Green Guide Profile: Kromann Reumert

Denmark

Through its energy and ESG practice groups, Danish UN Global Compact member Kromann Reumert brings broad and deep expertise to clients across renewable energy projects, green business transitions, and sustainable finance.

Aarhus-based wind sector specialist Jan Hvarre advised renewable energy developer Skovgaard Energy on all legal aspects of its partnership with developer Cloudberry Clean Energy, which acquired 80% of the client’s wind turbine portfolio. In the DKK 1.5bn deal, the firm assisted in structural strategy, vendor due diligence, and in negotiating transaction documents.

In Copenhagen, energy group head Anders Stubbe Arndal is acting for Ørsted in connection with its successful tender to operate Denmark’s landmark carbon capture and storage project. From 2025, the client will capture and store approximately 430,000 tonnes of biogenic CO2 per year at its facilities in Asnæs and Kalundborg.

The firm also supported Ørsted in preparing and negotiating the contractual framework with its suppliers in the CCS value chain – carbon capture unit supplier Aker and transport and storage infrastructure developer Northern Lights – and in preparing a carbon removal offtake agreement with Microsoft, which will purchase carbon offset certificates from the client.

Helping scale-up Denmark’s power-to-X sector, the firm advised carbon reduction technology company Topsoe on a DKK 1bn sustainability-linked facility to fund the development, construction, and operation of a landmark industrial-scale solid oxide electrolyser cell manufacturing plant. Notably, the firm also serves on the advisory board for Axcelfuture’s project to create a Danish National PtX Strategy Plan.

The firm’s industry collaborations furthermore include the Green Building Council in connection with the sustainable transformation of built environments.

As a member of the CONCITO sustainability think tank, the team also works to boost knowledge of green initiatives in the business community. Through its own climate policy, the firm purchases only green electricity and encourages staff to choose zero-emission travel.

Kromann Reumert advises on all legal aspects of ESG, including sustainable corporate management and operations, sustainable financing, the green transition and ESG due diligence in different sectors and industries with their legal needs and challenges related to ESG and sustainability. We help our clients identify, manage and report on ESG risks and opportunities, comply with relevant ESG standards and regulations, and create value for their stakeholders through sustainable business practices.

We have specialists in all relevant legal advisory areas, including financial regulation, business ethics and regulatory compliance, energy and environmental law, corporate governance, employment law and human rights, project management, and corporate due diligence. We offer hands-on, useable advice and have substantial experience helping businesses get started with and/or accelerate ESG projects.

Our ESG practice group, which is anchored with partners Line Berg Madsen, and Jacob Høeg Madsen share a wide range of experience among them:

  • Line Berg Madsen is a partner and expert in corporate sustainability related matters, such as ESG and value chain due diligence, disclosure and reporting legal requirements, commercial contracts, and she is an adviser to business leaders seeking to integrate legal ESG requirements with strategic value creation; and
  • Jacob Høeg Madsen is a partner and expert in financial regulation, fund formation, other alternative investments and M&A, and the sustainability related disclosures pursuant to the SFDR and the taxonomy regulation.
  • Sofie Jensen is a Director specialized in ESG from a legal perspective and M&A. She advises Danish and international clients on ESG matters, including value chain due diligence, disclosure and reporting legal requirements, as well as mergers and acquisitions, joint ventures, and corporate governance matters.

Across all three ESG components (Environmental, Social and Governance), we provide legal advice regarding inter alia:

  • ESG due diligence, risk identification, and gap analysis
  • drafting and updating relevant ESG company policies, work procedures, screening mechanisms, whistleblowing schemes, incentive structures
  • drafting of i.a. business terms and contracts, loan and financing agreements, all on the basis of relevant ESG standards and statutory requirements.

ESG is multidisciplinary and ties into many of our existing practices. Therefore, we work closely together with Kromann Reumert’s specialists within Employment and Labour Law, Corporate crime, investigations and compliance, Energy, International Trade, Capital Markets, M&A, Financial Services, Environment and Personal Data and Whistleblower Schemes, to ensure that our clients receive specialist advice in all legal areas of ESG.

