Why ESG Disclosures Belong in the Legal Department

The environmental, social and governance (ESG) landscape is rapidly expanding and becoming increasingly diverse, complex, and risk-laden. We are entering a new pivot point for ESG, moving from voluntary to mandatory disclosure of many ESG-related risks, observing a global increase in ESG-related litigation, and starting to see the impact of the anti-ESG movement on company communications regarding ESG more generally.

Beyond their own four walls, companies are increasingly expected to assess and account for ESG-related risks throughout their value chain, resulting in a greater focus on supply chain management and customer impacts. As expectations for greater and more in-depth ESG disclosures grow, inhouse lawyers and legal professionals play a crucial role in balancing the need for disclosure with the risks associated with statements that, in hindsight, could be viewed as false or misleading.