Your partner in ESG

Environmental, social, and governance (ESG) issues are becoming increasingly important in the business operations of modern organisations. Legislation and regulations in the areas of sustainability, transparency, and social responsibility are growing in scope and complexity. Large companies are required to include ESG reporting and analyse risks throughout the value chain. This presents not only challenges, but also opportunities. Banning Advocaten is ready to assist your organisation with ESG compliance, strategic decision-making and dispute resolution, with an eye for both legislation and your business interests.

New legislation and regulations

From 2024 onwards, large companies will have to comply with new obligations regarding ESG reporting. The aim of this legislation is to increase transparency and encourage companies to adopt more sustainable and socially responsible practices. The most important laws and guidelines are:

• Corporate Sustainability Reporting Directive (CSRD): This directive requires companies to include ESG reporting in their annual accounts. This includes a description of the impact of business operations on the environment and society, as well as risks and opportunities in the area of ESG themes.

• European Sustainability Reporting Standards (ESRS): Companies must structure their sustainability reporting in accordance with these standards. Among other things, this requires a double materiality assessment: both the impact of the company on the environment and the impact of external factors on the company must be analysed.

• Corporate Sustainability Due Diligence Directive (CSDDD): This directive obliges companies to identify and address risks throughout their entire value chain, for example in the areas of human rights, working conditions and environmental issues.

The ESRS contains twelve standards, the first two of which form the basic principles for strategy, governance, and materiality. The other standards address specific ESG themes, including climate change, biodiversity, and employee rights.
For companies, this means that they are now responsible not only for their own business operations, but also for the activities of suppliers, partners, and other stakeholders in the value chain.

Who must comply with the reporting obligation and from when?

The CSRD and ESRS will be introduced in several phases:

• From 2024: Listed companies that already report under the Non-Financial Reporting Directive (NFRD).

• From 2025: All large companies that meet at least two of the following criteria: a net turnover of €50 million or more, a balance sheet total of €25 million or more, or 250 employees or more.

• From 2026: Small and medium-sized listed companies, with some exceptions for the first reporting years.

• From 2028: Non-EU companies with a net turnover of more than €150 million in the EU and substantial activities in the EU.

It is essential that companies prepare for these obligations in a timely manner. Not only to avoid fines or penalties, but also to gain a competitive advantage by proactively complying with ESG requirements.

What does ESG-advisory involve?

ESG advice focuses on supporting companies in complying with legal requirements relating to sustainability and social responsibility. This includes:

• Reporting and compliance: Drafting and implementing strategies to comply with CSRD and ESRS requirements.

• Materiality analysis: Legal advice on conducting double materiality assessments.

• Due diligence: Support in identifying ESG risks in the value chain, such as human rights violations or environmental damage.

• Dispute resolution: Guidance in legal conflicts on ESG issues, such as liability for environmental damage or governance issues.

• Strategic advice: Developing forward-looking ESG strategies, including sustainability initiatives and stakeholder management.

With a legal partner who understands both the law and the business reality, you are better equipped to manage risks and seize opportunities.

How can we assist you with ESG matters?

Banning Advocaten can assist you with the following matters:

• Advice on the implementation of CSRD and ESRS requirements.

• Support with materiality analyses and due diligence in the value chain.

• Legal guidance in disputes
  concerning ESG compliance or governance.

• Advice on stakeholder communication and transparency.

• Guidance on mergers and acquisitions in which ESG aspects play an important role.

We combine legal knowledge with strategic insight, so that you not only comply with legislation, but also achieve your sustainability goals.

When should I engage a solicitor with expertise in ESG?

Engaging a solicitor specialising in ESG is essential when:

• Your company is required to report in accordance with the CSRD and ESRS.

• Legal conflicts arise around sustainability, such as liability for environmental damage.

• You have questions about ESG compliance or due diligence in your value chain.

• Your organisation wants to develop sustainable strategies proactively.

• You want to be prepared for future changes in legislation.

A specialist solicitor can help you better understand and address the legal and strategic implications of ESG.

How do we work?

At Banning Solicitors, we take a structured approach to ESG compliance:

1. Analysis: Together, we map out your current situation and risks.

2. Strategic advice: We develop a tailor-made strategy based on your business objectives and applicable legislation.

3. Implementation: We assist with the introduction of ESG policy and reporting procedures.

4. Monitoring: We provide support in monitoring compliance and risks.

5. Dispute resolution: We assist you in legal conflicts or supervisory procedures.

Our approach is pragmatic and solution-oriented, with an eye for your business interests.

Why should you choose our solicitors with experience in ESG?

We offer:

• Specialist knowledge: Expertise in ESG legislation, reporting and strategic advice.

• Pragmatic solutions: Focused on legal certainty and practical feasibility.

• Extensive experience: Successful guidance of various companies in a wide range of sectors.

• Future-oriented: Focus on the long term, with an eye for changing legislation and trends.

• Customised: Personal guidance tailored to your specific needs and objectives.

Contact us for ESG advice

ESG compliance requires expertise, vision, and decisiveness. At Banning Advocaten, we combine legal knowledge with strategic insight, enabling your organisation to meet tomorrow's requirements.  Contact us for a no-obligation consultation and discover how we can help you implement ESG strategies.