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Corporate Transparency and ESG Litigation: What South Florida Businesses Should Know

Environmental, Social and Governance (ESG) initiatives used to be viewed largely as corporate goodwill efforts or investor-relations tools. But for companies in Fort Lauderdale and across South Florida, ESG has evolved into a critical legal area. With new investigations, increased regulatory scrutiny, and growing shareholder expectations, businesses can no longer treat ESG as optional branding—it demands strategic legal readiness.

At Conrad & Scherer, we observe three major trends shaping ESG litigation risk for South Florida companies—and we offer clear guidance on how to handle them.

1. The Rising Tide of ESG Litigation and Enforcement

Litigation tied to ESG disclosures and practices has surged. Florida’s Attorney General recently launched investigations into ESG-related practices, targeting companies and advisors for potential violations of consumer protection and antitrust laws.

We’re also seeing increasing scrutiny of companies accused of “greenwashing”—making broad claims about sustainability, equity, or climate-conscious practices without providing evidence. For South Florida businesses operating in real estate, hospitality, finance, and development, ESG language in marketing or public statements must align tightly with operational realities.

2. Florida’s Unique Regulatory and Litigation Landscape

Florida has passed legislation limiting ESG factors in public investments and procurement. Companies doing business with government entities or state-funded institutions must carefully review their ESG-related policies, particularly when submitting proposals or responding to RFPs.

If a Fort Lauderdale-based developer markets itself as “sustainable” or “carbon-neutral” without documentation or performance data, it could face reputational and legal consequences. These types of claims must be substantiated and carefully disclosed—especially when public funding or oversight is involved.

3. Key Legal Risk Areas for South Florida Companies

South Florida companies face ESG-related risk in multiple areas:

• Disclosure & Governance: ESG claims made in investor materials, press releases, or corporate reports must be backed by measurable actions and board oversight.

• Antitrust & Collaboration: Industry-wide ESG initiatives—like collective net-zero pledges or supplier exclusions—may be seen as attempts to restrict competition.

• Procurement & Contracting: Firms that include ESG criteria in contracts with government or quasi-public entities must ensure compliance with state statutes.

• Operational & Climate Risk: Businesses in coastal South Florida may be held liable for failing to account for flood risk, sea level rise, or climate resilience if those risks impact safety, valuation, or long-term performance.

4. Actionable Steps for Fort Lauderdale Businesses

To manage ESG-related risk proactively, businesses should:

• Map your ESG narrative: Ensure your public-facing commitments match actual policies and measurable actions.

• Review disclosures: Audit investor communications, marketing materials, and annual reports for consistency, accuracy, and legal compliance.

• Audit procurement and contract language: Especially if your firm bids on state or municipal projects.

• Strengthen board-level oversight: Create dedicated ESG or compliance committees and establish clear lines of accountability.

• Engage legal counsel early: The right attorney can identify high-risk practices before they become exposure points in litigation.

5. What to Expect If ESG Litigation Arises

ESG litigation typically involves complex, multi-faceted claims. You may face simultaneous pressure from investors, regulators, business partners, and the public. Expect:

• Extensive document production, including internal communications and board materials

• Allegations of misleading statements or unfair practices

• Questions about how ESG decisions were made and who authorized them

Having legal counsel with experience in business litigation, regulatory compliance, and Florida-specific ESG law is critical.

Why This Matters in Fort Lauderdale and South Florida

South Florida’s key industries—real estate, finance, development, tourism, and health care—are ESG-sensitive sectors. With Fort Lauderdale’s rapid growth and increasing regulatory oversight, businesses cannot afford to treat ESG as an afterthought. A poorly structured ESG program can lead to costly litigation, reputational harm, and lost business opportunities.

Contact Conrad & Scherer

Our team understands the complexities of ESG in Florida’s evolving legal environment. We help clients assess risk, respond to regulatory inquiries, and defend against ESG-related litigation. If your business is based in Fort Lauderdale and is navigating ESG commitments or facing related legal challenges, contact us today for a confidential consultation.