Welcome to the quarterly edition of our ESG Pulse newsletter by Bird & Bird.
ESG factors are reshaping the legal and regulatory landscape as responsible practices become essential to long-term success. ESG Pulse is our international platform for staying ahead, featuring the latest ESG developments and practical insights across our practice areas and sector groups. We're here to keep you informed and confident in navigating ESG.
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News broke that the EU may stop its Green Claims Directive. Some have already reported its withdrawal, which is - as of now - premature. Here's what you should know about recent developments.
Read the full story
For more information, please contact Dr. Constantin Eikel.
On 23 May 2025, cybersecurity and intelligence agencies from Australia, New Zealand, the United States, and the United Kingdom jointly released a landmark Cybersecurity Information Sheet (CSI), titled AI Data Security Best Practices for Securing Data Used to Train & Operate AI Systems. Developed by agencies including the NSA’s Artificial Intelligence Security Center (AISC), the FBI, CISA, the Australian Cyber Security Centre (ACSC), and their counterparts in New Zealand and the UK, the guidance reflects a growing global consensus around securing the integrity of artificial intelligence (AI) systems through robust data protection.
For more information, please contact Jonathon Ellis, Jonathan Tay and Mia Herrman.
On 26 February 2025, the European Commission published its ‘Omnibus I Initiative’ (Omnibus Initiative) aimed to “cut” the so-called “red tape” to boost competitiveness and foster a favourable business environment and ensure that companies are not stifled by an excessive regulatory burden. The Omnibus Initiative encompasses a two-track approach based on two separate, yet interlinked, legislative proposals (click here). The First Proposal, resulting in the so-called ‘Stop-the-Clock Directive’, was adopted on 3 April 2025. This caused, among other things, the postponement of the reporting requirements under the ‘Corporate Sustainability Reporting Directive’ (CSRD) for second- and third-wave in-scope companies until their FY 2027 at the earliest (see here for more details).
For more information, please contact Pauline Kuipers and Sander Wagemakers.
Advertising in public areas is subject to various forms of regulation, including local rules imposed by municipalities. On 25 April 2025, the Dutch court (of first instance) upheld The Hague’s fossil fuel ad ban, allowing the city to ban, particularly, air and cruise travel advertisements in public spaces within its municipal boundaries. Perceived by both the city and environmental protection groups as a major victory in combating climate change, this local advertising ban could have a major impact on the advertising industry and certain sectors in which products or services are being deemed harmful to the public interest.
For more information, please contact Roelien van Neck and Sander Wagemakers.
On 28 May 2025, the Higher Regional Court of Hamm (Ref.: 5 U 15/17) brought to an end the nearly 10-year legal dispute between the Peruvian landowner and the energy supplier RWE. The landowner claimed that his home in the Peruvian city of Huaraz was at risk of flooding from the Laguna Palcacocha glacial lake, which he attributed to climate change. He demanded that RWE contribute to the costs of protective measures in proportion to its share of global CO₂ emissions (0.38%, according to the lawsuit).
For more information, please contact Michael Brooks-Zavodsky.
‘Sustainability’ is no longer a vague, meaningless, and trendy buzzword. Rather, the topic has grown in significance within public opinion and has increasingly received more recognition and expression within law (particularly, EU ESG law). As a result of growing sustainability, companies could also market their sustainability initiatives, such as their circular economic practices. Therefore, ‘sustainability’ is increasingly becoming a competitive parameter. Promoting, however, sustainability initiatives within advertisements could be perceived by the regulatory authorities as potential ‘greenwashing’. This risk is not purely hypothetical.
For more information, please contact Roelien van Neck, Sander Wagemakers and Lisette den Butter.
Net zero by 2050 and a decarbonised grid by 2030 are ambitious targets for the UK. Car parks present opportunities for innovative solutions to help achieve those targets.
For more information, please contact George Matthew.
On 16 May 2025, the Dutch Minister of Climate Policy and Green Growth, Sophie Hermans, announced that two out of three of the planned tenders for offshore wind farm permits in the North Sea have been postponed due to deteriorating market conditions. The justified fear is that issuing all three tenders (for the development of wind farm sites IJmuiden Ver Gamma-A and -B and Nederwiek I-A) in Q4 2025 would result in a lack of suitable bidders, if any at all. Now, only the permit for Nederwiek I-A (1 GW) will be open for tenders in October 2025 (deadline: 30 October 2025, 17:00h CET).
