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2022 Univ. Chi. Bus. L. Rev. Online Edition 1 (2022)

handle is hein.journals/uvierschia2022 and id is 1 raw text is: The Trouble with Tibble: Environmental, Social, and Governance (ESG) and Fiduciary Duty Jonathan A. McGowan, Esq.' Introduction The aggressive expansion of Environmental, Social, and Governance (ESG) factors in financial investments over the past decade has challenged prior concepts of corporate responsibility. A conflict has developed amongst lawmakers and advocates over the responsibility of corporate directors and fund managers relating to ESG, most notably, whether implementing ESG is a breach of fiduciary duty. To address this question, this article will look at the international origins of ESG, provide an overview of fiduciary duty, and examine possible conflicts between ESG and fiduciary duty. The differences in the role, as well as the regulatory schemes, of a director of a corporation and that of a fund manager may appear to show a divergence in fiduciary duty. One may assume that an analysis of both roles in a singular work leads to a conflation of principles, however the broad reaching nature of ESG has created a comingling of principles that are so intertwined in official documents they cannot be differentiated. Proponents of ESG apply the same fiduciary duty principles, and arguments, to both corporate directors and fund managers. Legislative and regulatory advancements in ESG, both generally and as it relates to fiduciary duty, will impact directors and 'Jonathan McGowan practices business law and international legal development in Jacksonville Beach, Florida. He is an elected Fellow at the European Law Institute, Vienna, Austria. Global Executive M.B.A., China Europe International Business School, 2024 (anticipated); J.D., Certificate in Environmental, Natural Resources, and Land Use Law, Florida State University College of Law, 2021; B.A. University of Florida, 2006. 1