Delaware Legislature Responds to Growing Business Interest in Sustainability Measures
Over the last decade, corporate responsibility and sustainability has moved to the forefront. Large businesses have Chief Sustainability Officers and produce sustainability reports—indeed, more than 80% of the S&P 500 do so. Investors seek consistent sustainability information and propose resolutions on matters from gender equality to human rights to climate change, and these are beginning to find support from the largest of institutional investors. Academics are producing papers showing links among corporate ESG (environmental, social and governance) performance and financial return. Delaware, along with a number of other jurisdictions, responded to this development by offering a new option to corporations, allowing them to become “benefit corporations,” with an explicit purpose to serve all stakeholders, and not just stockholders.
We wanted to share the attached article from our colleague, Rick Alexander, which discusses the growing public benefit corporation movement, as well as two upcoming changes to Delaware’s statutes, each of which may have significant impact for the growing number of businesses looking to address sustainability issues that impact their stakeholders.
Click here to read the article.
# # #
Frederick H. Alexander, “Delaware Legislature Responds to Growing Business Interest in Sustainability Measures”, republished in The Corporate Governance Advisor (July/August 2018)