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Friday, September 18, 2026

The impact of ESG standards on your company's employment law ... - Lexology

Sustainable entrepreneurship is a hot topic. (Introducing) an ESG (Environmental, Social and Governance) policy is high on the agenda of many companies. On the one hand because investors want to invest in a socially responsible way and on the other because an increasingly large number of regulations in this area are becoming effective, partly as a result of the Climate Agreement. By introducing the CSRD Directive (Corporate Sustainability Reporting Directive), as from 2024 onwards, a growing number of companies will be obliged to report on the company's impact on society and the environment. In addition, the Dutch legislators are also developing regulations requiring companies to focus on sustainability, social interests (such as gender equality) and governance.

As an entrepreneur, you need to introduce sustainability targets, review the social aspects within your company and work on various governance aspects. From an employment law perspective, social aspects in particular are relevant. In addition, from a governance perspective, directors’ remuneration requires attention and, as far as environmental aspects are concerned, 'green employment conditions' can be considered. In this article, we will zoom in on some of these labour law aspects that can or should be addressed when developing a proper ESG policy.

Environmental aspects

As far as environmental aspects are concerned, from an employment law perspective, incentives for employees to travel greener can be considered....



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