<p>Filter Knowledge</p>

As first reported in our legal briefing 'Mandatory Carbon Reporting' of July 2012, there is an increasing trend by legislators at both UK and EU level towards compulsory corporate reporting and disclosure on Environmental, Social and Governance (ESG) matters.

On 1 June 2007, after years of hard fought political lobbying, the EU's Regulation on the Registration, Evaluation and Authorisation and Restriction of Chemicals (REACH) finally came into force. Viewed by many as the most complex piece of EU legislation to date, REACH changes how chemicals will be made, imported and used within the EU.

The UK Bribery Act will have a significant impact on many foreign companies when it comes into force in July 2011 because of its extra-territorial reach. A foreign company which carries on any "part of a business" in the UK could be prosecuted under the Bribery Act for failing to prevent bribery committed by any of its employees, agents or other representatives, even if the bribery takes place outside the UK and involves non-UK persons.

This summer saw the government unveil plans for the UK to become a world leader in green finance. Among them are further requirements for pensions schemes to disclose sustainability information, adding on to the Taskforce on Climate-related Financial Disclosure (TCFD) rules, which come into play from next month.

At Travers Smith, diversity and creating an inclusive workplace is valuable to us and to our clients. 

Asset owners, as well as intermediaries in the financial services sector, are becoming increasingly proactive in their pursuit of sustainable finance strategies. This is often driven by a genuine desire to move towards more ethical and responsible investment; but increasingly, it is also a necessary commercial response to the demands of clients.

Sustainability is rising rapidly up the pensions agenda because of a mix of changing law, regulatory guidance, and growing demand from pension scheme members and other stakeholders.

Sustainable finance is of rapidly-growing importance as increasing regulatory pressures and demand from investors promote the incorporation of environmental, social and governance (ESG) factors in investment strategies.

Sustainability, CSR environmental, social and governance (ESG) and other responsible investment considerations are now firmly on the agenda for corporates as well as investors. Keeping abreast of the increasingly broad legal and regulatory framework governing these issues, as well as managing reputational risk, represents an enormous governance challenge for businesses.

Climate change will be the challenge of our generation. To transition our economy, based around fossil fuels and carbon since the Industrial Revolution, presents a significant test of resolve for industry and wider society.

Getting to grips with the myriad of environmental laws and regulations in so many areas, including contaminated land and waste, chemicals and plastics, and air and water quality, is a challenge for any business.

All global economies share an unshakable reliance on natural resources. Global population growth is continuing to drive more intensive industrial and agricultural operations, often in countries with few regulatory checks and balances. 

ESG considerations are increasingly a priority for investors, developers, landlords and occupiers.

The UK Bribery Act 2010 introduced a new era of “long arm” legislation targeting the increasingly complex governance and trading operations of corporate groups and their business associates (wherever located).