Lobbying – the forgotten ESG risk?
Lobbying is frequently overlooked by investors for their financial decision-making and ESG due diligence. This is despite the fact that more than 2,200 public and private companies were implicated in more than 3,600 risk incidents tied to lobbying worldwide over the past 13 years, and 2019 saw an all-time high of more than 800 lobbying incidents. 1
Analysis of lobbying practices can paint a more revealing and complete picture of a company’s business practices. Lobbying typically does not exist in a vacuum, and it has the unique capacity to intersect with a variety of other issues: