Over the last three years, ESG has risen to the top of board agendas. In fact, it is arguably now one of the main drivers of corporate decisions, as companies are increasingly aware that failing to address ESG aspects can be financially and reputationally detrimental to business. 

We at BonelliErede are committed to supporting this change in the corporate world, and it’s for that very reason we launched a multidisciplinary ESG group dedicated to navigating our clients through the rapidly evolving legal framework and thus propel forward their goals in terms of environmental and social responsibility and good governance. 

Our ESG group takes a holistic approach that goes beyond merely compliance aspects: We manage the entire life cycle of each project – from the drafting of ESG policies to their approval and implementation. Our role is to support our clients (mostly general counsels) analyse risks and thereby give them the leverage they need to interact with senior managers at their organisations and ensure a sound and thorough assessment of each new step on their businesses’ path to sustainable development. 

Our service offering encompasses not only the three key areas covered by the initialism ESG but also the three pillars that we consider ESG enablers: sustainable finance, monitoring and reporting, and dispute resolution: 

• Environmental: We focus on technological advances that facilitate the switch to more sustainable energy and reduce the carbon footprint. We leverage the vast expertise of our Energy & Ecological Transition, Environmental Sustainability and Digital Innovation focus teams – especially in driving hydrogen-based, green logistics and renewable energies projects to success.

• Social: We support businesses engender an ESG approach throughout their supply chains, build employee-focused projects, engage stakeholders, and adapt their codes of ethics, codes of conduct and other policies. More broadly, it’s about helping businesses strengthen their ESG identity through all manner of projects – including linked to art and culture. We mainly leverage on the expertise of our Corporate Governance Focus Team, but our Corporate Compliance & Investigations, Luxury and Art & Cultural Property focus teams provide key support too. 

• Governance: We dig into the nitty gritty of pursuing ESG-oriented goals from the perspective of duties (and liabilities) of directors. Core to this is supporting businesses draw up management incentive plans, structure sustainability committees and design how they interplay with other corporate bodies. Digital transformation and cybersecurity are also, of course, crucial to effective and efficient corporate governance. In this area, we mainly leverage on the expertise of our Corporate Governance Focus Team, but again, we also draw on the experience and expertise of other focus teams: our Corporate Compliance & Investigations and Digital Innovation focus teams.

• Sustainable finance: We advise on both equity (ESG-oriented M&A, sustainable IPOs and the like) and debt (green bonds, ESG derivatives and sustainability-linked loans) financing.

• Monitoring and reporting: We help businesses draft and gain approval of non-financial reports, issue price sensitive communications involving non-financial data and ESG matters and, more generally, draw up non-financial disclosures with a view to potential liabilities arising.  

• Dispute resolution: Climate change litigation is on the rise around the world, and authorities are strengthening their controls in this area. Businesses thus need to be fully prepared for possible disputes – and we can help them be exactly that.

The ESG group is an offshoot of the firm’s Corporate Governance Focus Team, which will oversee its work. The group brings together the skills and years’ experience of BonelliErede’s many focus teams and practice areas in assisting leading companies in environmental law, human capital management, corporate governance and sustainable finance. It is spearheaded by 12 partners, who are supported by associates of various seniority. Each member of the group has diverse yet complementary skills in different fields of law that, when brought together, enable the firm to offer a cohesive, integrated vision and assist across all areas affected by this complex matter in the most efficient and effective way possible. 

With the field of ESG constantly evolving, we do everything necessary to keep pace. And that’s why we are conducting a survey on ESG best practices in the leading Italian companies to understand the different approaches adopted in different sectors and different sized businesses.