In general, the increased focus on “Environmental, Social and Governance” (“ESG”) including – and in particular – sustainability entails that we see more companies with an increased interest in both marketing themselves on and/or with a sustainability profile and a demand for risk management advice in relation to companies’ ESG profiles.
Companies should focus on
- How ESG figures are calculated and expressed.
- How the company rightly markets itself as sustainable, please see here.
- If the company is statutorily required to disclose ESG key figures or if the figures are disclosed for commercial reasons. Even if a company is not statutorily required to disclose ESG figures, companies should be prepared for a requirement to disclose such figures from e.g. potential investors, customers, business partners, sources of finance, or consumers.
- Identifying the risks that the company may face in connection with compliance with ESG requirements/goals in the company itself and from customers, business partners, sources of finance, or consumers. The risks may to a fairly large extent be contractually regulated between the company and its business partners and subcontractors or internally, including by establishing relevant policies for the company. Risk management should therefore be in focus not only for the sake of the company itself but also for the sake of the company's management, which is statutorily required to identify significant risks in the company's operations. In addition, the board of directors is required to ensure the necessary procedures for risk management and internal controls as part of the board of directors’ overall and strategic management.
Below are some examples in bullet point form of the risk management and dispute prevention that we assist our clients with on a day-to-day basis:
1. Identification of risks
We assist companies with identifying and clarifying the risks to which the company may be exposed in different situations.
2. Contract basis
We draft and review contracts and contract provisions as well as the company’s general trade terms and policies to ensure that the company's risks have been addressed, including in an ESG context.
We assist our clients in relation to contract terms in their value chain. We can e.g. draft and ensure contract terms that take into account both the company's need for being sustainable on desired parameters/ESG values and draft clauses that ensure compliance with these values and handling of any breach of such clauses in the form of penalty and breach provisions and any cross-default clauses in the event of the plurality of agreements.
We also assist companies in drafting contract terms that take into account ESG requirements and standards that the company wants to adhere to. The company will thereby minimize the risk that parts of the company’s supply chain are not compliant with the company's ESG standards. The results for the company are: i) The company's brand is secured against external potentially brand-damaging situations and breaches in relation to the requirements of the company’s own customers, and ii) The financial aspect where potential damage as a result of a subcontractor's non-compliance with ESG standards may be compensated by an agreed penalty.
The terms that we have drafted which take into account the company’s ESG requirements, ESG standards, and policies will enable the company to market itself with its ESG standards with the least possible risk. The company may use this value-added service to strengthen its position in the market.
3. Disputes
Our litigation and arbitration department can assist with all types of disputes and has experience in disputes against private companies and the public sector.
We can assist companies with the administration of claims made by or against business partners or others in connection with potential non-compliance with their own or others’ ESG standards.
In this connection, we can also assist the company with minimizing potential damage caused by non-compliance with ESG requirements, standards, and/or policies.
4. Carbon neutral dispute resolution
We offer sustainable conflict management, focusing on alternative dispute resolution either via the local area or virtually to support the company's wish for a consistently sustainable approach to the company as a whole.
Both national and international litigation may involve a substantial need to travel. We may limit this need by offering and suggesting virtual hearings. In some situations, disputes may also be resolved in writing. Consequently, carbon emissions will be limited.
Intellectual Property & Life Science
It is a growing concern for businesses in Denmark and around the world to ensure that they are complying with and striving towards building a better company from an environmental, social and governance (ESG) perspective.
Litigation & Arbitration
The increased focus on sustainability in general, also called ESG (“environmental, social and governance”) entails that more companies have an increased interest in both marketing themselves on and/or with a sustainability profile and a demand for risk management advice in an ESG context.
Corporate & Commercial and M&A
Even the strongest are stronger together. That has always been our credo at Lundgrens. To help us achieve this, we strive to incorporate environmental, social and governance (ESG) factors in our counseling. We believe that a strong ESG focus will create value for our clients.
Real Estate & Construction
In Denmark, focus on ESG-issues is becoming increasingly prevalent – a trend that can be seen across different venues of investment. Regarding construction, contractors are faced with higher demands both from the public, investors, and the authorities.
Intellectual Property & Life Science
It is a growing concern for businesses in Denmark and around the world to ensure that they are complying with and striving towards building a better company from an environmental, social and governance (ESG) perspective.
Litigation & Arbitration
The increased focus on sustainability in general, also called ESG (“environmental, social and governance”) entails that more companies have an increased interest in both marketing themselves on and/or with a sustainability profile and a demand for risk management advice in an ESG context.
Corporate & Commercial and M&A
Even the strongest are stronger together. That has always been our credo at Lundgrens. To help us achieve this, we strive to incorporate environmental, social and governance (ESG) factors in our counseling. We believe that a strong ESG focus will create value for our clients.
Real Estate & Construction
In Denmark, focus on ESG-issues is becoming increasingly prevalent – a trend that can be seen across different venues of investment. Regarding construction, contractors are faced with higher demands both from the public, investors, and the authorities.