ESG – Environmental, Social & Governance

As sustainability and responsible business practices become increasingly important, our firm is committed to helping clients integrate ESG principles into their operations. We offer guidance on environmental regulations, social impact assessments, corporate social responsibility, and governance best practices. 

By aligning businesses with ESG standards, we assist our clients in enhancing their reputation, managing risk, and contributing to a more sustainable future.

United Kingdom

Publication · 26 Jan 2025

ESG Insights Hub

1 min read

Environmental, social and governance (ESG) factors have become central to corporate strategies as they meet growing demands of investors, customers and regulators. The influence of ESG is growing across a range of economic and policy areas, including energy, finance, urban development and taxation, and is shaping a wide range of industries. 
At CMS Wistrand, we advise clients ranging from large corporations to emerging start-ups across all industries on matters related to ESG legislation and regulation, including:
 

At CMS Wistrand, we take an integrated, multidisciplinary approach to anticipating and addressing the challenges of the rapidly evolving ESG landscape. Our expert legal teams help clients identify risks and capitalise on opportunities arising from the increasing focus on ESG.

We help you navigate the legal and regulatory demands related to climate change, technological disruption, urbanisation and social concerns, with a particular focus on the Swedish market. Together we are working towards a sustainable future for Sweden and beyond.

Why choose CMS Wistrand for ESG legal advice? 

Why work with us? 

We offer the right combination of experience, approach and ambition to help you navigate the ESG landscape.

Supporting our clients for a sustainable future

We recognise that climate change and sustainability are key challenges for business today. Our industry knowledge and growing capabilities ensure that we can effectively support you on this journey.

Our team can help you not only manage the risks associated with ESG matters, but also identify new opportunities and emerging markets in this area. As the focus on sustainability legalisation and regulations increases, we are here to help guide your business towards legal compliance for a responsible and sustainable future.

Navigating the regulatory landscape

Our dedicated team keeps abreast of the latest ESG and sustainability guidelines, consultations and regulations. As a result, we can help your business stay ahead of regulatory changes and proactively address these growing requirements.

What we offer

• ESG advice: We are ready to help you explore, understand and comply to ESG regulations, legislation and standards and integrate sustainability compliance at a pace that suits your business.
• Sustainable finance: Legal Advice on strategies that ensure ESG compliance, ensuring long-term value.
• Responsible business practices: Helping companies align their day-to-day operations with ESG demand and regulations.

The people perspective

As companies work to meet their Environmental, Social, and Governance goals, aligning their workforce with these objectives is essential. Our legal advice helps clients understand the importance of core ESG standards, such as fair working conditions, prevention of child labour, equality and diversity throughout the supply chain.

Our Approach to the People Perspective

Our People Perspective focuses on human rights within ESG, addressing fair treatment, anti-exploitation, and inclusive practices. Through tailored legal guidance, we help clients to grasp and implement these key values and to make meaningful contributions to their visions.

Legal Training for Sustainable Change

By integrating the people perspective into our ESG advisory services, we help clients build the legal knowledge necessary to foster responsible practices across their organisation and value chain.

This approach ensures they meet both stakeholder expectations and regulatory standards.

Energy and climate change

Meeting energy needs in a way that supports both the future of the planet and the sustainability of the energy sector so vital to society is one of the greatest long-term challenges facing business today. In a world where energy and environmental concerns are at the forefront of global debate, we are ready to guide your business through the maze of regulatory complexities. The energy sector is influenced by a complex web of global geopolitics, economics and regulation that is far from static.

Our great understanding and experience of the energy sector, enables us to help clients across a range of industries address climate change issues and navigate this change.

We provide practical legal advice to companies and organisations regarding climate change issues. By keeping abreast of industry changes and evolving regulations, we help our clients make informed and legally sound decisions in their endeavours to meet both business and sustainability objectives.

It is essential to consider every part of the energy and climate change landscape. Whether advising on climate change strategies, renewable energy projects, regulatory issues or new technologies, we always keep the wider context in mind to help our clients are prepared for both the opportunities and the challenges ahead.

Environmental impact

The growing urgency of climate change is driving businesses to address their environmental impact, explore new opportunities and keep pace with evolving regulations. We work with companies across a range of industries and provide legal advice on environmental issues in transactions, disputes and regulatory compliance.

