Environmental, Social and Governance

The purpose of an Environmental, Social and Governance (ESG) strategy is to ensure you have a clear plan for how to operate in a sustainable and responsible manner. It should consider not only financial performance but also the impact on society and the environment.

Having a clearly defined ESG strategy is essential to define and achieve your sustainability goals. It adds value and will be a valuable tool for navigating the increasingly complex sustainability landscape.

We can help you develop an ESG strategy tailored to your business and needs.

The number of regulatory initiatives related to sustainability and ESG has increased dramatically in recent years, and the tidal wave of regulation is likely to continue for some time. Having a clear and comprehensive overview of current and future regulatory requirements that affect your business, your services and products is crucial. Legislation in this area often applies beyond the company itself, also considering the wider supply chain and other stakeholders. So it's important to look beyond national requirements and also look at other jurisdictions.

We can help you:

• identify and comply with relevant requirements, providing correct information to authorities and end customers, and ensuring you have included necessary requirements in contracts with suppliers, and manufacturers; and
• prepare for upcoming regulations and requirements, for example the Corporate Sustainability Due Diligence Directive (CSDDD).

The EU Taxonomy Regulation (Regulation (EU) 2020/852) is a classification system that establishes criteria for when an economic activity should be considered environmentally sustainable.
The taxonomy, together with other regulatory frameworks in the field, aims to steer capital flows in a more sustainable direction by making it easier for investors to support projects and companies that promote the green transition. Companies that are required to disclose non‑financial information under the EU Accounting Directive must, according to the Taxonomy Regulation, provide information on how and to what extent their activities are associated with economic activities that qualify as environmentally sustainable under the EU Taxonomy. Non‑financial companies and financial institutions above a certain size are required to report the proportion of their activities and investments that meet the taxonomy’s criteria.

To be considered environmentally sustainable, the economic activity must make a substantial contribution to at least one of the EU’s six environmental objectives:

• climate change mitigation,
• climate change adaptation,
• sustainable use and protection of water and marine resources,
• transition to a circular economy,
• pollution prevention and control, and
• protection and restoration of biodiversity and ecosystems.

Furthermore, the economic activity must not cause significant harm to any of the other five environmental objectives and must also comply with minimum social safeguards, including the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, as well as the principles and rights set out in the ILO core conventions and the International Bill of Human Rights.
Finally, the economic activity must meet the applicable technical screening criteria established by the European Commission.

We can help you to:

• ensure that your taxonomy reporting is based on a sound methodology that takes into account relevant requirements, guidelines, and practices. This is particularly important with regard to minimum safeguards, which are often overlooked in the reporting process, as well as when assessing the applicable technical screening criteria;
• understand how the taxonomy relates to other sustainability‑related regulatory frameworks, helping you coordinate and streamline your reporting efforts and avoid duplicating work.

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that requires certain companies to publish information on how they manage a wide range of sustainability‑related matters. The directive includes far more detailed reporting requirements than the previous Swedish rules on sustainability reporting. Companies covered by the directive must report on how their operations and strategy influence their sustainability performance, as well as how external sustainability‑related factors (such as climate change and human rights) affect their business. The purpose of the directive is to support a more sustainable economy, in line with the EU Green Deal and the UN Sustainable Development Goals, by providing investors and other stakeholders with access to standardised and detailed information about companies’ sustainability profiles.

The reporting requirements primarily apply to large companies. Even businesses that are not directly subject to the directive but are part of the supply chain of companies that are covered can expect an increased focus on data collection and data management.

We can help you identify and interpret the reporting requirements relevant to your company.

In an ESG due diligence, a company’s compliance with binding national and international ESG regulations is assessed, such as the EU Taxonomy Regulation, the CSRD, trade regulations, and anti‑corruption rules, as well as the management of ESG risks throughout the value chain.

The assessment includes mapping the legal ESG risks to which the target company is exposed, evaluating how well these risks have been managed, and providing our recommendations for addressing any shortcomings identified. 

We can help both investors and target companies throughout the due diligence process.

