Governance and management

Informed boards know ESG considerations are increasingly critical to finding, assessing, and managing both risks and opportunities for their businesses.

In fact, boards must take ESG factors into account as they plan and make decisions around finance, licensing, markets, supply chain, infrastructure, and compliance. That’s especially true in sectors such as energy, transport, agriculture, food, materials, buildings, and financial services.

When it comes to M&A, for example, boards are acutely aware that strategic investors focused on long-term value creation are seeking acquisition targets with ethical, sustainable, and strong governance policies.

Considering ESG factors may uncover new risks that businesses need to address, such as the physical risks presented by climate change and the industry risks resulting from the transition away from fossil fuels.

Our Corporate and M&A team advises many Irish and global businesses on transactions with a strong sustainability focus, and our ESG specialists support on sustainability topics such as reporting, due diligence, climate and biodiversity, circularity, and greenwashing risk.

As buyers, investors, consumers, and regulators demand greater accountability, ESG-focused due diligence is becoming ever more important for businesses. That’s true in terms of strategic planning, M&A, and equity raising, with increased scrutiny being given to ESG considerations right across the supply chain.

Devising an effective, manageable scope for ESG due diligence is vital, as is managing the resulting data to produce decision-useful information. That’s needed for onboarding new partners and suppliers, and for evaluating existing ones.

Our expert team advises corporates and the public sector on critical issues, such as preparing for the Corporate Sustainability Due Diligence Directive, the Regulation of Deforestation-free Products, the Forced Labour Regulation, and other related legislation. Our work extends to helping them develop sustainable strategies and understand how this legislation will impact their business operations.

With public spending accounting for about 14% of EU GDP, there’s a clear drive to switch to sustainable goods and services to achieve green targets, influence the market, and incentivise industry.

Green public procurement (GPP) represents a real opportunity for businesses that can meet the criteria, including proof of compliance and environmental management measures.

GPP can involve anything from using renewable energy to buying fairly traded products or insisting on sustainability in technical product specifications.

Our specialist procurement team advises clients on developing GPP policies, navigating public procurement rules, correctly incorporating GPP criteria into tender documentation, and carrying out risk assessments.

With the push on to transform the EU into a modern, resource-efficient and competitive economy, the European Commission is keen to ensure EU competition rules complement environmental and climate policies more effectively.

When it comes to competition law, we find sustainability expertise is mainly needed across merger control, antitrust and state aid.

Our expert team advises clients on areas such as sustainability agreements and the introduction of state aid initiatives designed to support the EU’s strategic objectives relating to the transition to a net-zero economy.

Tax policy is vital to building climate resilience and meeting net-zero goals. That’s why individuals and corporates are seeing more environmentally focused Irish and EU tax measures. Some incentivise (investment in green energy, for example), while others deter (carbon taxes and plastic bag levies).

Tax considerations arise across the board, for operational factors such as vehicles, equipment, retrofitting and emissions trading, or for larger-scale strategic programmes relating to renewables such as M&A and capital investment.

Companies must also meet regulatory and stakeholder expectations around tax transparency and reporting.

 Our tax lawyers are deeply experienced in advising on renewable energy transactions, mandatory tax reporting and relevant information exchange requirements.