ESG律师事务所的主要内容和趋势

ESG法律原则介绍

The acronym ESG stands for Environmental, Social and Governance. In a nutshell, those three letters form a broad set of criteria for a company’s operations. They have become a key focus for investors in the last two decades. There has been growing evidence that these non-financial factors are better indicators of financial performance than traditional financial indicators.
For example, companies with high ratings on environmental practices have lower costs, lower liabilities, and higher sales growth potentials. Companies with the highest ratings on social issues tend to outperform those with low ratings, with superior returns. Companies in the top tier on governance structures account for over 20 percent of the return of the S&P 500, which can be huge considering it has averaged a 10.6 percent annualized return over the last 15 years.
Environmental
The "E," or environment, refers broadly to a company’s impact on the natural world. This might include the energy it uses in its supply chain, whether it produces emissions that contribute to climate change, whether it contributes to water or air pollution, the energy efficiency of its products, how it disposes of waste, and whether its supply chain is (or is thought to be) sustainable. For example, new smart meters and other innovations have made it possible for utilities to conserve natural resources and to be more efficient with the use of wind or solar energy.
Social
The "S" is social. This considers the company’s relationships with its employees, suppliers, customers, and the communities where it operates . Important issues might include employee treatment, diversity, sexual harassment, data security, human rights and labor standards. The Social component is often the most difficult for companies to measure. Options have increased in the tech sector, encompassing everything from apps to fight homelessness in Seattle to a tool for understanding Internet usage in developing countries like Nepal.
Governance
The "G" is governance, or the ways in which a business is controlled. This might focus on a company’s leadership, its executive pay, audits, internal controls, and shareholders’ rights. Typically this is the easiest component for a law firm to understand and help a client navigate. For example, the Supreme Court recently ruled that shareholders at 51 percent can approve a merger without a vote of the remaining 49 percent of shareholders.
ESG Criteria
More specific ESG criteria are outlined in numerous frameworks including:
A recent survey published by the World Economic Forum (WEF) focused on the two issues expected to generate the most disruption for businesses and investors over the next decade. Out of 200 risks, WEF’s respondents identified:
Bain & Company noted in its "2018 Global Private Equity Report" that ESG issues were cited by private equity firms as the largest potential risk not currently reflected in valuations. Private equity firms account for nearly 40 percent of institutional investors.
The Role of Law Firms
Law firms have not been immune to ESG issues. Like all institutions and businesses, they feel pressure to comply with evolving ESG standards.

企业为何需要ESG法律事务所

The recent rise of ESG laws, in addition to climate change-related regulatory traps, has put pressure on companies to invest in ESG law firms. Companies face compliance pressures associated with new ESG regulations, including requirements to disclose just how much they’re contributing to the climate crisis. There is also greater risk potential, as failure to take the steps necessary to comply with these regulations can severely hurt a company’s bottom line.
The past few years have seen the rise of new regulations. One of the most notable is the EU Sustainable Finance Disclosure Regulation, which took effect on March 10. It requires financial advisers and fund managers to disclose information about their ESG-related policies.
There is also a litany of similar policy developments in the United States. In March, the White House issued an executive order mandating that the federal government focus on tackling climate change through its principles of equity and environmental stewardship. Last year, Rutgers Law School released a study detailing the legal responsibilities associated with "climate-competitiveness," including how companies could face liability if they fail to disclose their ESG policies.
Thus, many companies are worried about losing out on institutional investments. Billions of dollars of institutional capital are going toward investment firms that shift their focus toward ESG investing practices. In fact, by the end of 2020, sustainable fund assets increased by 89% from the previous year. Additionally, BlackRock, the world’s largest asset manager, recently announced that it would only invest in companies that are committed to ESG practices.
With rapidly shifting standards and an ever-growing focus on sustainability, many companies are hiring ESG law firms to parse through the minutiae and help them navigate any gaps. Similarly, many companies rely on ESG law firms to help them stay ahead of the curve and avoid any vulnerabilities in three main areas:
"Accelerated changes toward growing concerns over environmental, social and governance (ESG) topics continue to gain prominence across industries," said Scott Black, director of sustainability at Davidson & Company. "Although ESG laws and regulations will have the largest impact on financial-related firms and businesses that operate in heavily regulated industries, ESG-focused policies and procedures are rising in every industry."
In particular, the "E" in ESG — which stands for environmental — has become a major focus for regulators. Deutsche Bank began launching its "Climate Action Strategy," a €200 billion green investment fund, last year; and Goldman Sachs recently released its own sustainable investment fund.
While ESG may have started as a trendy buzzword among finance sectors, companies across multiple industries cannot afford to grow complacent and delay their own investments in ESG. From automotive to agriculture, beauty to medical devices, leaders in all industries should invest in ESG firms fast.

