Public Benefit Corporations: The Corporate Form for a Sustainable Future

Delaware Public Benefit Corporations (PBCs), as distinct from Certified B Corps or Benefit Corps, have moved from the “impact” shadows to mainstream capital markets. There are now 19 publicly traded PBCs and hundreds of rapidly growing private companies that have employed this form. A confluence of factors has contributed to their popularity, including investors with a focus on benefiting broader stakeholders in addition to shareholders and increasing profitability. But how do boards and management teams balance their fiduciary duties to shareholders with their defined public benefit and consideration of stakeholders? Will the PBC ultimately be used to accelerate energy transition and a move to net zero, particularly for more traditional industries? And, will PBCs successfully withstand increased investor scrutiny in the shifting capital markets and retain their valuations? Featuring Suz Mac Cormac, Kevin Smith, and Margot Brandenburg.