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Climate (and ESG) Risk: The Growing Focus on Board Accountability

Board members are expected to have adequate knowledge and understanding of climate-related and ESG risks. Legislators and regulators around the world have long recognised that one of the most effective ways to drive change is...more

FCA Considers Establishing ESG Guiding Principles

FCA director highlights areas of concern in relation to ESG reporting and provides recommendations. Richard Monks, Director of Strategy at the UK Financial Conduct Authority (FCA), recently delivered a speech on the...more

US Department of Labor Puts ESG Investing on Ice

In its finalized rule amending ERISA, the DOL makes financial factors paramount in a fiduciary’s responsibility to investors. On October 30, 2020, the US Department of Labor (DOL) published Financial Factors in Selecting...more

The ABCs of ESG: How Are Companies Going Beyond the Basics? [Video]

Environmental, social, and governance (ESG) issues continue to rise in importance for global companies, a trend driven by investors, employees, customers, and other stakeholders. How are companies approaching ESG risks and...more

Directors, Take Note: ESG Can Drive Value in 2020

The message that environmental, social, and governance issues can drive stockholder value resonates ever more clearly today. In 2017, Latham lawyers discussed how directors can use environmental, social, and governance...more

50 Shades of Green Finance: An Untapped Opportunity for Private Equity

Sustainable finance and its surrounding infrastructure offers growing potential for deals and green innovation. The global sustainable finance market has expanded rapidly in recent years, approaching US$320 billion in new...more

China’s War on Pollution Hits M&A Deal Environment

In recent years, China has taken significant steps in developing its environmental policy. In 2014, China’s Premier Li Keqiang declared a “war on pollution”, which began in earnest in 2017....more

China Prioritises Environmental, Social, and Governance Factors in Overseas Investment

The Chinese government has announced a US$4 trillion investment in developing infrastructure globally under the “Belt and Road Initiative” (BRI). Under the BRI the Chinese government will spend US$750 billion on overseas...more

PRI’s Private Equity Terms Guidance Focuses on Environmental, Social, and Governance (ESG) Factors

On 13 July 2017, Principles for Responsible Investment (PRI) launched guidance on incorporating environmental, social, and governance (ESG) provisions in private equity fund terms. The publication, Incorporating Responsible...more

The European Commission Places Environmental, Social and Governance (ESG) Issues Centre Stage

The European Commission has recently published plans to integrate sustainability considerations into decisions made by investors within the EU. More specifically, the EU is looking to spell out in legislation, that the...more

Sustainable Loans - Breaking the Mould for Sustainable Investment

Royal Philips, a health technology company, has recently agreed to an innovative revolving credit facility agreement with a margin linked to the company’s year-on-year sustainability performance improvement. The agreement was...more

The OECD’s View on Integration of ESG Issues into Investments – What Next?

The Organisation for Economic Co-operation and Development (OECD) published a report (OECD Report) on investment governance and integration of environmental, social and governance (ESG) factors on 2 May 2017. The OECD Report...more

France Adopts a New Law Requiring Companies to Diligence their Supply Chains in Relation to Human Rights, Environmental, and...

On March 27, 2017, the French Parliament adopted a Law On The Duty Of Vigilance For Parent And Subcontracting Companies. The law amends the Commerce Code and requires companies to establish and implement a plan for...more

Sustainable Investment and ESG Compliance - Emerging Litigation

There is an increasing desire amongst PE firms to publicise value creation through the use of bespoke metrics to measure improvements and value derived from (ESG) policies including improved reputational risk management;...more

Potential Liability for Ignoring Non-Financial Factors in Investment Starts With Climate Change

Commercial risks to businesses can no longer be neatly divided into financial and non-financial considerations. For example, there is growing recognition, particularly in the pensions sector, that a failure to take account...more

Environmental Transparency Becomes Obligatory in 2017 as EU Directive 2014/95 Comes into Effect

Unprecedented globalisation, coupled with significant concerns around climate change, has taken environmental and social responsibility from a voluntary concept to something more obligatory and enforceable. Consequently,...more

Consultation Launched on Corporate Social Responsibility

The European Commission is currently consulting on how large public-interest entities should disclose environmental and other non-financial information, as required by Directive 2014/95/EU Corporate Social Responsibility...more

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