All organisations, whether small or large, will sooner or later be confronted with environmental, social and governance (ESG) matters. Due to the enormous amount of EU and local ESG legislation, litigation and public scrutiny, organisations are increasingly seeking for ways to manage their ESG footprint, which can be a major challenge. Embedding new legislation will have a profound impact on the business model and strategy of your organisation, your sustainability targets and the progress you are making to achieve your ESG targets for 2030, 2040 and 2050. ESG will also have a major impact on your internal policies and due diligence processes throughout the value chain and on the public disclosures you are making. About Green Swans Green Swans, sometimes known as climate black swans, share many characteristics with black swans. Black swan events refer to a metaphor used to characterise events that are unexpected, have a significant impact, and are frequently incorrectly justified in retrospect. The phrase originated from an old Roman proverb that expressed the European belief that black swans were extinct until Dutch explorers rediscovered them in Australia in 1697. The phrase was later reinterpreted to refer to an unexpected and significant event. Taleb recognised in 2007, before the financial crises of 2008, that the really big risks reside in incidents. His black swan theory recognises the unspotted risks that nobody thought possible before because everyone had similar expectations and used a rational reference model. The problem with using solely quantitative methods is that they assume probabilities. The real tail risks reside in incidents that no one had yet thought possible and are overlooked. Green Swans differ from historical financial black swan events being the accumulation of atmospheric CO2 beyond certain thresholds leading to irreversible impacts. Their likelihood of occurrence is not reflected in historical data, and it is impossible to rule out the potential of extreme values as recognised by the Bank for International Settlements in 2020 and by Elkington in 2021. We are a law firm and are only reading the laws. Obviously, we do not predict the occurrence of Green Swans events themselves nor do we make any calculations to that effect. In an ironic way we use the trade name Green Swans to help businesses that are confronted with a tsunami of emerging (EU) climate regulations. Legal due diligence, making policies, contract management and preventing litigation can help companies to overcome this regulatory challenge.
Our contribution to the International Comparative Legal Guides 2025 can be accessed here.
