Business Insight

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

By Jo En Low

03 July 2024

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 1.36 MB

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