Legal Frameworks For Corporate Environmental Responsibility: A Study Of International Regulatory Architecture

Abstract

Corporate environmental responsibility has moved from a voluntary, reputation-driven practice to an increasingly binding legal obligation embedded in international regulatory architecture. This paper examines the principal international legal frameworks that govern corporate conduct towards the environment, including United Nations instruments such as the Paris Agreement and the Global Biodiversity Framework, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the International Sustainability Standards Board's IFRS S1 and S2 disclosure standards, and the European Union's Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, which function as de facto global benchmarks due to their extraterritorial reach. The paper further analyses the growing role of domestic courts in enforcing corporate climate and environmental obligations, using the 2021 Milieudefensie v. Royal Dutch Shell judgment as an illustrative case. It argues that while the global architecture has shifted decisively from soft-law encouragement to hard-law obligation, it remains fragmented across jurisdictions, unevenly enforceable, and vulnerable to greenwashing where verification mechanisms are weak. The paper concludes by proposing measures towards a more coherent and enforceable international framework, including harmonised disclosure baselines, mandatory third-party assurance, and stronger mechanisms for extending accountability across corporate supply chains.