Company directorships: ESG and the risks of private actions - part 2

In the second of a three-part series looking at some of the key areas for directors to keep front of mind, Simon Fawell and Paul Brehony, partners, and Kate Gee, counsel at Signature Litigation LLP, focus on heightened risk to directors from external claims by shareholders and investors

Risks for company directors are on the rise. Environmental, social and governance issues (ESG) will doubtless be at the forefront of those claims. Increased governmental and societal focus on ESG means that companies will need to say more about these issues, with greater specificity and be prepared to back up their statements in this space.

Directors, more than ever before, need to engage and understand what is being said on their behalf and whether they can stand behind it. 

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