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ESG and Sustainability

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Sustainability is key for both companies and the environment. Let Fondia’s lawyers help you comply with regulations, anticipate changing regulation, minimize risks and seize new possibilities.

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Corporate sustainability work has become increasingly legal

Companies in all sectors face complex sustainability challenges and risks but encounter also new business opportunities. Investors, employees, customers, and other stakeholders are increasingly demanding that companies and their management comply not only with binding regulations but also take into account various ethical rules, internal guidelines and international codes of conduct and principles. Climate change, biodiversity loss, and social sustainability issues require comprehensive risk management, in which the legal framework plays a crucial role.

Sustainability related issues are the subject of rapidly changing regulation. The EU has recently adopted, drafted, or proposed several legislative initiatives or amendments covering almost all areas of sustainability. Sustainability related legislation is also changing rapidly at EU level.

Sustainability regulation is undergoing a transformation, and its monitoring and application require expertise in sustainability law. Managing sustainable development risks with a strategic and proactive approach is becoming a prerequisite for long-term value creation and effective risk management in business. . The relevant issues of sustainability depend on the size of the company, its sector, values, among others. Therefore, the relevant legal issues and, to some extent, the applicable regulation of  sustainability depend on the company and the sector. However, as a common theme, sustainability concerns all actors, and a company must at least make an informed decision on how it approaches sustainability in constantly shifting priorities.

Sustainability
Environment
Anti-corruption
Human rights
Working conditions
Risk management
Corporate responsibility
CSR
Corporate Governance
Corporate Due Diligence obligations

Fondia's lawyers help your company manage the evolving sustainability law, assess related risks, and utilize the business opportunities it creates.

Fondia's lawyers closely follow developments in sustainability legislation and help your company stay one step ahead. In addition to solid expertise, our lawyers have a clear vision of core business areas and a proactive approach. We assist in all areas of sustainability , including human rights, human resources, the environment, good governance, business ethics and anti-corruption.

Why do you need a lawyer to support you in your corporate responsibility work?

Sustainability work in companies is not a new development, but its legalization has accelerated significantly over the past eight years. Part of this development is driven by the rapid revision of regulations at the EU level, where already enacted laws are being amended swiftly and obligations are being changed or removed. Sustainability is, in any case, an integral part of business and will increasingly become a key element in risk management and the planning of compliance functions, Our lawyers focus on the business implications of the new regulations and will help you identify relevant advice that will benefit your business, whatever its size or sector. We will help you manage the risks and business opportunities associated with corporate responsibility. In the current business landscape, credible sustainability work is much more than a matter of image – it is legal risk management. Companies may be held legally accountable to their contractual partners for their sustainability activities, or, in the worst case, for eventual non-compliance. Timely and expert legal support helps avoid costly mistakes and builds a solid foundation for sustainable business.

We can help with these CSR matters and more:

  • Roadmap for sustainability regulation

  • Establishment and review of codes of conduct

  • Advising on the application of sustainability reporting regulation

  • Establishing business processes in line with the new regulation and projecting ESG business models

  • Contractual implications of sustainability and agreements under sustainability lawAssessment and updating of human rights risks Managing human rights risks in business and creating impactful processes

  • Corporate responsibility in restructuring and M&A: ESG Due Diligence services

  • Regulatory requirements and training for sustainable finance

  • Specific EU taxonomy issues and regulatory implications

  • Application of the Whistleblowing Directive and whistleblower protection legislation

  • Sustainability incentives in executive remuneration schemes

  • Creating sustainability incentives for construction projects

  • Integrating sustainability considerations into supplier contracts

  • Environmental responsibility issues

  • Implementing responsible human resources practices and policies

  • Marketing and sustainability - avoiding "greenwashing" and ‘Green hushing’

  • Sustainability in the governance system

Did you know that...

