Companies
are
under
increasing
pressure
from
their
stakeholders
to
improve
Environmental,
Social,
and
Governance
(ESG)
performance.
The
legal
department
plays
a
crucial
part
in
spearheading
the
necessary
shifts
in
daily
tasks
and
operational
strategies.
Legal
departments
should
start
by
aligning
their
practices
with
emerging
ESG
expectations.
By
taking
a
proactive
approach,
the
legal
department
not
only
ensures
legal
compliance
but
also
becomes
a
catalyst
for
change,
embedding
ESG
principles
throughout
the
organization’s
fabric.
Taking
these
five
steps
will
make
legal
departments
ESG-ready:
-
Review
upcoming
regulations.
Make
this
your
first
action,
If
you
have
not
done
it
already,
you
really
cannot
delay
any
further.
A
lot
of
regulations
on
the
horizon
require
disclosure
and
(in
the
EU)
supply
chain
due
diligence.
These
regulations
may
apply
to
your
company,
or
you
may
be
pulled
into
their
orbit
as
a
result
of
client
requirements.
Legal
teams
must
identify
applicable
ESG
regulatory
requirements
and
communicate
them
to
the
business. -
Appoint
ESG
champion(s).
Change
requires
leadership.
To
make
progress
on
ESG,
someone
in
your
department
will
need
to
make
it
their
job.
This
may
be
all
a
full-
or
part-time
role
depending
on
the
size
of
your
organization.
If
you
are
a
solo
GC
—
congratulations,
you
are
the
new
ESG
champion.
Large
legal
departments
with
global
operations
will
require
a
network
of
team
members
spanning
geographies. -
Educate
your
team.
Legal
teams
need
to
come
up
to
speed
on
ESG
concepts,
terminology,
frameworks,
regulations,
and
reporting
standards.
Start
with
your
champions.
Encourage
them
to
review
existing
resources
(like
PLC),
attend
training,
and
talk
with
experts.
Your
champions
can
then
bring
the
information
most
relevant
to
your
company
back
to
your
larger
legal
team. -
Update
your
compliance
program:
Enhancing
compliance
programs
to
incorporate
ESG
requirements
is
critical.
Whether
it
is
inside
or
outside
of
the
legal
department,
the
compliance
function
will
need
to
conduct
a
comprehensive
review
of
existing
policies
and
procedures,
identify
areas
where
ESG-related
risks
may
arise
(such
as
environmental
regulations,
labor
standards,
and
data
privacy),
develop
training
programs
to
educate
employees
on
ESG
compliance,
and
implement
monitoring
mechanisms
to
ensure
ongoing
adherence
to
these
requirements. -
Identify
key
issues.
A
broad
range
of
issues
are
included
under
the
heading
ESG.
The
importance
of
the
different
issues
depends
on
your
industry,
size,
location,
and
stakeholders.
You
will
need
to
identify
your
company’s
key
issues
and
where
they
intersect
with
the
legal
department.
Consider
these
areas:
-
Supply
chain:
Supply
chain
disclosure
and
due
diligence
standards
are
increasing
sharply.
Your
legal
team
will
need
to
build
these
considerations
into
the
contracting
process
and
terms.
This
includes
conducting
thorough
assessments
of
suppliers’
environmental,
social,
and
governance
practices
to
ensure
alignment
with
ESG
principles.
Implementing
contractual
clauses
that
require
suppliers
to
adhere
to
ESG
standards
can
help
mitigate
risks
and
strengthen
your
company’s
commitment
to
sustainability.-
Disclosures:
Investors,
regulators,
and
consumers
are
focusing
on
company
disclosures
regarding
environmental
and
social
factors.
It
is
crucial
for
your
legal
team
to
work
closely
with
leaders
responsible
for
internal
and
external
communications
to
ensure
accurate
and
consistent
messaging
across
all
public
statements,
including
websites,
news
stories,
and
regulatory
filings.
Failure
to
meet
this
standard
could
give
rise
to
allegations
of
greenwashing,
damaging
the
company’s
reputation,
and
undermining
trust
among
stakeholders.
-
-
-
Human
resources
policies:
Human
resources
policies
play
a
vital
role
in
supporting
an
ESG
framework.
Your
legal
team
should
collaborate
with
the
HR
department
to
review
and
update
existing
policies,
such
as
those
related
to
diversity
and
inclusion,
employee
well-being,
and
health
and
safety.
Emphasize
the
importance
of
creating
a
positive
work
environment
that
aligns
with
ESG
principles
and
fosters
employee
engagement
and
satisfaction.
-
-
-
Governance
structure:
Strong
governance
is
essential
for
effective
ESG
implementation.
Legal
departments
must
review
the
existing
governance
structure
and
recommend
any
changes
necessary
to
effectively
implement
an
ESG
framework
or
comply
with
ESG
regulations.
Collaborate
with
the
board
of
directors
and
executive
leadership
to
establish
clear
lines
of
accountability
and
responsibility
for
ESG
matters.
This
includes
incorporating
ESG
considerations
into
leadership
charters
and
establishing
reporting
mechanisms
to
monitor
and
disclose
progress.
-
By
getting
its
own
house
in
order
and
actively
participating
in
the
development
and
implementation
of
ESG
initiatives,
legal
departments
can
provide
valuable
leadership
and
support
in
integrating
ESG
principles
into
the
company’s
overall
strategy.
Embracing
ESG
will
lower
your
company’s
risk
while
also
making
it
more
competitive
in
the
context
of
evolving
market
expectations.
Christine
Uri
is
the
Chief
Legal
and
Sustainability
Officer
at ENGIE
Impact –
a
company
that
enables
global
corporations
to
accelerate
their
net-zero
carbon
journey.
Christine
began
her
career
as
a
business
attorney
20
years
ago,
providing
legal
counsel
to
businesses
ranging
from
local
start-ups
to
international
Fortune
500s.
She
is
a
general
counsel,
sustainability
leader,
public
speaker,
and
content
creator.
Christine
believes
that
improving
corporate
performance
on
ESG
measures
is
critical
to
building
a
more
sustainable
world.
She
is
passionate
about
inspiring
and
empowering
in-house
legal
teams
to
provide
ESG
leadership. You
can
follow
Christine
on LinkedIn. This
article
reflects
Christine’s
personal
opinions
and
not
the
opinions
of
her
employer.