Memorandum warns that directors’ legal obligations under the Companies Act 2006 include consideration of environmental, social and governance factors.
Debate over the precise implications of UK law on directors’ duties was given fresh legs this week with publication of a legal memorandum warning that failure to consider environmental, social and governance (ESG) factors could constitute a breach of duty of care resulting in legal claims against a director.
The warning comes in a document produced by a company law expert at law firm Debevoise & Plimpton and commissioned by the not-for-profit Principles for Responsible Investment (PRI).
According to Fiona Reynolds, chief executive of PRI, the memorandum—aimed specifically at private equity houses appointing non-executives to the
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