With increased social interest in sustainability, companies are now being strongly required to actively and positively address sustainability issues from the perspective of enhancing mid- to long-term corporate value because such issues are considered material management issues that lead not only to the reduction of various risks, but also profit opportunities. In terms of corporate governance, companies need to appropriately respond to various issues, such as establishing an appropriate governance system, including the setting up and operation of a sustainability committee, introducing an incentive compensation system based on ESG (Environmental, Social and Governance) elements, and dealing with shareholder trends, such as shareholder engagement or shareholder proposals that are based on environment, social issues or other ESG elements (ESG activism).

Moreover, sustainability information is now being required to be disclosed in the annual securities report, thus, more legal issues need to be addressed in terms of information disclosure as well. Furthermore, ESG due diligence is now being conducted in a greater number of M&A cases for the purpose of determining whether a company may allow the target company to join its corporate group in light of its sustainability-related policies, or whether the target company has any ESG-related issues.

Our lawyers have profound knowledge and abundant practical experience in both corporate governance and sustainability. They can provide appropriate advice and support for these types of legal issues relating to sustainability governance.