ESG Compliance
Strategic advisory to navigate sustainability legislation and regulations
Stay Ahead of a Fast-Evolving Legal Space
The global sustainability legal compliance landscape is rapidly evolving, demanding businesses to stay ahead of both regulatory and legislative changes across the varied jurisdictions where they do business. From the EU’s newly passed Corporate Sustainability Reporting Directive (CSRD) legislation to the US Securities and Exchange Commission’s (SEC) proposed regulation on climate disclosures for publicly traded companies, the evolution is clear: companies must ensure that their efforts in voluntary reporting are ready to meet the increased scrutiny of mandatory, legal compliance.
In this dynamic regulatory environment, companies are being urged to transform their business practices and demonstrate their sustainability journey through regulatory compliance. SCS Consulting understands the historical climate and ESG landscape, enabling us to assist companies in developing innovative solutions internally and within their supply chains. By leveraging our expertise, companies can achieve success in their decarbonization strategies and be prepared for ESG reporting requirements.
How Do New Regulations and Laws Affect My Business?
As no two companies are alike, the implications of how proposed or new regulatory oversight may affect your specific company is the critical question. SCS supports legal compliance readiness through an approach that combines jurisdictional relevancy - from local to international - with industry, business type and other key aspects that may inform the level of readiness and actions your business needs to be aware of. We bring this level of knowledge and expertise to the table each time we engage with a new client looking to create greater business impact through sustainable practices, supplier due diligence, waste and emissions reductions, and in-depth sustainability accounting and reporting. We work with companies to avoid potential risks, drive resilient business and future-proof their organizations.
In certain instances, understanding where your value chain partners and customers are located will reveal that your business falls under new jurisdictional requirements, which your key customer will require your organization to meet so that they remain compliant. Let SCS assist you to ensure this does not come as a surprise and you can maintain a strong business relationship through compliance readiness for the below examples and others.
- European Union - Corporate Sustainability Reporting Directive (CSRD)
- European Union - Deforestation Regulation (EUDR)
- European Union – Green Claims Directive (Proposed)
- United Kingdom - Climate-related Financial Disclosure Regulations
- Germany - Supply Chain Due Diligence Act (LkSG)
- United States - SEC Climate Disclosure Rule (Proposed, expected by end of 2023)
- California Transparency in Supply Chains Act (CTSCA)
- Australia – Climate-related Financial Disclosures (Proposed, expected by end of 2023)
- New Zealand – Climate-related Financial Disclosures
Steps to Achieving Regulatory Readiness
SCS Consulting works with each company to understand the business profile and map out the scope of business operations that may fall under newly passed and proposed regulations and legislation. Our core work incorporates the following:
International Laws & Regulations: For companies doing business in multiple countries or globally, SCS provides legal guidance and reporting support to ensure that your sustainable business practices support regulations in each country you are doing business. We also keep on the pulse of new regulations being formulated so your business strategies keep you aligned with the regulations and the timelines for compliance stipulations within the regulations.
National Laws & Regulations: If your company only does business in your own country, SCS works with you to develop strategies and reporting protocols that will meet your own federal regulations. Our team can also advise on steps your organization should take proactively to anticipate the requirements found in proposed regulations so you can be fully aligned when new laws are passed.
Regional Laws & Regulations: Companies tend to be generally aware of the sub-national, regional, or state level laws and regulations, which govern the locations of their direct operations. In US states such as California, and elsewhere, this is also a rapidly evolving space where sustainability has increasingly become the subject of new regulations.
Industry-specific Regulations: SCS looks for specific industry regulations that may be relevant to your business; either in your direct operations, or through inclusion in compliance oversight relevant to your customers.
Knowledge & Capacity-Building: We provide your team with training to understand the regulatory principles and guidelines that will allow for compliance. We work with your teams on building your internal systems for addressing all necessary sustainability requirements to ensure that you are aligned with each regulation.
Due Diligence & Risk Management: By providing your team with a risk and opportunity assessment process, we focus on both qualitative and quantitative risks, including supporting development of your due diligence processes, as well as support in executing these.
Strategy Development: We support the development of a sustainability regulatory compliance strategy and roadmap to mitigate risk and build operational resilience over the short, medium, and long term, which includes metrics, targets, and transitional planning.