Originally produced in partnership with Freya Foster of Henderson Chambers Background The Environment Act 2021 (EA 2021) received Royal Assent in November 2021 (see Practice Note: Environment Act 2021—snapshot). It was introduced to address section 16 of the European Union (Withdrawal) Act 2018 (EU(W)A 2018), which required, among other things, legislation establishing an independent body to provide post-Brexit oversight, compliance, and enforcement of environmental law (see Practice Note: Environment Act 2021—developments [Archived] for an overview of the legislative history of EA 2021). The Office for Environmental Protection EA 2021, s 22 created the Office for Environmental Protection (OEP), a body responsible for scrutinising, advising upon, and enforcing environmental law as it applies to organisations and individuals carrying on public law functions e.g. government departments, ministers, regulators and local authorities. It also covers some private bodies, such as as water companies – but only in respect of their public powers and duties. Environmental law is broadly defined as legislation ‘mainly concerned’ with environmental protection but excluding certain matters set out in EA 2021, s 46 or by the Secretary of State in

What is an environmental policy? An environmental policy can be described as a written statement outlining an organisation’s mission in relation to managing the environmental risks and impacts of its operations. An environmental policy: • outlines the organisation’s environmental aims and objectives and can form the basis of an environmental management system (EMS), where applicable • should be endorsed and actively supported by top management and known to all staff • allows management to communicate its environmental aims and objectives to employees and other stakeholders, such as shareholders, customers and suppliers • should be integrated into business strategy Why should lawyers be aware of environmental policies? There is no legal requirement for companies to have an environmental (or sustainability) policy in place in the UK. However, under the Companies Act 2006 and associated corporate reporting regulations, certain companies are required to report on and disclose their environmental impacts (including climate-related risks), including key performance indicators (KPIs). For more information, see Practice Note: Mandatory environmental reporting and disclosure. An environmental policy is valuable

What is environmental risk assessment? Environmental risk assessment (ERA) can be undertaken on a broad spectrum of environmental issues including contaminated land, flood risks, asbestos, radon and subsidence. The type of study required is determined after identifying the risk and defining the aims and objectives of the assessment. The content for environmental risk assessments will vary depending on the environmental aspects they cover. However, all assessments follow a basic procedure to calculate risk. Calculation of risk Defra guidelines for environmental risk assessment and management define risk as the potential consequence(s) of a hazard combined with their likelihood/probability. Four Environment Agency (EA) guidance documents on land contamination risk management (LCRM) published in October 2020 and all updated on 12 June 2025 provide details on how to assess and manage the risks from land contamination: • LCRM: Before your start • LCRM: Stage 1 risk assessment—this sets out a tiered approach including: ◦ preliminary risk assessment ◦ generic quantitative risk assessment ◦ detailed quantitative risk assessment • LCRM: Stage 2 options appraisal—this includes

Environmental, social and governance (ESG) considerations have become an essential part of managing environmental risk, with ever increasing requirements on companies to consider their environmental and social performance. Sustainability is at the heart of the Environment Agency’s (EA) guidance documents on land contamination risk management (LCRM), with a requirement to consider climate change in risk assessments. Organisations such as The Society of Brownfield Risk Assessment (SoBRA) and CL:AIRE have provided supporting guidance and schemes to support the EA’s sustainability objective. For more on ESG, see Practice Note: ESG—new starter guide. What is environmental risk? The EA’s guidance documents on LCRM published in October 2020 (which replaced 2019/2020 versions) provide details on how to assess and manage the risks from land contamination. Environmental risk forms one of several relevant ESG issues to consider for organisations and stakeholders which also include risk factors such as health and safety and data security management. Risk is defined as a combination of the probability, or frequency of occurrence of a defined hazard and the magnitude of the consequences of the occurrence. See Practice

The information which is put forward by an applicant as part of a planning application for a development project that requires an Environmental Impact Assessment.

A weekly round-up of the latest environmental enforcement developments, including suspended sentences for a man who illegally deposited waste and a skip-hire operator who operated a waste site without an environmental permit.

