ESG and Responsible Investment
Navigating ESG complexity to manage risk and protect value
We help clients navigate the evolving ESG, impact and responsible investment landscape, where regulatory, commercial and reputational pressures are dynamic. Our team delivers practical advice that embeds ESG and responsible investment considerations into decision-making, supporting commercial goals, reducing risk and preserving capital.
We advise on all aspects of ESG, from regulatory compliance and risk management to sustainable investment strategies and stakeholder engagement. Our experience spans the full spectrum of asset classes and investment vehicles, enabling us to deliver tailored solutions that address the unique challenges and opportunities facing asset managers today. We also advise corporates and family offices.
Our approach brings together the legal insight, policy expertise and advanced data intelligence to provide clients with a coherent and fully-integrated approach to ESG risk mitigation and strategic growth.
Our advice and support for clients includes:
- regulatory compliance under frameworks such as the EU Sustainable Finance Disclosure Regulation (EU SFDR), Taxonomy Regulation, the FCA’s Sustainability Disclosure Requirements (UK SDR) and TCFD guidelines;
- greenwashing risk mitigation and reputational risk management, including advice and reviews of ESG disclosures;
- sustainable fund launches and their governance;
- net zero commitments, approaches to biodiversity and nature-based real estate and infrastructure solutions;
- investor advice enhanced due diligence and stakeholder engagement support; and
- contractual safeguards, tailored exit strategies and embedding ESG metrics into compensation packages.
We are closely involved in industry working groups and have formed deep relationships with regulators, which means clients benefit from early insight into emerging guidelines and best practice.
Work highlights include advising:
- Hayfin across its fund range of credit, high yield, and opportunities/solutions strategies, each disclosing under SFDR Article 8 and promoting sustainability characteristics, including in relation to the development of its internal ESG policies and governance;
- a private credit manager to define its strategy and investment philosophy in relation to ESG and supporting with the development of its approach to marketing through managing governance, risk and regulatory considerations;
- a large bank-owned asset manager and private equity firm to set up its governance, resource requirements and approach to implementing ESG in its business and for its funds, together with identifying relevant rules and KPIs which were suitable to its strategy and target market;
- an asset manager on embedding ESG into its investment process, and educating the investment team on how the KPIs which are defined have been derived, whilst providing support in developing a scoring methodology;
- Legal & General Investment Management (LGIM) on the establishment of several standalone, umbrella and sub-funds, including within LGIM’s “Future World” (ESG) range of funds;
- a leading insurer asset manager on the establishment of a nature-based solutions impact fund intending to participate in projects for the generation of carbon credits certified by the Peatland Carbon Code and the UK Woodland Code and registered at the UK Land Carbon Registry in the UK; and
- a private fund manager to reposition its maritime fund as an Article 8 product, including updating contracts within the fund’s service chain to support the manager’s ability to meet the requirements applicable to Article 8 products under SDFR and the Taxonomy Regulation.
Sustainability at Macfarlanes
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