Sidley stands at the forefront of Environmental, Social, and Governance (ESG), and sustainability disclosure practices, providing unparalleled counsel to clients navigating the complex landscape of emerging ESG and sustainability disclosure regulations. Currently, over 35 jurisdictions, from U.S. states to countries around the world, have adopted or are considering ESG and sustainability related disclosures. Disclosure requirements vary by jurisdiction, but commonly include factors like climate-related risks, emissions data, supply chain due diligence, and governance structures.
With a global reach that spans the United States, Europe and Asia-Pacific, our team is dedicated to helping organizations prepare for and comply with the evolving and patchwork regulatory environment, advising clients at all stages of ESG and sustainability disclosure maturity. Our client base spans public and private companies of all sizes, institutional investors, asset managers, private equity funds, and trade associations.
By leveraging Sidley’s global capabilities and deep bench of subject matter experts in virtually all major financial centers across the globe, we provide our clients with a comprehensive and practical approach to ESG and sustainability reporting across jurisdictions, tailored to their specific needs and the jurisdictions in which they operate.
Our Work
In the EU, our teams routinely advise on an array of sustainability disclosures requirements, including under the Corporate Sustainability Reporting Directive (CSRD), the Taxonomy Regulation, the European Sustainability Reporting Standards (ESRS), and the Corporate Sustainability Due Diligence Directive (CS3D), as well as relevant guidance issued by the European Commission and other relevant authorities.
In the U.S., our teams routinely advise clients with both federal- and state-level climate corporate disclosure requirements, including the Securities and Exchange Commission’s rules on the Enhancement and Standardization of Climate-Related Disclosures for Investors (currently stayed pending the outcome of litigation), California Senate Bill (SB) Nos. 253 and 261 (as amended by SB 219), California Assembly Bill No. 1305, and other federal and state corporate disclosure regimes. We are monitoring similar proposals in Illinois and New York. We also assist our clients with navigating, in both mandatory and voluntary disclosures, anti-ESG sentiments and advise clients in relation to anti-ESG laws, executive orders, and regulatory actions.
In the UK, our teams cover sustainability and climate-related disclosures under the UK’s non-financial corporate reporting framework, including the Companies Act 2006, disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) under the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022, the UK Transition Plan Taskforce and Disclosure Framework, and the forthcoming Sustainability Disclosure Standards (SDS) regime.
With respect to Global frameworks, our team advises clients on emerging sustainability regulations across the globe, including alignment with global frameworks, such as the International Sustainability Standards Board (ISSB), which is emerging as the basis for disclosure requirements in countries including Canada, Singapore, Australia, and Japan.
Within these various disclosure frameworks, we routinely help our clients:
- Assess the relevant disclosure regimes that apply and develop a comprehensive reporting plan that also helps our clients understand key compliance time lines and priorities.
- Conduct analyses into our clients’ existing reporting processes and procedures to identify gaps in compliance with ESG and sustainability disclosure requirements and create action-oriented strategies to address compliance gaps.
- Develop procedures for materiality assessment and value-chain mapping, as well as workplan and compliance strategy for the EU’s CSRD.
- Simplify and streamline our clients’ ESG and sustainability reporting by identifying strategic areas of overlap and synergy between the requirements of various jurisdictions.
- Navigate the evolving expectations of proxy advisors, institutional investors, and ESG rankers and raters and leverage those expectations as a guide for identifying the highest value voluntary disclosures.
- Assess ESG and sustainability disclosures to address and mitigate for potential greenwashing, regulatory, reputational, and litigation risk with market-leading representation and support from Sidley’s robust litigation and disputes practice.
- Draft disclosures and manage the filing process for mandatory ESG and sustainability-related disclosures.
