Do’s and Don’ts of ESG Clauses From Both Sides

Author: Christine Uri, In-House Attorney
Published: 09.11.2022
You may be thinking to yourself, “ESG Clause. What is that?” But Environmental, Social, and Governance (ESG) clauses are starting to pop up in template agreements. And there is a good reason for it. Public and multi-national companies are under increasing scrutiny on their ESG practices from regulators, investors, activists, and customers. In many cases, companies are also held accountable for the environmental and social practices of their suppliers. As a result, they want contractual guarantees of good ESG practices. So how can we manage ESG risk better? Here are some do’s and don’ts for suppliers and customers. As a…