Experts explored some key legal and compliance risks facing major corporates, and how those risks can be mitigated, at the annual disputes conference organised by Herbert Smith Freehills.
Climate change litigation is a global risk, and it is clear that no sector is immune to these types of claims. Much of the climate-related litigation seen to date in the UK has been in the context of planning applications, and challenges to government policy and administrative law, for example, decisions relating to the grant of licences in the energy sector. Cases like these will undoubtedly continue, but we expect to see more attempts to hold corporates to account for what they say and how they deal with climate change.
There is also a trend towards the deployment of human rights-based arguments in climate litigation. This is consistent with increasing scrutiny of corporate conduct in relation to human rights more generally, in particular by reference to the UN Guiding Principles on Business & Human Rights, which have become the universally accepted international standard. Although not legally binding, many large corporates have committed themselves to act in accordance with the Guiding Principles. It is key for corporates to ensure that their policies are carefully thought through and properly implemented.
Increasing risk of class actions
Class actions have been a growing threat for UK corporates, and recent developments in three areas have led to potentially heightened levels of risk:
For more information or to receive a full report of the Herbert Smith Freehills Annual Disputes Conference, contact sarah.irons@hsf.com.