As environmental, social and governance (ESG) becomes increasingly important for our clients and businesses and society in general, Kromann Reumert continues to develop our legal services within ESG. We support our clients, as they encounter growing ESG demands to address ESG impacts across their value chains.

In the preceding year, we have further strengthened our ESG practice area by, among other things:

  • Taking an enhanced strategic approach to ESG as a firm by publishing our first ESG report, which to our knowledge is a pioneer move among Danish law firms;
  • Founder of a cross-border ESG network with lawyers from our collaboration partners across the world; and
  • Brought onboard an additional partner who is dedicated to ESG and re-joins our existing strong ESG team of lawyers.

Our attorneys and partners Line Berg Madsen, and Jacob Høeg Madsen lead the ESG practice group at Kromann Reumert. They each have a unique profile and insight into ESG related matters and together they secure a broad and deep anchoring of ESG in Kromann Reumert.

Line Berg Madsen advises on ESG matters mainly to private equity and other investors as well as companies across sectors such as transportation, manufacturing, and IT services. Line is recognized for her expertise within ESG due diligence, compliance, and commercial matters, and her strategic, value creation mindset.

Jacob Høeg Madsen is adviser to a significant number of clients, that are covered by the EU sustainability related financial disclosure regulation (SFDR) and the EU taxonomy regulation. Jacob assists these clients with workable solutions regarding fund formation and disclosures, and he is renowned for his strong commercial mindset.

At Kromann Reumert, a wide range of attorneys also serve our clients within specific areas of ESG

Has your firm established a dedicated ESG/climate change/sustainability practice, team or task force?

In our view, ESG is multidisciplinary and ties into many of our existing practices. We have established an ESG practice group revolving around our specialists. The members of our practice group coordinate and develop our ESG services across the different practice areas.

What type of work do you handle in connection with “green change”?

Our firm has played a significant role in the financing and development of international renewable energy projects in around approx. 70 different jurisdictions around the world.

Our energy law group has been involved in practically every major transaction over the past fifteen years in the Danish energy sector as well as in many of the high profile and noteworthy legal actions to have been brought before the competent public authorities and several key legislative initiatives. For example, we have assisted Ørsted – one of the World’s most sustainable companies – in many transactions and investments forming part of its strategy to transition from fossil-fuel based resources to decarbonisation.

We assist corporates with sourcing of renewable energy (e.g. via corporate power purchase agreements), Sustainable Finance Disclosure Regulation (SFDR), including the upcoming Level II regulation, and the taxonomy regulation, sustainability linked loans, developing sustainability/ESG policies, sustainable sourcing in general, incorporation of sustainability/ESG requirements in contracts and the rules on “green” marketing. Further, we advise board of directors on the sustainability requirements and opportunities, including setting up governance structures and incentives to support strategy on green change.

Would you like to highlight a particular area of strength?

With the largest and most specialised group in Denmark within, respectively,

  1. financial regulation, we have been well-positioned to advise a number of clients (particular Danish pension funds and Alternative Investment Fund Managers) on SFDR and the Taxonomy Regulation;
  2. energy law, we have been involved in all major cases and transactions, including novelty matters such as the first of its kind in the World wind farm off shore, upgraded biogas production in Denmark etc. Currently, we are engaged in several projects regarding the establishment of carbon capture and storage facilities, energy island etc]; and
  3. corporate, commercial, and compliance matters, we assist a large number of clients with ESG matters, such as value chain due diligence, policies and procedures, gap analysis, and implementation in governance structures and commercial contracts. With our deeply rooted compliance services, our ESG practice is interlinked with specific advisory areas and considerations, such as personal data, competition law, financial crime, and marketing law.

Has your firm implemented any internal best practises?

Each practice group has internal best practice guidelines. Our multidisciplinary group shares knowledge and experience on a regular basis and in relation to specific legislative and case-based developments with a view to establishing and maintaining a high quality in best practice advice to our clients, as the ESG area continues to develop.

