‘Future generations’ clause in section 172 could boost sustainability

Researchers argue a “system change” in favour of sustainability needs stronger regulation to hold directors to account.

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Calls for companies to be more sustainable currently echo from many quarters. For the most part this is embodied in demands for new kinds of corporate reporting. However, academics looking at the problem believe a change in the law may be in order and propose updating the legislation that sets out directors’ duties in the UK.
Launched this week during an event hosted by the Institute of Directors’ Centre for Corporate Governance, a paper from a trio of researchers at the University of Bristol says that pushing companies to be more sustainable needs stronger law and that means amendments to section 172 of the Companies Act—the clause
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