Dr. Angelika Hellweger discusses why banks need to oversee and address their Environmental, Social, and Governance (ESG) agenda

Dr. Angelika Hellweger wrote an article on why banks need to oversee and address their Environmental, Social, and Governance (ESG) agenda.

The article that was published in “The Banker” outlines the growing chance of banks facing exposure to potential enforcement action, and criminal and civil liabilities depending on their approach to ESG-related issues.

Since there are big investment opportunities in ESG (“over $1 Trillion was invested in ESG funds over the last 2 years”), some financial institutions have been “improving” their ESG performance through manipulation or “greenwashing.”

Angelika notes that whilst legal liability can vary depending on the jurisdiction, the act of inaccurately amending company ESG reports and disclosures is expected to result in criminal fraud proceedings and individual criminal liability, as well as reputational damage.

Claims can also be brought by investors against financial institutions for misrepresentation. Therefore, full ESG compliance is necessary for financial institutions to avoid such penalties.

To read the rest of the article on The Banker click here.