Reverse Discrimination Risks to Consider in Managing ESG Aspirations

Environmental, social and corporate governance (ESG) efforts can create hazards for multinationals with US operations due to the risk of reverse discrimination litigation under US law. According to McDermott’s Ludia Kwon, a recently filed lawsuit (Kafiti v. AB Electrolux, Case No. 3:21-CV-00029 (W.D. NC. 2021)) highlights the risk in implementing ESG efforts in the United States. US employment discrimination laws swing both ways, as the prohibition against sex discrimination protects men as well as women.

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