Columbia Law School
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The universe regularly provides reminders to remain humble, including reminders that having expertise in one area does not make you an expert in adjacent areas. Former Attorney General Bill Barr recently provided one of those reminders with his opinion column
ESG
ISS Discusses New UK Strategy for Sustainable Finance
The U.K. Government published its updated Green Finance Strategy in March 2023. Comprehensive in nature, the Strategy articulates the U.K.’s ambition to become a world leader in the realm of sustainable finance and to retain the country’s status as a …
Debevoise Discusses SEC’s Division of Enforcement Year-End Results
On November 14, 2023, the U.S. Securities and Exchange Commission’s (“SEC” or “Commission”) Division of Enforcement (“Division”) announced its enforcement results for fiscal year (“FY”) 2023.[1] Disgorgement and penalties were the second highest in the SEC’s history at just …
Will Systematic Stewardship Save the Planet?
The convergence of environmental urgency and the rising power of “universal owners” – asset managers with broad-based portfolios, such as BlackRock – has kindled the hope among academics and activists that universal owners will leverage their power to push companies …
What Many Financial Economists Misunderstand About Divestment Campaigns
Sustainable investing is becoming a hot topic in financial economics. However, when it comes to the impact of divestment campaigns and related tactics on promoting sustainable investing, financial economists miss an important point. Many assume that shareholders can create impact …
Skadden Discusses Different Enforcement Approaches of EU, UK, and U.S. on Antitrust and Sustainability
On October 12, 2023, the UK’s Competition and Markets Authority (CMA) issued its final Green Agreements Guidance (Guidance). The Guidance is designed to help businesses seeking to collaborate on environmental sustainability initiatives by providing greater clarity on when UK competition …
SEC Announces Enforcement Results for Fiscal Year 2023
The Securities and Exchange Commission announced that it filed 784 total enforcement actions in fiscal year 2023, a 3 percent increase over fiscal year 2022, including 501 original, or “stand-alone,” enforcement actions, an 8 percent increase over the prior fiscal …
ISS Discusses Where ESG Performance Matters Most for Company Valuation
The January 2023 report ESG Performance and Enterprise Value: Do Firms with Stronger ESG Performance Have Higher Valuation Ratios? investigated the relationship between the ISS ESG Performance Score (a normalized version of the ISS ESG Corporate Rating) and two …
What Is the Global Impact of Mandatory Climate-Related Disclosures?
In response to extreme weather events, regulators and standard setters are developing climate-related reporting requirements and standards. The thinking behind making disclosure of firms’ climate-related risks mandatory is that it will allow the market to price these risks, thereby using …
Addressing Climate Change Requires Creating Utilities With Purpose
Environment, social, and governance (ESG) reporting has become a mainstay of corporate and investment decision-making. Corporations are increasingly making ESG disclosures to assess and limit risks, bolster their reputations, and attract and keep customers. In a new paper, we focus …
Arnold & Porter Discusses ESG, Whistleblowing, and Compliance Programs
On September 25, the U.S. Securities and Exchange Commission (SEC) announced a US$19 million settlement with the investment adviser DWS Investment Management Americas Inc. (DIMA) for material misstatements and shortcomings in its policies and procedures related to Environmental, Social and …
Time to Hold Corporations Accountable for the Human Rights Impacts of Climate Washing
Corporations have a history of using deceptive tactics to enhance their public image on environmental compliance while advancing their profit-focused objectives. This phenomenon began in the late 1980s, along with the rise of environmental consciousness. A new generation of environmentally …
To Whom Are Caremark Duties Owed?
A while ago, the National Center for Public Policy Research – a conservative organization that focuses its advocacy in the corporate and securities space – filed a lawsuit against Starbucks, arguing that its diversity equity and inclusion program ran
Latham & Watkins Discusses the Proposed ESG Auditing Rule You Know Nothing About
On June 6, 2023, the Public Company Accounting Oversight Board (PCAOB), the nonprofit corporation established by Congress to oversee the audit of public companies, proposed new auditing standards designed to further its “investor-protection mandate.”[1]These standards, if adopted, would …
How Competitive Pressure Shapes Firms’ ESG Performance
In the face of competitive pressure, is there a trade-off between a company’s financial performance and its commitment to environmental, social, and governance (ESG) activities? Is ESG a source of competitive advantage, or do managers simply spend other people’s money …
Do Employees Value ESG Initiatives?
While environmental, social, and governance (ESG) initiatives undeniably shape corporate reputations and stakeholder perspectives, a crucial question arises: Does the modern workforce truly value these efforts? At one end of the spectrum, critics argue that employees might prioritize job security, …
Navigating the Complexities of ESG
In recent years, Environmental, Social, and Governance (ESG) themes have taken center stage in the business world. As of October 2022, 8,000 firms globally have aligned themselves with the United Nations Framework Convention on Climate Change’s Race to Zero campaign, …
Do Corporations Care about ESG Ratings?
While environmental, social, and governance (ESG) ratings provide useful information to stakeholders, it’s unclear whether firms care about them. On the one hand, ESG activities may not align with the traditional goal of maximizing shareholder wealth. Further, ESG ratings often …
How Market Structures Can Prevent the Misuse of Funds Intended for ESG Projects
A tremendous amount of capital has already been committed to environmental, social, and governance (ESG). With it has come mounting concern over monitoring and guiding the proper integration of ESG into firms. ESG integration is not straightforward due to the …
Time for Private Equity to Separate the Green from the Greenwashing
It is de rigueur to label everything as sustainable – including in private equity. In a new working paper, we examine the claims of the top 100 private equity firms in the United States as to their committment to ESG. …