ESG and Corporate Sustainability(en) Archives - Castrén & Snellman

ESG and Corporate Sustainability

Sustainability and ESG regulations concern companies of all sizes – either directly or indirectly.

Sustainability is the true success factor of modern business. It ensures continuity of operations and transcends a company’s strategy, value chains and business practices. The regulatory framework of corporate sustainability is taking shape at a rapid pace, and evolving regulations concern companies of all sizes – either directly or indirectly.

The ESG and corporate sustainability service at Castrén & Snellman is the leading ESG practice among Finnish law firms. Our clients include a wide range of companies from family-owned businesses to listed companies. Our particular focus in ESG advice includes mergers and acquisitions, contract negotiations, and investigations.

Comprehensive and strategic ESG advisory

We conduct ESG due diligence reviews and provide analysis of the reviewed company’s ESG practices and risk management. We monitor the latest developments in ESG regulation for our clients and provide training in the legal aspects of corporate sustainability that is under continuous change.

As a member of the Net Zero Lawyers Alliance, we are committed to support our clients with extensive legal services they need in their transition to net zero.

We integrate our ESG knowhow across all services in our firm. Our experts can assist you in various areas:

ESG, compliance, corporate governance and management liability
Supply chain due diligence
ESG-related investigations
ESG in commercial contracts
Sustainable transactions and ESG due diligence
Sustainable finance
Green and just transition projects
Regulation and litigation on green and sustainability claims
Environment, Infrastructure & Natural Resources
Sustainability-linked competition law analysis and procurement
Advice on EU taxonomy

Latest references

Ministry of the Environment – Report on the promotion of circular economy aspects in public procurement

Castrén & Snellman was commissioned by the Ministry of the Environment to carry out a study on how the Circular Economy Act could be used to promote circular economy aspects in public procurement. Our report provides valuable information to the working group tasked with preparing the new Circular Economy Act. The report includes an overview of relevant strategies, action programmes and policies, a look at relevant legislation and case law, an assessment of the current state of circular economy procurement and examples of integrating circular economy aspects into public procurement from around the world. We end the report with concrete conclusions and a proposal for a new circular economy provision with justification. The proposal aims to maximise the regulation’s effectiveness and minimise any adverse side effects. The final report is available on the Circular Economy Act project’s Gateway to Information (in Finnish). The study was carried out by Anna Kuusniemi-Laine, Sanna Aalto-Setälä, Lotta Huhtamäki, Marja Ollila, Laura Vuorinen, Paavo Heinonen and Anna Ylitalo.

Finnish Broadcasting Company – Appeal in a defamation case dismissed by the Monegasque Supreme Court

We successfully advised the Finnish Broadcasting Company, Yleisradio Oy, and its Editor in Chief in a defamation case before all levels of the Monegasque judiciary. The case concerned four articles published by Yleisradio in 2022, two of which were in Finnish and two in English. The counterparty was of the opinion that the claims made in the articles violated his honour and brought defamation charges against Yleisradio and its Editor in Chief in Monegasque courts. In addition, he claimed damages totalling EUR 100,000 and demanded the removal of all allegedly defamatory content under penalty of a fine. We challenged the jurisdiction of the Monegasque courts in the matter, as the articles were not directed at a Monegasque audience and, contrary to what the counterparty claimed, jurisdiction could not be based solely on the fact that the articles were published in English on the internet where they were available for all and could be translated into French using a browser functionality. Furthermore, we presented comprehensive arguments stating that the facts presented in the articles were truthful, presented in good faith as required by Monegasque legislation, and based on thorough research. We also highlighted that the counterparty’s actions constituted so-called forum shopping, i.e. the desire to have the case heard in a court he believed would be most favourable to him. The claim was heard by all three levels of Monegasque courts, as the counterparty appealed the judgments of the lower courts. The courts of first and second instance had deemed that the Yleisradio articles in question were not directed at a Monegasque audience, and the Monegasque courts were therefore not competent to hear the case. The Supreme Court of Monaco (Cour de Révision) stated that there were no grounds to link the allegedly defamatory claims to the country. Even though it was possible to access the online articles from Monaco as well, this did not mean that the articles were published in Monaco. This being the case, the Supreme Court of Monaco deemed that the local courts did not have jurisdiction to rule on the case and dismissed the counterparty’s appeal against the Court of Appeal’s decision. The Supreme Court’s decision is fundamental in upholding the freedom of expression in Europe. The opposite outcome would have encouraged similar intimidation lawsuits in countries favourable to the plaintiff, with the purpose of restricting dialogue and silencing critical voices. The unpredictability of judicial power and the risk of extensive – and expensive – trials could create an atmosphere of fear and increase self-censorship of those exercising their freedom of expression, especially journalists, other media professionals and researchers. The decision also reinforces the principle that forum shopping is not allowed. The Supreme Court’s decision is final.

