Responsible Business

Business operations are subject to an increasing number of demands that are forcing managers to expand their scope of vision considerably. These demands result from the pressure exerted by investors, consumers, employees, and governments that companies should consider a set of interests other than simply maximising shareholder profit, and they are framed at the environmental, social and governance (ESG) level.

This new situation brings with it a wide range of additional risks that can result in substantial negative impacts, specifically in terms of legal liability, reputational damage, and loss of business. These risks are complex in nature and they are aggravated when business operations have an international dimension or involve a multiplicity of relationships in their value chain. However, leadership in the various aspects of ESG creates a new opportunities to stand out from the competition and to improve performance.

Our Responsible Business team is focused on three main areas: Social and sustainable finance, business and human rights, and business ethics

Social and sustainable finance

The growing demand for investments that take into account their social impact has made it possible to broaden the sources of financing for sustainable or transitional investment available to companies. From the issuers’ perspective, it is crucial to choose the right metrics and to establish the most appropriate reporting model for the business.
Asset management has a special importance in increasing general access to financial products linked to ESG metrics and it plays a key role in making sure issuers of financial products keep up with best practices. To this end, it is essential to have the right process to incorporate ESG factors into investment decisions and to incorporate ESG criteria into all asset management processes.

We assist clients with:

• Issuance of green bonds, sustainability linked bonds and transition bonds
• Setting up social entrepreneurship companies and funds, and assisting in their impact investments
• Setting up collective investment undertakings with investment policies that include ESG criteria

Companies and human rights

The conduct expected of businesses involves protecting human rights, by avoiding human rights violations and preventing any adverse impacts that may result from their activities in this area.
The existence of robust policies and processes that identify, prevent, or mitigate adverse impacts on human rights is an increasingly central factor in protecting the value of the different aspects of the company. This is the only way to demonstrate a commitment to human rights, in particular, internal due diligence processes, impact assessments and compliance systems.

We assist clients with:

• Compliance programmes
• Human rights policies
• Human rights reporting, including non-financial statements
• Human rights impact assessment
• Human rights due diligence, including for the supply chain and other partners
• Investigation of events and crisis management involving human rights
• Representation in human rights litigation
• Corporate and human rights training programmes
• Establishment of remedial programmes

Business ethics

The growing consensus among business stakeholders is that mere compliance with legal rules is not enough to meet the requirements of integrity. Moreover, legal rules often use vague concepts and ethics are useful in putting the practices that are required into effect.

The use of ethical standards is also essential in managing risks and preventing them from arising in the first place. Compliance programmes are not sufficient if they are not backed up by a strong culture in the organisation. This becomes very clear if we analyse the anatomy of the greatest corporate scandals. Therefore, the top level of management in companies must establish an ethical culture that helps employees make the best choices and be aware if they are falling short of best practice.

We assist clients with:

• Internal procedures, including codes of ethics and conduct
• Review of compliance programmes and internal culture
• Training programmes
• Analysis of situations of conflicts of interest and establishment of remedial programmes
• Corporate governance due diligence