Environmental, Social and Governance (ESG)

Our lawyers bring together an exceptional depth of experience in corporate governance and public reporting obligations, as well as environmental, climate and other sustainability matters, to counsel clients on developments in the ESG space. Our multi‑disciplinary approach allows us to engage in the full range of the questions and bespoke issues that may arise. Additionally, Cravath serves as a trusted advisor to senior management and boards of directors. Our deep client relationships translate to a thorough understanding of the legal and business objectives to provide strategic solutions for our clients’ ESG needs.

Lawyers in our ESG practice also provide expert counsel with respect to disclosure responsibilities and opportunities in the ESG space, whether arising as a result of legally required disclosures, as part of our clients’ sustainability reporting processes or in response to inquiries from shareholders or ESG ratings agencies or scorecard providers. We are experienced in working with our clients to establish appropriate governance procedures and controls processes so that ESG risks and strategies can be appropriately monitored by boards and management, and information can be presented in a way that is relevant, comparable, consistent and reliable. Cravath regularly advises companies in connection with ESG shareholder proposals and other year‑round shareholder engagement and communications around ESG issues. We also handle investigations and litigation arising from ESG‑related matters.

Our ESG capabilities include:

• Understanding and navigating the complex environment of ESG‑related framework providers, standard‑setting bodies and ratings providers, including international ESG‑related regulatory requirements;
• Responding to ESG‑related shareholder communications or shareholder proposals;
• Reviewing and assisting with the preparation of sustainability reports and other ESG‑related disclosure;
• Advising on the set‑up of ESG programs, including advice on appropriate disclosure controls and procedures for sustainability reporting;
• Establishment of ESG governance processes and procedures for the supervision of ESG risks and strategies; and
• Preparing for requirements for ESG disclosures in reporting, including recently adopted SEC climate reporting rules.

Cravath’s experienced ESG team includes previous leaders at the SEC, including the former Director of the Division of Corporation Finance who initiated the project that later became the 2010 Commission Guidance Regarding Disclosure Related to Climate Change. Having shaped the dialogue surrounding ESG disclosure for many years, our lawyers continue to influence the conversation, as well as the education around and development of this dynamic and ever‑changing area.