Book contents
- The Cambridge Handbook of EU Sustainable Finance
- The Cambridge Handbook of EU Sustainable Finance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Acknowledgements
- Part I Introduction
- Part II Ethics and Sustainability in Corporate Law, Corporate Governance and Conduct
- 3 Firm Value versus Social Value
- 4 The Hardening of Corporate ESG
- 5 Stakeholder Engagement
- 6 Bank Governance and Sustainability
- 7 Risk Culture and Sustainability
- 8 Conduct Risk as a Possible Approach for Enhancing Awareness and Management of ESG-Related Risks
- 9 Sustainability and Executive Compensation
- Part III Integrating Sustainability in Financial Markets Regulation
- Part IV Ensuring Financial Stability and Sustainability
- Part V Financial Innovation and Sustainability
- Index
- References
4 - The Hardening of Corporate ESG
from Part II - Ethics and Sustainability in Corporate Law, Corporate Governance and Conduct
Published online by Cambridge University Press: 30 January 2025
Book contents
- The Cambridge Handbook of EU Sustainable Finance
- The Cambridge Handbook of EU Sustainable Finance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Acknowledgements
- Part I Introduction
- Part II Ethics and Sustainability in Corporate Law, Corporate Governance and Conduct
- 3 Firm Value versus Social Value
- 4 The Hardening of Corporate ESG
- 5 Stakeholder Engagement
- 6 Bank Governance and Sustainability
- 7 Risk Culture and Sustainability
- 8 Conduct Risk as a Possible Approach for Enhancing Awareness and Management of ESG-Related Risks
- 9 Sustainability and Executive Compensation
- Part III Integrating Sustainability in Financial Markets Regulation
- Part IV Ensuring Financial Stability and Sustainability
- Part V Financial Innovation and Sustainability
- Index
- References
Summary
This chapter documents the parallel paths the US, UK, and EU have taken in transmuting voluntary corporate ESG commitments into hard law – statute, regulation, and judicial precedent.Whereas stakeholder capitalism was originally the province (mainly) of academics, international organizations, and special interest groups, in the years immediately preceding the 2020 pandemic, major businesses worldwide publicly declared their commitment to the so-called stakeholder model in the US, UK, and in continental Europe. These corporate behaviours were encouraged by proxy advisors andinstitutional investors.The chapter questions the extent to which the current generation of ESG-stakeholderism is in fact a sustainable business practice, capable of maintaining its current pace over a longer-term horizon. We also discuss how voluntary corporate ESG commitments have, over a short period of time, hardened into more formal sources of law and regulation, with examples from the US, EU, and UK. In conclusion, we identify some adverse consequences to this trend.
Keywords
- Type
- Chapter
- Information
- The Cambridge Handbook of EU Sustainable FinanceRegulation, Supervision and Governance, pp. 80 - 102Publisher: Cambridge University PressPrint publication year: 2025
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