Garrigues Sustainable Newsletter - January 2025

In this newsletter we compile the most relevant legal news on ESG matters in Spain, published by Garrigues and G-advisory.
The European Commission presents a Competitiveness Compass, which will simplify the regulatory burden of sustainability reporting, due diligence and taxonomy
One of the targets of the Competitiveness Compass, which will guide the Commission’s work over the next five years, is to reduce the regulatory and administrative burden drastically. In this context, the Omnibus proposal, expected in February, will be designed to simplify the sustainability reporting, due diligence and taxonomy.
CSRD: practical aspects to be borne in mind when preparing the sustainability report
In a new edition of Garrigues Sustainable Dialogs, we covered the most relevant and complex legal and technical aspects that companies should consider when drafting their sustainability report pursuant to the CSRD Directive.
The role of sustainability in institutional investors’ decision-making and what proxy advisors do
The embedding of ESG factors in corporate governance and the prominent role of proxy advisors were key topics of the latest Sustainable Garrigues dialogue entitled How Institutional and Proxy Advisors Approach Sustainability at Listed Companies.
Other legal news
EU strengthens disclosure of ESG risks in credit institutions with new requirements
Commission Implementing Regulation (EU) 2024/3172 introduces new obligations for credit institutions, which will have to disclose half-yearly information on environmental, social and governance (ESG) risks, as well as on the impacts of climate change. This regulation, applicable from January 2025, aims to improve transparency and consistency in prudential risk management.
The Draft of the Corporate Sustainability Reporting Law arrives to the Parliament
The Council of Ministers has given the green light to the Draft of the Corporate Sustainability Reporting Law for the companies’ disclosure of the ESG matters, that will be processed as urgent.
They recommend preparing non-financial information statements in line with the new EU rules, without overlooking the Spanish corporate law rules in force.
European Green Bonds are here and come with new post-issuance reporting standards
The regulation establishing a standard for issuers using the designation 'European Green Bonds' (EuGB) is now in effect, but the legislative process is not yet complete: a new delegated regulation, currently under consultation, details all the post-issuance information that must be provided.
EU strengthens sustainability in the insurance sector with new risk management obligations
A new European directive introduces the concepts of "sustainability risk" and "sustainability factors" into the risk management of (re)insurers, obliging them to integrate them into their systems and strategic plans. It also relaxes disclosure requirements for small insurers.
Pillar 2 in Spain: Global Minimum Tax for large groups approved
We review its main characteristics and remind you of the aspects to which you should pay special attention.
The new legislation amends key laws in order to modernize zoning and planning regulations, by making them simpler and more flexible, while at the same time strengthening the municipalities’ zoning and planning powers.
Whistleblowing channels: how the new Independent Authority for Whistleblower Protection will work
The Statute of the Independent Authority for the Protection of Whistleblowers, recently published in the Official State Gazette, responds to the mandate contained in Law 2/2023 and regulates its organization, structure and operation.
The regulation will include the possibility for the competent authorities to prohibit the placing and making available on the Union market of products made with forced labor or exporting such products. It may also require companies to withdraw and dispose of these products.
The EU Packaging and Packaging Waste Regulation has been definitively approved
The aim is to address the increase in packaging waste in the EU, boost the circular economy and increase the rules governing the internal market for packaging.
Among other elements, it introduces several personal income tax and corporate income tax measures, aimed at advancing the energy transition and, as occurs every year, the maximum amounts of multipliers to be used on land values in the calculation of the tax on increase in urban land value have been updated. A special regime is also defined for the finals of the 2024 UEFA Women's Champions League and the 2025 UEFA Europa League.
The EU sets out the basis for ESG ratings in finance
The EU bolsters nature restoration: here is the new legislative framework for 2030 and 2050
The Nature Restoration Regulation has a particular impact on companies in the food industry, in direct relationship with land and sea ecosystems that could be affected by the restoration obligation due to their degradation.
The Supreme Court of Spain delimits the binding scope of the reasoned report for the R&D&I deduction
The Supreme Court has confirmed that the reasoned reports are binding on the tax administration both in the classification of the activity and in the quantification of the basis for the deduction for tax years started before 2015. However, the issue is still open to discussion for deductions generated after that date, as pointed out in a recent ruling by the TEAC.
