Legal Side of ESG: Top Three Issues to Watch in 2022

The SEC’s proposed rules and ESG-related litigation risk are among the key ESG themes impacting the regulatory and legal space of the energy sector this year.

Given the rapid development and growth of ESG disclosure obligations and practices, the board and senior management at energy companies should continue to mitigate the risk of, and manage any ongoing, ESG litigation. (Source: YP_Studio/Shutterstock.com)

Paul Davies, Nicola Higgs, Sophie Lamb QC, Ryan Maierson, Colleen Smith, Michael Green, Edward Kempson, James Bee, and Anne Mainwaring, Latham & Watkins

Governments, regulators, non-governmental organizations, the private sector and other important stakeholders worldwide continued to emphasize ESG issues in 2021. The energy sector was no exception to this trend as companies and investors were confronted with a host of ESG issues including the transition to a net-zero economy, evolving emissions reporting requirements and a growing focus on supply chains. Given the societal importance that is now placed on ESG issues, Latham & Watkins LLP expect this growth trend to continue throughout 2022. 

There are three ESG-related developments and trends that will likely impact the world of energy in 2022.

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