O'Melveny Insights 2023

6 Companies large and small want to demonstrate responsible corporate behavior, but an ESG label can come at a cost. As the pressure to meet ESG expectations increases, so do the potential risks for failing to measure up. Investors, regulators, employees, and the public now closely scrutinize ESG-related statements, demand more disclosure, and, increasingly, take legal action if they don’t like what they see. 02