Why a sustainability lawyer?
Why should a company and organization implement their sustainability work in collaboration with a sustainability lawyer?
Because different legally and non-legally binding regulations determine the frameworks, themes, requirements and expectations of sustainability, and because regulatory expertise is at the core of a lawyer's expertise.
The founder and entrepreneur of Opinio Juris, Doctor of Laws Merja Pentikäinen, is a pioneering expert in sustainability regulation and Opinio Juris is the first law firm in Finland specializing in sustainability issues. Opinio Juris has helped numerous companies and other actors understand the significance of regulation for their sustainability work and determine the focus areas of sustainability work.
Drivers and added value of corporate sustainability:
Regulation and compliance: The increase in regulation has been the most visible driver of the strengthening of sustainability and responsibility requirements and expectations in recent years. The key regulation guiding corporate sustainability comes from the UN, and the most important UN documents are the Global Compact (2000), the UN Guiding Principles on Business and Human Rights (2011) and the Sustainable Development Goals (SDGs) (2015). In addition to the UN, the OECD has also been a prominent international organisation in guiding responsible and sustainable business conduct.
A responsible company complies with both the national laws relating to sustainability and the above-mentioned international sustainability guidelines. It is important to recognise that many Finnish national laws, such as labor laws and anti-discrimination legislation, contain elements relevant to corporate sustainability.
In recent years, the EU has visibly regulated corporate sustainability issues, strongly prioritising reporting obligations. When EU regulations come into force, they become part of the national legislation of EU countries. EU corporate sustainability regulations have particularly affected large companies, but they indirectly affect smaller companies in the value chain of large companies.
- Stakeholder expectations: The expectations with respect to sustainability and responsibility from various stakeholders of a company have increased. Both consumer and corporate customers, owners, investors and lenders expect responsibility and sustainable business conduct. If a company cannot demonstrate that it operates responsibly, it is considered a riskier partner and customer. Consumer customers are sensitive to irresponsibility in their purchasing decisions.
- Risk management: Implementing corporate sustainability is risk management for a company. A responsible company minimises its risks and the costs associated with the realisation of risks. At the heart of corporate sustainability risk management is that a company understands the negative impacts and risks related to its value chain and takes concrete steps to address the impacts and minimise the risks. A company cannot outsource its responsibility. Corporate sustainability risk management belongs on the company's risk management experts.
- Business opportunities: Corporate sustainability brings business opportunities. In a world struggling with a sustainability crisis, companies that prevent and minimise the negative impacts of their business operations on people, the environment and society (do no harm) strengthen their business opportunities. Companies whose products can also provide solutions to sustainability crises (climate crisis, food crisis, etc.) (do good) have a strong position in the market.
An important driver of corporate sustainability is also the company's brand and reputation: Failure in corporate sustainability and being portrayed negatively in the media or on social media can result in significant losses for the company. The brand and reputation of a responsible company is built on genuine responsibility integrated into the business.
Corporate sustainability creates numerous business benefits
Responsible and sustainable business is profitable and provides a social license to operate. Corporate sustainability strengthens the attraction and retention factors of skilled workforce and customer loyalty, reduces financing costs and attracts the positive attention of investors and customers. Corporate sustainability has positive effects on a company's profitability, productivity, competitiveness and results. Implementing social responsibility provides business benefits in a particularly cost-effective way.