header-logo header-logo

ESG & failure to prevent fraud

21 March 2025 / Richard Reichman
Issue: 8109 / Categories: Features , Procedure & practice , ESG
printer mail-detail
211934
In the era of greenwashing, Richard Reichman examines new guidance that highlights the overlap between fraud & ESG risks
  • Explains how the failure to prevent fraud offence overlaps with ESG failings. For example, a breach of environmental regulations is an environmental fraud if false representations are made.
  • Companies should assess their fraud risks and develop appropriate measures.

The recently published guidance on the new failure to prevent fraud offence contains a striking focus on the overlap with regulatory offences, such as environmental, social, and governance (ESG) failings. This reflects a trend of regulatory failings being treated increasingly seriously and highlights the growing level of risk for corporates.

The past decade has seen a steep increase in the penalties for regulatory offences, such as safety and environmental breaches. Regulators have also increasingly considered fraud offences in conjunction with regulatory offences, with high-profile examples in areas such as environmental compliance, food safety and building safety.

This overlap exists because there is often a financial element to regulatory offences. For

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
In this week's NLJ, Steven Ball of Red Lion Chambers unpacks how advances in forensic science finally unmasked Ryland Headley, jailed in 2025 for the 1967 rape and murder of 75-year-old Louisa Dunne. Preserved swabs and palm prints lay dormant for decades until DNA-17 profiling produced a billion-to-one match
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
Writing in NLJ this week, Victoria Rylatt and Robyn Laye of Anthony Gold Solicitors examine recent international relocation cases where allegations of domestic abuse shaped outcomes
back-to-top-scroll