Kerry E. Berchem
ESG Practice Co-Leader

Hello, I’m Kerry Berchem, co-chair of Akin’s Environmental, Social and Governance or ESG practice, a corporate partner and member of the management committee.

It is my honor to introduce the firm’s 2023 ESG Survey. My colleagues and I thought now would be a good time to reflect on significant ESG-related themes and developments coming out of 2022, as well as to highlight what trends we foresee developing in 2023.

Notably, in light of market demand and increasing disclosure requirements across multiple jurisdictions, we predict that asset managers will continue to significantly increase ESG-related investments and assets under management and product offerings in the coming years. We also expect more disclosure from issuers.

Simultaneously, however, we envision rising pushback against ESG, at least in the United States (U.S.), with some arguing that the ESG label is or has become “too woke,” “too broad” or “too distracting.” Others criticize ESG for being either inadequately or overly focused on data and metrics and, therefore, not scientifically quantifiable.

That said, while ESG, as a brand or label, will shift over time, it is clear to us that the underlying commitment to sustainability that undergirds the idea of ESG is here to stay and we fully expect ESG issues will remain front and center during the course of 2023. Accordingly, we continue our commitment to be “best in class” as we advise our clients on how to navigate these complex issues.

To that end, we have assembled a collection of articles that focus on what we believe are key ESG issues for 2023. In these materials, we touch on ongoing efforts to diversify our boardrooms and C-suites; examine the evolving landscape relative to greenwashing and green-hushing risks; consider the growing pushback against ESG and how to avoid attendant legal risks; and provide our thoughts on the recently concluded COP 27 in Egypt and some high-level expectations regarding what to expect for COP 28. We further identify key considerations in the opportunities to finance the global energy transition; discuss expectations for shareholder activism during 2023; examine the evolving world of ESG ratings; and provide insight into a new area of expertise that is likely overdue for a seat at the ESG table: corporate tax and compliance.

Obviously, these materials are not, nor are they intended to be, exhaustive. In an evolving and sometimes contentious landscape, we look forward to partnering with you to identify, address and implement your customized ESG needs. We hope you will enjoy this content and we look forward to working with you over the course of 2023.