Has your firm joined any external ESG-related projects, networks or initiatives?

We work strategically with our approach to social responsibility and sustainability and wish to make a difference, were can. We have established several initiatives related to ESG throughout the years, including:

    • We have been using the EcoVadis platform since 2022 to measure and improve our sustainability performance, and achieved a silver rating that placed us among the top 25% of companies assessed by EcoVadis;
    • We reduced our carbon footprint by 25% in 2022 compared to 2020, mainly by switching to renewable energy sources, reducing business travel and increasing digitalization, in addition to the solar panels installed on our roof at our office in Copenhagen;
    • At Kromann Reumert, we value diversity and inclusion as essential elements of our culture and environment. We believe that a diverse and inclusive workplace fosters outstanding legal advisers, collaboration and excellence. We also recognize that our employees have different needs, preferences and aspirations, and we strive to create a sense of belonging for everyone. To support our diversity and inclusion goals, the means we have implemented include:
      • A new bonus model that rewards our employees based on their own performance, their development within key competencies, and the company’s performance;
      • “KR Family” – a programme that supports our employees who are parents or co-parents, by offering them various benefits and opportunities during their parental leave. KR Family also facilitates the dialogue before, during and after the leave, and connects our employees with other colleagues who are also families with children; and
      • A Diversity & Inclusion policy and initiatives, such as targets for promoting female leaders and partners, equal parental leave opportunities for LGBT+ parents, and the use of inclusive language when communicating with colleagues, clients, and collaboration partners. We are aiming at further initiatives to engage with minority groups, that are currently underrepresented in the legal industry in Denmark;
    • We joined the UN Global Compact in 2008, as the first Danish law firm to do so, and thereby committed to following the 10 principles on human rights, labour rights, environment and anti-corruption and submitting annual communication on progress reports to the United Nations;
    • Our work contributes to the UN Sustainable Development Goals, especially focusing on:
      • SDG 4 – quality education and lifelong learning: We train about 30 commercial lawyers each year through a three-year programme, and offer training and knowledge sharing to our clients, the industry and society at large;
      • SDG 5 – gender equality: We supported diversity and inclusion in our culture and environment, and aimed to achieve a balanced gender representation at all levels of our organization; and
      • SDG 17 – partnerships for the goals: We contribute to sustainable development through pro bono work, offering legal expertise to organisations and businesses that work for social or environmental causes, such as the SOS Childrens’ Villages and the nation-wide Danmarks Indsamling, which raises money for children in some of the poorest countries in the World;

What are your firm’s ESG-related goals?

At Kromann Reumert, we work hard to make a positive difference through our own processes and actions. Through our advice, we also contribute to sustainability and green transition and we support the implementation of sustainable initiatives in the Danish industry. By way of example, we provide advice on employment matters, anti-corruption, financial crime, green transition, and matters of environmental policy. That includes advising on sustainable sourcing of IT and procurement contracts, Corporate Power Purchase Agreements and green bonds, and we also act as advisers in a large number of matters involving green transition.

We have set ambitious and realistic goals for 2023 to further improve our sustainability performance and impact. Some of these goals are:

  • To reduce our carbon emissions by another 10%, by implementing more energy-efficient solutions, promoting green mobility and offsetting unavoidable emissions;
  • To increase our pro bono work by 20%, by expanding our collaboration with existing partners and seeking new opportunities to support social and environmental causes;
  • To achieve a gold rating from EcoVadis, by enhancing our policies, practices and reporting on ESG issues;
  • To increase our engagement with the UN Global Compact and the UN Sustainable Development Goals, by participating in relevant events, initiatives and networks; and
  • To foster a culture of diversity and inclusion, by implementing new measures to promote gender equality, prevent discrimination and harassment, and support the well-being of our employees.

We believe that these goals will help us create value for our clients, our people and our society, while being responsible and accountable for our actions. We are committed to pursuing excellence in everything we do, including ESG and sustainability.

Is your firm involved in any public outreach or client education?

