Environmental, social and governance

Norton Rose Fulbright’s 2025 Annual Litigation Trends Survey finds that environmental, social and governance (ESG) initiatives face continued scrutiny from consumers, investors and regulators alike, deepening the risk of litigation. Twenty-seven percent of respondents saw their ESG dispute exposure grow over the past 12 months – higher than the 24% who saw their exposure increase the year before. The same share (27%) also expects the exposure to expand in the year ahead.

Respondents expecting their ESG exposure to grow point to both pro-ESG and anti-ESG pressures as among the leading trends contributing to this increase. Pro-ESG regulatory pressure was the most selected factor, at 46%.

There were significant developments in ESG disclosure regulations in 2024, like the climate disclosure rules enacted by the Securities and Exchange Commission (SEC), which were adopted in March and then stayed by the SEC a month later, California’s climate disclosure laws, new greenwashing provisions in Canada through the passing of the Competition Act and the EU’s Corporate Sustainability Due Diligence Directive.

However, the effects of these new regulations and requirements are still being determined given uncertainty about their interpretations and pending legal challenges. This uncertainty may create fertile grounds for disputes. Indeed, 41% of respondents expecting increased ESG dispute exposure pointed to the lack of established ESG metrics and requirements as a source of this risk. 

Still, three-quarters of respondents expecting more ESG disputes say environmental issues could pose challenges in the coming year as organizations face greater scrutiny over sustainability claims. Reflecting these concerns, 73% say they are considering or already adjusting their environmental or sustainability claims to mitigate exposure to greenwashing issues.

This is an especially common sentiment among energy industry respondents, nearly half (46%) of whom say they are considering or actively revising such claims to a large extent, as the plaintiffs’ bar and regulators set their sights on the sector’s carbon footprint.

Download the 2025 Annual Litigation Trends Survey report for more details.