ESG Power Hour - COP28 insights and 2024 trends

Act. Unite. Deliver. The webinar ended with a reference to the COP28 closing statement: “An agreement is only as good as its implementation. This historic consensus is only the beginning of the road”. Therefore, CMS in the Netherlands will organise  (hosted in Dutch).5 ESG deepdives in H1 2024

Thank you to our presenters:

• Cecilia van der Weijden, Head of Energy & Climate Change, CMS Netherlands
• Etiënne Courbois, Partner Banking & Finance, CMS Netherlands
• Aukje Haan, Partner Commercial Law, Head of ESG taskforce, CMS Netherlands
• Katja van Kranenburg, Head of Employment Law & Pensions, CMS Netherlands
• Rogier de Vrey, Head of IP, CMS Netherlands

Energy Transition:

In H1 2023 50% of electricity used in the Netherlands originated from sustainable resources. But ambitions are high, as the total electricity infrastructure should be CO2 net zero by 2035. New energy transition legislation should remove current pain points (e.g. infrastructure, locations, permits) and offer new opportunities (e.g. business partnerships, new business models and employment opportunities).

Sustainable Finance:

Decarbonisation and the growth of green companies and technologies require an unprecedented shift in the way we allocate capital. Sustainable Finance is often mentioned as one of the biggest obstacles in tackling climate change. One of the important objectives of COP28 was to overcome this obstacle; to allow for better access to Sustainable Finance. During Finance Day on December 4, The UK, France, World Bank, IDB, EIB, EBRD and AfDB have made commitments to expand the use of the Climate Resilient Debt Clause (CRDC) in their lending agreements.

Supply Chain:

In 2024 new (European) legislation will become into force that will have huge effects on many organizations. Good example is the Corporate Sustainability Reporting Directive (CSRD), that will require sustainability information from the supply chain of a company. Even today, we see an increase in ESG provisions in contracts, e.g. audits.

The People’s Perspective:

Sustainable employment practices are more important than ever before. 69% of Dutch people aged 20-29 say the climate impact of prospective employers is an important factor when job hunting, and 13% even say it is a top priority. 4 in 10 young people leave if an employer does not do anything about sustainability. Sustainability should be part of a company’s corporate strategy. What goals do you set (optional) as an employer? Employee participation is critical, but what’s the best way to organize employee participation, how do employees share in success, what’s the role of the Works Counsil?

Sustainability Claims:

The Netherlands runs in sync with EU legislation. In addition to legislation, there is much self-regulation. In 2024, a New Green Claims Directive will be launched. From ex post enforcement to ex ante compliance. Verification by independent "verifiers"​. Although there is much pressure from different stakeholders, still much is possible. So keep communicating about your sustainable steps and measures. No greenhushing!

Watch the recording here (conducted in Dutch):