As 2025 kicks off, we stopped to take a look at the significant environmental, social, and governance (ESG) controversies of 2024, as we do every year. In this article, we dive into the three public companies with the most controversies for each pillar: environmental, social, and governance, analyzing the companies and the wider impact of the controversies themselves. Join us as we analyze these key moments that have not only influenced public opinion but also shaped the future of responsible business practices.
Starting with environmental risks, biodiversity and ecosystems, climate change, waste management, and atmospheric pollution emerged as the most scrutinized sub-risks in 2024. These issues were primarily tied to greenwashing, such as the Mercer Super case and energy companies' expansions at the expense of climate change.
In 2024, Shell faced a host of environmental controversies, particularly through its Nigerian subsidiary, Nigeria Delta, which was implicated in serious water pollution due to oil spills. The company dealt with several other notable controversies, including a €15 million compensation related to the spills, a New York City lawsuit over climate change, and a landmark emissions ruling from a Dutch court. Additionally, the company faced condemnation from U.S. lawmakers for alleged greenwashing practices, a carbon credit scandal, and a water contamination lawsuit resolved with a $230 million settlement.
Coming in at number three, TotalEnergies dealt with several environmental controversies, notbably protests related to its East African crude oil pipeline project in Tanzania and Uganda. The company has also been accused of greenwashing and misleading sustainability claims while struggling with oil leaks at its Donges refinery and Egina field. On top of these environmental controversies, TotalEngeries faced key governance and social controversies, including a $48 million fine by the U.S. Commodity Futures Trading Commission (CFTC) for attempting to manipulate the European gasoline market in March 2018. There are also ongoing investigations into an attack in Mozambique.
In 2024, Boeing faced significant challenges due to safety concerns and production controversies, which have fueled employee unrest and public skepticism. Recent incidents, including a missing door plug attachment on a Boeing 737 Max and investigations into quality control lapses at Boeing and its supplier Spirit AeroSystems, have eroded trust among small businesses reliant on the manufacturer. Whistleblower testimonies and increasing scrutiny from Congress and the FAA highlight systemic safety failures. These developments suggest a difficult path ahead for Boeing as it works to regain credibility amid ongoing struggles.
In 2024, Meta faced intense scrutiny and legal challenges due to multiple controversies, including a significant data breach, allegations of failing to protect children, and privacy concerns. The company settled a $1.4 billion lawsuit related to facial recognition practices and was fined $220 million by Nigeria for violating data laws. Additional lawsuits from school districts and the Consumer Protection Association highlighted issues related to social media addiction and mental health impacts on teenagers.
2024 was a legally challenging year for Alphabet, facing numerous antitrust issues globally. For instance, Allegro sued Alphabet for $568 million over anti-competitive practices, and the U.S. Justice Department accused Google of monopolies in the search engine and Android app markets. It has also faced an antitrust ruling, which it plans to appeal. In Europe, Google was scrutinized under the Digital Markets Act and fined 71 million euros in Turkey for anti-competitive behavior. Additionally, France imposed a $271 million fine on Google for using news content without publisher consent, and India began investigating Google's gaming app policies. These incidents highlight Alphabet’s ongoing regulatory battles across multiple continents.
2024 saw Apple wrestling with significant legal and regulatory issues worldwide. The Democratic Republic of Congo accused Apple of using conflict minerals, raising ethical sourcing concerns. In Europe, Apple settled for $14.4 billion over illegal tax benefits and faced a $2 billion EU antitrust fine related to Spotify. Additional investigations included non-compliance under the EU's Digital Markets Act, anti-competitive probes in Spain, and a UK class action over monopolistic data storage practices. In Brazil, Apple was required to remove restrictions on in-app payments. The company also settled a lawsuit involving an iTunes gift card scam and contended with a patent infringement lawsuit in China from Shanghai Xiao-I, highlighting Apple's extensive legal challenges in its global operations.
In conclusion, the controversies surrounding environmental, social, and governance issues in 2024 have underscored the urgent need for accountability and transparency within corporations. As these companies grapple with significant backlash and legal challenges, it is clear that stakeholder expectations are evolving. The demand for responsible practices is louder than ever, and the consequences of neglecting these issues can be severe, impacting not just public perception but also financial stability and sustainability.
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