In 2017, Latham lawyers discussed how directors can use environmental, social, and governance (ESG)
issues to enhance companies’ value.1 Since then, ESG has become a mainstream concern across
companies, industries, and markets throughout the world. More than ever, companies’ ability to manage
ESG risks and take advantage of new market opportunities can help them drive value for their
stakeholders. Indeed, the rise of “stakeholder capitalism” and the idea that companies might serve a
broader purpose beyond short-term shareholder returns has intensified the focus on ESG, and in many
ways has changed the playing field.