The decision by an Australian court earlier this month to prohibit the opening of a coal mine because the mine would contribute to greenhouse gas (GHG) emissions and set back the fight against climate change is being characterized by some socially responsible investing specialists as a judicial first in the environmental, social and governance (ESG) area that may prove a watershed in the field. They add that the court’s decision represents another lesson to investors on how ESG issues can be reflected in regulatory risk—a real-world business risk that can negatively impact shareholder value.

Source: Aussie Coal Mine Court Ruling Illuminates Reg. Risk in ESG Investing – Institutional Allocator