In a pivotal year to consolidate the ESG revolution in Europe where environmental, social, and governance risks also translate into financial and regulatory risks for large companies, the IE-ECIJA Digital Law Observatory concludes that reporting and governance in sustainability are the main ESG concerns for legal advisory firms.

The report highlights that, although ESG trends and regulations have become common practice within companies, meeting increasingly demanding demands poses a challenge for businesses in the face of rising regulatory requirements internationally.

With two new European regulations: the Corporate Sustainability Due Diligence Directive (CSDDD) and the Directive on new rules for substantiating environmental claims (Green Claims Directive), agreed upon between the Council and the European Parliament, the regulatory tsunami in the EU regarding ESG intensifies.

According to the report, the main open sustainability issues that concern large companies are: corporate sustainability reporting, sustainability due diligence, and the sustainability governance system at the group level.

“Europe needs a new growth strategy that transforms the Union into a modern, resource-efficient, and competitive economy,” the report assures, which involved the participation of over twelve companies, including BBVA, BP, Credit Suisse, Iberdrola, Enagas, Repsol, and Makro.

Read more: https://www.expansion.com/economia-sostenible/2024/02/12/65c9f51c468aeb112a8b45bb.html