Corporate culture and social expectations of corporate business practice have shifted since the mid-2000s. Shareholders and the broader community now expect businesses to operate in a manner that takes account of the broader public interest (as opposed to solely the profit motive).
The reality that exists in today’s community is that a failure to act in accordance with environmental, social and governance(ESG) obligations and principles poses significant corporate risk in many areas of business operation.
This note highlights Australian regulators’ recent attention to ESG statements generally but, in particular, the environmental space, and the steps businesses may take to ensure that their ESG claims are less susceptible to challenge, and the financial and reputational consequences that may flow from ESG challenges through litigation.
