In the wake of Hurricane Beryl, this three-part commentary explores three legal responses to climate change as the Caribbean faces a grim reality: Hurricanes are arriving earlier, growing stronger and occurring more frequently.
The first part focused on climate finance, the second on climate litigation. This third and final instalment addresses the “ESG” concept, which uses environmental, social and governance criteria to evaluate corporate sustainability.
Global upswing
Currently, the global landscape is witnessing a significant upswing in ESG regulation. In the European Union, key directives such as the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR) have been enacted. Meanwhile, in the United States, the Securities and Exchange Commission has recently promulgated new rules that mandate public companies to disclose information regarding climate-related risks and emissions.
While mandatory ESG disclosures are not yet widespread in the Caribbean, there has been a notable shift here too. Regulators such as the Eastern Caribbean Central Bank have recently introduced prudential standards focusing on climate-related and environmental risks for licensed banks, and other regional regulators are widely expected to issue more sustainability-related guidelines soon.
Escalating threats
Ultimately, the Caribbean and other vulnerable regions urgently need more robust legal frameworks as they face escalating climate threats. While areas like equitable climate finance, litigation and corporate sustainability are crucial, further legal responses are essential as well.
Needed measures include building codes prioritising resilience, improved land-use regulations, and financial incentives for sustainable practices.
But legal solutions alone are insufficient. A truly resilient future demands unwavering international cooperation, with wealthier nations significantly reducing emissions and providing substantial financial assistance.
Also required is a steadfast commitment to environmental justice, ensuring impacted communities have a voice and resources for adaptation.
Lastly, complete accountability demands that all stakeholders — nations and corporations alike — are held responsible for their contributions to climate change
Ms. John is a Grenada-based attorney with a master’s degree in environmental law and policy from University College London, which she pursued through a Chevening Scholarship.