Environmental, Social and Governance (ESG) hub

Environmental, Social and Governance

(ESG)

Sustainable business | Responsible futures

Building a sustainable and resilient future is one of the world's most urgent transformational challenges.

And that challenge falls on all of us, including business.

And as we build that future, our role, contribution and impact will not only be heavily scrutinised by regulators, but by a broad range of stakeholders including shareholders, employees, communities, our peers and activist groups.

But implementing sustainable ESG practices into your business is no longer just a "nice to have" or "ethical" decision – it creates real risk but also real opportunity, both reputational and financial.

We work with our clients across the full spectrum of complex, multifaceted and fast-moving ESG issues – from the rise of climate related litigation to the sustainability and resilience of supply chains, including financial reporting and director duties – to embed ESG into their governance frameworks, and build a more sustainable business, and future.

Our approach to ESG is reflected in the ways we're trying to meet our own ESG responsibilities: from diversity and inclusion to environmental sustainability, firm governance to reconciliation, the community and pro bono.

Watch our videos

Net Zero pledges made by businesses are being increasingly scrutinised by shareholders, activist groups and the wider community. Here we explore some of the key issues a company should consider when formulating a net zero pledge, to ensure that it is regarded to be legitimate, robust and effective.

ESG is dominating in several industries and sectors in Australia now as it is around the globe. In Australia we have only really seen the 'E' play out in the advisory sphere, though the 'S' and the 'G' are increasingly coming in to focus. How is this dynamic playing out for restructurings and financings? We explore the winner and losers in the ESG restructuring debate.

Related knowledge

ESG thumbnail - From Culture to Compliance

ESG thumbnail - Modern slavery regime could finally get teeth under new Labor Government

