European Commission Consults on Sustainable Corporate Governance

On October 26, 2020, the European Commission launched a public consultation on a possible EU-level regulatory initiative dedicated to sustainable corporate governance.

The consultation is open to a wide range of possible stakeholders incorporated or having activities in the EU until February 8, 2021.

The initiative is proposed further to Action 10 of the European Union’s 2018 Action Plan on sustainable finance, and stems from the essential premise that sustainability should be embedded into corporate governance so that companies focus on long-term objectives and contribute to a more shock-resilient economy.

This alert memorandum explores some of the possible regulatory implications of this initiative and the ways in which it might affect the day-to-day business and internal policies of companies registered or listed in Europe in the near future.