Environmental, Social and Governance

FRA supports our clients in rising to ESG challenges, taking ESG opportunities and managing associated risks.

Environmental, Social and Governance (ESG) issues are now central to the agenda of corporates, asset managers, investors and financial institutions. Governments and international regulatory bodies are moving rapidly to create new standards of behavior, reporting and transparency. In many areas requirements once considered voluntary, are being given the force of law.

These dynamic changes are centered on core principles, such as a ‘net zero’ commitment, which can differ considerably in detail and implementation from one jurisdiction to another. They are creating a challenging and complex labyrinth of law, regulation, reporting frameworks and best practice.

FRA has decades of experience in supporting our clients to adapt to complex multi-jurisdictional risks and opportunities such as those presented by the rise of divergent ESG regulations. We customise and tailor to meet our clients’ needs by integrating forensic accounting, data analytics and data governance to provide empirical, data-driven and technology enabled solutions that meet or exceed regulatory expectations. Our services focus on the key areas where ESG impacts our clients’ businesses.

In our first major undertaking as a firm over 20 years ago we built and administered a system for Holocaust restitution claims and pension payments. Today, we are serving as an independent compliance monitor appointed by the US Department of Justice (DOJ) for an automotive engineering firm in connection with the ‘Dieselgate’ vehicle emissions scandal. FRA has throughout the years proven the value of forensic accounting, data analytics and data governance expertise in achieving ESG-related goals. We have supported numerous international matters where our unique blend of expertise has helped get to the bottom of and remediate failures in corporate governance inherently linked to social and environmental metrics and concerns. These include the UN Oil-for Food corruption scandal and the City of Ferguson monitorship concerning police reform.

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Our ESG Expertise

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. The overall trend is to place these requirements on par with financial reporting.

Additional 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:

(i) understanding the implications of emerging regulations and recommendations;
(ii) sharing knowledge and best practices;
(iii) designing controls for ESG reporting;
(iv) audit and testing of ESG reports; and
(v) data analytics and trend analysis.

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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.

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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.

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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.

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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.

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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 landscape of regulation. Effective governance and leadership must consider its risks and duties in the context of ESG.

FRA has 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.

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How US and UK Regulators are Targeting Greenwashing

To what extent will the G7 agreement and respective national initiatives address concerns over greenwashing? The growing concern over greenwashing has pressured governments and regulators to define and enforce clear standards. Recent developments in the US and UK are building momentum towards such standards. FRA experts Simon Taylor, Danielle Logue and Jake O’Sullivan write an […]

UK Government’s New Net Zero Supplier Policy: What You Need To Know

UK Government makes significant announcement in the Green procurement agenda by introducing a new requirement for government suppliers to commit to the UK’s net zero target. The UK Government aims to use its power with the circa GBP 290bn spent on procurement each year to transform the UK economy to net zero and meet its […]

UK Government Contracts Will Require Net Zero Commitment

On World Environment Day, 5 June, the UK Government announced a new requirement for its suppliers to commit to the UK’s net zero target. As per the Procurement Policy Note (“PPN”) released on 5 June 2021, all businesses bidding for government contracts for services, works or goods, with annual value above GBP 5m must publish […]

EU Targets Convergence of ESG and Financial Reporting Requirements

What are the key points to note in the EC’s new Corporate Sustainability Reporting Directive? In April 2021, the European Commission (“EC”) took a major step forward on its roadmap to place ESG reporting, and more specifically the reporting of sustainability information, on an equal footing with financial reporting by publishing proposals for a new […]

What makes us different

Forensic Investigations and Analytics Specialists

When faced with allegations with the potential to derail business, particularly in new or unfamiliar regulatory fields like ESG, companies need advisors that can quickly help you discern the relevant facts and chart an approach. Our forensic investigators employ a risk-based analytical approach to help global companies and counsel investigate and respond. We confidently and quickly prioritize the critical focus areas of an investigation by identifying data points that present the highest compliance risks for review. Our team distils insights from voluminous datasets using a variety of analytical techniques to identify trends, unusual patterns and red flags. We establish fact patterns and paint a full picture to help assess allegations and quantify risks.

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Experience Before Authorities

As the ESG debate starts to produce more concrete reporting requirements and legislation, companies are more likely to find themselves across the table from authorities in these subject areas. Both in the context of investigations and compliance remediation, FRA has experience of what approaches regulators and enforcement authorities will accept and have accepted in the past. We have made dozens of written and in-person presentations to regulators around the world, as well as providing evidence to courts, tribunals, regulators and prosecutors.

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Unmatched Experience with Regulatory Compliance and Risk Advisory

Whether understanding your current ESG risk profile or preparing for future requirements, companies will need leaders in designing, benchmarking, testing, and implementing compliance programs and risk assessments. Fighting against ‘greenwashing’ will call for robust data management and reporting with integrity. In our 20+ years, we have assisted clients to develop robust compliance programs addressing bribery and corruption, money laundering, sanctions abuse, fraud and misappropriation. We have served as an independent monitor, supported monitors appointed by various authorities, and assisted clients operating under Deferred Prosecution Agreements (DPAs) in preparing for monitorships.

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Integrated Data Privacy and Governance Expertise

Some investors and media observers have argued that data privacy and governance ought to be the next big piece of the ESG puzzle. For corporates and outside counsel navigating high-stakes investigations, regulatory compliance and litigation matters involving complex and sensitive data issues, FRA’s integrated team of forensic accounting and data governance experts provides the industry’s most comprehensive and sophisticated solutions with compliance, litigation and investigations.

Airbus

Data Governance, Technology and Forensics, eDiscovery Consulting, Environmental, Social and Governance, Forensic Accounting, Mobile Discovery Solution

FRA advised Airbus and its counsel from the early stages in designing a robust and forensically based approach to the investigation, customising a data governance strategy alongside compliance risk assessment and remediation support, as well as the eventual fine calculation.

Technip

Corporate Compliance Monitorships, Environmental, Social and Governance, Investigations

In 2010, Technip was facing charges under the US Foreign Corrupt Practices Act (FCPA) for its alleged participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts. The EPC contracts to build liquefied natural gas (LNG) facilities on Bon

https://www.forensicrisk.com/about/leadership/gregory-capello/

Class-action Lawsuit challenging Solitary Confinement in US Prisons

Data Governance, Technology and Forensics, Environmental, Social and Governance

FRA was approached by our client, White & Case, to provide pro bono support to the ACLU in their federal class-action lawsuit seeking to end solitary confinement in two Virginia prisons.

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FRA supports our clients in rising to ESG challenges, taking ESG opportunities and managing associated risks.