Abstract

This article examines legal strategies for ESG stewardship based on legislative experience in the United Kingdom and the European Union – two pioneering legal systems in shaping, standardizing, and advancing regulatory frameworks related to sustainable development. A qualitative research methodology is employed, combining legal doctrinal analysis, synthesis, and comparison of legal instruments and academic literature, while also incorporating findings from selected bibliometric studies to clarify the origins and conceptual underpinnings of ESG. The research shows that the ESG concept is dynamic rather than static, evolving across different periods and regulatory contexts. Despite variations in interpretation, existing approaches converge in viewing ESG as comprising three core pillars – environmental, social and governance–that collectively reflect the comprehensive responsibility of business enterprises toward sustainable development. The study further identifies three principal legal strategies currently used in ESG stewardship: (i) investment stewardship rules aimed at integrating ESG factors into investors’ decision-making processes; (ii) disclosure obligations designed to standardize and enhance the transparency of ESG-related information while mitigating “greenwashing”; and (iii) fiduciary duties that require market participants to exercise prudence in managing sustainability-related risks. Based on the analysis of international experience, the article proposes several policy recommendations to support the development of an ESG stewardship legal framework tailored to Vietnam’s regulatory conditions and policy priorities.