Policy and Politics: Two Sides of the ESG Coin?

Governments across the globe have adopted different approaches to spur innovative technologies to transition economies towards Net Zero. “Environmental, Social and Governance” (“ESG”) is the umbrella term for policies that are adopted by organizations to promote such social and environmental goals. Despite some level of public consensus (admittedly higher in some countries than others) about the need to act on climate change and other environmental and social issues, there is ongoing debate on how antitrust rules should deal with competitor collaborations to promote ESG initiatives. Whilst it is still early days, we can already observe divergent approaches from antitrust authorities across the globe in the face of divided public opinion and political polarization. This article will present a brief overview of the current treatment of ESG collaborations under antitrust rules in the EU, UK, and the U.S. then offer a range of possible approaches open to policymakers and regulators. We reflect below on the need to achieve legitimacy for any steps taken to adopt a more ESG-friendly stance, and on how different approaches may achieve this legitimacy.

By Justin Stewart-Teitelbaum, Martin McElwee, Sarah Jensen, Justin Chen & Donna Faye Imadi^[1]

I. IT TAKES A VILLAGE, BUT WHAT ABOUT A VILLAGE OF COMPETITORS?

Governments across the globe have adopted different approaches to spur innovative technologies to transition economies towards Net Zero. “Environmental, So