Corporate sustainability and ESG: what is changing for companies and why demand for specialized legal profiles is growing

Corporate sustainability is no longer just a reputational matter. It has become a strategic area within companies. Today, ESG factors influence how organizations report information, manage risks, engage with investors, structure their supply chains and make business decisions.

In Europe, this framework has evolved especially through the CSRD, sustainability due diligence, the green taxonomy and reforms aimed at simplifying part of these obligations. The result is a scenario in which companies need to better understand what they must report, how they must do it and what legal implications their sustainability strategy may have.

For those who want to specialize in this field, ISDE’s Master in Energy Law and Ecological Transition is directly connected to environmental regulation, sustainable transition, energy, business and corporate governance from an ESG perspective.

CSRD after the Omnibus package: which companies must report sustainability information

The CSRD has marked a turning point in sustainability reporting in Europe. Its objective is for certain companies to report more clearly, consistently and comparably on their impacts, risks and opportunities in environmental, social and governance matters.

Following the simplification reforms, the focus is mainly on larger companies, with the aim of reducing administrative burdens and preventing reporting obligations from extending disproportionately to smaller companies within the value chain.

In practice, companies within the scope of application will need to pay special attention to issues such as:

Environmental, social and governance information.
Climate and sustainability risks.
Impacts on people and the environment.
Relationship with suppliers and value chain.
Internal policies and control procedures.
ESG indicators.
Traceability of reported information.
Consistency between strategy, data and corporate communication.

ESG reporting can no longer be treated as an isolated corporate report. It must be connected to reliable data, internal processes, legal supervision and corporate governance criteria.

What this means in practice for companies

The new context does not eliminate corporate sustainability, but it does require it to be managed with greater judgement. Some companies will have formal reporting obligations; others, even if they are not directly subject to them, will continue to receive information requests from clients, banks, investors or large companies for which they act as suppliers.

Therefore, even when a company is not required to report under the CSRD, it may still need to prepare ESG information in order to:

Access financing.
Participate in tenders.
Respond to corporate clients.
Improve its position with investors.
Reduce reputational risks.
Demonstrate sound environmental and social practices.
Avoid poorly substantiated sustainability claims.

The challenge lies in finding the right balance between compliance, real usefulness and proportionality.

The ESG lawyer profile: what they do and why companies need them

The growth of sustainability regulation has driven an increasingly necessary profile: the ESG lawyer. Their role is not limited to reviewing environmental regulations. It also connects with corporate governance, reporting, contracts, compliance, sustainable finance, due diligence, reputational risks and regulated communication.

Their most common functions may include:

Interpreting ESG reporting obligations.
Reviewing internal sustainability policies.
Advising the board on ESG risks.
Coordinating with compliance, finance and sustainability teams.
Reviewing ESG clauses in supplier contracts.
Analysing greenwashing risks.
Supervising due diligence processes.
Supporting corporate transactions with ESG impact.
Reviewing non-financial information before publication.

Companies need this profile because sustainability no longer belongs only to communication or corporate social responsibility departments. It affects financing, investment, reputation, strategy, contracts and regulatory compliance.

At this point, the Master in Corporate, M&A, Finance and Stock Markets can complement very well the profile of those who want to work in ESG from a corporate, financial and transactional perspective.

Due diligence in the supply chain: what changes for companies

Sustainability due diligence requires companies to look beyond their own activity. The aim is to identify, prevent and manage negative impacts related to human rights, the environment and the supply chain.

This is especially relevant for companies with international structures, suppliers in several countries or activities exposed to environmental and social risks.

A due diligence policy may include:

Identification of supply chain risks.
Supplier assessment.
Contractual controls.
Complaint mechanisms.
Monitoring of corrective measures.
Documentation of decisions.
Internal supervision procedures.
Coordination between legal, procurement, compliance and sustainability teams.

The important change is that companies must be able to demonstrate that they have reasonable processes in place to identify and manage risks. General commitments are no longer enough: traceability, evidence and consistency are increasingly required.

European green taxonomy: what it means for companies and investors

The European green taxonomy aims to create a common language to identify which economic activities can be considered environmentally sustainable. Its purpose is to facilitate sustainable investment, reduce the risk of greenwashing and help companies and investors compare activities under more consistent criteria.

For companies, the taxonomy can influence:

How certain activities are presented.
Access to sustainable finance.
Relationships with investors.
Communication of environmental objectives.
Project valuation.
Ecological transition strategy.
Analysis of climate and regulatory risks.

For investors, it makes it easier to interpret what part of an economic activity is aligned with environmental objectives and how sustainable a company or project really is.

Why the taxonomy matters more than it may seem

The green taxonomy is not only a technical matter. It has a direct impact on financing, corporate strategy and reputation. A company that wants to position itself as sustainable needs to prove it with objective criteria and avoid ambiguous or overly commercial messages.

This makes sustainability a cross-functional area. The legal department must work with finance, operations, sustainability, communications, management and compliance to ensure that data, commitments and public claims are properly supported.

That is why the most complete ESG profiles do not only understand the rules: they also understand how those rules affect business, investment, corporate governance and market relationships.

What to study to work in corporate sustainability and ESG

Corporate sustainability requires profiles capable of connecting regulation, business and strategy. It is not only about knowing environmental rules, but also about understanding how they affect reporting, the supply chain, financing and decision-making.

A strong specialization should allow professionals to go deeper into:

Sustainability reporting.
Due diligence in human rights and the environment.
Green taxonomy.
ESG corporate governance.
Sustainable finance.
Regulatory and reputational risks.
Contracts and supply chain.
Energy and ecological transition.
Compliance and corporate communication.

The Master in Energy Law and Ecological Transition is a logical pathway for those who want to specialize in sustainability, energy and environmental regulation. In addition, the Master in Corporate, M&A, Finance and Stock Markets can provide a complementary perspective for those who want to work in ESG from the angle of transactions, investment and business strategy.

A specialization with real potential in companies

Corporate sustainability and ESG are already part of core business decision-making. Although the European regulatory framework is being adjusted to reduce burdens and make it more proportionate, companies still need professionals capable of interpreting obligations, organizing processes and preventing risks.

The ESG lawyer is gaining importance because they help translate regulation into practical decisions. Their role is to turn rules, data and commitments into legal certainty, traceability and business strategy.

If you want to explore other areas of legal specialization linked to business, regulation, sustainability, energy, finance or corporate law, you can check ISDE’s Law programs and find the training that best fits your professional goals.