ESG criteria can be used in all phases of procurement, in the qualification phase, as part of the award criteria to be used, and as special contract conditions, ie part of how the assignment should be carried out. 

Public procurement is a significant tool for achieving societal policy goals in the sustainability area. Sustainability requirements are also an important part of public procurement for both sides of the public procurement process, both for contracting authorities and suppliers. We advise both contracting authorities and suppliers in all phases of public procurement. 

We can help you:

• select a procurement strategy and procurement form;
• incorporate ESG criteria in selection and evaluation criteria;
• evaluate based on ESG criteria;
• handle contractual ESG requirements;
• follow-up on and apply ESG criteria;
• develop procurement policies to ensure that purchases support established ESG goals; and
• develop guidelines for procurement and tendering to ensure compliance with ESG criteria.

Regulation (EU) 2019/2088 on sustainability‑related disclosures in the financial services sector (SFDR) establishes harmonised rules on transparency regarding how financial market participants and financial advisers integrate sustainability risks, consider principal adverse impacts on sustainability factors, set objectives for sustainable investments, and promote environmental or social characteristics in their investment decision‑making and advisory processes.

SFDR introduces stricter and harmonised transparency requirements on ESG factors for actors who produce or advise on financial products within the EU. The aim is to increase transparency around the management of sustainability risks, principal adverse impacts on sustainability factors, and the extent to which environmental or social characteristics and/or sustainable investment objectives are taken into account in product development and advisory services.

SFDR is currently undergoing amendments at EU level, which are expected to enter into force in 2028.

We can help you to:

• identify gaps between your current state and the target state regarding classification under the SFDR
• review and update information documents in line with the requirements for pre‑contractual disclosures, website disclosures and periodic reporting under the SFDR
• review your company’s processes for assessing sustainability risks, principal adverse impacts, and due diligence processes under the SFDR
• provide recommendations and guidance on training efforts and on implementing the SFDR’s requirements in your investment decision‑making and advisory processes
• ensure full implementation of upcoming and amended regulations, including alignment with new or revised technical standards and disclosure requirements linked to changes in the SFDR and its delegated regulations

Sustainable financing is a form of financing linked to various ESG initiatives. The market for sustainable financing has grown significantly and now includes a range of instruments, such as green bonds, green loans, and debt-for-nature swaps.

The benefits of sustainable financing include the ability to attract larger and more responsible investors and access various ESG segments in the financial market. For lenders, green or sustainability-linked loans, in turn, mean they can improve their green asset ratio and make it easier to meet reporting obligations, such as those under the EU taxonomy.

We can help you:

• design terms for green and sustainability-related loans and bonds to ensure they reflect both customer needs and market practices, while avoiding greenwashing; and
• review existing frameworks for green and sustainability-related investments in light of new regulatory requirements, such as the EU Green Bond Standard and existing standards like ICMA's Green and Sustainability-Linked Bond Principles and LMA's Green and Sustainability-Linked Loan Principles.

In a time when sustainability and transparency have become a given for all companies, it's crucial to understand the connections between tax legislation and ESG. We help you navigate these complex contexts and ensure your tax strategies not only comply with the law but also strengthen your commitment to ESG goals. By aligning tax strategies with ESG, you can reduce risks, improve transparency, and contribute to a more sustainable future.

Let us help you transform your tax strategy into a powerful tool to promote your ESG agenda and improve both compliance and your corporate reputation. 

A selection of our tax-related ESG services:

• Tax and sustainability: Advice on which sustainability initiatives are tax-deductible and how companies can strengthen their tax sustainability.
• Tax issues and board advice: Advice on tax strategies that align with the principles of the OECD's BEPS actions and "fair share taxation," strengthening the company's social responsibility.
• Tax policy and tax sustainability planning: We help companies develop tax policies and integrate tax issues into broader sustainability work.
• Support for green financing: We provide tax considerations related to green bonds and sustainable financing, as well as tax issues in projects that promote investments with positive ESG effects.
• Global tax compliance: Navigating international tax rules to ensure the company's global tax management aligns with ESG standards.
• Socially responsible tax strategy: Advice on tax strategies that align with the principles of fair taxation, strengthening the company's social responsibility.

