Powering tomorrow Navigating the energy transition landscape 2024 - Flipbook - Page 25
‘‘
I think they do a tremendous job at
projecting their African capabilities
– they are a solid team.
‘‘
• Product liability: New technologies that
are increasingly geared towards the consumer
market—such as solar panels, electric vehicle
batteries, and smart meters—can pose safety
risks with inevitable legal consequences. It is
for this reason that companies involved in the
manufacturing and supply of these types of
products need to take additional care to follow
the regulatory requirements (as well as, where
relevant, take supplementary steps such as
additional testing protocols and the like) to
ensure that their new technologies do not lead to
the types of lawsuits already being seen against
various manufacturers, for example, EV batteries
for alleged risk of combustion and 昀椀re. The risk of
such liability only increases for companies using
AI when one looks to new proposed legislation,
like the EU’s AI Liability Directive which seeks
to apply to any type of damage (covered under
national law) caused by AI systems.
Projects & Energy, Africa-wide Chambers
Global, 2023
• AI regulation: As AI gains traction around
the world, evolving regulations could pose new
challenges for companies that have already
bravely embraced the technology in the energy
sector. For instance, the EU has already
put forward comprehensive legislation and
requirements, like the EU AI Act, while the
U.S. has invested in a new AI risk management
framework—though has yet to designate a federal
authority to oversee AI-related risks.
• Greenwashing: Litigation related to claims of
“greenwashing” are on the rise—particularly as
environmental, social, and governance reporting
requirements take hold—embroiling several
high-pro昀椀le companies in complex disputes.
As technologies continue to create new ways to
lower emissions, companies could eventually
昀椀nd themselves facing shareholder claims,
arguing that they should have taken steps (e.g.,
by adopting new technologies) sooner to 昀椀ght
climate change.
The energy transition won’t happen without
advancements in digitalization, automation, and
data. To ensure their organizations are staying
abreast of these developments, today’s business
leaders must balance the adoption of new
technologies with e昀昀ective risk management
and compliance processes.
Hogan Lovells | Powering tomorrow: Navigating the energy transition landscape
25
