Companies are navigating a shifting sea of demands related to environmental, social and governance issues. ESG is shorthand for a broad and developing set of principles for evaluating non-financial corporate performance towards socially responsible outcomes. Although these issues are not new, corporate boards have recently been confronting increasing interest in ESG initiatives from investors and securities regulators.

Given this sharpening focus, there are understandable questions about how to set clear standards, measure compliance and police problems. The result is a cacophony of stakeholder claims, not just lawsuits related to corporate crises, but also actions seeking to proactively shape corporate conduct—both brought in support of ESG initiatives, and in favor of changing the channel.

Developing Disclosure Rules