To Net or Not to Net: A Legal Analysis of ESG Integration and the Quest for Net-Zero Emissions

Abstract

This article examines the legal landscape around environmental, social, and governance (ESG) integration and net-zero emissions, with a focus on disclosure and reporting duties. When making investment decisions, ESG integration takes into account a company's environmental, social, and governance elements, whereas net-zero emission levels relate to the proportion of greenhouse gas emissions made and eradicated from the environment. To foster more transparency and accountability
among corporations, many governments have introduced ESG disclosure and reporting regulations. Investors and experts are divided on the utility of ESG integration in promoting net-zero emissions, but as the world becomes more aware of the consequences of climate change, ESG elements and net-zero emissions will continue to be important considerations for businesses and investors alike. Companies that emphasise ESG factors may be able to attract more investors and customers who are concerned about the environment. Nonetheless, adhering to these guidelines is critical in order to avoid major legal and reputational concerns.