG expectations. This means a wider range of ESG targets, more focus on managing climate change and sustainability impacts, more scrutiny over corporate purpose. Those that adapt to this challenge are likely to benefit. Those that do not risk the prospect of civil litigation and increased regulatory and conduct risks.
ESG risk is a focus for all, but the risk implications vary from sector to sector and business to business. Consequently, all businesses need to identify and manage their ESG risk, alongside ensuring compliance with legal obligations and dealing with commercial pressures and reputational risk.
We consider below a variety of litigation and regulatory and conduct risks that will be very significant in 2021 and beyond.
Environmental pollution and climate change claims
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Mis-selling / Greenwashing claims
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Human rights claims
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Liability for supply chains and subsidiaries
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Companies and directors’ duties
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Stakeholder actions
Investor - State arbitration in renewable energy
OECD complaints
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Key contacts
If you have any questions, contact a member of the Mitigating ESG legal risks team for assistance:
