Three ESG Trends to Follow Into 2023 | Faegre Drinker Biddle & Reath LLP

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The ESG universe is ever-expanding. The past year has proven as much with several noteworthy developments, including increased politicization of ESG issues, sweeping international disclosure and due diligence directives, trillions of dollars added in ESG assets under management, and the ESG debt market projected to triple (or more) by 2025. With all that has already transpired, ESG risk and opportunities show no signs of slowing in 2023. As governments and businesses scramble to implement lofty climate- and biodiversity-related goals, the “E” factor will continue to generate substantial amounts of activity and discussion. However, social and governance factors are gaining momentum and cannot be ignored despite behemoth environmental concerns.  This means that evaluating individual factors will become more complex, as will analyzing the intersectionality and impact between each factor. As 2022 draws to a close, here are three important ESG trends to follow closely into 2023:

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