ESG - Legal advice - Sustainability

We offer advice on:

• Risk identification and implementation of measures

• Identifying business ethics risks related to corruption, money laundering, competition and export control

• Developing and implementing ESG strategies in company policies

• Developing and customising company policies, procedures and screening processes to meet ESG requirements

• Establishing and administering whistleblower programmes to enable reporting of ESG-related irregularities

• Counselling and assistance in resolving ESG-related disputes

• Counselling and conflict resolution assistance in connection with ESG-related aspects and disputes

Our advice is tailored to help companies implement, monitor and manage their ESG initiatives in line with the latest requirements and standards.

At DLA Piper, we have a global and leading team of Danish and international lawyers who are all experts in financing law. Our experts are dedicated to supporting companies to understand, implement and document sustainable lending and financing with the goal of ensuring transparency and compliance with ESG legislation.

We have deep insight into financial matters and represent a wide range of players in the commercial financial world. We also participate in industry bodies and advise regulators, helping to shape finance law and its framework.

Our experience in advising on finance is wide-ranging. Among other things, we can help with:

Advising on green loans and sustainable finance

• Advice on responsible finance agreements
• Negotiation of contract terms
• Advising on sustainable investments and sustainable finance, including the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation
• Sustainability reporting advice, including Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS)
• Risk assessments and materiality analyses
• Advice on reporting requirements for investors and the public

Preparation of documentation

• Helping to prepare the necessary documentation for green and sustainable loans and responsible investments to ensure compliance with applicable laws and practices
• Drafting and updating relevant ESG company policies

At DLA Piper, we have extensive experience in advising on the rules on producer responsibility, i.e. rules that require the manufacturer or importer of a product to take financial and/or organisational responsibility for the waste treatment of their products.

The idea behind producer responsibility is that producers are motivated to design their products for reuse, recycling, durability and reparability when they have to pay for the waste treatment of their products. Our experience covers producer responsibility in a broad sense, for example in the areas of cars, batteries, electronics (WEEE) and packaging.

• Advice on product regulations and labelling
• Developing and implementing circular economy in business strategy
• Advice on handling producer responsibility, including whether responsibility should be handled individually or collectively, contracting with waste handlers, compliance, etc.
• Training of industry players in producer responsibility
• Consultancy on national and European standards and legislation
• The link between circular economy and sustainability reporting

In real estate - and especially in construction - ESG has become an important and rapidly growing factor. We expect to see a continued increase in investment in sustainable initiatives as more companies adopt ESG policies with increasingly ambitious targets in areas such as carbon and greenhouse gas reduction and an increased focus on circularity through the recycling of materials in construction.

Construction and infrastructure account for a significant share of material consumption and CO2 emissions, so it's important to keep up with ESG developments in these industries to deliver high-quality solutions. The trend is accelerating and forward-thinking companies in these sectors are already placing ESG at the core of their operations. Companies are incorporating ESG into decisions, actions and initiatives out of a desire to operate responsibly, but also to secure their place in the construction industry of the future.

We see a particular focus on the following ESG and sustainability themes in the construction and infrastructure sectors:

• Reduction of CO2 emissions. At the turn of the year 2023, the new climate requirements in BR 18 came into force. Although the climate requirements had been announced for some time, it was not until 2023 that the construction industry realised the importance of the climate requirements for the green transition in construction. Over time, this will place greater demands on the data basis for LCA calculations.
• Circular economy. The scarcity of resources is also affecting the construction industry, which is why there is an increasing need to look at the reutilisation of existing materials. Reuse of materials seems obvious, but also recycling of materials seems to be a hot topic. However, the MgO plate cases of recent years seem to have extinguished the motivation and desire to embrace new materials and methods in construction.
• Climate requirements in the contract. If the building, facility or construction does not fulfil the contract's climate requirements, there is a need to be able to enforce the provisions of the contract. However, climate requirements make it difficult to use traditional breach of contract remedies, so there is a need to consider climate requirements throughout the contract, especially when it comes to the construction of buildings.
• Sustainability services. In October 2022, the new addendum to the service descriptions on sustainability services was launched. One of the aims is to promote sustainability in construction projects and contribute to a clear understanding of the concept of sustainability.

In this context, our advice includes

• Incorporating ESG requirements into the contract
• Managing the ESG requirements of the contract
• Resolving disputes about contractual ESG requirements

Companies' value chains include their suppliers and subcontractors of goods and services and their customers and customers' customers as final recipients and users of their goods and services.

Corporate sustainability and ESG encompasses the activities and conditions of companies themselves and their suppliers, subcontractors, customers, customers' customers and other relevant stakeholders in their value chains.

We advise and assist companies in their work with sustainability and ESG in their value chains and in relation to their partners and stakeholders in the chains.

Our advice and assistance covers the following areas, among others:

• Companies' development, implementation and application of sustainability and ESG strategies, policies, procedures and codes of conduct. This may include the environment, climate, labour conditions, labour rights, human rights, countering bribery, corruption, money laundering from criminal activities and terrorist financing, and compliance with rules on competition, foreign investment, sanctions and export and import controls.
• Companies' planning and execution of sustainability and ESG activities, reporting and due diligence in relation to their partners and stakeholders in their value chains.
• Companies' drafting of contract terms and negotiating and entering into agreements with their suppliers and customers on sustainability and ESG contract terms.
• Companies' work on ensuring and monitoring compliance with such contractual terms and due diligence and reporting on compliance with such contractual terms.
• The company's work on auditing or other third-party verification of the company's sustainability and ESG reporting.

