Best ESG Advisory & Compliance Lawyers in Finland

About ESG Advisory & Compliance Law in Finland

Environmental, Social and Governance (ESG) advisory and compliance is an important and evolving area of law in Finland. ESG refers to a set of standards that guide organizations on how to operate in a socially responsible, environmentally sustainable and ethically governed manner. Finnish companies and institutions are increasingly expected to align with both national regulations and international best practices on ESG matters. Legal professionals in Finland assist businesses in understanding and meeting these requirements, ensuring long-term sustainability and compliance with complex legislation.

Why You May Need a Lawyer

There are many scenarios where seeking legal guidance in ESG advisory and compliance becomes crucial in Finland. Common situations include:

• Launching or expanding business operations that must comply with local and EU-level ESG regulations
• Preparing for the EU Corporate Sustainability Reporting Directive (CSRD) or other reporting obligations
• Risk assessments for environmental and labor law compliance
• Dealing with environmental permits, emissions, or climate-related regulations
• Managing stakeholder or investor expectations regarding ESG performance
• Structuring supply chains to prevent human rights abuses or environmental harm
• Investigation or remediation of environmental incidents
• Litigation or disputes related to ESG misstatements or compliance failures
• Integrating ESG issues into mergers, acquisitions, or listings

Legal professionals offer invaluable expertise in interpreting regulations, implementing policies, reviewing contracts, conducting compliance audits, and representing clients in disputes.

Local Laws Overview

Finland has established a robust regulatory framework related to ESG, influenced by both national priorities and European Union legislation. Key legal aspects include:

• Environmental Law: Strict requirements for permits, emissions control, waste management and nature protection are enforced under the Environmental Protection Act and related statutes.
• Labor and Social Responsibility: Finnish labor laws ensure strong worker rights and non-discrimination. The Act on Equality between Women and Men and Occupational Safety and Health Act are significant in this context.
• Corporate Governance: The Finnish Limited Liability Companies Act and Corporate Governance Code for listed companies set governance standards, including transparency in sustainability matters.
• EU Requirements: Companies must track developments such as the CSRD, Sustainable Finance Disclosure Regulation (SFDR), and the EU Taxonomy Regulation, all of which impose sustainability reporting and disclosure obligations.
• Human Rights: Finland is obligated under international treaties and is moving towards enhanced due diligence requirements in value chains, including potential future laws on mandatory human rights and environmental due diligence.

Compliance can be complex, so many organizations partner with legal professionals to navigate these overlapping regulatory regimes.

Frequently Asked Questions

What does ESG advisory mean in the Finnish legal context?

ESG advisory in Finland involves assisting companies and institutions with understanding and implementing environmental, social and governance requirements that stem from local and EU regulations, voluntary standards, and stakeholder expectations.

Are all companies in Finland required to report on ESG issues?

Currently, mainly large companies and listed companies face specific mandatory ESG reporting under Finnish and EU rules. However, requirements are expanding and expectations from investors or partners can extend to smaller firms as well.

What are the penalties for non-compliance with ESG laws in Finland?

Penalties can include administrative fines, criminal sanctions, civil liability, and reputational harm. Regulatory bodies can also revoke permits or licenses for serious violations.

How do Finnish laws address climate change and sustainability?

Finland's Climate Change Act and related environmental statutes require businesses to minimize emissions, protect biodiversity, and maintain sustainable operations. They also support the country's goal of carbon neutrality by 2035.

Does ESG compliance also cover supply chains outside Finland?

Yes, Finnish companies are increasingly expected to manage sustainability risks throughout their global supply chains, particularly regarding labor and environmental standards. Future legislation may impose mandatory due diligence obligations.

How are human rights reflected in Finnish ESG regulations?

Human rights are integrated into ESG requirements both through local laws on equality and anti-discrimination, and through Finland’s commitments to EU directives and international treaties. Companies are encouraged to address human rights in their policies and practices.

What role do EU regulations play in Finnish ESG compliance?

EU regulations have significant influence, as Finland is an EU Member State. Finnish companies must apply directives and regulations on sustainability reporting, sustainable finance, and environmental law in addition to Finnish national laws.

Are there industry-specific ESG requirements in Finland?

Certain industries like mining, forestry, energy, and chemicals face stricter environmental and social regulation due to higher risks. Industry-specific guidance and best practices also shape ESG compliance expectations.

Can an ESG compliance lawyer help with sustainability reporting?

Yes, legal professionals can interpret reporting requirements, review disclosures for accuracy, and help implement processes to gather necessary ESG data according to the latest rules.

Where can I find updates about ESG regulation in Finland?

Government websites, Finnish Bar Association updates, and regulatory bodies like the Ministry of the Environment provide regular updates. Many law firms also publish briefings on changes in ESG-related regulations.

Additional Resources

Individuals and organizations can find valuable ESG guidance from the following:

• Ministry of the Environment (Ympäristöministeriö): Key information on environmental laws and sustainability initiatives
• Finnish Financial Supervisory Authority (Finanssivalvonta, FIN-FSA): Oversight of financial sector ESG requirements
• Finnish Bar Association: Legal professionals specializing in ESG advisory and compliance
• Confederation of Finnish Industries (Elinkeinoelämän keskusliitto, EK): ESG resources for businesses
• Business Finland: Support for innovation and sustainability initiatives
• Finnish Institute of Occupational Health: Guidance on social responsibility and workplace safety

Next Steps

If you require legal support for ESG advisory and compliance in Finland, consider the following steps:

• Identify the area of ESG compliance or risk relevant to your situation, such as reporting, supply chain due diligence, environmental permits or corporate governance.
• Gather all relevant documents, reports and policies related to your ESG practices.
• Seek out law firms or legal professionals specializing in ESG advisory, ideally with experience in your industry sector.
• Arrange an initial consultation to discuss your needs, compliance gaps and potential solutions.
• Work collaboratively with your legal advisor to develop, implement and review ESG policies, reporting processes and compliance programs.

It is important to stay updated on regulatory changes, interpret requirements correctly, and address ESG issues proactively to avoid legal or reputational risks in Finland’s dynamic ESG landscape.