Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Former Ironshore, Lexington CEO Kevin Kelley Dies
  • Lemonade Posts Another Quarterly Loss
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

A Class-Action Wave Is Coming for ESG Claims

By Tim Quinson | January 25, 2023
Email This Subscribe to Newsletter
  • Article

Lawyers are bracing for an increase in ESG-related cases as corporate disclosure requirements stiffen around the world.

A survey by the law firm Norton Rose Fulbright found that 28% of more than 430 general counsel and in-house litigation leaders said their so-called ESG (Environmental, Social, and Governance) dispute exposure increased in 2022, and 24% expect it to deepen over the next 12 months. The key reasons are the absence of clear environmental, social and governance metrics and requirements, and the heightened regulatory scrutiny on the importance of ESG.

The issue has joined employment and labor disputes, cybersecurity and data protection in what Norton Rose refers to as “class-action areas of future concern.”

The growing attention of corporate litigators in industries ranging from financial services to technology corresponds with the growing tide of class actions tied to greenwashing. This is partly due to the California’s plaintiffs’ bar having “figured out the blueprint for how to bring these cases,” according to Norton Rose. In a nutshell, this means companies that put out generalized ESG statements will sometimes find themselves as targets in product-specific cases.

“Across industries, our clients are feeling pressure from customers, shareholders and regulators, among others, to increase their disclosures of their ESG goals and performance,” said Rachel Roosth, disputes partner at Norton Rose. “If these disclosures are perceived as false, misleading or insufficient, litigation may ensue.”

The Norton Rose report found that while only 8% of those surveyed said they were actually involved in ESG-related class actions last year, roughly 37% of those who said they are wary of future class actions view ESG as “a major driver.”

So while the kinds of litigation risk may vary across industries, companies in all sectors can benefit from assessing their ESG-related litigation risks and how to mitigate them, Roosth said.

The issues vary depending on the industry. While a senior lawyer at an unidentified science and technology company is focused on topics such as supply-chain management and fair labor, the general counsel of a large nonprofit health system says the organization is concerned about health disparities among different community groups, according to Norton Rose.

“Many people think of climate change and the energy industry when they think of ESG,” Roosth said. “But the physical and transition risks of climate change aren’t limited to one industry, and stakeholders are pushing for more information on a variety of other ESG topics, like waste management, [diversity, equity and inclusion] efforts and risk-management practices.”

The food and beverage sector had the highest proportion of respondents (40%) who expect increased exposure to ESG disputes in the coming year, Roosth said. That may reflect litigation concerns around lawsuits tied to recycling and single-use plastics, she said.

The US Securities and Exchange Commission is still reviewing thousands of comments on its proposal to force publicly traded companies to disclose more about the risks they face due to a changing climate, as well as the greenhouse gas emissions in their production and supply chains. The market regulator is expected to finalize the proposal before the end of March.

The rule is almost certain to be litigated by industry groups before it can go into effect, which means many US-traded companies would continue to set their own parameters for climate-related disclosures for some time.

But that’s unlikely to last forever.

Photo: The Thurgood Marshall United States Courthouse, which hears cases from the United States District Court for the Southern District of New York and United States Court of Appeals for the Second Circuit, stands in Lower Manhattan. (Photo by Drew Angerer/Getty Images)

Copyright 2025 Bloomberg.

Topics Lawsuits Claims

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

judge holds gavel in courtroom delivers verdictTrump Media CEO Nunes Loses Defamation Lawsuit Over Rachel Maddow Show
The List Is Here! IJ’s Top 100 Independent Agencies
Florida Judge Blocks State Agency for Citizens Claims Disputes, But Insurer Appeals
Homeowners Insurers Still Boosting Rates; Top Carriers Ranked: AM Best

Written By Tim Quinson

More From Author

Interested in Claims?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: class action lawsuits, environmental social and governance (ESG) criteria, ESG, greenwashing, litigation, regulation
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Minnesota Cities Consider Government-Run Marijuana Shops
Tesla Secures Texas Rideshare Permit for Robotaxi Operation
Why Experts Say States Need to Get in the Business of Floodplain Buyouts
Zurich Insurance Reports Record H1 Profit of $4.2B, Driven by Middle Market, Specialty
More News Features

Read This Next

  • A Class-Action Wave Is Coming for ESG Claims
  • Bird's Eye View: Parallels from Piloting Planes to Leading an Agency
  • Insurer Can't Sue for Unjust Enrichment by Deceptive Insured, Appeals Court Says
  • New Law Orders Louisiana Insurers to Show Prior Policy Premiums
  • Attempts to Reform Litigation Funding Disclosure Continue on the Hill

Insurance Jobs

  • Sales Agent - Encino, California
  • Insurance Account Executive/Manager Wanted Flexible Hours, Potential Equity - Dix Hills/Deer Park, NY
  • Outside Property Claim Representative Trainee - Las Vegas, NV
  • Personal Lines Account Manager – Insurance – REMOTE - Remote
  • Cyber Recovery Infrastructure Managing Engineer - Remote, IL
MyNewMarkets
  • DIY Home Inspections Are Taking Over, Firms Say
  • Six Things to Know About Umbrella Insurance
  • What to Know About Construction and Environmental Liability
  • How Embedded Insurance Supports Real Livelihoods in the Growing On-Demand Economy
  • How to Keep Third-Party Events from Becoming First-Party Losses
Claims Journal
  • California Blaze Burning for Week Chars Thousands of Acres
  • France Contains Wildfire But Heat Wave Set to Intensify
  • Lemonade Posts Another Quarterly Loss But Car Growth Continues
  • Missouri's 2025 Insured Losses From Severe Weather Approaching $2 Billion
  • Prudential in $100M FTC Settlement Over Unit's Healthcare Promises
Academy of Insurance education
  • August 7 EPLI Basics
  • August 14 Managing and Insuring Reputational Risk
  • August 19 How To Write: Flood
  • August 21 Workers' Comp Crash Course

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map