Jurisdiction(s):
United Kingdom

Climate and ESG Litigation and Enforcement in the Financial Sector: Trends, Drivers, Greenwashing and Disclosure Risks, Portfolio Emissions, and Practical Steps for Preparedness

Published by a LexisNexis Financial Services expert

Practice notes

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This Practice Note examines the rise in ESG and climate-focused litigation and regulatory enforcement, and outlines measures financial institutions can take to ready themselves for and reduce this risk.

Key points

Many financial institutions remain ill-equipped to handle climate risk, leaving them vulnerable to more climate-linked claims and enforcement. Simultaneously, a growing cohort of claimants is turning to litigation to push businesses towards climate-friendly policies.
Multiple drivers are fuelling more climate litigation and enforcement. While most pronounced in North America, other regions are rapidly catching up. As pivotal financiers of economic activity, financial institutions are increasingly targeted.
Until lately, cases chiefly sought to compel disclosure of climate information. The emphasis is shifting from allegations of inadequate disclosure to actions scrutinising what prudent financial management entails. Greenwashing-related claims are also increasing.
Financial institutions would be wise to plan for and lessen exposure, for instance by reviewing their corporate strategies around climate change and carbon...

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Joanna Ludlam

Baker McKenzie

Joanna is a co-chair of the Firm's Global Investigations Compliance and Ethics Group and a Partner in the Baker McKenzie Dispute Resolution team based in London. Joanna leads the market-leading Regulatory, Public & Media law team in the London office. Joanna advises clients in the areas of corporate investigations, administrative and public law, procurement law and litigation. She has particular expertise in the healthcare, technology and energy, mining and infrastructure sectors. Jo handles all kinds of high court litigation as well as investigations, including into issues of bribery, corruption and fraud. She advises clients, frequently at board-level, on regulatory compliance and crisis and reputation management. Joanna focuses on bringing practical solutions to client issues, and designed the firm's innovative Investigations Academy, a comprehensive and state-of-the-art training programme for investigations practitioners within both our team and our clients'. She is also a member of the...

Christine Cuthbert

Baker McKenzie

Christine is a special counsel in the Hong Kong disputes practice, specialising in corporate crime and investigations. She has over 14 years' experience in all forms of contentious work, including cross-border investigations and litigation, as well as other corruption-related matters. She has acted for clients in disputes with regulators and other parties, both through litigation and different forms of dispute resolution, including arbitration, mediation and complex negotiations.She previously worked for another top international firm in its offices in both Hong Kong and Australia....

Kimberly Everitt

Baker McKenzie

Kimberly Everitt is Baker McKenzie's senior knowledge lawyer for Financial Services Regulation & Enforcement, covering the EMEA region, and brings over a decade of experience to the team in both knowledge and fee-earning roles. Prior to joining the Firm, Kim held roles specializing in contentious financial services regulation knowledge, and her fee-earning roles covered non-contentious regulation in the private equity and general financial services sectors....

Mark Banks

Baker McKenzie

Mark is a Senior Associate in Baker McKenzie's Dispute Resolution department in London. Mark advises clients on high value disputes and investigations, including civil fraud, banking litigation and white collar crime investigations. Mark also has expertise advising on ESG-related supply chain investigations and group litigation, including cases relating to climate change, forced labour and human rights. ...

Web page updated on 21/05/2026

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