We take great pride in sharing our knowledge on various legal matters with clients and Danish corporates. This can be through e.g. events and seminars, news and newsletters, podcasts or videos, or by education. Kromann Reumert is one of the founding partners of one of the most prestigious board educations in Denmark. Some of our partners – including Jacob Høeg Madsen, Line Berg Madsen, and Sofie Jensen – are among the lecturers on the education equipping the participants with knowledge to make them able to create value in corporate Denmark.

In 2020, we entered into a partnership with the Danish green think tank, CONCITO, to further support Denmark’s progress towards green transition;

We have also made a partnership with NIRAS Green Tech Hub; a hub for green start-ups. Kromann Reumert offers help to the start-ups in the form of advice on matters like funding, commercial agreements, protection of IP rights etc. to give them the best possible conditions to turn into real solutions for a more sustainable world.

Have there been any recent non-confidential stand-out matters that were particularly innovative, pioneering or complex?

Our work includes a wide range of high-profile divestments and acquisitions of energy companies; corporate power purchase agreements, carbon capture and storage projects; due diligence on ESG matters and specific areas such as social matters, anti-corruption, and sanctions and export control; financing agreements with sustainability or ESG-linked terms; commercial contract terms and public procurement with ESG and green requirements.

When did ESG, climate change and/or sustainability become an area of focus at your firm?

We have been advising on ESG, green transition, climate change, and multiple sustainability aspects for many years. Due to the fast-paced development in our clients’ needs, we have established our ESG practice group in recent years and continued to expand a structured and multidisciplinary approach to ESG legal advice.

What has driven your firm’s involvement in a green transition? (Client demand? Business case? Personal attitudes/beliefs/initiatives?)

As the leading law firms in Denmark, we take pride in staying at the forefront of the development that our clients are experiencing and the surrounding expectations and demands from stakeholders.

Some of the key drivers of our involvement in green transition include:

  • The growing awareness and urgency among business leaders to act on important themes like climate change, biodiversity issues, and protection of human rights, where green transition is an fundamental imperative in sustainable development;
  • Our role as a trusted adviser to businesses means, that we can contribute to green transition by being aware of our clients’ challenges and opportunities and suggesting solutions, that support their objectives in e.g. commercial contracts, policies, and disputes; and
  • A wish among our employees as well as law students, which is our primary base for recruiting future lawyers. As we wish to provide our employees with attractive possibilities and motivation to be excellent lawyers, we support the interest in working with green transition and other ESG matters.

Do you have any strategic plans to expand your work or your initiatives in this area in the future?

As regards our client-facing work, our ESG practice group has strategic plans to expand our services and presence in the legal advisory field, including by:

  • Aligning and further developing our ESG services, so that our lawyers become even better equipped to serve our clients within these complex matters;
  • Contributing to a pan-European ESG lawyers’ network, which help the members to maintain a strong footprint in and understanding of ESG matters among top-tier lawyers; and
  • Contributing to strategic seminars and events to imprint the methodologies and practical ways of working with ESG within legal advisory disciplines, such as commercial contracts, due diligence, and governance.

Our strategic plans for Kromann Reumert also include ESG as an essential and fundamental feature in the way we conduct our business. We have taken multiple stratetic steps during this year and will continue to use it as a driver for our legal advice, growth, and value creation.

Where do you see the future of ESG/sustainability in the legal community (both in terms of legal offerings and firms’ best practises)?

We consider ESG as an essential and important part of the value creation, that all businesses aim at delivering. For our clients, this means, that we focus on providing value adding advice and understanding the complex needs and solutions pertaining to each client’s situation.

For the legal community, we believe that our role as trusted advisers serves both as an opportunity and privilege to contribute to our clients’ work with ESG and sustainability. It is not a “one off” project and we work continuously to break down silos and barriers by suggesting best practices and next steps for our clients’ ESG journey. We firmly believe, that embracing ESG can provide a competitive advantage – towards customers, employer branding, better financing, business optimization, the future climate and biodiversity, and stakeholders in general – as well as long-term value creation.