Sustainable Finance

Law Firm in the Netherlands specialised in Sustainable Finance

Back to ESG - Environmental, Social & Governance

Sustainable finance is about including environmental, social and governance (ESG) considerations in investment and finance decisions. In recent years, we have seen that more and more investors and lenders, including banks, are considering ESG factors when making investment decisions. With the aim to support economic growth while reducing pressures on the environment and taking social and governance aspects into account.

Sustainable Finance tools

The past years various sustainable financing products have been developed. For loans, two particular main products have became popular. First, the financing of ‘green’ projects such as for the development of renewable energy sources, called Green Loans. And secondly, providing Sustainability Linked Loans for companies in order to improve its sustainability profile measured by predetermined targets. Once these targets have been met, the company will receive a discount on its loan.

Multidisciplinary and market leading practice

CMS is a Thought Leader and has a market leading Sustainable Finance practice. Our knowledge and experience is based on the work we have been doing for years for almost all market leading players in this area. Within the practice area group ESG we specialise in helping clients implement sustainable business practices. Therefore, at CMS we have developed a multidisciplinary sustainable finance approach, where specialists in the fields of regulation, financing, corporate law and energy work together.

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23/05/2023
Sustainability KPIs in finance transactions
Sus­tain­ab­il­ity-linked financing is still in its infancy, but it is already an integral part of today's financing landscape and looks set to remain into the future. Plenty of data and information exists, particularly on the KPIs of sus­tain­ab­il­ity-linked financings, but it is scattered. In this guide we have compiled, analysed and commented on all aspects of sus­tain­ab­il­ity-linked financing to give you access to everything you need to know.
A Growing focus on sustainability in the financial sector
With this E-Book we explore the concept of sustainable finance

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23/05/2023
Sustainability KPIs in finance transactions
Sus­tain­ab­il­ity-linked financing is still in its infancy, but it is already an integral part of today's financing landscape and looks set to remain into the future. Plenty of data and information exists, particularly on the KPIs of sus­tain­ab­il­ity-linked financings, but it is scattered. In this guide we have compiled, analysed and commented on all aspects of sus­tain­ab­il­ity-linked financing to give you access to everything you need to know.
25/01/2023
Key outcomes from COP-15
At the end of 2022, the 15th Conference of Parties of the United Nations Convention on Biological Diversity culminated in a new Global Biodiversity Framework to 2030. Twenty three targets require broad...
04/01/2023
Bart-Adriaan de Ruijter: Future-proof companies make ESG top priority
ESG has become a strategic priority in the boardroom in recent years, says Bart-Adriaan de Ruijter, member of the ESG task force at CMS, in an interview with FD De Wereld in 2023. Companies pay attention...
11/11/2022
Sustainable Financing
ESG: Environmental, Social & Governance
11/11/2022
ESG e-guide
Over a relatively short period of time, the implementation of ESG (environmental, social and governance) aspects in commerce has grown to become a strategic priority at management level. While the substance of ESG is likely to evolve in the coming years, the underlying impulse for businesses to make a social contribution, and not just an economic one, is here to stay. In essence, it is about maintaining and reinforcing the social licence of a business to operate in a rapidly changing world. As a result, ESG goes to the heart of every business. Future-looking companies Not all aspects of E, S and G are priorities for all companies. Companies will carefully have to weigh which ESG aspects they want to focus on. For that reason, it is instructive to observe organisations that approach ESG in a rigorous, strategy-driven, socially attuned way. McKinsey calls these organisations ‘for­ward-look­ing companies’. They make ESG intrinsic to their strategy by deliberately applying those ESG aspects that connect to the core of their business. Forward-looking companies also promote competition by standing out and using good corporate citizenship to contribute to finding solutions to existential challenges, such as climate change. Distinguishing role Whatever your company's ambition, you will always need to comply with the ESG regulations, including those on environmental legislation, labour-law issues and governance. But forward-looking companies take it one step further, and usually raise the bar by focusing on certain aspects of ESG in which they can play a leading or distinguishing role. Ideally, this will also motivate similar companies to take a comparable route when it comes to ESG. Roadmap to social profit This ESG special publication provides company lawyers a concise overview of the most important ESG regulations, as well as concrete tools to give managers better advice in the field of ESG. Various aspects and elements of a company will be discussed: from the distribution chain to commercial property, from sustainable financing issues to the desired level of diversity and inclusivity within the population, and from governance to ESG litigation.
01/06/2022
CMS Next
What’s next? In a world of ever-ac­cel­er­at­ing change, staying ahead of the curve and knowing what’s next for your business or sector is essential. At CMS, we see ourselves not only as your legal advisers but also as your business partners. We work together with you to not only resolve current issues but to anticipate future challenges and innovate to meet them. With our latest publication, CMS Next, our experts will regularly offer you insights into and fresh perspectives on a range of issues that businesses have to deal with – from ESG agendas to restructuring after the pandemic or facing the digital transformation. We will also share with you more about the work that we are doing for our clients, helping them innovate, grow and mitigate risk. To be able to provide you with the best support, we immerse ourselves in your world to understand your legal needs and challenges. However, it is equally important that you know who we are and how we can work with you. So, we invite you to meet our experts and catch a glimpse of what is happening inside CMS. Enjoy reading this publication, which we will update regularly with new content. CMS Executive Team
24/05/2022
The ESAs have submitted further SFDR queries to the Commission
I. Background While Level 1 of the Sustainable Finance Disclosure Regulation (“SFDR”) has been applicable for over a year, the investment funds managers have been facing uncertainties with regards...
20/05/2022
DEBRA – The new EU tax initiative aiming at promoting a fair and sustainable...
Within the EU a widespread asymmetry exists between debt and equity financing. Usually, interest is tax deductible from the corporate income tax base while dividends do not benefit from such advantage...
11/05/2022
SFDR continues to evolve: more granular disclosures to be proposed on in­vest­ments’...
Financial products with exposures in fossil gas and nuclear energy are likely to have more granular reporting requirements under the Sustainable Finance Disclosure Regulation (“SFDR”). The European...
11/05/2022
SFDR’s Principal Adverse Impacts Indicators on course to change
The European Commission has given the European Supervisory Authorities (“ESAs”) a mandate to review the SFDR Delegated Regulation indicators for principal adverse impact and the financial product...
07/04/2022
The European Green Deal in action: significant new circular economy measures...
On 30 March 2022, the European Commission (“EC”) presented a package of measures intended to make sustainable products the norm in the EU, facilitate circular business models and empower consumers...
21/01/2022
Climate change litigation: demand letter for climate change to 29 multinationals
The Dutch claim foundation Milieudefensie recently published a letter addressed to 29 large companies in the Netherlands in which it demands that the companies take a frontline role in climate change...