Increasing regulatory and societal pressure regarding sustainability is leading to changes in the functioning of businesses and financial markets. In 2018, the European Commission adopted an action plan on financing sustainable growth, which requires financial institutions to shift resources towards sustainable investments, manage financial risks related to climate change, environmental degradation and social change, and promotes transparency and a long-term view of financial and economic activity. Implementation of this plan is based on legal instruments such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR), which impose a number of ESG requirements on financial institutions.

ESG in financial institutions

At DZP, we combine the expertise of many teams to support financial institutions in implementing the solutions required by current and planned regulations. We particularly:

• advise fund managers, brokerage houses, banks and alternative investment managers on entity-level disclosures as required by the SFDR and the EU Taxonomy,
• implement internal procedures and adapt regulations,
• support clients in preparing the required product disclosures, including information on light and dark green products,
• represent clients in relations with the competent authorities with regard to enquiries and proceedings concerning breaches of ESG regulations in financial institutions,
• advise on the financing process,
• prepare documentation and carry out legal analyses of potential investments, inter alia, in terms of eligibility and compliance with the EU Taxonomy, the objectives promoted by a particular financial product.

Entities applying for financing

Raising financing is increasingly linked to meeting ESG requirements. We work with those seeking financing, supporting them in meeting the expectations of financing institutions and the regulations affecting investment financing principles. Our services include:

• preparing to meet the requirements of financing entities, including banks,
• analysing operations in terms of their eligibility and compliance with the EU Taxonomy,
• preparing for due diligence verifying the ESG area (environmental permits and approvals, labour law, corporate governance issues, anti-corruption procedures and whistleblower protection), while helping to meet these requirements and supporting the client in areas requiring change,
• support in the process of issuing debt instruments (Green Loans, Sustainability Linked Loans, EU Green Bonds).

State aid and EU funds

We offer comprehensive advice on projects co-financed by EU funds and State aid, including regional, sectoral and related to services of general economic interest. Our support includes:

• analyses and legal opinions on State aid in green projects,
• advice on project structuring in accordance with State aid rules, including for green projects,
• ensuring that asset transfers by public entities comply with State aid law,
• advice on matters relating to the provision of general interest services, including the use of green vehicles,
• help with accounting for and monitoring projects co-financed by EU funds, including maintaining project sustainability and making changes,
• advice in appeals and litigation relating to funding,
• help with the preparation of notification documentation and with notifying projects to the European Commission,
• support in appeals against European Commission decisions, including representation in proceedings before European courts.

Team:

ESG in financial institutions

Magdalena Skowrońska 

Entities applying for financing

Magdalena Skowrońska | Daniel Chojnacki | Tomasz Kalicki

State aid and EU funds

Marcin Krakowiak | Tomasz Zielenkiewicz