More ESG Lawsuits in the Offing as Investors Jump On UK Law (1)

Investors are becoming more emboldened to file legal challenges against companies for their net zero claims, approaches to governance and other hot-button ESG issues, using a pair of underutilized provisions of a UK law.

Standard Chartered Plc, BT Group Plc and mining giant Glencore Plc were all sued last year for alleged governance or social-related shortcomings. Sections 90 and 90A of the Financial Services and Markets Act 2000 state that a company can be liable to pay compensation if it makes a misleading statement or an omission in public filings that leads to a loss for shareholders.

“It isn’t ...