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Human rights supply chain due diligence and ESG reporting principles that have been voluntarily adopted by asset managers and companies are now being embedded as minimum standards in global laws and benchmarks, with international policymakers and regulators pushing for more consistent ESG reporting and supply chain due diligence.
A suite of new and pending ESG laws in the EU and enhanced global regulatory focus on ESG reporting mean that businesses who have exposure to EU and global markets will need to take steps to identify their ESG risks and assess their ESG disclosure obligations and supply chain due diligence risks from a human rights perspective. Corporates are also facing increasing pressure from stakeholders to accurately disclose the ESG impact of their business. Businesses should act now to ensure they are ready for the new and impending legislation.
These new and prospective ESG legal obligations, combined with activist stakeholders increasingly holding companies to account and intensifying public scrutiny of ESG issues, will lead to increased litigation, enforcement and reputational risks for businesses, such as the risks of regulatory and investor actions for misleading and inaccurate ESG disclosures or “greenwashing” by issuers, and climate-related litigation brought by stakeholders and non-governmental organisations against companies for ESG failures.
Dechert’s leading global investigations, compliance and litigation lawyers help companies minimize their exposure to ESG-related litigation and enforcement risks by conducting ESG and human rights supply chain audits, enhancing compliance programs to manage ESG risks and advising on ESG reporting requirements and standards.
We provide clients with legal, regulatory and business advice on ESG compliance and risk management, including:
OnPoint: Directors Beware: The Climate is Changing with ESG Claims on the Rise (February 1, 2023)
Publication: Are you ready for ESG as a critical business imperative? (October 11, 2022)
Publication: Adapting Anti-Bribery and Corruption Tools to Manage ESG Risks (April 22, 2022)
Webinar Series: ESG: Are You Ready? (May 19, 2022)
OnPoint: Global impact of the European Commission ESG draft Directive on corporate sustainability due diligence (March 4, 2022)
OnPoint: The growing importance of ESG-related supply chain due diligence (January 24, 2022)
OnPoint: Litigation and Enforcement Risks for Corporates arising from Enhanced ESG Obligations and Stakeholder Pressure (August 31, 2021)