Legal plays a critical role in solving today's challenges
The acronym ESG stands for Environment, Social and Governance. These three factors can be used to measure and tell the story of the sustainability and societal impact of a company.
- The environmental factor considers how a company performs as a steward of the physical environment. It takes into account a company’s utilisation of natural resources and the effect of its operations on the environment.
- The social factor specifically concerns the way in which a company manages its stakeholders and considers stakeholder welfare. It involves, for example, a company’s relationships with its workforce, the unions and the society in which it operates.
- The governance factor measures a company’s decision-making, from sovereigns’ policymaking to the distribution of rights and responsibilities among different participants in corporations, including the board of directors, managers, shareholders, and stakeholders. General and Corporate Counsels which deal with governance should consider the impact of ESG on the overall group structure and governance model.
Today, managing a company’s legal considerations means thinking about environmental, social and governance issues. Done right, this goes well beyond ticking boxes. Indeed, the legal aspect is key to meet ESG goals and to create sustained outcomes that drive value and fuel growth, whilst strengthening our environment and societies.
The 'L' in ESG
An ever-growing number of investors and stakeholders expect companies to pursue sustainability, to address risks such as climate change and social injustice and to commit to transparency, sustainable real estate, diversity, inclusion and fair pay.
At the same time, standards and regulations around ESG are expanding rapidly at local, national and global levels. They range from (Non-)Financial and Corporate Sustainability Reporting Regulations to Green Tax and Anti-bribery and Corruption Laws.
These continually evolving regulations – as well as society’s rising expectations around sustainability – result in increasing demands for ESG-focused legal services. We guide our clients through this changing landscape both from a transaction and a compliance perspective.
At PwC Legal we focus on the unique challenges faced by each business. We can assist businesses to keep up with ongoing changes and best practices during complex challenges with compliance.
Contact us
