In recent years, corporations have started investing more heavily in environmental, social, and governance (ESG) initiatives and have become increasingly focused on employing ESG standards in their operations. ESG efforts align with the modern trend of corporate boards adopting a philosophy of “corporate responsibility,” in which they consider the long-term impact of their operations and strive to advance the interests of a wider variety of stakeholders. Though often associated with preventing climate change and reducing carbon emissions, corporate ESG concerns actually are broader in scope and include focus on sustainability, diversity, equality, employee welfare, and cybersecurity protocol.

Companies are investing in ESG initiatives, not only to strengthen their public image and be responsive to stakeholders, but also because a demonstrated commitment to ESG initiatives is becoming critical to doing business in the modern age. For example, many lending firms and institutional investors are shifting their investments toward companies that meet their ESG standards, and financiers may even withhold financing for certain projects that fail to meet those standards. As a result, failing to develop strong ESG initiatives may result in limited access to capital and lost business opportunities.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]