LSHC Horizons Brochure 2024 - Flipbook - Page 9
Hogan Lovells | 2024 Life Sciences and Health Care Horizons | ESG and Supply Chain
ESG litigation in the life sciences sector
Lawsuits against state institutions for allegedly
inadequate regulation of climate-damaging
effects have become an established instrument
for securing climate protection efforts.
However, climate litigation is not limited to
state actors. Recently, private companies,
including those in the life sciences sector, have
also been targeted.
Climate litigation against private sector emitters
has increased rapidly in recent years, as the UN
noted in its latest Climate Litigation Report. The
specific subject matter of the lawsuits varies.
For example, affected individuals or groups of
people sue for actual or financial participation in
measures to prevent or remedy against existing,
emerging, or imminent future impacts of climate
change (so-called climate liability lawsuits).
Non-governmental organizations (NGOs) are
also filing lawsuits against corporations that
they believe are contributing significantly to the
climate crisis. These lawsuits generally seek to
force companies to adapt their business models
to the needs of climate change or to reduce their
emissions (so-called climate protection lawsuits).
There are also cases brought by government
agencies/authorities, e.g., for violations of
environmental laws or to expose misinformation
by companies on sustainability issues.
Christelle Coslin
Partner
Paris
Legal action can also be initiated by
shareholders or investors who want to have
a say in corporate strategy to ensure that
companies meet or review their environmental,
social, and ethical standards. General meetings
represent nowadays a peak point where ESG
legal risks materialize, in particular with the
development of and increasing demand for ‘say
on climate’ resolutions.
Emissions-intensive companies should take
care to identify their own environmental
risks and claims. This is not only because of
potential litigation risks, but also because of EU
sustainability legislation. The recently enacted
Corporate Sustainability Reporting Directive
(CSRD) and the forthcoming Corporate
Sustainability Due Diligence Directive
(CSDDD) mean that companies will face new
obligations that need to be integrated into
internal compliance processes.
In addition to that, environmental claims
are also a gateway to potential litigation.
National courts are increasingly called
upon to determine whether or not certain
environmental statements or corporate
promises are misleading. In March 2023,
the EU has taken legislative action to combat
greenwashing and, in particular, to prevent
companies from making misleading voluntary
claims about the environmental benefits of
their products and services with the so-called
Green Claims Directive proposal. The Directive
furthermore aims to set minimum criteria for
environmental labelling schemes and could
also be finalized in early 2024.
Nicole Saurin
Counsel
Munich
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