1

Climate Neutral EU & Biodiversity Agenda

The EU aims to achieve climate neutrality by 2050. To achieve this, the EU has proposed that the target be included in a climate law that requires EU institutions and national governments to act to achieve it. It is highly likely that in the future, companies will face increasing legal sustainability requirements to achieve climate neutrality by 2050. In July 2025, the European Commission proposed an amendment to the Climate Law, setting a 2040 climate target to reduce net greenhouse gas emissions by 90% compared to 1990 levels. This proposed change provides certainty for investors and innovation, strengthens industrial leadership, and enhances Europe's energy security. The proposal builds on the EU’s existing legally binding target to reduce net emissions by at least 55% by 2030 Biodiversity issues and halting the loss of biodiversity are global issues that are the responsibility of the current generation. The Montreal Biodiversity Conference in December 2022 set very ambitious targets for halting biodiversity loss. Businesses need to be part of this work. Businesses' work on nature is high on the list of priorities when it comes to environmental objectives. However, there is yet little or no established legislation on biodiversity promotion and nature-positive solutions for private companies' activities. For example, how are corporate biodiversity activities regulated and agreed in a private contractual or commercial context? We will help you move forward on these issues.

2

Omnibus simplifications do not eliminate sustainability regulation entirely nor diminish the importance of sustainability work

The “Omnibus” simplifications in sustainability regulation have rapidly made the timelines and overall structure of the regulatory framework unclear. By August 2025, six Omnibus packages have been proposed, and they include not only amendments related to sustainability, but also changes in other regulatory areas. What is exceptional is both the scope of the proposed legislative changes and the speed at which the regulatory landscape is evolving. The large number of proposed amendments makes it challenging to form a clear overall picture of sustainability law, and established practices for implementation and compliance will continue to evolve over the coming years. Still, companies haven’t paused their sustainability efforts, and the Omnibus reforms won’t stop them either. Now is the time for companies to take control of the bigger picture, rather than wait until it’s urgent or too late to act.

3

Regulation is constantly evolving and understanding its combined impact is essential

In the public debate on sustainability, and partly due to the increasing amount of regulation, certain trends can be observed. This is partly why sustainability issues are also subject to negative scrutiny. There is no way to avoid an overreach, but regulation has been put in place partly to make it easier to compare the behavior of operators and to address the main corporate responsibility pain points. Sustainability regulation is currently in a developmental phase, and investing in understanding the overall picture is especially crucial now.

Our corporate responsibility and sustainable development experts

Our experienced legal experts can assist you with all regulatory issues and procedures related to corporate responsibility and sustainable development. Find out more about our experts or contact them directly!

Netta Skön
Netta Skön
Senior Legal Counsel, Group Sustainability, ESG and Responsible Business Lead
Satu Relander
Satu Relander
Group Sustainability Lead, Head of Legal Team, Senior Legal Counsel
Jukka Ohtonen
Jukka Ohtonen
Senior Legal Counsel, Group Energy Lead
Aet  Sallaste
Aet Sallaste
Senior Legal Counsel
Mika Jantunen
Mika Jantunen
Senior Legal Counsel, Group Financial Regulation Lead
Miikka Lumme
Miikka Lumme
Senior Legal Counsel
Jenna Nurmio
Jenna Nurmio
Senior Legal Counsel
Maija Norokorpi
Maija Norokorpi
Senior Legal Counsel
Jurgita  Vaičiulionienė
Jurgita Vaičiulionienė
Managing Director
Camilla  Nikkilä Sjöstrand
Camilla Nikkilä Sjöstrand
Legal Counsel
Gabriella da Silva Rondahl
Gabriella da Silva Rondahl
Senior Legal Counsel
Fredrik Niklasson
Fredrik Niklasson
Competence Lead Contracts, IPR, Procurement and Data Economy Lead Sweden, Senior Legal Counsel
David Malmkvist
David Malmkvist
Senior Legal Counsel
Sara van Helleputte
Sara van Helleputte
Business Operations Manager, Sweden, Senior Legal Counsel

Fondia’s experts Netta Skön, Jukka Ohtonen, Maija Norokorpi and Jaakko Köykkä are authors in the Chambers Global Practice Guide Finland: Climate Change Regulation 2025

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