Environmental, Social and Governance (ESG)

Recent Articles

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  27.09.2023

  Europe

  The European Commission launches a consultation on the implementation of SFDR

  BackgroundThe European Union’s (the EU) Sustainable Finance Disclosures Regulation (SFDR) came into force in March 2021 and has kept the industry busy (and sometimes frustrated) since then with myriad updates and guidance.This landmark regime was designed as a transparency regulation, setting detailed disclosure requirements for financial market participants,  financial advisers and financial products in relation to sustainability issues. However, the widespread market sentiment is that SFDR is not functioning as intended for many reasons.Consequently, as SFDR approaches its third anniversary,...

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  27.09.2023

  United Kingdom

  Climate activism and protected beliefs

  Climate activism is not a new issue. But for some employers it is becoming a new workplace issue. Employers, like politicians, would prefer to bring people with them on their climate change journey, rather than impose emission reducing measures without consent. But the reality is there will always be diverging views on the pace of change in respect of achieving net zero and other climate change issues. How should an employer who is committed to tackling climate change deal with challenge to their approach from activist employees, or at the other end of the spectrum, climate sceptics?This...

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  27.09.2023

  Europe

  The European Corporate Sustainability Due Diligence Directive (CSDDD) – Where are we?

  What is CSDDD?On 23 February 2022, the European Commission published its proposal for a Directive on corporate sustainability due diligence (the “Proposal”), which aims to foster sustainable and responsible corporate behaviour throughout global value chains. The Proposal requires in-scope companies to identify, and, where necessary, prevent, mitigate or end, any actual or potential adverse impacts that their operations, and the operations of entities in their extended supply chains, have on human rights and the environment. This is in addition to the reporting obligations that currently...

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  21.09.2023

  Switzerland

  Biodiversity: now a topic for companies

  DE

  Biodiversity: the variety of lifeThe term biodiversity, also known as species diversity, is understood to mean a richness of animals, plants, fungi and microorganisms. The term also encompasses the genetic diversity within the different species, the diversity of ecosystems and the interactions within and between these levels. Generally speaking, biodiversity describes the variety of life.Functions of biodiversity and the problem of its lossThe diverse nature of the term biodiversity already suggests that its functions are extraordinarily comprehensive. Biodiversity ensures the functioning of all...

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  05.09.2023

  Germany

  Current German case law on the term “climate neutral” (klimaneutral) and related claims, such as “en­vir­on­ment­ally neutral” (umweltneutral)

  Climate neutral – or not? The delicate use of the term “climate neutral” in advertising.In ongoing debates in society, business, politics and science around the – extremely relevant – topic of climate protection, the term “climate neutrality”, among other things, is referred to on a regular basis. In the future everything should, where possible, – or at least according to the wishes and ideas of politicians – be carried out, produced, offered and disposed of in a climate neutral way.On the legislative side, ambitious targets are being set in...

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  05.09.2023

  International

  Deep sea mining: navigating in murky waters

  On 9 July 2023, the latest deadline for finalising the draft exploitation regulations for deep sea mining in international waters expired without agreement.1 This deadline resulted from a letter from the pacific state of Nauru in 2021 stating an intention to apply for approval of a ‘plan of work’ for exploitation of deep sea minerals. The letter triggered a sub-clause within the Agreement relating to the implementation of Part XI of the United Nations Convention on the Law of the Sea of 10 December 1982, (“the 1994 Implementing Agreement”) which gave the International...

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