Environmental regulation plays a critical role within the broader ESG framework. These issues are wide-ranging, touching on everything from compliance and sustainability to reducing environmental impact and environmental risks in business operations.

We provide legal advice in order to help our clients to manage their environmental responsibilities and seize on opportunities to align their business practices with sustainability goals.

Greenwashing and ESG Risks

As greenwashing risks increase, companies must navigate the legal and regulatory challenges linked to sustainability.  There is no single legal definition and the concept of greenwashing will vary by product, service and jurisdiction. In addition, greenwashing is not a purely legal or regulatory concept; allegations can have significant reputational implications. In general, greenwashing involves misrepresentation, misstatement and false or misleading practices in relation to ESG credentials.

Key risks include:

• Misrepresentation and misleading sales practices: Companies must provide accurate ESG disclosures to avoid misleading consumers, customers, investors and the CCCC.
• Regulatory penalties: Non-compliance can result in significant fines and damage to a company's reputation.
• Greenwashing carries with it reputational, regulatory and litigation risks for which companies should be prepared.
• Greenwashing disputes litigation is rising. These disputes have a broader group of claimants than 'traditional' disputes, which also have different measures for what constitutes a 'successful' outcome.
• A good practice in governance, disclosure and due diligence is significant, combined with a comprehensive understanding of the sustainability aspect of the product, activity or transaction at hand.

CMS Wistrand supports clients in assessing ESG-related litigation and regulatory risks, helping them align their practices and disclosures with regulatory standards to minimise legal and financial exposure.

Corporate Governance

Good corporate governance is essential for all companies to operate efficiently, gain the trust of investors and maintain consumer confidence. It is important that all stakeholders understand the governance factors that influence key decisions, their rights and responsibilities, and the regulatory framework that shapes the markets in which they operate.

At CMS Wistrand, we advise boards of directors, shareholders, general counsels, managers and entrepreneurs on how to effectively fulfil their governance roles and responsibilities. Whether it is navigating local environmental laws, addressing directors' responsibilities, ensuring equal pay or managing the responsible use of data, our team is equipped to help you implement best governance practices.

We offer a range of services to help clients maintain effective governance, including:

• Regulatory compliance: Advice on complying with market rules and regulations and reporting obligations.
• Board & shareholder advisory: Assistance with board responsibilities and shareholder rights.
• Director liability: Assistance with personal liability issues for directors.
• Compensation strategies: Advice on fair and transparent remuneration practices.
• Data governance: Ensuring compliance with privacy and data protection regulations.

At CMS Wistrand, our goal is to provide our clients with the tools and insights they need to build strong, transparent and legally compliant governance structures.

Social

The social aspect of ESG focuses on how an organisation interacts with its employees, suppliers, and communities. Investors and the market are increasingly scrutinising how companies manage social issues such as ethics, supply chain responsibility, diversity and inclusion, and overall contribution to society. Increased regulation also places demands on how companies manage and take responsibility for social sustainability. Companies that demonstrate a positive social impact and comply with legal requirements and regulatory standards are more likely to gain market and investor confidence.

As a full-service law firm, we bring together the right expertise to provide legal advice in order to help you manage the social impact of your business and investments. Whether it is assessing workforce diversity, pay equity, health and safety protocols, supplier relationships, or community engagement, we have the right team to guide you towards best practice in corporate social responsibility.

Sustainable finance

Sustainable finance and responsible investment have become global priorities, with increasing prominence on political, regulatory and market agendas. While much of the momentum has been market-driven, regulation is rapidly catching up.  The Swedish Financial Supervisory Authority (Finansinspektionen) and EU regulations, such as the Sustainable Finance Disclosure Regulation (SFDR), are driving greater transparency, raising the risk of legal and regulatory actions for those that fail to meet evolving standards.

Whether you are a bank, insurer, trustee, asset or fund manager, consultant, broker or fintech founder, we can help you navigate the sustainability landscape. Our holistic approach to ESG and climate change brings together specialists in areas related to green finance, including renewable energy, ESG funds, green real estate finance and sustainable infrastructure.

Our services include:

• Advising on the legal structuring of green finance instruments, bonds, and impact investments.
• Providing legal regulatory advice on EU and national finance legislation including reporting obligations.
• Conducting ESG risk assessments, offering legal advice on reporting obligations and sustainable opportunities.