Compliance officers have a growing role in corporate sustainability efforts |
US companies including Dell and Western Union are relying more on the work of their chief compliance officers as they seek to demonstrate to ESG-focused shareholders their commitment to sustainability. Such companies believe that the role played by compliance in ensuring that employees act ethically is key to corporate efforts to attract sustainability-minded investors. “A compliance officer is viewed as a leader in ethics, in good corporate practices,” observes Taylor Pullins, a former sustainability director for Houston-based oil and gas producer Noble Energy. “Right there, they have a role in disclosing internally to employees and to the market about why they are a responsible corporation.” The Wall Street Journal notes the legal risks associated with ESG commitments, as regulators take steps to protect investors from claims that could be viewed as deceptive — or so-called “greenwashing.” Dave Curran, who leads law firm Paul, Weiss, Rifkind, Wharton & Garrison’s sustainability practice, says: “Over the last couple of years, [ESG] has become a mountaintop of risk . . . Lawyers and compliance executives are getting more and more involved in everything from pressure-testing disclosures, to analysing processes and procedures, to tracking, measuring and monitoring these programs.” |
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