ESG and the courts: how Boohoo, Shell and the PRA reflect a new age of accountability

Anna-Rose Davies

The environmental, social and governance (ESG) expectations facing UK financial institutions are shifting, not just in boardrooms and annual reports, but in legal risk exposure too. Earlier this year, the Prudential Regulation Authority (PRA) launched a consultation setting out proposed changes to its supervisory approach to how banks and insurers manage climate and environmental risks. These changes would raise the bar for the industry. The move strengthens the PRA's message that ESG is no longer a matter of reputation management; it is now a core financial risk that directors and boards must respond to accordingly.