This post comes out of the early career workshop ‘Law and Political Economy in Europe’, which took place at the Centre for Socio-Legal Studies, at the University of Oxford, on the 7th of October 2019. For all the posts this series, click here.
Federico Fornasari –
The impending climate crisis, the widespread social tensions and the burgeoning level of wealth and income inequalities have led to diffused discontent, both in the “global north and south” with the current neoliberal order. The role that the financialized corporation plays into this picture has taken a center stage in this discussion. The keyword of the debate has been “sustainability”: the exact meaning of the term remains fuzzy, whilst the legal strategies to enhance it are debated. One of the fundamental ingredients of sustainability is the disclosure of environmental, social and governance (henceforth, ESG) factors.
From a law and political economy perspective, we might ask: what is the role that corporate law and financial market regulation can play in transitioning to a greener economy and a fairer society? And specifically, can (and how to design) ESG factors disclosure to promote such a transition? Finally, how do specific conceptions of the corporation and its boundaries resurface through the designing of ESG indicators?