Sustainability is key for both companies and the environment. Let Fondia’s lawyers help you comply with regulations, minimize risks and seize new possibilities.
The EU's taxonomy regulation classifies what constitutes environmentally sustainable activities. The Regulation requires comprehensive reporting by larger listed companies and economic operators from 2022. However, companies not yet covered by the regulation can benefit from harmonization and reporting, for example by improving access to finance, investment, and protection from greenwashing allegations. The taxonomy is a dynamic entity that is constantly being updated. There are several environmental objectives, and more criteria will be published. In addition to the EU taxonomy, sustainable finance is regulated by specific disclosure obligations for financial market participants. The so-called Sustainable Finance Disclosure Regulation (SFDR) will become fully applicable law from 2023. The different pieces of legislation governing sustainable finance form a whole that requires specific expertise to manage.
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. 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.
In the public debate on corporate responsibility, and partly due to the increasing amount of regulation, certain trends can be observed. This is partly why corporate responsibility 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.