How should insolvency law respond to the rise of environmental, social, and corporate governance? For decades, insolvency law has been built on the premise of creditor value maximisation—interpreted almost exclusively in monetary terms. Yet as environmental, social, and governance considerations increasingly reshape corporate behaviour, this traditional focus is under unprecedented scrutiny. Should creditors be permitted to pursue non-monetary goals in a restructuring, even when doing so may reduce financial returns? And should insolvency practitioners treat issues such as climate change as material financial-risk factors when determining how best to administer an estate?
While corporate law has long grappled with questions surrounding shareholder value, stakeholder interests, and the boundaries of fiduciary responsibility, insolvency law has only recently begun to engage seriously with these debates. The implications are significant: reassessing the foundations of creditor value could transform long-standing doctrines and reshape practice across jurisdictions.
This pioneering volume fills a critical gap in the literature by placing ESG at the centre of insolvency scholarship. Bringing together leading experts from the United States, Europe, Asia, and South America, the book offers a truly global and interdisciplinary perspective. The contributors explore fundamental theoretical questions alongside emerging practical challenges, drawing out common themes that transcend the common law-civil law divide.
Timely and rigorous, this collection provides the first sustained examination of how ESG considerations intersect with insolvency law. It is essential reading for academics, practitioners, policymakers, and anyone seeking to understand how financial distress—and the legal systems that manage it—must adapt in an era defined by broader notions of value.
