What’s Around the Corner
Litigation, Including Extraterritorial Lawsuits, Increases
Legal requirements are being established beyond legislatures and regulatory bodies. Climate litigation is a new way of establishing legal responsibilities—and liabilities. Dutch and French courts have seen cases advance as a means of enforcing individual companies’ responsibilities to achieve climate targets. The US Supreme Court has allowed lawsuits by municipalities seeking to hold energy companies accountable for climate change to move forward. There is also the likelihood that new requirements for disclosure and governance of ESG will result in shareholder lawsuits. These developments provide an additional incentive for good performance and a degree of volatility.
The Backlash—from the US and Beyond
By now, it is well documented that many on the political right in the United States are seeking to establish legal prohibitions on ESG considerations, even as other states mandate them. State legislators in Wyoming have proposed a bill to phase out electric vehicle sales by 2035 to protect the oil and gas sector. These efforts, borne of a backlash against ESG investing, are beginning to emerge elsewhere, particularly on the political right in Europe. Trump and Marine Le Pen are among supporters of the Netherlands’ BoerBurgerBeweging (Farmer-Citizen Movement) Party, evidence of the far right co-opting farmers’ resistance of restrictions on nitrogen use to advance their creed that the sustainability agenda erodes individual rights.
Coming Soon
The Human Rights team assesses the impact of AI in the retail, healthcare, extractives, and finance industries.
The latest on the arrival of new Securities and Exchange Commission regulations, and the adoption of the International Sustainability Standards Board framework in CDP reports.
Guidance for business on the process of just transition planning focused on the energy and utilities sector.
Our Experts
Our team consists of global experts across multiple focus areas, bringing a depth of experience and knowledge around upcoming regulatory requirements.
Let’s talk about how BSR can help you to transform your business and achieve your sustainability goals.
