On the basis of prospective EU legislation, companies will be required to identify, address and report in relation to the impact of their business’ activities on, for example, the environment and on human rights. Ahead of ESG due diligence becoming a mandatory obligation, it is evolving into a market wide best practice.
ESG performance is becoming a point of focus in the selection of business partners - in the context of an investment, a transaction or an important contract. Performing a legal ESG due diligence on a target company or potential business partner can be of key value. It is equally important to be aware of your own ESG performance and to understand the ESG performance of your value chain.
Legislation is developing in this area as well, most notably with the European ESG Due Diligence Directive.
It is therefore important to ask yourself new types of questions:
In an ESG Audit, we map the regulatory requirements and case law, set out how and when ESG regulation applies and provide guidance on compliance and litigation risks. With this, we tailor the scope to the needs and priorities of the individual client. An extensive audit can encompass governance, litigation and reporting as well as contracting aspects.
Our team of experts can:
ESG Due Diligence provides an overview of how the target’s ESG performance rates against the applicable legal framework, including future regulation and soft law. Our ESG Due Diligence is aimed at determining whether, from a legal perspective, the target company is subject to ESG-related risks. It covers the E, the S and the G; enabling companies to include non-financial considerations and legal implications in their decision making.
Our team of experts can:
The Corporate Sustainability Due Diligence Directive (CSDDD) aims to foster sustainable and responsible corporate behaviour throughout global value chains. Our Corporate Governance team advises clients on how the directive applies to their chain of activities, as part of an ESG Audit or as a separate legal service. Our Contract team assists clients in implementing their ESG strategy and incorporating CSDDD requirements into material contracts.
Our team of experts can:
The governance structure plays an important role in implementing ESG strategies. By actively promoting sustainability goals and accounting for ESG issues, companies build stakeholder engagement and trust, and show social and environmental accountability. Factors such as board expertise and independence, shareholder rights and leadership effectiveness throughout the company’s operations are critical to success. The 2022 Dutch Corporate Governance Code regards an ESG strategy as part of a vision of long-term value creation.
Our team of experts can: