Updated
Guide
Climate risk governance and greenwashing risks: guidance for solicitors advising companies
This guide provides general information in relation to solicitors providing advice to companies on climate risk governance and greenwashing risks. It also covers how these risks might impact upon solicitors’ and directors’ duties.
13 Oct 2023
17 minutes read
This guide is applicable to both in-house and private practice solicitors.
It aims to:
- help solicitors advise directors and companies on good climate risk governance and mitigating greenwashing risks
- inform solicitors as to their duty to advise companies on their duties under the Companies Act 2006 and climate-related disclosures
Some areas of this guide will not be relevant to all companies and some companies will need to take into account a broader range of considerations.
This guidance should be read with our guide on the impact of climate change on solicitors in the context of solicitors’ professional duties.
Further reading
Useful resources to learn about greenwashing and climate risk and governance:
- Commonwealth Climate Law Institute:
- Practical Law guide on narrative reporting: climate-related and environmental disclosures in annual company reports
- Bank of England Climate Financial Risk Forum guidance on:
- Bank of England results of the 201 Climate Biennial Exploratory Scenario (CBES)
- National Audit Office good practice guide on climate change risk
- Financial Reporting Council guidance on ESG and climate-related reporting
- Financial Conduct Authority:
- Results of the 2021 Climate Biennial Exploratory Scenario (CBES)
- Task Force on Climate-Related Financial Disclosures (TCFD):
- Ceres report on running the risk: how corporate boards can oversee environmental, social and governance (ESG) issues
- Chapter Zero board toolkit
- Lawyers for Net Zero (for in-house solicitors)