ESG法律事务所提供的服务

ESG law firms typically offer a range of expertise and services to in-house counsel and corporations. Some ESG law firms traditionally have provided only a narrow subset of ESG-related lawyering, such as advising companies on regulatory compliance with the SEC. But for some time, it has been increasingly common for ESG law firms to offer a wider range of issues (or to advertise themselves as offering a "full-service" suite of ESG issues), such as multi-jurisdictional compliance strategies, anti-corruption advice, corporate governance and liability risk assessment. Interestingly, some ESG-focused firms, such as Norton Rose Fulbright, offer a standalone service known as the "ESG Navigator."
Corporate responsibility and sustainability are increasingly becoming board-level issues. Accordingly, ESG law firms may advise boards and in-house counsel on ESG strategy, reporting and performance tracking; managing the investor landscape; risks associated with claims of greenwashing; disclosure of climate-related and ESG risks; and executive compensation and how each may affect corporate ESG strategies.
In addition, some ESG law firms advise clients on human rights policies, anti-corruption and bribery, and other matters that fall under the "social" component of ESG. Some firms have reportedly provided ESG-related pro bono legal services in programs aimed at migrants and refugees.

如何选择ESG法律事务所

When considering a litigator who specializes in ESG (Environmental, Social and Governance)-focused work, it pays to do your homework. Make sure you identify firms with the right expertise and experience, including ESG litigation know-how tailored to your unique industry. Be mindful that not all ESG firms have experience working on cases involving complex regulatory matters, and the uneasy relationship between ESG and other more established doctrines such as antitrust, securities law, and state or federal law preemption.
Keep in mind that the field of ESG litigation is a new and rapidly-evolving area of the law, and as such, the marketplace is flooded with firms marketing their ESG-specific services under different platforms and pricing structures. While the ESG industry is likely to become a highly competitive practice area, for now there are only a handful of firms that have the ESG-related experience to competently guide clients through the thickets of this new legal field.
When evaluating candidates, make sure to ask whether the firm has a dedicated ESG focus, which areas of the vast ESG spectrum do they prioritize, and whether the firm has experience with your legal issue . A firm’s expertise is also best evaluated through its solid track record of client success in litigating ESG-specific cases. A firm that has prevailed in an ESG matter for a U.S.-based company is likely to have more experience with the intricacies of U.S. law, regulation, and environmental policy, as opposed to a firm that has spent most of its time representing European-based clients.
Don’t forget to look at the firms’ clients when assessing their ESG expertise. In selecting an expert ESG litigator, you will likely be handed a short list of ESG-focused law firms that are highly respected in the field. Check out these suggested ESG litigation firms first before contacting promising candidates listed on various internet sites.
Client testimonials and proven performance are also excellent ways to confirm a firm’s ESG litigation expertise. If your company is part of an ESG working group with other companies and trade associations, ask to see if any of their members have worked with your ESG litigator of choice.

ESG法律事务所在全球规则中的作用

The global landscape of ESG regulations, standards and frameworks can be difficult to navigate for any organization. ESG law firms are invaluable partners in this increasingly complex field. They help clients:
Because there is no single source of ESG standards and regulations, companies should work with an ESG law firm that understands the regulatory framework applicable in each region in which they operate. Such firms can help clients strategically evaluate how to approach and respond to the local, regional, and global impact of ESG developments.
Clients should also seek out ESG law firms that offer a comprehensive suite of advocacy services to help them effectively push forward their ESG initiatives. These services can include support through:
Many ESG law firms have frameworks and approaches to help guide clients through the process of addressing a lack of uniformity in ESG-related regulatory requirements. A few common frameworks include:
It can often be beneficial to work with more than one ESG law firm to receive comprehensive advice and services. Until a single global ESG framework materializes, there are benefits to weighing recommendations that come from multi-disciplinary and sector-focused perspectives.

ESG法律事务所的趋势及未来։

Even relatively new ESG law firm models are already evolving in response to the fast growing ESG market. A recent article from Bill Dunkelberg explains how ESG law firms commonly enter the market as new boutique firms or hubs within existing law firms, then either grow organically or through attracting new talent, merger or acquisition. Bloomberg also reports that dedicated ESG divisions are expected to become even more common in this market. Chubb, Julius Baer, Westfield, and the Australian Superannuation fund have all recently created dedicated ESG divisions , while BNP Paribas and BlackRock have expanded their ESG operations in the past two years. All of these changes indicate a burgeoning market for ESG law firms. These firms are adapting to better serve their clients by diversifying their focus, broadening their geographical reach, and offering new legal services. The rise of ESG law firms also indicates that ESG issues are becoming more closely integrated into broader legal practice as well. As ESG programs continue to expand, an increasing number of legal services firms will likely find ways to adapt their offerings in order to keep up with market demand and align with consumer expectations.