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.
Why ESG Disclosures Belong in the Legal Department
May 16, 2023