Industrials, manufacturing and transportation (IMT) businesses are quickly integrating sustainability, or an environmental, social and governance (ESG) framework into their overall corporate strategy. ESG issues are now considered a corporate imperative due to their practical and business implications, as well as the challenges and opportunities they present. Shareholders, financial institutions, customers, employees and other stakeholders expect sustainability considerations to be incorporated into how companies do business and address these with transparency. It is also becoming clear that sustainability increases the long-term value of a business and facilitates efficiency goals, thereby enhancing shareholder value for IMT companies.
With corporate boards more directly engaged on ESG matters than ever before, they are relying on their legal teams to provide comprehensive legal counsel and mitigate corporate risk.
Baker McKenzie and Trench Rossi Watanabe* produced this guide to identify important themes in corporate sustainability for IMT companies in Latin America and provide key questions and practical considerations when implementing sustainability strategies and initiatives. The guide covers the following jurisdictions: Argentina, Brazil,* Chile, Colombia, Mexico, Peru and Venezuela.
This guide includes:
- ESG due diligence regulations of suppliers of goods and services
- Carbon credit market
- Sanctions or incentives that affect or contribute to ESG objectives
- R&D and decarbonized hydrogen projects regulations
- Policies, regulations or subsidies for the use of biofuels
- ESG litigation in Latin American countries
Our specialists answer the following key questions set out below:
- Are there regulations and policies regulating mandatory ESG due diligence of suppliers of goods and services produced at or imported into your country?
- How would the EU’s new Deforestation and Forest Regulation potentially impact the jurisdiction?
- Is the carbon credit market regulated in your jurisdiction?
- Are there sanctions or incentives (e.g., tax benefits) for affecting or contributing to ESG objectives (e.g., energy efficiency, waste reduction, efficient use of resources, workforce diversity and inclusion, reduction of plastic pollution, biodiversity, circular economy, land protection or air quality)?
- Are there regulations, policies or subsidies in the jurisdiction for the research and development (R&D) or the structuring of decarbonized hydrogen projects?
- Are there regulations, policies or subsidies related to the gradual insertion of biofuel in your country’s energy matrix?
- What are the main issues raising concerns in ESG litigation in the jurisdiction?
How we can help
Sustainability / ESG strategy
ESG M&A / energy transition investments
ESG and the modern workforce
Carbon markets and climate-related commitments
Building a more sustainable supply chain
Packaging and takeback requirements in Latin America
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Baker McKenzie and Trench Rossi Watanabe* are trusted advisors to many of the largest industrials, manufacturing and transportation companies in Latin America and worldwide on their strategic growth initiatives involving ESG, sustainability, supply chains and energy transition solutions.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.