Environmental Social Governance

WEEK 11 & 12

TRANSNATIONAL MARKETS, CORPORATE LAW, AND ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL LAW

• Environmental litigation

• Transboundary impacts arising from Transnational Environmental Law (TEL).

• Social justice in the context of environmental law

• TEL case that exemplifies these dynamics.

Review previous class

WEEK 11 & 12

TRANSNATIONAL MARKETS, CORPORATE LAW, AND ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL LAW

Environmental, social, and governance

Various international organizations have provided useful mechanisms to facilitate discussion regarding corporate sustainability, to transmit ideas, and to promote coordination:
Global Reporting Initiative’s standards;
International Integrated Reporting Council’s International Framework;
International Organization for Standardization’s ISO 26000 guidelines;
Organization for Economic Co-Operation and Development’s Guidelines for Multinational Enterprises;
United Nations initiatives include the Global Compact, the Guiding Principles on Business and Human Rights, and the Principles for Responsible Investment.
Meanwhile, other international organizations have emphasized corporate sustainability issues in carrying out their particular mandates:
The International Monetary Fund and the World Bank have brought such issues to bear upon their efforts to promote economic and financial development and stability.

Regulatory progression of ESG in India

The concept of corporate social responsibility (CSR) has had a pivotal status in the debates surrounding corporate law and governance at the turn of the century. Although CSR was ensconced in the idea of voluntarism by which companies and their boards are invited to pay attention to the interests of various constituencies affected by a company’s activities, it has also acquired the status of a legal obligation. 
While ESG is generally considered to be market-driven, corporate and securities regulators around the world are beginning to emulate the ESG orientation through legal or regulatory instruments, especially when it comes to ESG reporting. 

India has taken significant steps in developing legislative and regulatory measures towards Environmental Social Governance (ESG). The focus on directors' duties to consider shareholders as well as other constituencies has laid a strong statutory foundation for the legal recognition of ESG, both on a financial basis and an entity approach.

Additionally, Indian financial regulators, including the Securities and Exchange Board of India (SEBI), have made strong regulatory moves to develop ESG reporting and incorporate ESG concerns as part of shareholder stewardship initiatives

Enforcement and Compliance
Data Availability and Quality
Awareness and Education
Integration of ESG into Decision-Making
Balancing Short-Term and Long-Term Objectives

​​Challenges

Creating a Framework for Accountability
Enhancing Transparency and Disclosure
Encouraging Responsible Investment

​​Potential Usefulness