City of Rovaniemi – Former employees ordered to pay damages in an investment decision matter

We successfully acted for the City of Rovaniemi in a matter concerning offence in public office and damages claims in relation to a significant investment decision made by the city. The defendants were the city’s former municipal corporate officer, who was in an employment relationship, and a city treasurer, who was in a public-service employment relationship and acted as the supervisor of the municipal corporate officer. The criminal matter related to the City Board’s decision to invest EUR 2 million of the city’s funds in bonds offered by a newly established investment company in accordance with a decision prepared by the defendants. A significant part of the company’s operations involved quick loan business. The main legal question in the matter was whether the investment of public funds constitutes an exercise of public authority and whether regulation on offences in public office therefore becomes applicable even to a person in an employment relationship. The municipal corporate officer in an employment relationship was charged with aggravated abuse of public office based on her negligence in the preparation and presentation of the investment decision as well as based on a conflict of interest due to the fact that she had invested her own money in a company that received funding from the investment target presented to the City Board. The charges of an offence in public office against the city treasurer concerned his position as the supervisor and reporter of the city’s investment activities. He was also involved in the preparation and presentation of the City Board’s decision. The processing of the matter started in the District Court of Lapland in June 2022. In its judgment given in August 2022, the District Court stated, based among other things on our argumentation, that the investment of public funds constitutes an exercise of public authority and that regulation on offences in public office can therefore be applied to the municipal corporate officer. The District Court deemed that the conduct of the former municipal corporate officer fulfils the characteristics of abuse of public office and that the conduct of the former city treasurer fulfils the characteristics of violation of official duty with respect to the preparation of the investment decision, but the right to bring charges had become time-barred. Punishments could therefore not be imposed on the defendants, but the defendants were ordered to jointly and severally pay the city approximately EUR 114,000 in damages plus interest for late payment. The city treasurer’s share of the amount was 10%. The prosecutor accepted the judgment but the other parties appealed it to the Court of Appeal. Acting for the city, we pursued claims for both punishment and damages in the Court of Appeal. The Rovaniemi Court of Appeal processed the matter in November and December 2023. In its judgment given in June 2024, the Court of Appeal upheld the District Court’s judgment with respect to the abuse of public office and violation of official duty. The Court of Appeal deemed that the municipal corporate officer had failed in her duty to declare the conflict of interest. In addition, she had failed in her duty to ensure that the prepared decision was in compliance with the city’s investment guidelines and that it had been properly put out to tender. The Court of Appeal also found that the text of the investment proposal was insufficient and misleading and that the municipal corporate officer’s conduct was intentional. As regards the city treasurer, the Court of Appeal held that he had failed in his duty to ensure that the investment proposal to the City Board complied with the investment guidelines, that the presentation was not misleading and that risks were taken into account as required by the investment guidelines. With the judgement, the Court of Appeal took a clear position that abuse in public offices and when exercising public authority is not acceptable. The judgment is also significant as it declares that investing public funds constitutes an exercise of public authority and that the liability for acts in office therefore becomes applicable even to persons in employment relationships. In addition, a key question for the Court of Appeal to assess was defining the amount of economic damage in a matter related to investment activities. The Court of Appeal held based on our arguments that the conduct of the municipal corporate officer and the city treasurer had caused damage to the city. The Court of Appeal increased the amount of damages to EUR 210,000 with the city treasurer’s share limited to 10%. The amount was increased because the Court of Appeal deemed that the city had suffered damage not only in terms of the loss of capital but also in terms of the loss of estimated return on investment. The judgement is not final.

Finnish professor – Criminal investigation in a suspected offence in public office concerning direct procurement was discontinued

We successfully advised a Finnish professor in a wide investigation of an offence in public office concerning direct procurement in the social services and healthcare sector. Upon the proposal of the head investigator, the prosecutor decided to discontinue the criminal investigation with respect to our client.

Latest insights

30.3.2026 – Competition & Procurement Finnish FDI screening under reform — Update following the stakeholder consultation

Kiti Karvinen

Johanna Kyllöinen

Joachim Wik

Kiti Karvinen, Johanna Kyllöinen & Joachim Wik

3.3.2026 – Employment The threshold for dismissal is lowered: what should be taken into account in practice?

Aleksandra Särkelä

Aleksandra Särkelä

2.3.2026 – Environment, Energy & Green Transition Energy security is a matter of investment and competitiveness

Samuli Tarkiainen

Marius af Schultén

Samuli Tarkiainen & Marius af Schultén

6.2.2026 – Tax & Structuring Electricity sector Profit Tax Act in conflict with EU law – SAC denied leave to appeal

Janne Juusela

Mikko Alakare

Janne Juusela & Mikko Alakare

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