Environmental, Social & Governance

In recent years, it has become impossible to ignore the impact of climate change and environmental decline, and reporting on them has become a mainstay of daily news coverage. This increased focus has put climate change and the green economy high on the agenda for businesses and society alike. This has resulted in increased scrutiny as society calls out for more organisations to be held accountable for their actions.

The management of climate change initiatives remains at the forefront of the political and environmental agendas and pose increasingly difficult and complex challenges for businesses. Such initiatives can provide opportunities for businesses but, equally, they can increase a business’ risk if its environmental challenges are not appropriately addressed.

Freeths has a history of assisting businesses looking to improve their green credentials, including through green financing, renewable energy project development and investment, heat networks, green energy procurement, tackling waste and pollution, improving sustainability in supply chains, biodiversity net gain, nutrient neutrality and water neutrality, and carbon offsetting.

Social risks for businesses include actions that can affect the communities around them, as well as employee engagement, human rights within the workforce and supply chain, gender and diversity, health and safety, and anti-bribery and corruption. Public health issues can also be a concern as they can affect employee and contractor absenteeism and worker morale.

Businesses that can demonstrate a positive impact through strong CSR policies, building closer relationships with local partners and stakeholders, increased transparency and reporting on social risks, and close monitoring of supply chains to co-ordinate and enforce their own policies. Engaging with social risks and being proactive in enforcing them can strengthen a company’s market position. On the other hand, not investing positively to mitigate these social risks can result in hard-won ESG credentials being quickly lost.

Freeths advises on all aspects of social risks and helps businesses put in place policies to cover diversity and inclusion, family and flexible working, anti-harassment and discrimination, human rights, supply chain, modern slavery and working conditions.

One of the cornerstones of a successful organisation is good corporate governance; it helps determine how the organisation operates and behaves both internally and to the market generally, and defines the relationship between the shareholders, management and the rest of the business.

It is imperative that boards and other key decision-makers are visible in taking responsibility for risk management and are accountable for organisational governance. Corporations must have a purpose and set of values beyond profit generation, in order to guide governance, decision-making and strategy.

Freeths has experience of advising businesses on the legal issues that arise around corporate governance, from executive contracts, board composition, competition and antitrust, anti-bribery and corruption, shareholder relations and activism, to the broader corporate strategy of companies and how that operates within a legal framework. In the context of ESG, Freeths can help advise companies on how environmental and social risks translate into good corporate governance.

We also have specific experience of advising companies seeking B Corp status. B Corps are legally required to consider the impact of their decisions on their workers, customers, suppliers, community and the environment. Any company that can demonstrate a positive impact for their employees, communities, and the environment may be eligible to register.