Recently, environmental, social and governance (ESG) issues have risen to a position of prominence for many organizations. In fact, 90% of the S&P 500 published some form of ESG disclosure in 2020, an increase from the 20% in 2011.

Recently, environmental, social and governance (ESG) issues have risen to a position of prominence for many organizations. In fact, 90% of the S&P 500 published some form of ESG disclosure in 2020, an increase from the 20% in 2011. 

The drive to a more strategic focus around ESG risks and opportunities is often fueled by the growing expectations of stakeholders consumers, industries and other external communities. Growing expectations from stakeholders require a more intentional focus around ESG factors to drive long-term value. Simply put, a broadened corporate decision-making framework that encompasses ESG often encompasses delivering value to all stakeholders as a means to driving shareholder value.

Combine the chief legal officer’s (CLO) or general counsel’s (GC) typical deep understanding of risk, exceptional communication skills and standing as the established conscience of an organization—and it’s easy to see how well positioned the CLO/GC role is to help guide ESG programs as priorities shift and evolve. 

A 2021 Association of Corporate Counsel survey found that 15% of CLOs say ESG reports to them, and another 8% felt it should. 

Whether they directly oversee ESG efforts or not, CLOs have an opportunity to take on a leadership role in bringing these practices into the fold. But, where to begin?

Continued