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ClientEarth warns FMCG companies that relying on recycling is insufficient to mitigate legal risks and urges a shift toward upstream plastic reduction. The document details risks from mandatory due diligence laws, product liability for health harms, and anti-greenwashing enforcement, specifically targeting misleading 'recyclable' claims. It also highlights the impact of the EU's Corporate Sustainability Reporting Directive (CSRD) on plastic-related disclosures.

ClientEarth has issued formal warnings to major UK gas networks, boiler manufacturers, and the Energy and Utilities Alliance (EUA), alleging that they have engaged in anti-competitive conduct. The organization argues that these entities coordinated to mislead consumers about the viability of hydrogen home heating and disparaged heat pumps to maintain the dominance of gas-based heating. Additionally, ClientEarth identifies potential price-fixing agreements regarding 'hydrogen-ready' boilers and synchronized price increases in response to the Clean Heat Market Mechanism (CHMM). The document asserts that these practices distort competition, harm consumers by preventing informed choices, and obstruct the UK's climate targets.

The document argues that the Global Minimum Tax (GMT) reduces the effectiveness of traditional corporate tax incentives in SEZs, such as tax holidays and reduced rates, for large multinational enterprises. It suggests that countries should shift from profit-based tax competition toward improving the overall investment environment and utilizing non-fiscal incentives. The brief also warns of legal risks associated with reforming these incentives, specifically regarding investor-state dispute settlements (ISDS) and stabilization clauses, while recommending that SEZs be leveraged to support the energy transition and renewable energy investment.

The document analyzes how the OECD's Pillar Two GloBE rules, which mandate a 15% minimum effective tax rate for large multinationals, undermine traditional SEZ tax incentives like corporate income tax exemptions. It argues that such incentives are often ineffective for long-term competitiveness and recommends that countries shift toward non-fiscal incentives, cost-based incentives, and sustainable energy investments to avoid revenue loss to other jurisdictions.

The report argues that biodiversity loss represents a material financial risk—categorised as physical, transition, and liability risks—for the seafood and agriculture sectors and their financiers. It details how these sectors depend on ecosystem services while simultaneously driving biodiversity loss through land-use change, pollution, and overexploitation. The document outlines specific legal risks under EU regulations, such as the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD), as well as national laws in France, Germany, and Norway. It concludes that robust due diligence and transparent disclosure are essential for mitigating these risks and ensuring long-term business viability.

The document defines greenwashing in the financial sector as false or misleading representations of environmental impact and warns that it can misallocate capital and undermine the Paris Agreement. It outlines five categories of evolving regulation—disclosure, labelling, ratings, taxonomies, and net zero integrity—and classifies enforcement actions into brand, product, financing, and reporting greenwashing. To mitigate risk, the guide proposes 'five pillars' of guarding against greenwashing: screening claims, ensuring transparency, aligning internal actions with public image, monitoring regulatory changes, and adhering to fiduciary duties.

The report finds that limiting global warming to 1.5C requires a rapid decline in oil and gas production, with a minimum 65% reduction by 2050. It argues that developing new oil and gas fields is incompatible with this goal and would likely create stranded assets. To replace fossil fuels, the world must significantly scale up wind and solar deployment; the annual investment gap for these technologies is estimated at USD 450 billion until 2030, a sum that could be covered by redirecting funds currently slated for new fossil fuel exploration (USD 570 billion annually). The report also examines the 'dash for gas' in Europe following the Russian invasion of Ukraine, concluding that existing infrastructure can meet medium-to-long-term demand if consumption is reduced. Finally, it highlights legal risks from investment treaties, which could cost governments up to USD 340 billion in compensation claims, and criticizes the lack of transparency and ambition in corporate net-zero targets.

The document argues that carbon offsets are scientifically flawed and act as a barrier to necessary emissions reductions, exposing companies to significant legal risks including consumer protection lawsuits, regulatory enforcement, and shareholder actions.

The document examines the rise of 'greenwashing' litigation related to plastics, where companies are challenged over misleading claims about recyclability, biodegradability, and corporate sustainability. It details a proliferation of class actions in the US and Canada, NGO-led challenges in the EU and US, and increasing enforcement by regulators like the FTC and CMA. The briefing also identifies an emerging 'second generation' of lawsuits brought by shareholders who allege financial losses resulting from deceptive environmental statements.

The document examines the increasing legal vulnerability of companies regarding plastic leakage into the environment. It highlights significant settlements for plastic pellet spills in the US and Europe, the potential for lawsuits against consumer brands and producers for macroplastic waste, and the role of economic losses—such as those in the fishing and tourism industries—in driving future strategic litigation.

The document outlines the legal risks associated with plastic waste management, specifically focusing on incineration, recycling claims, and the illegal trade of plastic waste. It highlights how companies are increasingly exposed to litigation due to the environmental and health impacts of incineration, the perceived failure of recycling to solve the plastics crisis, and breaches of international waste shipment treaties like the Basel Convention.

The document warns governments that force majeure is a "double-edged sword" during the COVID-19 pandemic, as they may face claims from companies while simultaneously needing to invoke force majeure to defend their own emergency measures. It recommends a cautious approach, prioritizing negotiated short-term solutions "without prejudice" and avoiding broad public legal statements that could undermine future defenses in contract or investor-state disputes.

The report reveals that logging in the Solomon Islands is occurring at 19 times the sustainable rate, with natural forests predicted to be exhausted by 2036. It identifies systemic illegalities, including lack of landowner consent and breaches of logging codes, while noting that local communities see few benefits. China is identified as the dominant importer, purchasing 82% of the country's logs, and is urged to regulate its supply chain to mitigate commercial and environmental risks.

ClientEarth has alerted Glencore and its investors to potential legal risks arising from the company's 2016 corporate reporting. The organization contends that Glencore's assertions—specifically that its coal assets will not become stranded and that demand will continue to grow—ignore critical market trends and independent analyses. ClientEarth highlights that the omission of disruptive factors, such as the rise of renewables and peaking demand in China, could be viewed as reckless or fraudulent under the UK's Financial Services and Markets Act 2000, potentially granting shareholders the right to claim compensation for losses.

The report details how fossil fuel companies have historically used advertising to spread climate disinformation and currently engage in 'greenwashing' to mislead consumers about their transition to clean energy. It highlights a surge in global climate litigation, noting that as of May 2021, there were 1,841 cases across 39 countries. The document warns advertising agencies that they are not immune to litigation and may face talent loss or financial penalties for their complicity in these campaigns. It provides case studies of legal actions against BP, Shell, and other 'Big Oil' companies to illustrate the growing trend of holding polluters accountable for deceptive trade practices and human rights violations.