ESG

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 is a classification system that defines what constitutes sustainable economic activities for investment purposes for a number of sectors. With other regulations in this field, the Taxonomy Regulation is intended to help channel the flow of capital in a greener direction by making it easier for investors to invest in projects and companies that contribute to the green transition. Both non-financial companies of a certain size and financial institutions have to report on the proportion of their activities and investments that fulfil the criteria in the Taxonomy. 

To be sustainable or Taxonomy-aligned, the economic activity has to promote 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
• protection and restoration of biodiversity and ecosystems.
   

The economic activity also mustn't significantly harm any of the other five environmental objectives. And it has to fulfil certain minimum social and governance safeguards. The minimum safeguards relate to how companies work to:

• secure human rights for their own workforce and in their value chains;
• combat corruption; and
• ensure they adhere to fair taxation and fair competition practices.

The EU Taxonomy became part of Norwegian law from 1 January 2023. For financial year 2023, Norwegian non-financial companies have to report on the extent to which they engage in activities that are Taxonomy-aligned. Norwegian financial institutions have to report on the extent to which they finance or have invested in such activities.

We can help you:

• ensure your Taxonomy reporting is based on a sound methodology that takes into account relevant guidelines and best practices – this is particularly relevant in relation to the minimum safeguard requirements, which are often overlooked in the reporting process; and
• understand how the Taxonomy relates to other sustainability related regulations, helping you coordinate and streamline your reporting efforts and avoid having to do the same work twice.

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that requires certain companies to publish information on how they address a wide range of sustainability-related issues. 

The directive includes much more detailed reporting requirements than the previous Swedish rules on sustainability reporting. Companies covered by the Directive have to report on how their operations and strategy affect their sustainability performance, and how external sustainability-related factors (such as climate change and human rights) affect their operations. 

The Directive aims to facilitate a more sustainable economy, in line with the EU Green Deal and the UN Sustainable Development Goals, by giving investors and other stakeholders access to standardised and detailed information on companies' sustainability profiles. 

The reporting requirements initially concern large listed companies, but the number of companies covered will be expanded over time. Even if a company isn't directly covered by the requirements but it's part of the supply chain of companies that are covered, it should expect increased focus on data collection and management.

We can help you:

• identify and interpret the relevant reporting requirements for your business;
• ensure the report is prepared in accordance with applicable standards and regulations; and
• provide quality assurance of the methodology used.

ESG due diligence assesses a company's compliance with binding national and international ESG rules, such as the EU Taxonomy Regulation, CSRD, trade rules and anti-corruption rules.

The assessment includes a mapping of the legal ESG risks faced by the target company, an assessment of how well these risks have been managed, and our recommendations to address any shortcomings. 

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.

The Sustainable Finance Disclosure Regulation (SFDR) establishes harmonized rules for financial market participants and financial advisors. The regulation focuses on how sustainability risks, consideration of adverse impacts on sustainable development, goals for sustainable investments, and promotion of environmental or social characteristics are integrated into the investment decision-making and advisory process.

In short, SFDR entails enhanced transparency requirements regarding ESG factors for entities that produce or advise on financial products/investments in the EU to increase transparency around the handling of sustainability issues.

We can help you:

• identify gaps between the current state and the target state for classification in accordance with SFDR;
• review and update information documents in accordance with SFDR requirements;
• review your processes for assessment according to SFDR, including your DD process; and
• provide recommendations and approaches for training and practical implementation of SFDR requirements in the investment process.

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.

In the real estate industry – and particularly in the construction sector – ESG has become an important and rapidly growing factor. We expect to see continued increase in investments in sustainable initiatives as more companies adopt ESG policies with increasingly ambitious goals in areas like reducing carbon and greenhouse gas emissions and a greater focus on circularity through the recycling of materials in the construction industry.

Construction and infrastructure account for a significant portion of material consumption and carbon emissions. So it's important to keep pace with ESG developments in these industries to deliver high-quality solutions. Forward-thinking companies in these sectors place ESG at the centre of their operations. Companies incorporate ESG into decisions, actions, and initiatives out of a desire to conduct responsible business, but also to secure their place in the future construction industry.

We can help you:

• ensure your construction projects meet the new climate requirements and reduce carbon emissions;
• integrate climate requirements into your contracts to ensure all agreements comply with sustainability standards; and
• manage sustainability services. In October 2022, the addition to the service descriptions on sustainability services was launched. One of the purposes is to promote sustainability in construction projects and contribute to a clear understanding of the concept of sustainability.

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