Capitalising On Capitalism: The Growing Business Case For Sustainability And The Crucial Role Of Shareholders

Abstract

Even as humanity stares down the proverbial barrel of its own environmental ruin, its response to the existential threat of climate change appears sluggish at best. With 100 companies responsible for more than 70% of worldwide greenhouse gases since 1998, deliverance from environmental disaster appears heavily contingent on companies being able to significantly reduce their emissions. However, doing so is fraught with complexity. Scholars have decried modern day capitalism as suffering from a “systemic malaise”, seeing the deeply entrenched norm of shareholder primacy as the key barrier to the pursuit of greater environmental sustainability by companies. Yet, recent trends call for a review of this perception.

Keywords: climate change law, corporate sustainability, shareholder activism, ESG