Evolving ESG Clauses in Commercial Contracts: Legal and Environmental Implications

This article explores the integration of Environmental, Social, and Governance (ESG) clauses into commercial contracts in light of evolving regulatory frameworks such as the EU Corporate Sustainability Due Diligence Directive (CSDDD). It discusses the legal complexities and enforceability issues, particularly in the context of Anglo-Saxon legal traditions, and highlights how ESG obligations influence supply chain dynamics. The paper also analyzes potential disputes arising from vague ESG commitments and proposes solutions to strengthen contractual mechanisms that support corporate sustainability goals.