Trends
2025, a year in which there will be important new legislation for businesses in Spain
Professionals in the various practice areas at Garrigues take a look, from all angles of business law, at the main new legislation that companies will be facing in the coming year, including in the area of ESG.
Flash-floods in Valencia: New legislation and aid approved in response to the disaster
Following the damages caused by the flash floods in Valencia, we look at the main legislation approved to date as well as the aid provided by the central government and by the regional authorities.
The new waste tax and its numerous questions
Law 7/2022, of 8 April, has incorporated the obligation for all municipalities in Spain to approve a tax or a public non-tax financial contribution that adheres to the principle of “the polluter pays”. Below, we analyze some of the questions raised by this obligation.
Ten possible changes in labor legislation expected by 2025
2025 is set to be a key year for labor relations in Spain, as major reforms that have been in the pipeline in recent times are expected. The reduction of the working day and other changes in working hours, possible changes in compensation for dismissals or termination of the contract due to permanent disability, the reform of the Law on Occupational Risk Prevention, the Industry Law, the Interns’ Statute, the remuneration of parental leave, mobility plans or changes arising from the transposition of the directive on transparent working conditions are some of the possible legislative developments that we will see this year and may pose significant challenges for companies.
New patent possibilities emerge for natural products
New case law by the Technical Board of the European Patent Office (EPO) establishes that new active principles contained in natural extracts used in traditional remedies qualify as patentable.
Vade mecum of the main paid leaves in Spain
What kind of leave can employees take? How? When? In this post we present a basic guide to the main paid leaves regulated in the Workers’ Statute. These leaves can be developed, extended or enhanced through the collective bargaining agreement applicable to each company.
Revisiting the prohibition on tourism rentals by condominium law
The popularity in Spain of vacation rentals has been accompanied by a rise in litigation between the owners of tourist apartments and the condominium law of the buildings where those apartments are located. This litigation, initially concentrated in courts of first instance and appeal courts, has ended up in the hands of the Supreme Court.
Latin America
Peru may be headed towards a more fulsome renewables market in 2025, bolstered by recent changes in energy laws intended to level the playing field for wind and solar. In view of upcoming activity, we have prepared a list of key bankability topics for project sponsors, investors and lenders in relation to typical structuring issues and challenges for renewables projects.
Law no 32230, amending the Consumer Protection and Defense Code to strengthen the alerts system and improve reporting of the risks and dangers associated with products and services was published on January 8, 2025.
This legislative change aims to create conditions for greater competition in the regulated electricity market by diversifying energy through generators that use renewable energy resources.
Law 21,634 introduces important changes to the penalty which excludes individuals or legal entities found liable of anti-union practices or of infringing an employee’s fundamental rights from entering into contracts with State bodies.
Newsletter regarding the energy market in Chile, Colombia and Peru - November 2024
We provide a summary of the main new legislation and market news, for the energy sector in Chile, Colombia and Peru. Teams specializing in energy in those countries look at topics of interest for sponsors, developers, finance providers and other stakeholders in the sector, such as bills, summaries of new rules, key case law and market trends.
Garrigues Sustainable
Garrigues Partners’ Meeting approves the promotion of 18 new partners
It has also approved the appointment of the 4 new partners who joined in 2024.
Garrigues once again places first in the Merco Responsibility ESG ranking
For another year, the firm has ranked the highest of among the 100 most responsible companies in Spain according to this ranking and has renewed its presence in the Governance ranking.
Recognizing the firm's commitment to equal treatment and opportunities between men and women.
FESBAL honors Garrigues with the loyalty award at the 2024 Espiga de Oro ceremony
The Spanish Federation of Food Banks (FESBAL) presented Garrigues with the 2024 loyalty award (Premio Fidelidad 2024) at the twenty-first edition of its Espiga de Oro awards “for its outstanding contribution and generous support to our institution, which will serve to improve the quality of life of families and people in extreme need.”
Oxford University has just presented the Climate Policy Monitor, an exhaustive analysis of the alignment of economic rules with climate goals, in which Garrigues has participated by evaluating the regulatory frameworks of Mexico and Chile in three strategic areas.
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