Sustainable Corporate Governance

This course on Sustainable Corporate Governance examines how corporations integrate ESG (environmental, social, and governance) principles into governance frameworks, blending legal and economic perspectives. It explores the shift from traditional shareholder-centric models to stakeholder-inclusive approaches, emphasizing resilience amid new challenges like climate risks, digital transformation, and geopolitical instability.

Key topics include:
•    ESG Integration & Resilience: How boards embed ESG factors into long-term strategy, addressing greenwashing and ensuring adaptability in volatile markets.
•    Regulatory Frameworks: Comparing the EU’s mandatory ESG rules (e.g., CSRD, CSDDD) with the US’s disclosure-based approach (e.g., SEC climate rules), with a focus on climate pledge transparency.
•    Sustainable Finance (SFDR & Debt Impact): Analyzing the EU’s Sustainable Finance Disclosure Regulation (SFDR), which guides sustainable investing, and the role of green bonds and sustainability-linked loans in corporate financing. The course also explores how high debt levels impact firms’ ability to meet ESG goals.
•    Stakeholder vs. Shareholder Models: Debating corporate purpose, from Milton Friedman’s profit focus to modern stakeholder capitalism (e.g., Business Roundtable’s 2019 statement).
•    Supply Chain & Fiduciary Duties: Assessing laws like the EU CSDDD on human rights due diligence and evolving fiduciary responsibilities, balancing short-term profits with long-term sustainability.
The course equips students to navigate emerging governance challenges, from regulatory compliance to sustainable financing, ensuring corporations remain resilient while aligning profitability with societal and environmental goals.