MLK said, Gunnar, duck and run.
   So interesting that in New York our Civil Rights have been ignored, for
   fear of historic litigation (as one of the world’s most controversial
   journalists in litigation investment).
   But, no, we have chosen to innovate rather than litigate.
   The United Nations is probably the world's most pervasive fraud in ESG
   malfeasance, and that is something Bank.org is happy to make history
   with.
   With the situation in Chelsea, I also think the FBI CFO's Civil Rights
   has been abused with an "All Electric Tower" via a $2B windmill project
   financed by five time felons at JPMORGAN. Who, by the way bank the
   United Nations.
   These rights abuses are very well known by the FBI, NYPD, DHS and New
   York Attorney General. Yet, NY-DFS is the best regulator on the planet
   to make all this exciting and historic ...
   "For example, the Securities and Exchange Commission recently created a
   Climate and ESG Task Force. The Southern District of New York launched
   a civil rights unit in its criminal division, and the Environmental
   Protection Agency instituted the Office of Environmental Justice and
   External Civil Rights."
   ----------
   As more regulatory agencies create ESG-focused task forces, ESG-related
   enforcement actions and litigation are steadily increasing. Katten
   attorneys analyze trends and enforcement targets.
   As more regulatory agencies develop task forces focused on
   environmental, social, and governance oversight, the potential for
   ESG-related enforcement actions is steadily increasing.
   For example, the Securities and Exchange Commission recently created a
   Climate and ESG Task Force. The Southern District of New York launched
   a civil rights unit in its criminal division, and the Environmental
   Protection Agency instituted the Office of Environmental Justice and
   External Civil Rights.
   Each newly minted federal regulatory task force will give rise to
   greater ESG-related enforcement action.
   But governmental actions are simply one aspect of the ESG landscape
   that will be very active this year. For example, we also expect
   increased shareholder derivative lawsuits, consumer protection
   litigation, suits by environmental advocacy groups, employment
   discrimination claims—individual and class—and other private action
   litigation.
   Green Marketing
   Green marketing, including promotion of environmentally friendly
   products or services, is under increased scrutiny. Although consumer
   goods have long been the target of allegations of false or misleading
   marketing claims, these claims are on the rise in the green marketing
   space.
   As consumers become more interested in the environmental attributes of
   products and services, they may seek to base purchase decisions on
   advertised "green" benefits.
   Although some marketing jargon may seem benign at first glance,
   companies should be cautious of overstating, misleading, or providing
   inaccurate environmentally friendly claims that could give rise to
   litigation. This is understandably challenging in the evolving ESG
   landscape.
   For example, consumers have an increased expectation of transparency as
   it relates to carbon emissions reduction, but this can be achieved
   directly, by reducing emissions from manufacturing, sourcing, and
   transport.
   Or, it can be achieved through the purchase of carbon offsets—carbon
   reduction credits that represent the impact of beneficial projects
   somewhere else in the world—which are applied to reduce a company's net
   emissions.
   Danone Waters is litigating a consumer protection lawsuit alleging that
   that the "carbon-neutral" claim on the label of Evian water is false
   and misleading.
   The plaintiffs assert that a reasonable consumer would interpret the
   carbon-neutral label to mean that no carbon dioxide was released in the
   manufacturing of Evian products—which is most likely unreasonable,
   given the likelihood that no product production can claim to be totally
   carbon-free.
   Danone Waters achieves carbon neutrality by purchasing carbon offsets.
   However, the plaintiffs have attacked the carbon-offset verification
   process as unreliable.
   As consumer expectations around carbon neutrality evolve, companies may
   have to revise their carbon neutrality claims to maintain customer
   trust and reduce potential litigation risks.
   Similarly, words such as "clean," which were once perceived as
   innocuous green marketing jargon, are also false advertising claims.
   Currently, a utility company is fighting claims that it deceptively
   advertises natural gas as a "clean" source of energy, when natural gas
   combustion emits methane—a greenhouse gas that has been linked to
   climate change.
   Because green marketing consumer expectations are evolving, companies
   should work in concert with legal counsel to remain on par with current
   market trends.
   Climate Pollution
   Companies that pollute continue to be the target of lawsuits brought by
   environmental advocacy groups and state agencies.
   In recent years, states and cities brought several lawsuits against oil
   and gas companies alleging that these companies knowingly made false
   and misleading statements regarding the extent their products
   contribute to pollution.
   An environmental advocacy group recently sued a manufacturing company
   claiming that its production facility was polluting the Merrimack River
   in violation of the Clean Water Act.
   These actions reflect the importance of companies understanding their
   pollution output and devising a sustainable plan with various
   stakeholders to reduce that output over time.
   Diversity, Equity, and Inclusion
   ESG-related employment discrimination and shareholder derivative
   lawsuits related to DEI missteps are also increasing. Recently, a
   proposed class action lawsuit alleged that a social media company's
   recent layoffs disproportionately affected women.
   Layoffs under any circumstance are tough, and ripple effects may not be
   revealed until months or years later. Yet, it is imperative that
   companies adopt controls to ensure layoffs do not produce an
   unintentional, disproportionate impact to protected classes.
   Since 2020, over a dozen corporations have faced shareholder derivative
   lawsuits based on their allegedly misleading statements about their
   commitment to diversity and equity.
   These lawsuits typically allege that the corporation's directors
   breached their fiduciary duties by failing to ensure the corporation
   complied with anti-discrimination laws or by authorizing false
   statements in public materials regarding the corporation's commitment
   to diversity and inclusion.
   Although these derivative lawsuits have faced significant legal
   obstacles and many have been dismissed, shareholders continue to pursue
   these claims. DEI is no longer solely the responsibility of diversity
   officers—it is an important ESG risk management function.
   DEI missteps or failings can lead to costly private litigation, which
   can be avoided with proper controls.
   These cases emphasize the importance for corporations to appropriately
   embed ESG principles into their business operations and adequately
   reflect their commitment to customers, employees, and other
   stakeholders.
   Originally Published by Bloomberg Law