We advise on the implementation of ESG policies, support reporting, compliance and up- & downstream due diligence with a special focus on China and Southeast Asia.
represents a framework for evaluating a company's performance in three key areas: environmental sustainability, social responsibility, and corporate governance practices. ESG criteria are used by investors, businesses, and organizations to assess and promote ethical and sustainable business practices.
The "Environmental" aspect focuses on a company's impact on the natural world. It assesses how a company manages and mitigates its environmental risks, and how it contributes to environmental sustainability. Key environmental factors include carbon footprint, energy efficiency, waste management, resource conservation, pollution control, and adherence to environmental regulations.
The "Social" aspect of ESG looks at how a company interacts with and affects its employees, communities, and society at large. It encompasses topics like labor practices, employee diversity and inclusion, human rights, community engagement, and product safety - within the own company, upstream and downstream. Companies with social ESG practices are committed to treating their employees and stakeholders ethically and responsibly.
The EU's Carbon Border Adjustment Mechanism (CBAM) came into effect on October 1, 2023 to promote cleaner production processes globally and prevent carbon leakage. From 2026 onwards, CBAM imposes a cost on the carbon emissions produced during the manufacturing of goods imported into the EU. In the initial phase, six industries are affected by the mechanism: cement, steel, aluminum, fertilizers, electricity, and hydrogen. Also products containing small quantities of these materials are subject to CBAM.
With the start of the transitional phase on October 1, 2023, companies are already facing reporting obligations. This concerns also companies producing in Asia and exporting to Europe.