ESG in Latin America and the Rise of the Social Pillar

Ruti Smithline, Hayley Ichilcik, James Koukios, Stephanie Pong, and Lauren Navarro authored an article for Latin Lawyer's Guide to Corporate Compliance discussing the growing awareness and implementation of environmental, social, and corporate governance (ESG), in Latin American countries, where attention on the social pillar in particular has been on the rise.

"ESG has captured the world's attention, and the 'S' in particular has increasingly become a focus for a variety of stakeholders," the authors wrote. "Given the breadth of this pillar's application, and its significance for companies, tackling and managing the Social Pillar is an involved task. Nonetheless, companies that have taken action to pre-emptively mitigate risk in these areas enjoy an increasing competitive advantage as governments begin imposing requirements on managing and measuring compliance on social issues."

They added: "Given these trends, companies in Latin America should start actively assessing the risks and consider what proactive risk mitigation measures can be implemented now as part of the company's broader compliance program and environment. It is just a matter of time before local law and private initiatives in Latin America start to close the gaps and render serious consequences for non-compliance. While it may be difficult to gain traction in these areas, particularly given the ongoing challenges posed by the COVID-19 pandemic, companies that choose to be more forward-leaning when it comes to ESG compliance will be well served in the long run."

Read the full article.