Sustainability law

We understand the principles of doing business in a dynamically changing world, where sustainability and ESG are not only a matter of good practice, but – above all – the subject of binding regulations.

Related topics Law Sustainability Forensics

The team

Dariusz Kryczka

Dariusz Kryczka

EY Poland, EY Law, Counsel, Senior Manager

A few decades ago, it was believed that environmental protection and development cannot go hand in hand, and economic activity must inevitably lead to the exploitation of natural resources. Today we are dealing with a radical change in the perception of sustainability, decarbonization, corporate governance and ESG. Companies find themselves in a new reality in which growth and business development must take place along with acting for the benefit of society and protecting natural resources.  In response to growing regulatory and public image requirements, environmental, social and corporate governance issues have become part of the strategy of enterprises, as well as a determinant of development of opportunities and obtaining finances.

Companies that ignore social, environmental or corporate responsibility may face regulatory penalties, rejection by consumers looking for sustainable brands, and difficulties in obtaining financing for their operations.

At EY, we believe that sustainability policies and regulations should be the starting point for any discussion on the role of sustainability in business strategy, as each strategy must fall within applicable legal standards. As a minimum, a sustainability strategy should be designed to comply with existing and future legal obligations, and once these conditions are met, the company or organization can decide whether it wants to go a step further in terms of increasing ambition or accelerating the achievement of the objectives set out by law. In such a situation, we help to identify voluntary standards and good practices supporting sustainability goals tailored to the client’s business profile.

What is sustainability and ESG (Environmental, Social and Governance)?  

Sustainability can be defined as a development in which companies and other organizations take responsibility for the impact on their externalities in the environmental, social and corporate areas. ESG, on the other hand, is how entities manage these issues and incorporate them into all their business activities. The European Green Deal is a leading example of a comprehensive growth strategy based on the principles of sustainability and ESG.

Our professional legal advice allows  the companies and organizations to obtain the necessary support in adapting to current or future policies and regulations regarding sustainability and ESG. Moreover, thanks to our advice, clients will also be able to assess the benefits for their business in terms of building long-term goals and values based on voluntary standards and good practices of green transformation. They will also be able to manage the risk associated with functioning in the current business and regulatory landscape, where failure to take into account the principles of sustainability may be costly and detrimental to the public image.

In addition, our Green Deal Center of Excellence offers legal advice on policies and regulations stemming from the European Green Deal. The main goal of the Center is to prepare clients for the upcoming implementation of the European Climate Law into national law, which will ensure that EU political declarations on the decarbonisation transformation will evolve into binding laws and will set the framework for all EU regulations in this field for the next 30 years. 

Legal and business impact analysis services:

  • Sustainability and ESG workshop

    We analyse the individual exposure, risks and capabilities of each company taking into account current and future policies, regulations or standards for sustainability and ESG and offer strategic legal and regulatory advice to help clients navigate ever-changing policies and regulations. 

  • Sustainability and ESG due diligence

    We review internal ESG legal documentation on corporate human rights policies and regulations, non-discrimination, environmental sustainability, business ethics, sustainable resource management, sustainable corporate governance, supply chain traceability outside the scope of standard legal due diligence. We compare the results with sustainability regulations to assess the company's compliance with applicable regulations and standards, as well as identify areas for improvement. This is often an introduction to the preparation of the company's ESG strategy or policy.

  • Preparation of ESG strategy and/or policy

    ESG criteria can be treated as a set of standards enabling the assessment of the level of sustainability of a given organization's business activities, which is why they can be used to create a business transformation plan and prepare a document describing the company's guidelines in the environmental, social and corporate field, i.e. ESG policy.

  • Sustainability advisory services

    We offer services regarding verification of the company's compliance with current regulations and standards on the selected issues, such as: current and future ESG reporting standards appropriate to the sector and scope of the client's activity, standards for sustainable financing, sustainable supply chains, corporate governance and preparation for achieving climate neutrality of the company, etc. Such verification allows to designate areas requiring action on the part of the company. 

  • Strategy for entering the voluntary carbon credit market

    For clients interested in building their own portfolio of voluntary carbon credits, we are developing a strategy for entering the market. This strategy includes a legal and regulatory analysis of the available options for obtaining voluntary carbon credits and an assessment of the opportunities and risks associated with each option.

  • Financing carbon reduction projects through voluntary carbon credits

    We help clients build strategies to finance their offset projects through voluntary carbon credits. We analyse the legal structure of the project and align it with the project certification process and requirements to obtain carbon credits for the project.

     

  • Legislative monitoring

    With the rapid pace of legislation development, we support our clients in upcoming legislative changes. We offer regular sessions on development and legislative changes, during which we discuss their impact on the functioning of the client's business. We also monitor regulatory trends in key aspects for a given industry, business or legislative issue.

