ESG Aligned Company Articles
A clause that builds ESG considerations into a company’s articles of association.
What this clause does
To build ESG considerations into a company’s constitution which in turn acts as a trigger for ESG aligned corporate governance, decision making and company activities.
Definitions
Example I:
The objects of the Company are to [insert as appropriate] and, through its business and operations, to adopt OR engage with [insert preferred climate and/ or environmental standards and/or goals].
Example II:
Directors’ General Authority:
1.1 Subject to the articles, the directors are responsible for the management of the company’s business, for which purpose they may exercise all the powers of the company.
1.1.2 The directors shall manage the company’s business in a manner that:
(a) benefits wider society and the environment in a manner commensurate with the size of the company and the nature of its operations; and
(b) reduces harms the company creates and costs it imposes on wider society or the environment, with the goal of eliminating any such harms and costs.
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