Regulatory Resets, Divergence, Increased Litigation

Regulatory Resets, Divergence, Increased Litigation: Emerging Sustainability and ESG Trends

Political shifts in 2025 have highlighted diverging attitudes towards ESG and the resulting tensions have important consequences. Among the key trends to emerge are regulatory and enforcement reversals in the US, regulatory policy shifts across several jurisdictions, including the EU which has been at the forefront of sustainability regulation, and the rise of ESG-related litigation, as stakeholders increasingly turn to the courts to pursue their goals.

Building upon our theme "Between a rock and a hard place: managing diverging views of ESG," we examine these trends, focusing on recent regulatory and enforcement developments and the rise in litigation across the US, Europe and APAC. The implications for companies are profound: navigating a labyrinth of fragmented standards, mitigating legal risks and aligning ESG strategies with the realities of each jurisdiction.