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Disputes emerging as potential threats for British enterprises, according to a recent survey by Clyde & Co.

Investigate strategies employed by Clyde and Co in redefining legal approaches for companies encountering fresh perils in the business terrain.

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UK Companies Face Potential Legal Conflicts, According to Clyde & Co's Study
UK Companies Face Potential Legal Conflicts, According to Clyde & Co's Study

Disputes emerging as potential threats for British enterprises, according to a recent survey by Clyde & Co.

In a complex and rapidly evolving global business environment, companies are grappling with an increasing use of lawfare in disputes and the implications of climate change on their operational risks.

According to a survey by global law firm Clyde & Co, nearly half (48%) of business leaders anticipate a surge in disputes due to tough economic conditions and a multifaceted risk landscape that includes geopolitical tensions, economic instability, and technological challenges. This trend, often referred to as lawfare, involves the strategic use of legal systems to achieve objectives without physical conflict, and it is reshaping how businesses assess and manage risks.

Originally a concept associated mainly with political and military contexts, lawfare is now spreading into the corporate world. Businesses are increasingly employing legal tactics to challenge competitors, influence markets, or protect themselves from regulatory and compliance risks.

The rise of lawfare means companies must fine-tune their legal and compliance functions, anticipate legal maneuvers by adversaries, and integrate legal considerations into business strategy at a deeper level. This can include preemptive litigation, regulatory challenges, or leveraging legal frameworks to gain competitive advantage without resorting to open conflict.

Meanwhile, the issue of climate change is becoming secondary for many organizations until it has a significant, sustained, and material impact on their operations. However, Clyde & Co has published a report exploring the legal, commercial, and liability risks that climate change creates for businesses and their boards. The report looks at how most companies are addressing these risks.

The ongoing challenge of regulatory compliance is delaying investment, with 64% of businesses saying that obligations are materially impacting their growth plans for 2025. The report by Clyde & Co is focused on the legal, commercial, and liability risks that climate change poses for businesses and their boards.

Operational risk and people challenges are the top two risks for 2025, with 61% of respondents indicating a high impact. The survey of over 400 business leaders from around the world examines the biggest risks facing organizations today, including geopolitical risk, economic risk, technological challenge, and operational risks.

In the face of these challenges, companies are adopting more proactive, complex legal strategies as part of their overall risk management and competitive playbooks. For instance, Clyde & Co has successfully defended a group of 20 insurance companies against a USD $470m energy construction claim, demonstrating the firm's expertise in navigating complex legal disputes.

Moreover, 57% of business leaders said they are actively preparing for investor actions as scrutiny on their operations increases. The report titled "Climate change: a burning issue for businesses and boardrooms" discusses the heightened risk environment due to climate change.

The survey also reveals that 46% of businesses surveyed this year are reconsidering or changing where they operate in future due to the threats posed by geopolitical risk. The case related to damage to the Siri oil field in Norway serves as a stark reminder of the potential consequences of geopolitical instability.

In conclusion, the increasing use of lawfare in business disputes and the challenges posed by climate change are intensifying the legal risks companies face globally. Companies must adapt and evolve their risk management strategies to navigate this complex landscape effectively.

[1] Clyde & Co. (2021). Lawfare in business: The growing wave of legal conflicts tied to complex geopolitical, economic, and operational risks worldwide. Retrieved from https://www.clydeco.com/en/insight/lawfare-in-business-the-growing-wave-of-legal-conflicts-tied-to-complex-geopolitical-economic-and-operational-risks-worldwide

[2] Clyde & Co. (2021). 2025 Corporate Risk Radar. Retrieved from https://www.clydeco.com/en/insight/2025-corporate-risk-radar

  1. Companies are adopting more complex legal strategies to manage risks in the face of an increasing use of lawfare in business disputes, which involves the strategic use of legal systems to achieve objectives without physical conflict.
  2. The ongoing challenge of regulatory compliance, particularly with regards to climate change, is delaying investment and affecting growth plans for 2025, according to the 2025 Corporate Risk Radar report.
  3. In the corporate world, companies are employing legal tactics in various ways, such as challenging competitors, influencing markets, or protecting themselves from regulatory and compliance risks as part of the wealth-management industry.
  4. A survey by Clyde & Co identified operational risk and people challenges as the top two risks for 2025, while also highlighting the impacts of geopolitical risk, economic risk, technological challenge, and operational risks on businesses.
  5. As the legal landscape continues to evolve, businesses must fine-tune their compliance functions, anticipate legal maneuvers by adversaries, and integrate legal considerations into their business strategy, even in the area of personal finance.

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