ESG: three letters that can be the key to the success of a company – and a law firm. The acronym comes from English for “Environmental, Social and Governance”, that means ASG – Environmental, Social and Corporate Governance.
In crumbs, ESG/ASG deals with sustainable principles, increasingly required by the corporate world. In practice, companies can take initiatives in the following ways:
- Environmental: encourage practices that adopt a preventive, responsible and proactive approach to environmental challenges; initiatives to promote and disseminate social and environmental responsibility; encouraging environmentally responsible technologies;
- Social: eradicate all forms of forced, child labor; support freedom of association and recognize the right to collective bargaining; encourage practices that eliminate discrimination in employment;
- Governance: fighting corruption in all its forms; invest in a plural and diverse corporate board; encourage code of ethics and minority shareholder rights.
To get an idea of the importance that ESG has gained in recent times, the French bank BNP Paribas, the largest financial institution in France, announced that it will not provide credit to companies that raise cattle or produce soy in areas of the Amazon region converted to pasture. or crops after 2008. The decisive decision was well received in the international market: the bank’s shares closed on a high after the announcement.
Law firms must be aware of ESG. This is because the application of good practices will be required from law firms on two fronts: internal and external in a wide field of opportunities.
Externally, companies will begin to demand from the law firms that represent them expertise in ESG so that they can adapt to the new criteria. This point is linked to the firm’s internal demand, as it is necessary to show that the partners actually apply ESG to offer this service. For ESG, one should not give space to the saying “blacksmith’s house, wooden skewer”.
Good practices related to ESG are for small, medium and large law firms. Is your office, reader, already implementing these best practices?
To deepen the discussion, Migalhas conducts the ESG seminar – fundamental themes. Participants will be able to better understand the new sustainable protagonism of organizations with practical cases.
The event will be online, on September 2nd, Thursday, 9am to 12:30pm.
To sign up and check out the entire schedule, click here.