“Vincent Walden, CEO of Kona AI and FRAUD Magazine columnist, says the expanding ESG risk environment, including potential concerns of fraud, is very real. ‘When company executives act in a different way that is counter to the company’s code of conduct or social norms, it can cause significant financial harm to the company and thus significantly increase pressure to cover up or misstate certain facts,’ Walden says, adding that while this may not be outright fraud, the critical role of governance comes into play.”
[COMMENTARY]Many countries have, or are likely to, adopt legislation that either directly or indirectly allows individuals or groups to sue for damages concerning a company’s ESG activities. This should promote greater corporate ESG engagement while possibly enhancing shareholder value.
New litigation fears driving expanded responsibilities for in-house lawyers to prevent ESG risks, by Thomson Reuters Regulatory Intelligence and Compliance Learning, July 8, 2022, JDSupra.com, USA.