  • Examination of the regulatory environment of planned investments

    In the case of planning investments related to decarbonisation, EY may prepare an analysis of regulations affecting the investment process, in particular regulations dedicated to specific investments, e.g. in RES or PPA. We also examine investment trends in a given industry set by the EU, Poland and international financial institutions in order to determine future directions of business development. We carry out comparative analysis of investment plans of entities with a similar business profile in Poland and abroad. On the basis of investment needs, we review the available sources of financing for planned investments, both at the European and national level. The review includes an indication of the evaluation criteria, the timeline estimate, the level of support, as well as a description of the process of applying for support.

  • Comprehensive support of the company during the consultation processes of legal acts

    We support companies in presenting and promoting their position as part of the consultation processes of legal acts and in forums dedicated to the sector. We also help to identify and rank the key stakeholders of the company, and to develop a communication strategy with each of the groups. We support the company in defining areas where the activity requires acquiring partners for cooperation, we conduct a review of potential partners and develop a process of shaping cooperation with selected entities.

    We support companies in building relationships and strategic communication with public authorities, legislators, non-governmental or industry organizations working for the climate transition.

  • Support in the preparation of decarbonisation and methane emission reduction strategy

    Preparation of such a strategy includes an analysis of best practices in the field of emission reporting standards and an assessment of the impact of a policy to reduce carbon dioxide or methane emissions on the company and the presentation of recommendations for action in this regard. Optionally, we will help you create a Working Group on reducing emissions and recommend how best to integrate it into your company's existing structures. 

  • Providing an Integrated Sustainability and ESG Specialist

    Integrated Sustainability and ESG Specialist is a service that combines the benefits of hiring a sustainability director – a person becoming part of the client's organization – and the value of working with EY, i.e. access to a range of specialists in particular areas of sustainable development.

    The combination of long-term knowledge of the client and the background of various competences of the global Sustainability Leader will allow in an innovative formula to achieve the goals of sustainable development in a way that goes beyond the market standard.

Our strenghts

Individual approach to the client

We analyse the individual exposure, risks and capabilities of each company taking into account current and future policies, regulations or standards for sustainability and ESG and offer strategic legal and regulatory advice to help clients navigate ever-changing policies and regulations. 

Knowledge of sustainability regulations and trends

The first step in developing a sustainability strategy is to understand the current legal framework and upcoming legislative changes, but also changes in policies and business trends. Our holistic approach and knowledge of the wider context allows us to design internal compliance procedures based not only on identified regulatory obligations to mitigate legal risks to the organization, but also to build long-term value based on good practices and trends.

Support in business transformation based on sustainable development and ESG guidelines

Identifying regulatory requirements or sustainability standards usually means that companies will have to restructure both their organizational structures to incorporate ESG into corporate governance, as well as commercial agreements with sellers and suppliers by including sustainability clauses, or will need to modify supply chain management. We accompany our clients at each of these stages, supporting them during the implementation of new solutions.

Adapting the sustainability strategy to the specific industry and client’s situation

When assessing sustainability from the perspective of different industries, we see that in different sectors there are different areas on which sustainability is focused. We have experience in implementing ESG strategies for industrial clients, oil and gas companies, food companies, agriculture, telecommunications, technology or even beauty sector industry.  

EY sustainability and ESG secondment service for your business

Companies need to intensify their efforts and create systems that ensure compliance with sustainability regulations in order to avoid business risk. In a situation where a company needs to implement sustainability changes faster than  is able to restructure its work organization, hire or train employees, we offer the support of a dedicated EY specialist for sustainable development and ESG, who at the stage of implementing new procedures or permanently can perform the duties of the director of sustainable development. 

EY has been recognized as a leader in sustainability consulting services by Verdantix

EY is one of 15 sustainability services companies that have been evaluated and placed in the Verdantix quadrant and ranked #1 ahead of all bidders in terms of dynamics and capabilities. EY ranks ahead of PwC, Deloitte, KPMG, McKinsey and Accenture. EY ranks highest in ESG /sustainability strategy and performance management programs and is also in the top three when it comes to climate change strategy and risk management.

Make IT Clear

EY’s European Green Deal Center of Excellence

Because the European Green Deal is not a monolithic concept, the traditional lines between energy, finance, corporate governance and environment fade, requiring a multidisciplinary approach. Our Center of Excellence is a focal point of contact around the EGD measures and offers a full suite of solutions that can help clients navigate their regulatory complexities.

Learn more

Our strength lies in many years of experience in the global market

We combine years of experience of attorneys-at-law and advocates with knowledge of the business areas of our customers, thanks to which we increase the efficiency of their activities, while reducing the costs of their operations.

Our legal advisory services regarding issues related to the transition to sustainable development concerns three areas: sustainability law and ESG, energy law and environmental law. In addition, we have a specialized European Green Deal Center of Excellence which advises on the regulations and policies of this largest legislative initiative in the European Union on sustainability and ESG.

The EY Regulatory Advisory Team combines knowledge of law, economics and technical and environmental aspects, which allows us to create the best solutions in the field of industry, energy, environmental protection, international trade and sustainability.

Our activities focus on both domestic and EU issues and have an impact on the business environment of the largest Polish and foreign companies .

We make business work for sustainability, and sustainability work for business.

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