In light of ESG requirements, companies must identify and manage potential future risks and adapt their risk management and governance structures accordingly. As key issue companies must determine how they can promote and control the sustainable enforcement of human rights, environmental protection standards, and social and ethical principles through their internal structures.
Legislators have intensified existing regulatory frameworks and developed new regulatory regimes in recent years. They focus not only on specific industries such as the financial sector. Rather, ESG has become an integral part of the compliance, risk management, and reporting systems of larger companies and will continue to grow in relevance in the coming years as ESG legislation will also apply to smaller companies. Moreover, imposed fines are also increasing. As a result, questions arising in our advisory practice pertain not only to compliance and corporate structures, but in a growing number to liability issues.
ESG criteria are also gaining importance in M&A and private equity transactions. Investors are paying more attention to ESG compliance issues when deciding on additions to their portfolios. Additionally, ESG compliance is becoming an increasingly important value-creating factor in company valuation, and can play a role in the preliminary stages of a transaction, such as during legal due diligence, in contract drafting (e.g. in the structuring of warranties or closing conditions), and with respect to post-closing obligations.
Focus Areas
- Corporate Culture
- ESG Due Diligence
- Board, Executive Management, and Supervisory Boards Liability for Inadequate Implementation of ESG Requirements
- Impact Investing
- Corporate Sustainability Reporting
- Sustainability Cooperation
- Stakeholder Engagement
- Steward Ownership, Purpose Company and Purpose Venture; Company with Tied Assets, B-Corp Certification
- Transparency and Due Diligence in Supply Chains (Supply Chain Due Diligence Act)
- Responsible Corporate Leadership (Corporate Social Responsibility and Governance)
- ESG Insurance
- ESG Post-Merger Optimization