Northern Territory extends liability for environmental offences to related entities in the onshore petroleum industry Directors, executive officers and other related entities will soon be potentially liable for environmental offences in the onshore petroleum industry under the new chain of responsibility laws that have been passed. Article, 16 Dec 2022
What is the National Strategy to Prevent and Respond to Child Sexual Abuse 2021-2030 and how will it affect businesses? The corporate sector can play an important role in delivering support services and promoting child safe cultures in the community. Article, 24 Nov 2022
COP27: Sharm El-Sheikh Implementation Plan agreed, but leaves more work for COP28 COP27’s outcomes largely treat the symptoms, not the cause, of climate change, and further urgent action will be required to be taken if the goals of the Paris Agreement to avoid dangerous climate change are to be achieved. Article, 24 Nov 2022
COP27: Article 6’s carbon markets mechanism strikes back Just when it was thought that there was cause for quiet optimism that headway could be made on resolving technical elements to support the implementation of the various provisions of Article 6 to facilitate mitigation outcomes, draft texts released o ... Article, 15 Nov 2022
Greenwashing is out of fashion, with the industry facing a crackdown on “eco-friendly” claims A growing number of large fashion brands are facing both regulatory and consumer scrutiny over greenwashing claims, here and overseas. We take a closer look at the recent crackdown on Swedish fast fashion giant, H&M, which has been subject to regulat ... Article, 21 Oct 2022
Anticipated environmental law reforms introduced in Queensland Proposed amendments introduced to Queensland Parliament aimed at modernising the Environmental Protection Act 1994 seek stakeholder submissions before October 26. Article, 21 Oct 2022
Climate change effects violate Torres Strait Islanders’ rights, according to UN Human Rights Committee A ruling by the United Nations Human Rights Committee, although not binding in Australia, adds to the growing international legal and moral authority likely to be considered in future climate justice cases. Article, 7 Oct 2022
ACCC flags tougher standards for environmental claims in upcoming greenwashing sweep The ACCC’s upcoming sweep of environmental claims will potentially catch out many businesses. Article, 21 Sep 2022
Getting the green light: Lessons for future collaboration on ESG measures under Australian competition law In Australia, businesses proposing to collaborate with competitors on ESG should continue to consider carefully whether their plans may raise any competition law risks or require an exemption, by ACCC authorisation. Article, 18 Aug 2022
Media Release: “We can all play a role”: Clayton Utz special counsel sees opportunity with ESG agenda to help tackle child sexual exploitation and abuse The Environment, Social and Governance (ESG) movement is an opportunity for corporations to play a more active role in helping to eliminate child sexual exploitation and abuse (CSEA) – a global humanitarian issue that is more prevalent in Australia t ... Media Release, 3 Aug 2022
Taskforce for Nature-related Financial Disclosure releases its v.02 beta framework for comment Following the Taskforce on Nature-related Financial Disclosures’ (TNFD) initial beta version in March 2022 and feedback from market participants, the TNFD has released its second iteration of its disclosure regime for nature impacts and dependencies, ... Article, 21 Jul 2022
UN-convened group seeks to standardise net-zero commitments An UN-convened group is seeking submissions on four key areas related to its development of standards for the making of net-zero emissions commitments by non-State entities. Article, 21 Jul 2022
State of Play: Distressed Investing Trends In our three-part video series on Distressed Investing Trends, our restructuring and insolvency partners, Timothy Sackar and Orla McCoy sit down with Houlihan Lokey's Financial Restructuring Group Managing Director, Jim McKnight to explore the themes ... Video, 27 Jun 2022
New code to confirm companies use carbon credits credibly The Voluntary Carbon Markets Integrity Initiative is seeking consultation on its recently released Claims Code of Practice. The Code is being developed to verify the credible use of carbon credits and associated claims, and to encourage those who ado ... Article, 24 Jun 2022
Modern slavery regime could finally get teeth under new Labor Government With stronger regulation to combat modern slavery on the horizon, many organisations will need to step up their compliance efforts - and ensure their promises are worth more than the paper they're written on. Article, 24 Jun 2022
Fashion industry faces new ESG challenge Fashion companies now need to look beyond net zero targets as stakeholders push for more 'nature positive' commitments, including action on animal welfare and biodiversity Article, 24 Jun 2022
From culture to compliance: Regulators confirm focus on “greenwashing” and assessment of climate change risks In a week that saw the Commonwealth Government commit Australia to reducing greenhouse gas emissions by 43% below 2005 levels by 2030 and commit to establishing new standardised and internationally-aligned reporting requirements for climate risks for ... Article, 22 Jun 2022
ClientEarth pursues Shell’s Board of Directors for non-compliance with the Paris Agreement and transition failures Directors should now proactively protect a company against climate-related risks to avoid liability; regardless of the outcome in the current matter, ClientEarth’s move will likely prove influential for similar future actions. Article, 9 Jun 2022
New beta framework for nature impacts disclosure regime shifts focus to nature-positive outcomes The release of the Taskforce on Nature-related Financial Disclosures' beta version of a disclosure regime for nature impacts and dependencies is particularly significant given the increased global and national focus on ESG. Article, 14 Apr 2022
Buyer's remorse: is the fashion industry next in line for ESG-related scrutiny and activism? Fashion companies must remain alive to the growing scrutiny of greenwashing and social-washing as well as the changing expectations of stakeholders when it comes to ESG, particularly those of the conscious and disruptive consumer. Article, 14 Apr 2022
