Environmental, Social and Governance (ESG)

With more than 80 lawyers focused exclusively on representing investment funds and their managers, we expertly guide clients through the creation and structuring of investment funds across every conceivable strategy. Our lawyers represent funds built specifically to address ESG desires of investors, as well as fund sponsors who incorporate ESG principles as part of a broader investment program. There is no one-size-fits-all approach when it comes to implementing ESG strategies, and our lawyers provide creative and tailored solutions targeted to each client’s individual business. We also represent investors who advocate for ESG compliance from the managers they invest with and investors who are more generally interested in how ESG principles are incorporated into the manager’s overall program.

As interest in ESG investing grows, many regulators in the United States, United Kingdom and European Union are focused on enhancing transparency regarding integration of ESG matters into investment decisions and recommendations. With the largest team of private investment fund-focused regulatory and compliance lawyers of any firm, our lawyers provide cross-border advice on the regulatory requirements relevant to ESG investing in the United States, United Kingdom and European Union, as well as the policies and procedures necessary to pursue these principles.

United States Regulatory & Compliance

With the increase in ESG investment strategies, U.S. regulators are increasingly focusing on those that pursue ESG investing. As the SEC’s Office of Compliance Inspections and Examinations begins to prioritize review of ESG investment strategies as part of its examinations, our lawyers ensure that funds utilizing ESG investment strategies have strong policies and procedures in place.

United Kingdom and European Union Regulatory & Compliance

Our U.K.-based lawyers advise on regulatory and compliance with all applicable rules and regulations related to ESG investing, including the wide-reaching EU regulation on Sustainability-Related Disclosures, which became effective in March 2021.

Our shareholder activism lawyers bring a sophisticated knowledge of market practices and unparalleled expertise in all areas related to activist investing. Serving, among others, some of the most prolific activists, occasional activists and institutional investors, we help clients see a situation from any angle and develop the right strategy for both the short term and the long term. Our team has decades of experience in advocating for governance improvements and changes at companies that can raise their ESG profile so as to unlock shareholder value. We advise activist clients on the launch of new funds focused on ESG activism, as well as other types of investors who borrow from the activist playbook in order to advocate for ESG improvements from their investments. We are also at the forefront of representing investors in making proposals on environmental and social issues including those relating to climate impact and emissions.

Regulators are increasingly looking at diversity, equity and inclusion policies in management structures. Benefitting from Schulte’s own commitment to diversity, equity and inclusion, our lawyers are experienced in providing business advice, identifying opportunities and developing strategic plans that further our clients’ DEI objectives.

Our employment and employee benefits lawyers counsel investment managers, broker-dealers, investment banks, benefit plan trustees, plan sponsors and other fiduciaries who must tread carefully because of potential prohibited transactions, investment requirements and other ERISA fiduciary responsibilities on all matters relating to the investment of employee benefit plan assets. With a specialty in advising on strategies to avoid prohibited transactions, our lawyers design novel structures to address complex ERISA issues and prepare investment policies and procedures for plan asset managers. Our team has extensive experience in dealings with the DOL, including successfully obtaining DOL advisory opinions and numerous prohibited transaction exemptions, and we utilize this experience to provide advice and assistance to clients with respect to DOL pension plans rules regarding ESG investing of plan assets.

Our environmental lawyers function not only as legal and business advisers, but also as technical advisers in the field, an approach that many of our clients say distinguishes us from other firms. Regularly operating at the cutting edge of legal issues critically important to business and the regulated community, our environmental group has acted as the principal environmental counsel to the country's largest CMBS real estate lender for over 20 years, helping to set standards and establish practices that have become generally accepted throughout the industry.

Our Intellectual Property, Sourcing & Technology lawyers have particular expertise advising clients in the financial services industry on emerging IP and technology driven asset classes, including advising clients with respect to developing proprietary IP around ESG investment plans.

A rapidly evolving set of laws, regulations and regulatory guidance dictate the cybersecurity and privacy requirements and standards by which business must operate. We work with our clients and their consultants to assess and take the necessary steps to comply with these legal requirements and standards, as well as to determine whether an investment target has taken the appropriate steps to adhere to these standards.