REGULATORY
CHANGE
DECARBONISATION & THE "JUST" TRANSITION
LITIGATION & ACTIVISM
TRANSPARENCY DISCLOSURE & REPORTING
ESG IN TRANSACTIONS
"GOVERNING" ESG: THE ROLE OF LAWYERS
REGULATORY CHANGE
1. How able are you to track emerging ESG regulations worldwide and factor these into your strategy?
2. Have you considered whether your organisation may be required to comply with ESG risk management laws to be introduced in the EU?
3. Which ESG regulatory frameworks concern you the most globally in terms of potential business impact?
4. Which aspects of ESG regulation pose the biggest risk to your business? (eg, ethical codes, climate change, human rights)
5. To what extent are you trying to reach unified global standards on ESG issues rather than focus on national compliance?
DECARBONISATION & THE "JUST" TRANSITION
1. What are the key opportunities for your company arising from decarbonisation?
2. Does your organisation’s strategy incorporate energy transition risk? Have you done scenario analysis?
3. How will your assets be impacted by climate change? Are stranded assets a significant future risk?
4. Could decarbonisation threaten your ability to secure sufficient insurance cover in future?
5. Are you concerned that your access to capital could become compromised by reliance on fossil fuels?
ESG IN TRANSACTIONS
1. Do you have a sustainable financing strategy? What frameworks are you using?
2. How have ESG factors influenced your relationship with shareholders, or with investments being made by your organisation?
3. Does your organisation include ESG requirements in procurement?
4. Does your organisation regularly undertake ESG due diligence? Is this for new transactions only, or on an ongoing basis?
5. For investors: what steps are you taking to integrate climate change into your investment strategy? Funds managed or marketed in the EU now must be classified under the Sustainable Finance Disclosure Regulation – what impact will this have on your organisation?
"GOVERNING" ESG: THE ROLE OF LAWYERS
1. What are your greatest concerns regarding ESG liabilities? (eg, reputational damage, regulatory sanctions, share-price impact, litigation risk)
2. Who has primary responsibility for managing ESG risk? To what extent is legal involved?
3. What ESG-related policies do you already have in place? Who drafted these and who maintains them?
4. Does the board consider ESG in its decision making? How often is the board briefed on ESG matters?
5. In what areas does the legal team need the most support on ESG?
TRANSPARENCY DISCLOSURE & REPORTING
1. Does your organisation routinely measure ESG-related data? (eg, workforce diversity, energy efficiency, GHG emissions)
2. Do you report on sustainability risk?
3. Do you have a carbon report? If so, what methodology do you follow?
4. Who in your company is responsible for drafting ESG disclosures and who else contributes to them?
5. How are you engaging with communities, NGOs and the media on ESG factors?
LITIGATION & ACTIVISM
1. Has your organisation made any public commitments to ESG standards or targets?
2. How are you managing ESG risk? What risks are you focussed on? Are there internal blockers you are facing?
3. How aware is your legal team of developments in ESG-driven disputes, including claims against parent companies and actions for misleading statements to consumers?
4. Have you reviewed your ESG policies and risk management to address increasing litigation risks?
5. Are your lawyers involved in reviewing policies and reporting on ESG-related matters?