Library | Sustainable Finance Practices
Governance and directors’ duties
Resources on the responsibilities of boards and directors in overseeing sustainability, ensuring accountability, fulfilling fiduciary duties, and promoting long-term value creation.
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Climate Aligned Clauses Library
A comprehensive library of climate-aligned legal clauses provided by The Chancery Lane Project to help organisations integrate net zero goals into commercial contracts.
Coasian stakeholder theory
This report introduces Coasian stakeholder theory, defining stakeholders by their "shutdown power" over specific transactions. It applies the Coase theorem to show how identification, bargaining, and coalition costs affect value creation. The research provides a strategic framework for managing stakeholders through governance design and consolidated opposition.
Stop in the name of law: How litigation is challenging offsetting claims
This report analyses the rising legal and regulatory scrutiny of corporate carbon offsetting claims. It examines landmark cases in Europe, Australia, and the US, highlighting a global shift towards banning misleading 'net-zero' labels. The findings underscore the necessity for companies to prioritise genuine in-house emissions reductions over carbon credits.
Private equity’s accountability deficit: The case for mandatory disclosure
This research identifies an accountability crisis in private equity due to declining arm’s-length exits and opaque valuations. It proposes mandatory financial disclosure for significant portfolio companies to prevent resource misallocation and systemic risks, drawing parallels to the failure of the conglomerate movement in the twentieth century.
Corporate net zero targets: have they achieved anything?
This research evaluates the impact of corporate long-term net zero targets on emissions and governance. Analysing nearly 2,000 companies, it finds limited evidence of immediate emissions reductions. However, adoption correlates with improved strategic management, suggesting targets formalise emerging organisational transitions rather than triggering sudden decarbonisation.
Achieving effective AI governance: From theory to practice. An investor perspective on managing AI risks
This report provides a framework for investors to manage AI-related risks in portfolio companies. It outlines material risks, categorises company significance, and introduces the AI Governance Framework. The document encourages collective action through engagement, voting, and policy advocacy to promote responsible AI development across various industrial sectors.
Who Controls the Defence Industry?
A leximetric dataset and index assessing state control versus ownership in 107 global defence firms, featuring the novel State Influence Index.
The impact of sustainability reporting on directors' ESG duties: The disclosure-duty feedback loop
This research explores the "disclosure-duty feedback loop", where mandatory sustainability reporting reshapes corporate directors' legal duties. Analysing regimes in the United Kingdom, Singapore, the European Union, and the United States, the paper examines how reporting standards influence board oversight. It proposes reforms to clarify oversight obligations and liability protections.
Integrating climate into corporate finance: Global evidence on internal carbon pricing
This report analyses the determinants and effectiveness of internal carbon pricing (ICP) globally. It finds that smaller boards and science-based targets drive higher pricing. While ICP adoption reduces short-term profitability due to capital reallocation, it successfully slows emission growth, even as absolute emissions remain linked to production.
Climate governance under pressure: The Anti-ESG movement’s impact on Canadian institutional investors
This report analyses the impact of the US anti-ESG movement on Canadian institutional investors. It examines governance challenges in integrated markets, shifts in proxy voting, and regulatory changes. Despite political spillover, the analysis highlights the resilience of Canadian legal frameworks and the ongoing commitment to climate-risk oversight.
The governance of dual-class firms
This research examines the governance of dual-class firms, documenting a significant rise in their prevalence among US initial public offerings between 2000 and 2025. It identifies that these structures are increasingly concentrated in founder-led, venture-backed technology companies, while empirical evidence suggests they do not necessarily lead to CEO entrenchment.
Bank executive compensation and risk-taking
This research investigates bank executive compensation since the Great Financial Crisis. It finds that longer deferral horizons successfully reduce risk-taking and encourage prudent capital management. However, evidence regarding variable pay caps is inconclusive. Case studies from 2023 failures highlight governance shortcomings in risk-adjusting performance metrics and compensation schemes.
Buybacks playbook
This playbook provides a framework for companies, investors, and policymakers to evaluate share buybacks based on long-term merits. It recommends objective capital allocation, decoupling executive pay from buyback-influenced metrics, and enhancing regulatory disclosures and trading restrictions to ensure repurchases support sustainable corporate strategy rather than short-term gains.
Sustainability or strategy: Bridging the gap between climate change and long-term value creation
FCLTGlobal research identifies a significant gap between corporate climate commitments and long-term business strategies. Analysing the world’s 100 largest companies, the report introduces a Conversation Guide to help organisations integrate climate transition planning into core value creation, capital allocation, and risk management to build investor trust and resilience.
Anti-woke corporate governance
This research explores the emergence of partisan corporate governance, focusing on Texas as a conservative competitor to Delaware. It examines legislative changes to limit shareholder litigation and influence, the regulation of proxy advisors, and the resulting legal and political risks for corporations navigating an increasingly politicised regulatory environment.
Stakeholder engagement and ESG in China
This research analyses China’s state-led stakeholder empowerment model for ESG integration. It identifies economic, policy, compliance, and sustainability drivers while examining channels such as shareholder activism and representative litigation. The article proposes a tiered institutionalisation framework to resolve procedural indeterminacy and strengthen collective action infrastructure within concentrated ownership structures.