Navigating ESG - how we can help
Our commitment to our clients goes beyond legal and tax obligations. We aspire to encourage long-term value and sustainable success for our clients through environmentally and socially responsible practices. Our dedicated team of attorneys, civil law notaries and tax advisors combine extensive expertise in the areas of environmental, social and governance (ESG), with rich project and transactional experience. We provide multi-disciplinary advice to top management and legal teams, developing and implementing effective legal and tax ESG strategies and navigating the complexities of a rapidly evolving legal and regulatory landscape.
Broad local and international networks enable us to offer valuable market insights and extended services which include tailored training, education programmes and exclusive access to a network of industry experts and thought leaders.
Explore our ESG solutions
Discover our ESG offering in a nutshell. This web page outlines examples of what you can expect from us across various disciplines and how we can assist you navigate the rapidly evolving ESG landscape.
ESG in Banking & Finance
ESG considerations are prominent in the financial industry, playing a pivotal role in determining access to capital and market competitiveness. Pension funds, banks, insurance companies, and other asset managers are increasingly prioritising funds for companies with robust ESG practices.
European regulations like the EU Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy Regulation, oblige financial market participants to identify their sustainability ambitions, classify products accordingly and adhere to transparency requirements associated with the relevant classification. Ensuring compliance with these frameworks requires these parties to gather relevant ESG data, establish effective reporting mechanisms and fulfil disclosure requirements. This process can be resource-intensive, complex and a source of potential liability.
In addition, as green and sustainability-linked loans and bonds gain prominence, we offer expertise to banks, lenders, investors, and asset managers actively seeking to support ESG initiatives and capitalise on the associated opportunities.
Our expert team offers seamless green financing guidance with comprehensive support and guidance through the whole process. We also assist with reporting and disclosure obligations and ensuring compliance of business practices with applicable regulation, showcasing your commitment to environmental sustainability.
ESG in Corporate / M&A
As ESG considerations take centre stage across most industries, our tailored solutions help companies navigate evolving regulations and stakeholder expectations. From legal advice on policy implementation to compliance, reporting and due diligence, we assist corporate clients in aligning practices with sustainable principles, managing risks and thriving in the dynamic ESG landscape. Buyers and investors increasingly prioritise ESG factors realising the impact on a company’s ability to attract capital and personnel.
EU legislation, such as the Sustainable Finance Disclosure Regulation (SFDR), Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD), imposes reporting and disclosure obligations. This presents resource-intensive challenges and potential liabilities for a company and its directors. Ensuring compliance involves data gathering, reporting mechanisms and disclosure adherence. Embedding ESG considerations into core business strategy and decision-making demands organisational shifts and sustainable practices, touching on responsible sourcing, supplier monitoring and ethical conduct.
ESG in Energy & Infrastructure
Sustainability is increasingly impacting decisions made by investors and financiers, companies, consumers, shareholders and policymakers. ESG objectives are reflected in EU and national regulations and many international voluntary standards. This trend is reflected in consistent growth in our ESG-inspired projects and client demands. The move from fossil fuels to renewable energy sources continues to gather momentum and we strive to be at the forefront of this energy transition. Our diverse team specialises in regulatory energy law, construction law and contracting, project financing, corporate and M&A, administrative law and public procurement.
ESG in Employment & Benefits
ESG considerations have gained significant influence in employment and pension law. Companies and pension providers face growing obligations to report on their ESG performance, encompassing social and labour-related aspects, to comply with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). These disclosures can impact employment practices, influencing initiatives related to diversity and inclusion, employee well-being and fair labour.
The Pay Transparency Directive, which will - among other things - introduce reporting requirements for larger employers on equal pay and the right for employees to request information on their individual pay levels from their employer, requires employers to take various (proactive) measures to ensure compliance and promote equal pay within their organisations.
The EU Taxonomy regulation and the SFDR promote sustainable investments which necessitate compliance with minimum social safeguards or the promotion of social objectives.
Understanding the legal requirements and opportunities surrounding ESG in employment law is crucial for employers committed to sustainable and responsible workforce practices, as well as for undertakings and investors seeking sustainable investments.
ESG in Investment Management
ESG considerations are pivotal in the fund industry, shaping capital access and market competitiveness. Investors, including institutional investors, are favouring managers with robust ESG practices leading to the rise of ESG-focused funds. European regulations, such as the EU Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy Regulation (TR) mandate our clients to identify and disclose their sustainability goals, classify their products accordingly and adhere to transparency requirements. Compliance with these frameworks involves gathering relevant ESG data, implementing robust reporting mechanisms and meeting disclosure obligations - a process that can be resource-intensive, complex and pose potential liabilities for the fund managers.
We are committed to assisting investment management clients in aligning with sustainable principles and navigating the dynamic ESG regulatory landscape for optimal risk mitigation and leveraging of opportunities.
ESG in Litigation & Risk Management
In recent years, significant momentum has been gained in global climate change and human rights violation litigation. Individuals and interest organizations actively seek legal remedies and demand accountability from governments, companies and their directors. Corporate behaviour, especially in respect of ESG issues, is under increased scrutiny from investors, shareholders and third parties. This trend is expected to intensify soon with the strengthening of ESG regulations and a rise in class action litigation.
Loyens & Loeff is well-equipped to support clients in all types of ESG liability and litigation matters. Our strength lies in our ability to harness the collective expertise of a diverse team of lawyers. We collaborate holistically, combining our litigation proficiency with the invaluable insights of specialists from other areas within our firm.
ESG in Real Estate
ESG considerations are of increasing importance to the real estate industry. Investors are looking to generate financial returns with positive environmental and societal impacts, while investors and tenants demand sustainable buildings. Along with a fundamental interest in the creation of sustainable buildings, developers are incentivised by increased market demand for responsible investment products. We are committed to helping real estate clients align their business practices with sustainable principles, mitigate risks and seize opportunities in an evolving ESG landscape.
In the real estate sector, there is pressure to achieve EU climate targets by 2030 and there is growing evidence of increase profitability in green buildings. Real estate developers and investors, driven by both environmental responsibility and commercial incentives, find value in retrofitting existing buildings for increased sustainability, or investing in newly constructed green buildings. There is increasing evidence that green buildings attract more potential purchasers and tenants, resulting in better rental and sale values.
ESG in Taxation
Today, ESG (short for: environmental, social, and governance) is more relevant for businesses than ever before. With the growing relevance of ESG in all sectors and all business departments, there is also an increased focus on ESG in taxation. Taxation can be related to each element of ESG.
