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The ESG Litigation Guide provides detailed analysis of chosen European and international ESG litigation cases, both decided and pending. It includes details on the claims raised by the parties, the relevant legislation, public statements by interested parties, as well as links to judgements and press reports.
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Following the global and Latin American trend, Environmental, Social and Governance (ESG) litigation is on the rise in Brazil. In 2022, the Supreme Court ruled on seven measures related to social and environmental policies in Brazil. The constitutional complaint was brought by four political parties filed against the Brazilian federal government for failing to properly manage the “Fundo Clima”, a fund created in 2009 to finance projects aimed at reducing greenhouse gas emissions. The so-called "Green Package" covers issues such as the protection of the Amazon forest, air quality and the climate crisis. In this case, the Supreme Court gave the Paris Agreement a privileged hierarchical position in the Brazilian legal system, ruling that the executive branch has a constitutional obligation to provide the necessary resources, including financial support, to ensure the mitigation of climate change.
The sectors most affected by ESG are agribusiness, energy, banking and private equity. In particular, banks are required to comply with a set of guidelines related to the disclosure and management of ESG financial information and the consideration of climate, social and environmental risks in their business activities.
Brazil signed the Escazú Convention, the first international treaty on the environment in Latin America and the Caribbean, and the first in the world to include provisions on the rights of environmental defenders.