ESG and Sustainable Finance
Governance and legal documentation of environmental and social risks and sustainable financing structures.
Sustainable finance involves the relationship between a transaction's features, the commitments assumed and the information disclosed to the market. Using terms such as green, social or sustainable requires verifiable support and consistency with the product's documents. Environmental, social and climate-related obligations vary according to the participant, the activity and the regulatory regime. A voluntary contractual commitment can coexist with legal duties of risk management and disclosure, without replacing them.
The legal advisory work covers analysis of policies, financing clauses and criteria for monitoring commitments. The use of proceeds, indicators and the consequences of non-compliance must be defined in a clear manner. In instruments distributed in the capital markets, sustainability statements must be consistent with the offering information and the risks disclosed. The work also examines governance, service providers' responsibilities and evidentiary documentation, preventing institutional communications from attributing to the product features that its structure does not support.
Our work
- Clauses and criteria for sustainable financing
- Governance of environmental, social and climate commitments
- Review of information and risks in offering documents
Does using the ESG label dispense with the need to demonstrate the product's attributes?
No. Statements must be supported by the documents and practices of the transaction. Criteria, risks and monitoring mechanisms must be consistent with what is disclosed.
Editorial review: