Environmental, Social and Governance issues continue to create a paradigm shift in the way businesses are run.
The latest wave saw increased interest in novel causes of action and claims. In particular, litigants are alleging breaches of corporate and consumer law – primarily, misleading or deceptive conduct – in claims against entities in the banking and financial services and oil and gas sectors4.
Speaking at the Australian Financial Review’s CFO Live Summit in December 2021, ASIC Commissioner Cathie Armour stressed that companies with net zero projections need a plan detailing how they’ll achieve those targets – as well as their ESG commitments more broadly.
We expect climate-related shareholder resolutions to feature across the board.
The ISSB is developing a global baseline of sustainability disclosure standards, which will pave the way for consistency.
We expect the private sector – particularly, large emitters – will continue to be interested in emissions reduction partners, as they look to secure a supply of ACCUs and meet forecast needs.
Stakeholders – including shareholders, employees and the public – expect companies to be proactive in tackling sexual harassment, gender discrimination and racism.
On Indigenous rights and cultural heritage, stakeholders expect companies to focus on ‘FPIC’ – the free, prior and informed consent of Indigenous peoples affected by the company’s operations.
The first two years of the pandemic saw a shift in employment relations and the normalisation of working from home.
Businesses need to decide their approach to mandatory vaccinations in the workplace, if they haven’t done so already.
As cybercrime increases, along with the financial, legal and reputational costs to businesses targeted, more attention will be paid to whether directors meet their duties in this space.
In New Zealand, around 200 entities – including all registered banks, credit unions, and building societies with total assets of more than NZ$1 billion – will be required to produce climate-related disclosures, in an effort to meet the Government’s net zero carbon target of 2050.
2022 will provide a practical demonstration of the appetite for ESG-led change that governments, major corporates and financial institutions all have, and how far this will feed into smaller businesses and everyday life.