ESG Litigation Fears Spread as Lawyers Zero In on Supply Chains

The risk of being sued for ESG-related malpractice is spreading beyond climate change, according to London-based law firm Simmons & Simmons.

“We know that litigation is rising,” Sonali Siriwardena, global head of ESG at Simmons & Simmons, said in an interview. So far, the focus has mainly been on climate and the environment, but “that is likely to change,” she said.

The Corporate Sustainability Due Diligence Directive, whose final wording and scope is still being negotiated by EU lawmakers and member states, seeks to hold companies liable if environmental or social violations occur anywhere in their value ...