Herbert Smith Freehills Kramer introduces ESG Regulatory Atlas to support organisations facing growing sustainability challenges

Herbert Smith Freehills Kramer's ESG and Digital Legal Delivery practices have joined forces to develop a new online tool to help clients understand their obligations as global sustainability regulatory pressures intensify.

Called the "ESG Regulatory Atlas" (ERA), the online resource helps organisations map the current ESG and sustainability framework. It also identifies which regulations are relevant to their specific business.

Providing information on interactive and customisable platforms, the tool covers key areas including reporting and disclosure, climate risk, supply chain management, the circular economy, and green claims. ERA also helps legal, sustainability and operations teams have the right processes in place and highlight the extent to which they are currently compliant.

"The foundations of sustainability disclosure may be broadly accepted, but the gap between acceptance and the ability to meet expectations is getting wider as organisations struggle to keep up with regulatory demands. It's not for want of trying – but the evolving landscape of global legal frameworks can be overwhelming, especially as new rules emerge rapidly, and vary widely, across regions," says Sarah Ries-Coward, partner in HSF Kramer's ESG practice.

ERA has been designed to help teams stay on top of ESG regulatory requirements via a three-step approach. Beginning with a comprehensive analysis of regulations most relevant to an organisation's core business, it highlights current laws, duties imposed, risks and potential penalties for non-compliance. Users can also use ERA to complete applicability and compliance assessments identifying specific areas of short-, medium- or long-term risk.

“Effective ESG compliance requires close coordination across legal, sustainability and operational teams, often across multiple jurisdictions, each with its own regulatory frameworks. Our ESG Regulatory Atlas supports that collaboration, providing a shared view of requirements and helping organisations align their approach and prioritise their action plan”, comments Laurence Vincent, partner at HSF Kramer (Corporate/M&A/Governance & ESG).

A customisable tracker allows updates to client platforms with legislative and policy changes on an ongoing basis, with a focus on jurisdictions of choice. Clients also have access to a hotline for on-demand legal support for ESG disclosures, audits, and stakeholder queries.

It is the latest in a suite of tools created to help clients understand and maintain compliance against the growing array of ESG legal requirements and follows the launch of HSF Kramer's ESG tracker and CSRD Mapper in 2024.

"Staying ahead of the game on sustainability-related matters isn’t just about meeting regulatory requirements. Investors are increasingly demanding transparency to assess risk and long-term value, and stakeholders expect credible sustainability commitments, backed up by data and regulatory alignment. Showing both groups that you are proactively managing expectations is a key step on the path towards reducing legal, financial, and reputational risks," concludes Ernst Müller, director in HSF Kramer's ESG practice.