For more information, please contact Tialda Beetstra and Paul Waszink.
The European emissions trading system, which has been in place for about 20 years, makes an important contribution to achieving climate neutrality. Nevertheless, it was highly controversial for a long time. Since its introduction, it has been continuously amended, expanded and supplemented by additional national emissions trading systems in line with political guidelines. The basic system is simple: CO2 emissions are priced, politicians determine the reduction target to be achieved, and the market regulates who carries out CO2 reduction where and how cheaply. However, the political will to shape the future does not always make it easy for affected and interested companies to keep an eye on the relevant legal bases and use them to their advantage. The various trading systems continue to contribute to uncertainty. In this article, we will give you an overview of the emissions trading system at European and German level as well as the relevant legal bases in each case.
For more information, please contact Dr. Matthias Lang and Anja Holtermann, LL.M.
As AI tools continue to make their way into the workplace, understanding the legal landscape around their use is more important than ever for employers.
Our comprehensive article, published in International Employment Lawyer, delves into the complexities of AI in the workplace, covering everything from recruitment and performance management to data protection concerns and employee co-determination rights. Our international employment team has explored the risks, rewards, and regulatory trends associated with AI implementation in Europe, and has provided practical guidance for businesses looking to implement AI technology in compliance with evolving legal frameworks.
For more information, please contact Cecilia Lahaye, Olivia Baxendale, Benjamin Karcher, Filip Hron, Jorge Sanz or Sam Durand.
Deforestation causes many significant adverse effects on the planet, such as accelerating hazardous human-induced climate change, losing biodiversity, and less climate resilience. Whilst the famous author J.R.R. Tolkien created the Ents (i.e. humanoid tree-like spirits) in his stories to protect the trees, the ‘European Union’ (EU) adopted the (consolidated) ‘EU’s Deforestation Regulation 2023/1115’ (EUDR) to protect the earth’s forests against deforestation and degradation. In addition, the EUDR aims to reduce the EU’s contribution to greenhouse gas emissions and prevent global biodiversity loss.
For more information, please contact Pauline Kuipers, Nicolas Carbonnelle and Sander Wagemakers.
On 31 March 2025, the Australian Securities and Investments Commission (ASIC) released new Regulatory Guide 280 Sustainability reporting (RG 280), following a public consultation process on its draft regulatory guide on sustainability reporting issued on 7 November 2024.
For more information, please contact Sally Barber and Lachlan Holmes.
In 2021, an estimated 27.6 million people worldwide were affected by forced labour, primarily in the private sector in the textile, mining, agricultural and service industries (see ILO, IOM UN Migration, Walk free: Forced Labour and Forced Marriage – Global Estimates of Modern Slavery).
For more information, please contact Pauline Kuipers, Dr. Kathrin Kruse and Sander Wagemakers.
The success of the energy transition depends not only on the expansion of renewable energy plants, but also to a large extent on their connection to the electricity grid. While the number of new installations continues to break new records, grid expansion is often described as the bottleneck of the energy transition. Grid expansion is regularly required in order to be able to feed in the requested plant capacity. The expansion, however, leads to delays and higher costs of the connection.
Read the full story (in German)
For more information, please contact Dr. Matthias Lang and Dr. Tobias Büscher.
The ruling by Santander Commercial Court No. 2 on 21 February 2025, dismissing Iberdrola Energía España, S.A.U.'s lawsuit against Repsol Comercializadora de Electricidad y Gas, S.L.U., Repsol S.A. y Repsol commercial de productos petroliferos S.A.(“Repsol”) marks a significant moment in the legal landscape concerning advertising practices and sustainability claims in Spain. The decision serves as a crucial reference point for understanding how the Spanish courts may evaluate advertising practices related to sustainability and could influence future litigation concerning alleged greenwashing.
For more information, please contact Antonio Cueto and Maria Gutierrez.
More heat network regulations in England, Scotland and Wales come into force today, signifying a further step towards the regulation of this historically unregulated market.
By introducing the Heat Networks (Market Framework) (Great Britain) Regulations 2025 (Regulations) Government hopes to protect consumers and promote greater adoption of the lower carbon energy source.
For more information, please contact George Matthew.