ESG: why it matters to general counsel

Author: Linklaters | Published: 23 Apr 2019

Environmental, social and governance – or ESG – is a huge buzzword in the investment community. In-house lawyers have an important role to play

Legislators, investors, regulators and other key stakeholders are increasingly attaching greater importance to the integration of environment, social and governance (ESG) factors in decisions being taken by corporate and institutional actors that are subject to fiduciary duties. As a result, general counsel are facing a balancing act between traditional notions of fiduciary duties and duties of care and skill – which turn on maximising value in financial terms – and the drive to expand fiduciary duties to include ESG factors where these have potential long-term financial implications....