Environmental, Social and Governance (ESG) considerations have rapidly gained prominence in the business world over the last decade. Initially, ESG was primarily associated with corporate social responsibility and sustainability efforts. However, it has become increasingly relevant to tax practitioners, with tax being part of each element of the ESG agenda. This shift is driven by various factors that intertwine ESG and taxation, making it essential for tax professionals to understand and navigate this evolving landscape. One of the primary reasons for the growing relevance of ESG to tax practitioners is the emergence of new regulations and compliance requirements. Governments around the world are increasingly incorporating ESG considerations into their tax codes and reporting frameworks, and the UK is no exception. For instance, tax incentives may be offered to companies that meet certain sustainability criteria, while non-compliance with reporting requirements can result in financial penalties. Tax practitioners must stay informed about these evolving regulations to ensure their clients remain compliant and take advantage of available incentives. ESG factors can also have significant financial implications

[means environmental, social and governance [of which the latter shall include, but is not limited to issues of, health and safety, safeguarding and gender] considered by companies, investors, public sector and other organisations in a wide range of decision-making processes and situations including strategy, purpose financing, company reporting and supply chain management. OR means Environmental, Social and Governance factors and standards forming a [published] policy, framework, strategy or objective of a party, including, but not limited to, Climate Change and the achievement of a Net Zero Target, resource depletion, waste, pollution, deforestation, human rights, gender, modern slavery, safeguarding, child labour, local and indigenous communities, conflict, work conditions, health and safety, employee relations, bribery and corruption, remuneration, board diversity and structure, political lobbying and donations, transparency, shareholder rights and tax strategies. OR means environmental, social and governance considerations. Environmental considerations may refer to Climate Change Mitigation and Climate Change Adaptation, as well as the environment more broadly, such as the preservation of Biodiversity, pollution prevention and control, the transition to a circular economy, the sustainable use and protection of water and marine resources, waste prevention and recycling, and the protection of healthy ecosystems. Social considerations may refer to issues of inequality, inclusiveness, labour relations, investment in human capital and communities, as well as human rights issues; and the governance of public and private institutions, including management structures, employee relations and executive remuneration.]

Introduction Supply chains typically involve multiple suppliers and subcontractors, often in various locations around the world. Each entity in a supply chain is part of an integral process. It is essential that organisations understand what is happening within their supply chains to comply with applicable laws and standards, and create sustainable, resilient supply chains. Supply chain sustainability involves the management of environmental, social, and economic impacts throughout the entire lifecycle of goods and services by embedding environmental, social and governance (ESG) principles into supply chain operations to ensure that business practices are ethical, responsible, and resilient. Rigorous due diligence plays a key part in helping organisations to identify and evaluate ESG risks in their supply chain. As a supplier may subcontract to other parties, who may also subcontract in turn, it is important that due diligence takes into consideration parties throughout the supply chain, even where an organisation has no direct contractual relationship with such party. Given the global reach of most supply chains, this due diligence will inevitably need to factor in regulatory

A considered and strategic approach to environmental, social and governance (ESG) issues is an important aspect of corporate governance. What is ESG? ESG is an acronym for environmental, social and governance. These are aspects of an investment principle that measures a company’s environmental and social impact, as well as how well it is governed. It often comes up in the same conversation as sustainability and corporate social responsibility, but while these function more as philosophies or end-goals, this principle is more tangible; it encompasses the data and metrics needed to inform decision-making for companies and investors alike, as increasingly investors are looking to align their strategies with their values. What is sustainability? In a business context, sustainability refers to a company's strategy and actions to reduce adverse environmental

This Checklist provides best practices for conducting environmental, social, and governance (ESG) due diligence, including general guidance for ESG due diligence, as well as specialised direction for each pillar of ESG. For more guidance on ESG generally, see: ESG and sustainability collection.. For information on environmental due diligence, see Practice Notes: • Environmental due diligence—asset purchase • Environmental due diligence—share purchase • Environmental due diligence—leases For more guidance on due diligence generally, see Practice Note: Due diligence—share and asset purchases. Introduction In light of national and international regulatory agencies issuing increasingly strict ESG guidance coupled with heightened societal interest in ESG issues, the importance of an ESG due diligence review of M&A target businesses continues to grow. A thorough ESG due diligence process conducted by an M&A buyer and its representatives can help identify, mitigate, and potentially avoid regulatory and reputational risks as well as inform deal valuation and structure. Having strong

A round-up of the latest environmental enforcement, including a dairy company fined for slurry pollution of a Dorset river.