Sustainability as Superlaw: Reinventing Your Playbooks
As part of a new series on ESG, this monthly column titled "The Law of ESG," will address what in-house counsel need to know about the changing landscape. In this first column, we look at how a savvy general counsel attuned to ESG issues can adapt to this new age of superlaw. Below are some practical ways in-house counsel can reinvent their playbook to embrace the new world order.
August 23, 2021 at 10:03 AM
6 minute read
From the ExpertsDemands on in-house legal teams have never been greater. In addition to anticipating and handling companies' legal obligations, general counsel must now also manage the significant legal and reputational risks that arise from public commitments companies make in response to stakeholder demands that the private sector address the most pressing environmental, social and governance (ESG) issues of the day.
We often refer to this vast, overarching set of mandates as "superlaw." These commitments — generally self-imposed and without the weight of law — are more akin to decrees than written statutes. Examples of "superlaw" include instances where companies publicly promise to reduce water usage, cut carbon emissions, pay a "living wage" or diversify their board and workforce.
Even if there is no legal mandate involved, companies can still face serious consequences if they miss a stated target. Accountability could come in the form of shareholder activism, government investigations, reputational damage or even litigation. Or, as we have seen recently, employees, consumers and investors could revolt.
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