Regulators join forces to fight greenwashing in 2022 The adoption of net zero commitments by companies in Australia has become the new norm and 2022-2023 will see the regulators testing whether the environmental promises made by companies to their stakeholders actually stand up to scrutiny. Article, 31 Mar 2022
NSW EPA gets serious about circular economy The proposed changes recognise a shift towards viewing waste materials as potentially valuable commodities, rather than large volumes of material to be disposed of at the lowest possible cost. Article, 31 Mar 2022
Australia's textile waste problem and how the key players are responding New developments and initiatives are emerging in both the private and public sectors as well as increased Government funding to deal with the significant textile waste problem we are facing, as part of the effort to cut our carbon emissions in Austra ... Article, 23 Dec 2021
Australian biodiversity trading platform launched Landowners and other stakeholders seeking biodiversity offsets or investment in biodiversity stewardship now have access to a new national trading platform, as the next step in the Australian Government's contribution to biodiversity stewardship, and ... Article, 23 Dec 2021
Toward net zero: Australia and Korea ink $100 million deal on clean energy technology and critical minerals investment Delivering on the high-level partnership agreed by Australia and Korea at the recent COP26 Summit in Glasgow, leaders of both nations have committed a collective $100 million toward financing 'technology-led' solutions in approaching the challenges o ... Article, 23 Dec 2021
Australian Hydrogen Guarantee of Origin certification scheme to be trialled over the next 18 months There is now an opportunity to participate in Australian Government trials to inform the design of Australia's Hydrogen Guarantee of Origin certification scheme, with consultation on the scheme design having closed and initial feedback available. Article, 23 Dec 2021
Proposed overhaul of Australia's carbon offset certification schemes to expand incentives to move towards net-zero Australia's carbon offset certification schemes, including Climate Active, its flagship carbon neutral certification scheme which the Commonwealth Government administers, will be reviewed by the Climate Change Authority. Article, 15 Dec 2021
One step closer to FAR: more details known of the Financial Accountability Regime Bill Modest changes to the Financial Accountability Regime Bill appear to address some of the concerns raised by industry in respect of the draft Proposed Legislation. Accountable Persons will be relieved by a reduction in scope of the new accountability ... Article, 11 Nov 2021
It's time to reset: what you should be thinking about when refreshing your whistleblowing systems and policies There are eight key elements to consider when refreshing your whistleblowing policy and systems, and with ASIC recently reiterating it is ready to enforce compliance with the Corporations Act's requirements, now is the time to do so. Article, 11 Nov 2021
All links in a supply chain affected by NSW's product stewardship laws to reduce plastic and move to a circular economy NSW will soon have its own product stewardship law, with tough regulatory requirements, if the Plastic Reduction and Circular Economy Bill 2021 is passed by the NSW Parliament. Article, 11 Nov 2021
COP26 at the end of week one: progress despite the fault lines Following the progress of the first week, the focus of COP26 in Glasgow now shifts to achieving a decision document by the end of the week which keeps the 1.5 degree goal within reach. Article, 8 Nov 2021
Industry Trends: Net Zero Pledges Net Zero pledges made by businesses are being increasingly scrutinised by shareholders, activist groups and the wider community. Here we explore some of the key issues a company should consider when formulating a net zero pledge, to ensure that it is ... Video, 19 Oct 2021
Net zero pledges: how to ensure yours is robust and effective Momentum towards net zero emissions commitments has grown exponentially and companies must now grapple with how best to ensure that these pledges achieve what has actually been promised. Article, 19 Aug 2021
Three significant climate change developments in Australia and overseas with implications for resource projects The Federal Court has just held Australian children are owed a duty of care by the Federal Minister for the Environment when considering the expansion of a coal project which would lead to CO2 emissions. Article, 27 May 2021
Attention directors: investors call for climate change management and disclosure In this Briefing Note, we explain the pressures on directors and managers to engage meaningfully with climate change and report on the risks, and management's response to those risks. Article, 11 Mar 2021
Environment and Planning 5 Minute Fix 10 The Environment and Planning 5 Minute Fix gives you a snapshot of what you need to know across a range of environment and planning issues across the country. This edition focuses on the latest in climate change, waste, resources, major projects, sust ... Article, 4 Feb 2021
EPBC Review Report released – includes recommendations for more effective enforcement and compliance The impetus towards more effective regulation which began with the Financial Services Royal Commission is continuing with these recommendations, which include an overhaul of enforcement powers. Article, 4 Feb 2021
Fundamental reform recommended for "ineffective and inefficient" EPBC Act While the Final Report of the Independent Review of the Environment Protection and Biodiversity Conservation Act 1999 (Cth) recommends a rolling program of fundamental reform, it also calls for immediate action from the Government. Article, 4 Feb 2021
China's unofficial trade ban on Australian commodities: Does your supply contract provide relief if you can no longer perform? As a result of China's official and unofficial trade restrictions miners, suppliers, commodities trading houses, customers and end users should be checking what contractual protections they may be able to rely on (or may be invoked by counter-parties ... Article, 23 Dec 2020
