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April 13, 2023

Are parent companies liable for ESG claims against their foreign subsidiaries?

Royal Courts of Justice
There is currently no automatic right in England and Wales to pursue parent companies for the acts of their subsidiaries (Photo: Odd Andersen/AFP via Getty Images)

Upcoming EU due diligence regulation is seen as a game-changer for ESG lawsuits outside the overseas jurisdiction in which the alleged offences took place, but such cases are already being heard in UK courts.

Although the EU Corporate Sustainability Due Diligence Directive is yet to be finalised, its potential impact on corporate litigation is already being tested in court.

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