ESG & Impact

The current global environment requires that companies, financiers, and managers consider their responsibility and the impacts on society and the environment that derive from their actions. The need to prevent damages and improve risk management propel actions that are based on the preservation of the environment (E), social development, and impact on the community (S) and the best governance practices (G) – either by the allocation of equity investments or by governmental incentives. In addition to minimizing risk exposure, there is appetite for businesses that measure their effects and great desire to allocate capital to cause positive impacts.

Our ESG & Impact practice focuses on the five key topics related to sustainability and the pursuit of positive impacts: Sustainable Finance, Governance, Social Impact & Human Rights, Energy Transition and Environment.

To this end, we have organized an integrated group that combines professionals from Environmental, Banking and Finance, Capital Markets, Corporate Law and Governance, Labor, Infrastructure, and Litigation practices. This approach ensures a team that offers a broad approach and the latest practices, trends, and legislative and regulatory proposals regarding ESG, to deliver comprehensive solutions to address our clients’ day-to-day activities and their most complex projects.

Our advice on each of the five key ESG topics include:

Sustainable Finance – (a) issuance of green, social and sustainable bonds under any capital markets or securitization structure (e.g. local or international bonds, agribusiness or real estate receivables backed bonds, investment funds, etc.), (b) financings and equity investments driven by impact concerns, (c) impact financing and/or financings with ESG requirements arising from self-regulation or banking policies (e.g., Equator Principles, Brazilian Banks Federation principles), under any structure (project finance, corporate finance, asset-backed finance, mezzanine financing, etc.), (d) risk analysis regarding the liability of financiers or bookrunners for damages deriving from projects based on case law, (e) structuring of endowment funds, aiming to impact on Social & Human Rights aspects.
Governance – (a) transparency and proper disclosure of ESG information and of the positive impacts of business (in corporate filings, Governance Reports, Sustainability Reports, securities offerings, etc.), (b) compensation and incentives to directors and officers, (c) controls and metrics, (d) drafting and monitoring corporate policies, such as policies for D&O appointment, risk management, socio-environmental responsibility, (e) compliance/with ESG guidelines (whether deriving from internal policies, industry self-regulation rules or governmental rules).
Social & Human Rights – (a) drafting and analysis of corporate compliance policies, diversity, recruitment and selection, religious freedom, parental care, and social inclusion, (b) investigation of potential violations related to adequate work, child labor, slavery-like work, quota of people with disabilities and apprentices, moral and/or sexual harassment, discrimination, (c) analysis of the relationship with the supply chain applying such principles, (d) social impacts on the society.
Energy Transition – (a) change in the energy source of industrial plants, (b) project development aimed at meeting the demand for new fuels (LNG, natural gas, hydrogen, electrification), (c) structuring, financing, and implementation of projects involving renewable energy sources, (d) carbon capture, (e) project development and financing of distributed generation and self-production projects.
Environmental – (a) investment in environmental assets such as forest assets, natural parks, (b) circular economy and waste policies, (c) environmental licensing, (d) carbon offset, including through carbon market and other securities, (e) analysis of environmental risks in the supply and delivery chain, (f) dispute resolution, including climate change litigation.