Significant Australian foreign investment reforms commencing 1 January 2021 Very significant reforms to Australia's foreign investment review framework will commence on 1 January 2021. At the same time, the temporary COVID-19 measures announced on 29 March 2020 (which reduced all of the monetary thresholds to $0) will cease. Article, 11 Dec 2020
Recycling and Waste Reduction Bill 2020 (Cth): What's in store? The Recycling and Waste Reduction Bill 2020 (Cth) is one of a suite of recycling and waste reduction bills passed by both houses of Federal Parliament on 8 December 2020. Ahead of the commencement of this landmark legislation, wetake a closer look at ... Article, 10 Dec 2020
Supply chain finance and extended payment terms are under the regulatory microscope Supply chain finance and, in particular, its use to extend supplier payment terms, has been the subject of significant scrutiny in 2020 and it doesn't look to be letting up any time soon. Article, 10 Dec 2020
An early Christmas present for Departments and SMEs: New Commonwealth Procurement Rules (December 2020) New Commonwealth Procurement Rules have been issued by the Minister for Finance under section 105B(1) of the Public Governance, Performance and Accountability Act 2013 (Cth) and will come into effect on 14 December 2020. Article, 4 Dec 2020
Environment and Planning 5 Minute Fix 09 The Environment and Planning 5 Minute Fix gives you a snapshot of what you need to know across a range of environment and planning issues across the country. Article, 26 Nov 2020
The NSW Government pivots towards renewables in its new Electricity Infrastructure Investment Bill The NSW Government's Electricity Infrastructure Investment Bill seeks to incentivise industry to invest $32bn in renewable energy infrastructure by 2030, and represents a fundamental policy shift. Article, 26 Nov 2020
No Rest for superannuation trustees on climate change risk Expectations about superannuation trustees' essential obligations when it comes to assessing climate change risk, and the actions expected of those investing someone else's money, are changing rapidly. Article, 12 Nov 2020
Environmental claims again under the spotlight in the Full Federal Court Products said to be "biodegradable and compostable" do not need to be able to biodegrade or compost within a reasonable time; and a representation about the nature, quality, character or capability of a product is not a representation "with respect t ... Article, 29 Oct 2020
Making a "greenwashing" claim? The New Zealand Commerce Commission guidance could help Australian businesses The Guidelines are a useful resource for businesses to consider when reviewing their practices and environmental claims. Article, 12 Aug 2020
Modern slavery and COVID-19: Guidance Note sets out increased risk from pandemic on global supply chain workers Greater pressure on supply chains have increased the risk of modern slavery, and the need for Australian businesses to be more vigilant than ever – but there is some relief on reporting dates. Article, 30 Apr 2020
NSW Modern Slavery laws: very much alive and kicking Pending the NSW Government's response to the report, businesses should assess whether they will be required to report under the NSW Act (as amended by the report recommendations). Article, 16 Apr 2020
A call to action on non-financial risk: ASIC Governance Taskforce's report on director and officer oversight of non-financial risk The first report from ASIC's Corporate Governance Taskforce identifies significant failings with director and officer oversight of three types of non-financial risk, but the challenge for many entities will be to determine its findings can apply to t ... Article, 28 Nov 2019
The future of the NSW Modern Slavery Act is unclear Although the NSW Act has reached a roadblock and will not be commencing any time soon, this should not result in complacency amongst NSW entities. Article, 27 Jun 2019
It's official: The Australian Modern Slavery Act has passed, and reporting obligations are about to start On 29 November 2018, in a major milestone for Australia, the Australian Modern Slavery Act passed all stages of the Australian Parliament, and is now waiting Royal Assent. The legislation is likely to be in force in early 2019. Article, 30 Nov 2018
CU LAB: Modern slavery laws: don't leave it too late to get ready NSW now has modern slavery laws, and the Commonwealth will soon have them too, Lauree Coci says you need to start risk assessment now, and not wait until the reporting date for your Modern Slavery statement. Video, 14 Aug 2018
CU LAB: Modern slavery laws: who's covered and what happens now NSW now has modern slavery laws, and the Commonwealth will soon have them too. Lauree Coci explains who's caught by them, what they'll need to do, and how the two regimes will work together. Video, 1 Aug 2018
New South Wales takes lead in combatting modern slavery with new Act, and Commonwealth not far behind Modern slavery reporting requirements will commence soon for thousands of organisations, with NSW legislating its own regime to complement the Commonwealth's. Article, 3 Jul 2018
More information released about Modern Slavery reporting requirement Entities with $100 million annual consolidated revenue will be caught by the reporting requirement from the end of 2018. This also includes foreign entities operating within Australia. Article, 24 May 2018
Construction industry a key sector of concern for modern slavery A failure to engage on modern slavery may result in severe disruption to your business and damage to your reputation and brand, not to mention market and operational risks. Article, 29 Mar 2018
CU LAB: The Modern Slavery Act: Are my supply chains slave chains? Lauree Coci outlines what organisations can do to prepare for the upcoming Australian Modern Slavery Act. Video, 12 Mar 2018
Australia's proposed Modern Slavery Act taking shape based on (and going beyond) the UK Modern Slavery Act model We have a better idea of the shape of the proposed Modern Slavery Act, which would cover entities with a total revenue of $50 million. Article, 21 Dec 2017
Modern slavery in supply chains ‒ reporting requirements coming The Australian Government has announced an intention to introduce a "Modern Slavery in Supply Chains Reporting Requirement" in Australia to combat modern slavery. Article, 17 Aug 2017

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