The ESG Disclosure Paradox: Gaps in Environmental Justice Criteria

Authors

Barbara Ballan, Florida International University

Abstract

Environmental Justice (“EJ”) and Environmental Social Governance (“ESG”) are terms used to address the impacts of corporate actions as well as environmental and social regulation on the people and the planet. ESG disclosure is a corporate-driven invention that aims to measure progress towards sustainability and disclose environmental and social criteria while fostering value for businesses. EJ, by contrast, emerged as a social movement that evolved into regulatory frameworks. Governmental agencies and EJ advocates are utilizing EJ mapping tools and metrics to assess inequalities in environmental impacts caused by private and public policy and decision-making. Though these concepts may initially create an impression of contradiction, the paradoxical relationship between using EJ tools within ESG disclosure frameworks creates innovative avenues to achieve long-term corporate viability while pursuing EJ objectives.

ESG disclosure requirements can be imposed through mandatory rules by public regulators or adopted voluntarily by businesses. In the U.S., environmental protections in general, and disclosure regulations in particular, remain uncertain, with ongoing political turmoil and a push-pull dynamic surrounding the establishment of mandatory ESG requirements and EJ programs. Given this uncertainty, voluntary frameworks warrant closer examination, as they offer immediate insights into corporate environmental and social disclosures. Additionally, voluntary reporting frameworks serve as models that influence the development of mandatory ESG regulations.

This Article evaluates and critically examines the inclusion of EJ in voluntary ESG disclosure frameworks and identifies the gaps in existing frameworks for the effective inclusion of environmental justice criteria. Thus, this work intends to provide ideas and tools to guide businesses incorporating EJ into ESG, inform public regulators (increasingly relying on private frameworks to create mandatory ESG disclosure), and support EJ advocates in navigating the complexities of ESG disclosure.

Recommended Citation

Barbara Ballan, The ESG Disclosure Paradox: Gaps in Environmental Justice Criteria, 32 Hastings Envt'l L.J. 77 (2026)
Available at: https://repository.uclawsf.edu/hastings_environmental_law_journal/vol32/iss1/5