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Role of Lawyers in ESG is Changing From “No” to “Go”

Dec 21 2021 #climate, #compliance, #esg, #investors

This blog from international law firm Freshfields Bruckhaus Deringer offers interesting perspectives on how the legal function is evolving along with corporate ESG programs. I’ve seen this myself in client and member firms. Freshfields attributes this change to four things:

The global increase in ESG/sustainability laws. The firm points out that climate laws and policies now number over 2,000 according to the latest research by the London School of Economics.
Sustainability litigation. “According to London School of Economics, there are close to 400 climate litigation cases globally, which has led to many companies seeking to understand their exposure to climate litigation risk. For more information on this evolving topic see Freshfields’ in-depth analysis of Legal Risk and Climate Change.”
Sustainability now features prominently in M&A transactions. “As companies adjust their strategies to adapt to the new reality, they are also reviewing their business portfolios and acquisition strategies to minimise long-term risk.”
Investor interest in corporate governance and disclosures.

Lawyers are having to learn new things and adapt to ESG along with most other corporate functions. Freshfields characterized this change as lawyers no longer being the “‘No’ brigade.”

Finally, today’s blog will be the last one of the week as we take time for Christmas. We’ll be back next week but in the meantime, we wish everyone a safe and happy holiday season, however you celebrate.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile

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