"Green" Corporate Governance

Document Type

Book Chapter

Publication Date

5-22-2025

Editor(s)

Jeffrey N. Gordon & Wolf-Georg Ringe

ISBN

9780191982118

Publisher

Oxford University Press

Language

en-US

Abstract

This chapter explores the rise and future of “green” corporate governance, including how concerns about the changing climate are shaping long-extant debates in corporate law.This area is difficult to survey in one short chapter, both because it has exploded in importance, and because it intersects in its own way with many of the topics discussed in the above chapters. Compliance, directors’ duties, corporate purpose, corporate groups, and investor stewardship, are just a few of the issues bound up in the rapid and recent shift toward thinking about climate change and its intersection with corporate governance.

The rise of Environmental Social and Governance (ESG) investing this past decade has been impossible to miss, especially once the practice became a political target for the conservative right in America.This chapter will discuss issues related to climate change and corporate governance, which overlap with “ESG” concerns (particularly, of course, the ‘E’), but are not necessarily synonymous with them. Though “greening” corporate governance is an all-encompassing strategy, this chapter will focus on the following three areas of recent development: first, climate-related investing, including shareholder stewardship; second, regulatory changes, and third, board duties in the face of climate risk.

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