At DLA Piper, we advise both public and private parties on all relevant aspects of conducting tenders and submitting compliant and attractive offers. We have extensive experience in incorporating ESG criteria in tenders and in contractually ensuring that the contracting authority receives the "ESG" that is being purchased.

In this context, we advise on, among other things:

• Choice of tendering strategy and form
• Incorporating ESG into selection and evaluation criteria in an appropriate way
• Evaluation based on ESG criteria
• Contractual handling of ESG requirements and criteria 
• Follow-up and enforcement of ESG requirements and criteria
• Preparation of purchasing policy to ensure, among other things, that purchases support established ESG objectives
• Preparation of procurement and tendering guidelines to ensure tendering and ESG compliance

How do you market your product as green, sustainable or climate-friendly without falling foul of marketing law?

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

The Danish Marketing Practices Act requires documentation of the impact of green and sustainable initiatives. We provide advice on the requirements as set out in the Consumer Ombudsman's guidelines and court rulings, and we assist in reviewing campaigns and marketing strategies. We also help if competitors in the market are using unsubstantiated claims.

We advise and assist companies in their sustainability and ESG due diligence work.

Our advice and assistance covers the following areas, among others:

• The company's investigation, assessment, interpretation and application of rules and standards regarding sustainability and ESG. These include rules set by Denmark, the EU, the UN, the International Labour Organization (ILO) and standards set by various international organisations. The EU has, among other things, set rules on corporate sustainability reporting. The EU will probably soon adopt a directive on corporate sustainability due diligence. In English it is called the Corporate Sustainability Due Diligence Directive (CSDDD). Read about it here.
• The company's investigation and assessment of actual and potential sustainability and ESG impacts, risks and opportunities in relation to the activities and circumstances of the company itself and its partners and stakeholders in its value chains. The company's establishment and application of sustainability and ESG measures and performance of activities that eliminate, mitigate or limit negative impacts or create, promote or enhance positive sustainability and ESG impacts.
• The company's development, implementation and application of sustainability and ESG strategies, policies, procedures and codes of conduct. This may include the environment, climate, labour, labour rights, human rights, countering bribery, corruption, money laundering from criminal activities and terrorist financing, and compliance with competition, foreign investment, sanctions and export and import controls.
• The company's sustainability and ESG reporting.
• The company's drafting of contract terms and negotiation and conclusion of agreements with its suppliers and customers on contract terms on sustainability and ESG.
• The company's work to ensure and monitor compliance with such contractual terms.
• Sustainability and ESG due diligence in connection with investing in or granting loans or credit to a company, trading with a company, other M&A transactions or related insurance.

Corporate sustainability issues include in particular environment, climate, labour conditions, labour rights, human rights and compliance with relevant rules and standards for responsible business conduct.

The EU has laid down rules on corporate sustainability reporting in the EU Sustainability Reporting Directive. This is known as the Corporate Sustainability Reporting Directive (CSRD). Reporting must be done in accordance with the EU Regulation on Sustainability Reporting Standards. The standards are called European Sustainability Reporting Standards (ESRS). The EU will probably soon adopt a directive on corporate sustainability due diligence. It is called the Corporate Sustainability Due Diligence Directive (CSDDD). Read about it here.

We advise and assist companies in their work with sustainability and ESG. Our advice and assistance covers the following areas, among others:

• The company's investigation, assessment, interpretation and application of sustainability and ESG rules and standards.
• The company's development, implementation and application of strategies, policies and procedures regarding sustainability and ESG reporting. This may include the environment, climate, labour, labour rights, human rights, anti-bribery, anti-corruption, anti-money laundering and counter-terrorist financing, and compliance with competition, foreign investment, sanctions and export and import controls.
• The company's investigation, assessment and reporting of actual and potential sustainability and ESG impacts, risks and opportunities in relation to the activities and circumstances of the company itself and its partners and stakeholders in its value chains.
• Interpretation and practical application of the EU's Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) Regulation.
• The company's work on auditing or other third-party verification of the company's sustainability and ESG reporting.

At DLA Piper, we have extensive experience in environment, nature and pollution. Our advice includes identifying, hedging, managing and mitigating environmental risks, including in connection with transactions.

• Environmental strategy development
• Press strategies
• Environmental authorisations and polluting activities
• Environmental assessments, including project risks related to environmental assessments
• Soil contamination
• Nature conservation, climate protection and coastal protection
• Contractual regulation of access to environmental data from e.g. suppliers
• Environmental law in the context of sustainability reporting
• Advice on permits for e.g. renewable energy project
• Environmental damage cases

The global technology sector is poised to lead the transition to a sustainable future. Technology companies are often innovative and forward-thinking around sustainability and ESG challenges to gain market advantage and offer solutions to global problems such as environmental issues and workplace diversity.

Technology is critical to the transition to a net-zero low-carbon economy. Innovations in cleantech, autonomous vehicles and drones can play a key role in reducing greenhouse gas emissions, improving energy efficiency, increasing demand for renewable energy and finding solutions to reshape our energy systems. A well-known example is how digitalisation and cloud services are transforming business operations by reducing paper consumption.

Although digital technologies are constantly improving, they still face environmental challenges such as high energy consumption, problematic material supply such as rare mineral mining and the management of non-recyclable electronic waste. The pressure to solve these problems has increased significantly as technology becomes increasingly integrated into our daily lives. Under pressure from consumers, some companies are working to reduce environmental impact through improved product design, tighter supply chain controls and better product lifecycle management.

Our advice on emerging technologies includes

• Data security and privacy
• Global governance and compliance
• Corporate governance in publicly listed companies
• Regulation and public affairs
• Emerging technologies including AI