The global technology sector is central to leading the transition to a sustainable future. Technology companies are often innovative and forward-looking to gain market advantages and offer solutions to global challenges in sustainability and ESG.

Technology is crucial for the transition to a low-carbon economy with net zero emissions. Innovations in cleantech, electrification, and automation can play a significant role in reducing greenhouse gas emissions, improving energy efficiency, increasing demand for renewable energy, and finding solutions to reshape our energy systems. 

Although digital technology is constantly improving, it still faces environmental challenges such as high energy consumption, problematic material supply, eg extraction of rare minerals, and handling of non-recyclable electronic waste. Due to pressure from consumers, suppliers, and legislators, many companies strive to reduce environmental impact through improved product design, stricter supply chain controls, and better management of product life cycles.

We can help you with:

• data security and privacy
• global governance and compliance
• regulation and government requirements
• emerging technologies including AI
• product liability

How do you market your product as green, sustainable, or climate-friendly without violating marketing laws?

More and more companies are profiling themselves by selling green and sustainable products. If you want to use ESG initiatives to market your product as sustainable, the documentation must be in order.

The marketing law requires documentation of the effects of green and sustainable initiatives. We advise on the requirements according to the Consumer Ombudsman's guidelines and court decisions and help review campaigns and marketing strategies. We also help if competitors in the market use unfounded claims.

We can help you:

• map and navigate regulations for marketing green products and services;
• assess how you use your brands and marketing in relation to sustainability requirements;
• resolve disputes related to marketing green products and services; and
• communicate information about your sustainability work without conflicting with the law.

Within the real estate industry – and particularly in the construction sector – ESG has become an important and rapidly growing factor. We expect to see continued growth in investments in sustainable initiatives as regulatory requirements increase and more companies adopt ESG policies with increasingly ambitious goals, including reducing carbon and greenhouse gas emissions and strengthening the focus on circularity through material recycling in the construction industry.

Construction and infrastructure account for a significant share of material consumption and carbon emissions. It is therefore crucial to keep pace with ESG developments in these sectors in order to deliver high‑quality solutions. Forward‑thinking companies in these industries place ESG at the core of their operations. They integrate ESG into decisions, actions, and initiatives—not only out of a desire to operate responsibly, but also to secure their position in the future construction market.

We can help you to:

• ensure that your construction projects meet new climate requirements and reduce carbon emissions
• integrate climate requirements into your contracts to ensure that all agreements comply with sustainability standards
• provide sustainability services aimed at promoting sustainability in construction projects and contributing to a clear understanding of the concept of sustainability
• review compliance with sustainability requirements in real estate transactions

The energy sector faces continuous challenges from a volatile market, regulations, and geopolitical changes. New technology, innovative business methods, efficiency improvements, and new breakthroughs are key factors for transforming your business for a sustainable future.

Our energy team understands this fundamental change and how it affects your business, whether you're active in power, renewable energy, commodity trading, waste, water, or hydrogen. We advise regulated businesses, investors, developers, and other key stakeholders in the industry, including governments.

We can help you with:

• financing and development
• commercial power purchase agreements (Corporate Power Purchase Agreements) and standardization of energy trading agreements
• transactions in renewable energy, including solar and wind power
• managing project-related risks and agreements

We advise on the full range of environmental and climate regulation. For example, we advise on energy transition projects such as renewable energy production, energy storage and fossil-free fuel production, and on matters related to climate change and pollution, environmental protection and the circular economy. We help to manage and mitigate environmental risks, including in the context of transactions.

We can help you with:

• permitting matters under the Swedish Environmental Code and other authorisations 
• regulatory compliance and guidance on environmental and climate legislation
• transactional advice and environmental due diligence
• recycling and waste responsibility
• contaminated land
• protected areas and biodiversity
• environmental litigation