24.9.2020

What Does Sustainability Mean to a Corporate Lawyer?

More and more companies are putting sustainability at the forefront of their strategies and are looking for ways to combat climate change. Customers and investors expect companies to act ethically and respect human rights.

In the midst of this, companies are turning to their legal advisors for knowledge about good, sustainable practices — not just about what the law or courts says is legal. Legal work is changing, and I think that it is changing for the better.

SUSTAINABILITY EXTENDS THROUGHOUT BUSINESS LAW

Lawyers seems to have discovered sustainability work a bit late, though we are in a position to have a significant impact. Sustainability issues extend far beyond environmental law. Nearly every contract brings with it the opportunity to make a difference.

It is difficult to think of a field of law that wouldn’t involve some aspect of sustainability. Green finance is becoming more common, and contract templates are evolving. In mergers and acquisitions, sustainability issues come up in due diligence reviews and can impact purchase prices, and there is much work that could be done in energy sector contractual structures.

Public procurement projects should be implemented sustainably. If competitors want to work together to reduce emissions, they need a competition law assessment. Business intelligence needs to be based on the responsible use of data, and merely knowing the GDPR by rote is not enough. Anti-corruption work needs functional compliance practices and whistleblowing channels.

IMPACT THROUGH NEW FINANCIAL INSTRUMENTS

The pursuit of impact is also creating entirely new kinds of work for lawyers. Impact investing and impact funds have already gained a foothold. In impact investing, private capital is not only used to pursue a profit, but also measurable benefits for society, and it is being promoted as one possible solution to the increasing challenges faced by the public sector.

NEW CAREER PATHS FOR LAWYERS

The changes that are going on in the world are a call to lifelong learning and are creating new, interesting career paths for future generations of lawyers. Who would have thought just a few years ago that the UN’s sustainable development goals could be a major part of business lawyer’s work?

DOING OUR PART

At the beginning of 2020, Castrén & Snellman became the first Finnish law firm to join the Global Compact. There are three pillars to sustainability at C&S: our own sustainability, sustainability advice for clients and impact on society.

We can have the biggest impact through helping our clients develop their own sustainability. In addition to the UN Global Compact, our sustainability work is anchored in the UN’s sustainable development goals. Our key goals are to promote equality, fight climate change and promote the rule of law.

This blog was first published in 18.8.2020.

Latest references

We advised Metsäliitto Cooperative in relation to a new EUR 200 million sustainability-linked revolving credit facility with a syndicate of eight banks. This new credit facility refinances the existing EUR 200 million facility signed in December 2018 and will be used for general corporate purposes. The facility has a tenor of five years and includes two one-year extension options. The pricing mechanism of the revolving credit facility is linked to two of Metsä Group’s ambitious sustainability targets: Target 1: Zero tonnes of fossil carbon dioxide emissions, Scope 1 and 2, by 2030. Target 2: Share of certified wood in wood supply 100% by 2030. ‘Incorporating sustainability criteria into our financing further demonstrates the company’s strong commitment to actions that reduce our carbon footprint and mitigate climate change,’ says Vesa-Pekka Takala, EVP, CFO of Metsä Group.
Case published 16.1.2025
We advised NoHo Partners Plc on a 119-million-euro financing arrangement. The financing arrangement frees up a significant part of the cash flow for the business and enables the implementation of an acquisition-driven growth strategy also in the future.
Case published 16.1.2025
We advised CapMan Buyout in the exit of Renoa Group. Renoa Group management together with Korpi Capital and other investors have acquired the group. Renoa Group is a Finnish established expert in the building technology sector specializing in detached houses in Finland and Sweden. Renoa is a major provider of turnkey domestic water & heating, sewer system and electricity network renovations, with significant operations also in Sweden. The Group reported sales of €35 million and employed c. 300 personnel across its 10 offices in Finland and 6 in Sweden. Korpi Capital is a Finnish investment company with holdings in 29 companies. 
Case published 14.1.2025
We advised eQ Community Properties Fund in its acquisition of a property portfolio comprising a health centre in Espoo, a daycare property in Vantaa, an elementary school in Helsinki, and a parking facility property in Helsinki from Ilmarinen Mutual Pension Insurance Company. The lettable area of the first three properties is approximately 13,900 sq.m., while the parking facility offers 120 parking spaces. The portfolio’s tenants include the City of Helsinki, the City of Vantaa, the Western Uusimaa Wellbeing Services County, and Aimo Park Oy. In connection with the transaction, Ilmarinen invested in eQ Community Properties fund as per 31 December 2024.
Case published 9.1.2025