Suz Mac Cormac was featured in Ethisphere, discussing the evolution of ESG (environmental, social, and governance) and why lawyers will need to step up in this area in 2022.
"Until about 10 years ago, I would respond to queries about whether board members would be breaching their fiduciary duties if they prioritized ESG; there was a common misconception that there would always be a trade-off between doing good and generating profit for shareholders," Suz said. "The good news is this conception has largely been debunked. There has been a sea change and most investors, boards, and management now believe that they must embrace ESG not just because it is the right thing to do but because it is critical to the financial success of their business and investments. Most law firms have established ESG practices over the past two years and are advising companies and investors on ESG as an extension of their compliance and environmental practices."
She added: "While there is certainly a strong compliance element of ESG (see below) and for the past 10 years we have been advising companies and investors to consider ESG as part of legal compliance (with anti-corruption) and also ERM (enterprise risk management), companies and investors will continue to lag behind their competitors if they fail to consider ESG as critical to their governance practices, corporate form, and investment. Markets and investment climates are shifting very quickly, and companies need to ensure that they are not only looking backwards (compliance with current regulation) but also adopting practices and structures that enable them to see around corners and prepare for what is coming next."
Read the full article.
Originally published by Ethisphere
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