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RSM Ebner Stolz / What we offer / Services / Legal Advice / ESG Legal

ESG Legal

In many cases, small and medium-sized enterprises (SMEs) are committed to the region and take responsibility for their actions. This is why environmental, social and governance issues are already an integral part of the corporate strategy of many SMEs.

Companies that act sustainably have a clear advantage, because the topic is booming like never before and the demands are increasing. Numerous initiatives more and more are bringing the issue of ESG into the public consciousness and making it a hot topic in politics and business. Ever more legal requirements to act sustainably are joining voluntary commitments, even for SMEs.

In the past ten years, numerous legislative initiatives have been launched that make ESG more than just a future trend in the legal sphere. Detached from the responsibility of large capital-market-oriented enterprises, these initiatives also radiate onto medium-sized companies, which feel at least indirect pressure to implement them.

Thus, the Corporate Sustainability Reporting Directive (CSRD) must also be observed by smaller and medium-sized capital market-oriented companies from 2026. Companies with more than 50 employees will have to comply with the regulations on whistleblower protection by 17 December 2023, and companies with at least 3,000 employees will have to fulfil extensive reporting and due diligence obligations under the new Supply Chain Due Diligence Act by 1 January 2023. ESG-relevant requirements exist in almost innumerable areas.

With the fast development and multitude of different laws, guidelines and other partly already binding or (still) voluntary requirements for the implementation of ESG-relevant aspects, it is easy to lose the overview. Against this backdrop, SMEs in particular should not sit back and relax. The early introduction of sustainable structures, the legally compliant implementation of legal requirements and the preparation for laws and regulations that will come into force in the near future lead to an advantage in industry-specific competition, an increase in the chances of success and significantly drive innovation in the company. At the same time, risks are avoided for all parties involved and represent an investment in the future today.

The topic of ESG plays into the relevant areas of commercial law - from labor law to compliance to commercial criminal law. They have to be taken into account in the respective discipline. Across all areas of law, the following range of services is relevant.

Our services at a glance

  • Implementation of compliance management systems in relation to ESG regulations / ESG compliance
  • ESG Corporate Governance
  • Development and implementation of sustainable remuneration and business management systems
  • ESG M&A
  • ESG Due Diligence
  • Development and implementation of preventive measures with regard to sustainability risks (e.g. Supply Chain Due Diligence Act)
  • Restructuring in line with applicable ESG standards
  • Green finance - advice on green bonds and investments, green leases
  • Audit and expertise in the field of environmental law
  • IT and data protection law with ESG relevance
  • Support in ESG-relevant approval procedures and CE certifications
  • Legal support for documentation and CSR reporting
  • Legal representation before national and international courts in ESG-related lawsuits

 

Current Insights

The European Supply Chain Due Diligence Act is coming

On 15 March 2024, a sufficient majority of EU member states in the Committee of Permanent Representatives, a subsidiary body of the Council of the European Union, agreed to the diluted draft of the Corporate Sustainability Due Diligence Directive (CSDDD). Germany abstained from the vote. The draft now adopted deviates from the preliminary political agreement originally reached in the trilogue. It must now be formally adopted by the EU Council and subsequently approved by the EU Parliament.

Duties related to the supply chain - Action guide for small and medium-sized enterprises

Due to the Supply Chain Due Diligence Act (in short LkSG) that has been in effect since 1 January 2023, affected companies must fulfill new and far-reaching obligations. A central requirement is the performance of a risk analysis and the implementation of an appropriate and effective risk management system with the aim of identifying, preventing, eliminating, or at least minimizing the extent of human rights and environmental risks along their supply chains. In addition, the Supply Chain Due Diligence Act effectively obligates companies to establish a whistleblower system for the protected reporting of risks and legal violations.

Whistleblower Protection Act: What companies must do

With the so-called Whistleblower Protection Act, the German legislator has implemented the EU's Whistleblower Directive into German law in May 2023. The Whistleblower Protection Act has been in force for larger companies with 250 or more employees since June 2023. Smaller companies with 50 or more employees must comply with the provisions of the Act since December 17, 2023.