ESG Litigation

Environmental, social and governance (ESG) criteria are at the forefront of corporate strategies due to investor, customer and regulator expectations. The adoption of these criteria is expected to result in a fresh wave of litigation, centering on companies and their management teams. Companies are strongly encouraged to proactively address these emerging litigation risks and develop a strategy for effectively defending against such legal challenges.

ESG litigation bundles new risks and pre-existing risks. Climate change pressures and the need for companies to become more sustainable are particularly in the spotlight. International and national regulations are increasingly being drawn up in areas such as carbon footprint (emission reduction), market/product communication and financial reporting by companies. Partly as a result hereof, companies are increasingly being legally challenged from various angles on their responsibility with regard to sustainability. Greenwashing is another new litigation risk, albeit evolved from pre-existing risks inherent in misrepresentation. More traditional risks which fall into the ESG umbrella, but where litigation is increasing, concern supply chains and transnational torts.

ESG litigation is instigated by different actors, with different motivations. NGOs are increasingly using legal recourse as a means to advance their objectives. Consumers are also increasingly bringing claims, including as class actions, and the risk of investors/shareholder claims continues to climb.

At CMS, we specialize in guiding organizations through the web of ESG litigation risk, offering comprehensive support to identify potential risks early and establish a strategy to defend against ESG-related disputes.

Our advice includes: 

• Climate change & environmental litigation
  • Litigation in connection to alleged impact washing and climate change strategy
  • Litigation in connection to carbon offsetting/emissions trading
  • Company liability for pollution and damage to the immediate environment
  • Greenhouse gas emissions
  • Litigation in connection to biodiversity
• Corporate ESG litigation
  • Liability of directors and officers
  • Litigation in connection with ESG reporting obligations
  • ESG shareholder activism
• Human rights litigation
  • Supply chain claims
• Green claims, consumer greenwashing, advertising and sustainability claims
• Regulatory and administrative claims
• Finance-related ESG litigation (greenwashing claims and regulatory risk) 

Please contact us if you require legal advice in this field

 Our global ESG litigation team

ESG Litigation training - tailored to your business model 

ESG pressure on multinationals is on the rise due to increasing legislation and higher priority from different actors (regulators, business partners, value chain and customers/NGOs).
 
The potential ESG litigation on companies and its D&O resulting therefrom creates a new kind of business risk with specific international and reputational dynamics. This requires a specific international pro-active approach in relation to risk management.
 
CMS offers a training tailored to the business model of its clients and relations to identity the specific dynamics of ESG Litigation, the different types of ESG and first insights in risk management.

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