Environmental, Social and Governance

Reporting Obligations

Companies will need to be increasingly transparent in their ESG reporting, whether this is voluntary, as recommended by the G7 backed Taskforce for Climate-related Financial Disclosures (TCFD) or compulsory through regulation such as the forthcoming EU Corporate Sustainability Reporting Directive. Challenges in ESG reporting include requirements to produce forward-looking data and to provide analysis of how susceptible business models are to different climate change scenarios. Given that investors, banks and consumers will rely on climate-related financial information, it is critical that robust controls are in place to ensure the reliability of reporting and the underlying data.

FRA helps companies address complexities in ESG reporting obligations, by:

• understanding the implications of emerging regulations and recommendations;
• sharing knowledge and best practices;
• designing controls for ESG reporting;
• audit and testing of ESG reports; and
• data analytics and trend analysis.

Compliance

Complying with ESG laws and regulations to minimise risk is increasingly being made the responsibility of compliance teams. Whilst some will have internal experts, others may need external support to assist with this emerging area of compliance. FRA helps companies design, implement and test end-to-end compliance programs. We help you manage these risks, including:

• Environmental - Climate targets, sustainability targets, tracking of commitments made in reporting, measurement of actuals in comparison to targets, checks for “greenwashing”.
• Social - Compliance to workplace standards, relationships with workforce.
• Governance - Anti-bribery and corruption, anti-money laundering, sanctions, trade compliance.

Supply Chain

Supply chains are complex and due diligence expectations are constantly being enhanced and expanded, whether directly through legislation or as a result of stakeholder pressure. Human rights violations, sanctions or bribery in the supply chain are just some of the challenges faced by our clients.

FRA has deep experience in supporting companies in managing these risks through the design of third party management systems, benchmarking against industry best practice and testing controls to ensure that ESG risk is handled proportionately.

Investigations

ESG related investigations such as those relating to the misreporting of ESG data or greenwashing will only become the norm in the face of increasing political, legal and societal pressures. These investigations may be initiated by pressure groups, journalists, whistleblowers or regulatory taskforces such as the SEC’s ESG taskforce. FRA has decades of experience in supporting organisations in forensically responding to investigations, working with various stakeholders to successfully navigate the disruption they can bring.

Disputes

ESG disputes and climate-change litigation are on the rise. With courtroom battles being initiated in many jurisdictions, it is an increasing concern for companies and their shareholders. Developments in climate-related financial disclosures and ‘green finance’ taxonomies are likely to lead to complex class actions from shareholders and investors. FRA has a proven track record in providing litigation support services in complex high-stakes matters, including class actions, and offers full end-to-end support from discovery and document management to expert evidence and damages calculations at trial.

Corporate Governance

ESG issues sit at the heart of how businesses operate. From revenue generation to the supply chain, from sales team to administration teams, from board to management, all are impacted by the changing regulation. Effective governance and leadership must consider its risks and duties in the context of ESG. We have vast experience in advising business leaders on how to take proportionate measures, how to invest to mitigate business risk and how the landscape is evolving in this ever-changing area.