"ESG Litigation in Europe", 31 Mar 2021

In tandem with investor pressure and regulation requiring ESG [Environmental, Social & Governance] disclosures, such as the EU’s Sustainable Finance Disclosure Regulation, the UK’s Modern Slavery Act, and France’s Duty of Vigilance, the last decade or so has also seen an increase in litigation in both the UK and the EU aimed at holding companies accountable for ESG impacts in their direct operations and their supply chains. In this article, Quinn Emanuel’s ESG Litigation team considers ESG litigation risk and how to manage it...

Broadly speaking, while there is some cross-over, the currently proliferating areas of ‘ESG litigation’ risk relate to (1) claims regarding mis-statements or omissions in ESG external reporting by companies; and (2) claims concerning the ESG impact of companies’ operations, whether directly or in their supply chains, including claims related to climate change, environmental pollution, or human rights breaches...

An additional developing body of litigation seeks to hold companies liable for the climate, environmental, and human rights impacts of their operations, including their supply chains. Such claims have been principally framed in tort law and traditionally faced significant jurisdictional and corporate veil hurdles...