Environmental, social and governance issues

This overview is a guide to the Corporate content within the Corporate Governance—Environmental, social and governance issues in corporate governance sub-topic. It introduces the key issues that organisations need to consider in relation to environmental, social and governance (ESG) matters in the corporate governance context. It explains the relevant terminology and ESG reporting frameworks and initiatives. It also looks at human rights due diligence and the relevant legislation relating to modern slavery and political donations.

What is ESG?

Environmental, social and governance (ESG) is an umbrella term used to refer to the environmental, social and governance issues or aspects of an activity. In the context of corporate governance, the Chartered Governance Institute describes ESG as covering:

•
Environmental—the company’s impact on the natural environment and the environment’s impact on the company, including climate change impacts, direct impacts (the company’s own activities) and indirect impacts (throughout its value chain, including suppliers and customers or investments)
•
Social—interactions with, responsibilities towards, and impact on stakeholders
•
Governance—compliant and ethical conduct of the company’s business, in line with its purpose and enabled

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Corporate News

FCA publishes Policy Statement PS24/19: Enhancing the National Storage Mechanism

The Financial Conduct Authority (FCA) has published Policy Statement PS24/19: Enhancing the National Storage Mechanism in which it summarises the feedback received to Consultation Paper CP24/17, its longer-term plans for the National Storage Mechanism (NSM) and its final rules and guidance, which will enable the FCA to make it easier for NSM users to find regulated information. The new rules will appear in the FCA Handbook on 3 November 2025, which is when they will come into force. The technical note guidance will take effect at the same time.

High Court confirms broad government discretion in UK national security reviews

Competition analysis: In this judgment, the High Court issued its first ever ruling on a challenge to an unwinding order imposed by the UK government under the National Security and Investment Act 2021 (NSIA 2021). In a clear victory for the government, the court confirmed the broad discretion of the Secretary of State to determine the appropriate remedy for resolving national security concerns arising from a problematic transaction, up to and including forced divestment of the acquirer’s shareholding in a qualifying entity, as well confirming that the overall process followed by the Government in such cases is fair and proportionate. The judgment is also notable for the insights that it provides into the process followed by Government officials and ministers for in-depth reviews under the NSIA 2021, with the level of detail going well beyond what has been disclosed in the Government’s own guidance to date. Written by Becket McGrath, partner at Euclid Law Ltd.

Corporate weekly highlights—19 December 2024

This week's edition of Corporate weekly highlights includes: an FCA consultation on the regulatory framework for the Private Intermittent Securities and Capital Exchange System (PISCES), FCA Primary Market Bulletin 53 containing a consultation on changes to technical and procedural notes in the FCA Knowledge Base following changes to the UK listing regime, The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 which will increase financial thresholds for the purposes of certain Companies Act reporting requirements, news of the UK Sustainability Disclosure Technical Advisory Committee’s recommendation to endorse IFRS Sustainability Disclosure Standards, PERG publishing its 17th report on conformity with the Walker Guidelines, together with an amended version of the guidelines and ISS Governance publishing updates to its UK and Ireland proxy voting guidelines 2025.

Cabinet Office publishes assessment report on National Security and Investment Act

The Cabinet Office has released a report detailing the assessment and conclusions of the evaluation of the National Security and Investment Act (Notifiable Acquisition) (Specification of Qualifying Entities) Regulations 2021. This review provides insights into the government's analysis of the current regulatory framework and its implications for national security considerations in the context of credible entity acquisitions.