The last few years have seen an acceleration in the “hardening” of soft-law or voluntary standards in the ESG space, bringing environmental and human rights considerations higher up the agenda for businesses and their legal teams. Different approaches across jurisdictions have created further challenges.
Whilst 2025 is likely to bring some further legislative developments and new disputes, it seems set to largely focus on (1) the practical implementation of already, or soon to be, in force legislation; (2) receiving decisions in key cases from both national and international courts and understanding the implications for business and state obligations; and (3) greater focus and guidance on responsible exit strategies.
Legislation
- First reporting and compliance cycles
2025 will see the first implementation of some key legislation including reporting under the Corporate Sustainability Reporting Directive (“CSRD”) in the EU and the Climate-Related Financial Disclosures in Australia. Whilst it was set to apply from 30 December 2024, the EU Deforestation Regulation will now first apply on 30 December 2025.
- Practical adjustments