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ARTICLE · 30 JANUARY 2026

Evolving ESG-related Enforcement Risk In 2026

A&O Shearman
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ESG-driven enforcement is continuing to mature and is not limited to soft-law expectations or investor pressure.

United StatesCriminal Law

ESG-driven enforcement is continuing to mature and is not limited to soft-law expectations or investor pressure. Across key jurisdictions, regulators and prosecutors are scrutinizing disclosures, product claims, and supply chain diligence with greater focus, while activists and NGOs are using novel legal theories to encourage governmental action and corporate behavioural change.

In 2026, there will be a dual risk environment: in Europe and certain other regions, there will be heightened regulatory and criminal enforcement, while in some areas of the United States, companies will face increased political scrutiny and litigation risks.

Expect ongoing investigative activity in some jurisdictions, with ESG themes emerging as predicates in fraud, consumer protection, sanctions, customs, and money laundering cases.

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