Intel Believes Sustainability Part Of Fiduciary Duty Under Delaware Law
In an interesting move, Intel provided an institutional investor--Harrington Investments, Inc.--with an outside legal opinion stating that under Delaware Law directors have a fiduciary duty to address corporate responsibility and sustainability performance as specified in the committee charter.
According to the HLL website
"Intel has acknowledged in their committee charter, that directors must take into consideration corporate responsibility and sustainability performance, including long and short term trends and impacts on Intel's business, as part of their fiduciary duty," said John Harrington, President and CEO of HII. "This is a major victory for advocates of corporate responsibility and environmental sustainability, and others who strongly believe that these issues are essential in recognizing directors' and officers' fiduciary duty."
If it is corporate malfeasance not to take sustainability and climate change risk into consideration, it will be a significant motivating factor in moving companies towards sustainability.
I would love to see the legal opinion--special GBLB prize to the first reader who gets it to me!
Shari focuses on energy, environmental and building code policy, representing international companies, non-profits and trade associations in their policy and communications campaigns
