ESG Risk Is a Core Concern for Financial Services Regulation

8 Pages Posted: 6 Jun 2022

See all articles by David Kinley

David Kinley

The University of Sydney - Faculty of Law; Doughty Street Chambers

Kym Sheehan

The University of Sydney Law School

Date Written: April 22, 2022

Abstract

This is our submission in response to the Australian Law Reform Commission’s Background Paper FSL5 Risk and Reform in Australian Financial Services Law (March 2022).

In it we suggest that a much wider and deeper consideration of ESG risk management throughout the financial services sector in Australia and overseas is not just desirable but necessary.

Our submission focuses first on the broad question of ‘social’ risk factors (the ‘S’ in ESG) for the sector and, in that regard, specifically on the human rights impacts of financial services and their regulation. And secondly on the particular ‘conduct and product risks’ within financial services that impact directly or indirectly on relevant human rights concerns.

In addition to a range of international and domestic sources, our submission draws directly on the research, data and findings that comprise our Financial Services Human Rights Benchmark (FSHRB) launched in May 2021 measuring the levels of human rights risk management and compliance of the largest 22 financial services entities listed on the Australian Stock Exchange.

Keywords: ESG, Finance, Risk, Human Rights, Regulation

JEL Classification: G18, G28, G32, G38, K22, K23, K32, K33

Suggested Citation

Kinley, David and Sheehan, Kym Maree, ESG Risk Is a Core Concern for Financial Services Regulation (April 22, 2022). Available at SSRN: https://ssrn.com/abstract=4120934 or http://dx.doi.org/10.2139/ssrn.4120934

David Kinley (Contact Author)

The University of Sydney - Faculty of Law ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

Doughty Street Chambers ( email )

10 Doughty Street
London WC1N 2PL
United Kingdom

HOME PAGE: http://https://www.doughtystreet.co.uk/

Kym Maree Sheehan

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia
61 2 8627 4660 (Phone)

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