ESG and the changing role of the General Counsel; which one will you play?; Read below Blog (#12) for guidance from Tandem Strategic Legal Advisory

Date: 27 October 2023 (foto credit by Dall.E)

Title: Blog #12 of Tandem Legal Strategic Advisory focuses on the impact of ESG and Sustainability on the role of General Counsel.

I just returned from Lausanne, Switzerland where I participated in the IMD Program: “Driving Sustainability from the Boardroom”. The link to the Program is found here: https://www.imd.org/governance/dsb/esg-board-training/

One of the many learnings of this recommended Program is that many topics come together in ESG Strategy and Implementation. The good news is that a General Counsel has many parts of the ESG Framework embedded in his or her role. For instance when discussing ESG in the Boardroom, topics such as Governance, Ethics, Compliance and Regulations are relevant. And this is your bread and butter as a General Counsel.

What is new is that the company you work for will need to not only develop an ESG Strategy but also implement it and- last but not least -report on it as well. And that is where the General Counsel can help out and make a contribution.

First, focus is important. Many companies look at the different regulations that apply to them and start gathering data. Wrong! I would recommend to first look at which topics you need to focus on in your industry. A very helpful tool for this is the following from the SASB, the Sustainability Accounting Standards Board: https://sasb.org/standards/materiality-map/ This relates to so-called materiality topics that apply to your industry. This really helps to focus you ESG efforts, try it out! The idea is that you first start with those materiality topics that apply to your industry and get these under control. You can expand from there is resources allow or if its fits your ESG ambitions.

Next, the Boardroom will increasingly have to deal with shareholder activists that want to make changes that relate to ESG. For instance do you include in your selection criteria of the by-laws or articles of association that the Board Member should have a clean track record when it comes to Sustainability? Otherwise your appointments may be scrutinized by activist shareholders. As General Counsel you have governance in your portfolio, thus in these types of discussions you can and should play a role advising the Board how to address the dialogue and demands from an activist shareholder.

Want to know more about ESG Strategy and Implementation and how a General Counsel can help address these topics? Feel free to contact me Tandem Strategic Legal Advisory.

Written by Tjeerd Wassenaar, Founder of Tandem Strategic Legal Advisory: “Contributing to bringing your ‘ Corporate Event’ or Legal Strategy to the finish line; in Tandem”