Evolving ESG Clauses in Commercial Contracts: Legal and Environmental Implications

Toqsanbaeva Ayjamal

LLM, Tashkent state university of law

##semicolon## ESG clauses, commercial contracts, sustainability, due diligence, supply chains, CSDDD, corporate responsibility, contract law, environmental regulation, arbitration.


सार

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.


##submission.citations##

1. European Commission. (2024). Corporate Sustainability Due Diligence Directive (CSDDD).

2. European Commission. (2023). Sustainable Corporate Governance Initiative.

3. The Chancery Lane Project. (2024). Climate Contract Playbook.

4. United Nations. (2011). Guiding Principles on Business and Human Rights.

5. Masood, S. (2024). Are ESG clauses enforceable? Legal Cheek Journal.

6. UK Government. (2006). Companies Act 2006.

7. World Economic Forum. (2023). Supply Chain Sustainability Report.