Environmental, Social and Governance
Today’s investors are looking for ways to put their capital to work in a sustainable way, one focused on avoiding harm to people and the planet and creating long-term value through socially desirable activities.
Financial services, insurance and other professionals must now find their way around a rapidly evolving landscape of environmental, social and governance (ESG) factors and assess businesses according to their ESG characteristics in order to support investors who wish to make socially responsible investment decisions. Allen & Overy has the subject matter expertise to guide you safely through the increasingly legal ESG landscape.
Our ESG team’s advice is informed by decades of collective experience in environmental, social and governance matters, and by tracking the latest developments in ESG-related regulation and litigation around the world. We bring together global expertise in specialist practice areas in Environmental Law, Business and Human Rights, Sustainable Finance, Corporate Governance, Employee Engagement and Data protection and Cybersecurity, as well as Consulting Services.
The group's experience will enable you to take advantage of ESG-related business opportunities by helping you find ways to integrate ESG factors into your due diligence practices, portfolio analysis and investment decisions; design and roll out financial products that have a positive social or environmental impact; and monitor and report on your successes in a manner that meets regulatory requirements.
We can also help you navigate the ESG landscape and help you find ways to identify risks across your portfolio; avoid involvement in adverse ESG impacts; assess the ESG related credit and other risks of your potential clients; gain a competitive advantage as regulation and litigation develops; design and roll out compliance processes and contractual mechanisms to mitigate risks; and obtain assurance and develop reports on your ESG performance.
Explore our services
Meet our lawyers
Transition to a sustainable economy
Sustainability and ESG (environment, social and governance) issues are rising to the top of the agenda.
The transition of the economy to align with the Paris Agreement aims and the UN Sustainable Development Goals is set to dominate the next decade. Explore our insights on developments in the key themes in the sustainability transition.
News and insights
Publications: 20 April 2023
Decarbonisation disputes: the evolving frontier of climate-related risk
The Net Zero transition will not be smooth. The scale of the investment required, and the appetite and ability of countries to implement new policy – both now and in the years to come – will cause…
Publications: 20 April 2023
Q&A: Managing risk in cutting-edge Net Zero projects
The shift to Net Zero will require the transition to cutting-edge technologies. In this environment, traditional contracting models – for example engineering, procurement and construction (EPC) – may…
Publications: 20 April 2023
Q&A: Why shifts in energy transition policy are driving a new wave of disputes
Implementing laws and regulations to change society's centuries-long dependence on fossil fuels is a massive challenge. Here, we explore how energy policy is driving disputes.
Publications: 20 April 2023
Q&A: How climate-related disclosures are driving a wave of greenwashing litigation
Claims alleging that companies have harmed their investors by making material misstatements concerning sustainability-related risks are on the rise. So what do businesses need to know?
Areas in which we assist clients
Risk management and strategy
- Assist in developing ESG policies and practices
- Draft ESG management plans and codes of conduct for projects and transactions
- Design bespoke contractual mechanisms and dispute resolution clauses to permit leverage and exit
- Advise Board and C-Suite on regulatory landscape and litigation risks
Due diligence
- Scan transactions and lending to identify potential ESG impacts throughout value/supply chain
- Conduct structured ESG due diligence and impact assessments on high-risk projects, transactions and lending
Reporting
- Assess effectiveness of responses to ESG impacts, provide metrics and analysis and design alternative strategies
- Draft strategic reports, sustainability and modern slavery reports
Dispute resolution
- Design grievance mechanisms as early warning systems and remediation processes
- Dispute resolution: we represent clients before courts and tribunals, where they face claims involving alleged environmental, social and governance abuses
Sustainable finance
- Advise on all aspects of sustainable finance, from corporate green loans or bonds and sustainable supply chain financing, to financing renewable energy projects
- Develop standards for products such as green or social impact bonds and loans
Awards & accolades
- Best Law Firm for Commitment to Sustainability - GlobalCapital Derivatives Global and Americas 2022
- Legal 500's Inaugural Green Guide, EMEA 2022
- ESG Bond Deal of the Year - Bonds, Loans & Sukuk Awards 2022
- ESG & Sustainable Finance Deal of the Year - Saudi Electricity Company USD 500m Untied Green Credit Line, July 2021
- ESG Deal of the Year Award - For advising Bank of China's inaugural blue bond issuance, the first of its kind in Asia - IFLR Asia-Pacific awards 2021
- Asia Pacific Legal Advisor of the Year - IJ Global Awards, 2021
- APAC Renewables Deal of the Year, SB Energy Solar PV Portfolio Refinancing - IJ Global Awards, 2021
- International Capital Markets / Derivatives Structured Finance Category - IFLR Asia-Pacific Awards, 2021
Recognition
The quality of their work and service is always exemplary and provided in a timely and efficient manner. The advice provided is strategic, pragmatic and focused on enabling their clients to make the required decision.
ESG Global-Wide Chambers 2022
Clients needing ESG counsel ranging from SFDR to supply chain risk or carbon markets benefit from a multi-jurisdictional, cross-practice offering which blends regulatory, operational and strategic advice.
Chambers Europe 2021
Environmental, Social and Governance (ESG) brochure
