Obtaining insurance coverage in this climate of activist shareholders

   The evolving ESG landscape requires companies to plan for claims that
   did not exist just a few years ago. Shareholders are [1]actively
   requiring boards to be more transparent and responsive to ESG issues,
   and regulators are enforcing [2]new disclosure requirements. Sometimes
   disclosure alone is not enough: businesses are scrutinized by
   shareholders and regulatory entities for underestimating their
   environmental impact, or over promising their efforts to minimize
   climate change contributions, known as greenwashing.

   Even companies doing their best in ESG governance face the risk of
   shareholder and regulatory litigation. These risks can be addressed by
   directors and officers insurance coverage, which generally protects
   companies, their directors, managers and employees against claims for a
   “wrongful act.” Unless excluded as a specific type of claim, companies
   routinely look to their D&O policies to address shareholder claims and
   defray the costs of regulatory investigations.

   [3]https://www.policyholderperspective.com/2022/03/articles/insurance-g
   eneral/do-insurance-to-counter-esg-litigation-new-issues-for-insurers-a
   nd-policyholders/

References

   1. https://corpgov.law.harvard.edu/2021/05/29/shareholder-activism-and-esg-what-comes-next-and-how-to-prepare/
   2. https://www.reuters.com/legal/legalindustry/esg-regulatory-landscape-creates-commercial-pitfalls-2021-11-19/
   3. https://www.policyholderperspective.com/2022/03/articles/insurance-general/do-insurance-to-counter-esg-litigation-new-issues-for-insurers-and-policyholders/