Business Insight

Jail time as a potential penalty for non-compliance with sustainability reporting law: How did we get here?

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    Over the past decade, a suite of laws have been introduced imposing a range of obligations on businesses to do more in the ESG space. Early disclosure requirements were transparency-based, however, recent policy developments indicate that as disclosure laws strengthen, so too is the level of scrutiny on the effectiveness and meaningfulness of steps taken by businesses to address ESG matters. 

    It will become increasingly challenging for businesses to simply spin a positive sustainability narrative – instead, there is an increasing expectation that businesses take concrete steps to address ESG matters. Accordingly, it is imperative for a business to work together with its advisers to implement effective measures to identify and manage ESG matters in its business and supply chains now.

    There is a widespread recognition that environmental, social and governance matters (including human rights) are inextricably linked in ensuring a transition to net zero that is 'just' for all. It is not enough for a business to focus its sustainability/ESG narrative simply on climate change and its transition to carbon neutrality. High profile corporate controversies have shown that shareholder value, investor returns, brand reputation and executive resignations are most impacted by social and governance matters than, for instance, carbon emissions reduction. In this context, it is important for a business to work together with its advisers to implement a framework that addresses all elements of the E, S and G.

    Against this background, Ashurst is pleased to launch a paper regarding the global evolution of ESG related laws and regulations. The paper provides an overview of that evolution, highlighting key themes and making general observations regarding what may lie ahead to enable businesses to stay ahead of the curve.  

    If you are interested to find out how Ashurst can support your organisation on this journey, please contact us for a discussion.

    Download report here

    PDF 1.39 MB

    This publication is a joint publication from Ashurst Australia and Ashurst LLP, which are part of the Ashurst Group.

    The Ashurst Group comprises Ashurst LLP, Ashurst Australia and their respective affiliates (including independent local partnerships, companies or other entities) which are authorised to use the name "Ashurst" or describe themselves as being affiliated with Ashurst. Some members of the Ashurst Group are limited liability entities.

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    Ashurst Risk Advisory LLP is a limited liability partnership registered in England and Wales under number OC442883. Ashurst Risk Advisory LLP is not regulated by the Solicitors Regulation Authority of England and Wales.

    Ashurst Risk Advisory LLP services do not constitute legal services or legal advice, and are not provided by qualified legal practitioners acting in that capacity. The laws and regulations which govern the provision of legal services in the relevant jurisdiction do not apply to the provision of risk advisory (non-legal) services.

    For more information about the Ashurst Group, which Ashurst Group entity operates in a particular country and the services offered, please visit www.ashurst.com.

    This material is current as at 2 July 2024 but does not take into account any developments after that date. It is not intended to be a comprehensive review of all developments in the law or in practice, or to cover all aspects of those referred to, and does not constitute professional advice. The information provided is general in nature, and does not take into account and is not intended to apply to any specific issues or circumstances. Readers should take independent advice. No part of this publication may be reproduced by any process without prior written permission from Ashurst. While we use reasonable skill and care in the preparation of this material, we accept no liability for use of and reliance upon it by any person.

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

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