Less greenwashing, more green governance
Challenges and opportunities in integrating ESG criteria that reconfigure the relationship between law, sustainability, and transparency
by glória paiva
Experts: Alice Khouri, head of legal at Helexia Portugal; Jane Kirkby, partner at Antas da Cunha Ecija; Carlos Costa Pina, partner at SRS Legal
While the world faces extreme weather events and global economic risks, a “regulatory avalanche” is pressuring companies and governments to take responsibility for their social and environmental impacts. And it’s not just lip service. After all, cases of “greenwashing” have already become a widely discussed topic: emblematic are the news of fast fashion brands with sustainability claims lacking traceability in their production chain and worker conditions, or of oil companies that, despite their green discourse, invest little in renewable energy.
The Corporate Sustainability Reporting Directive (CSRD) is revolutionizing the European landscape by requiring robust ESG data and genuine transparency. To tighten the noose even further and combat misleading marketing, Directive 2024/825 has prohibited generic terms such as “eco-friendly” without scientific proof. At this intersection between climate, communication, business, and law, lawyers face the challenge of navigating the complex boundaries between sustainability and legal responsibility.
From a regulatory standpoint, advances range from the Paris Agreement to European directives and national targets like Portugal’s National Energy and Climate Plan 2030, which aims for carbon neutrality by 2045. “We have a constantly evolving regulatory ecosystem. And it is necessary to force a corporate stance that did not exist organically,” says Alice Khouri, head of legal at Helexia Portugal.
The issue has led to a significant increase in demand for legal services focused on regulatory compliance and the integration of ESG criteria, both internally and externally. “There is also a growing demand for advice on integrating ESG criteria into corporate governance, due diligence for commercial transactions, and developing policies that promote environmental sustainability, diversity, and inclusion”, comments Jane Kirkby, partner at Antas da Cunha Ecija.
