Agefi Luxembourg - décembre 2025

AGEFI Luxembourg 20 Décembre 2025 Consultance ByCamille ROCHE,Associate,Arendt &Medernach CompetitivenessandRegulatorySimplification T he European Union’s (EU) am- bitious sustainability agenda had positioned the region as a global leader in setting standards, yet 2025 marked a pivotal recalibra- tion driven by mounting con- cerns about competitiveness and economic security. The Draghi Report on EU competi- tiveness identified regulatory burden as a critical impedi- ment to European economic performance, arguing that, along- side other factors, excessive com- pliance requirements undermine the EU’s ability to compete globally. (1) In parallel, the EU is facing a global crisis that fundamentally altered its policy priorities as the war in Ukraine and the observed re- sulting exposure of Europe’s energy de- pendence on Russia have highlighted the fragility of the EU’s strategic autonomy. These observations have contributed to a reassess- ment of the EU’s legal framework, the catalyst for whichwas the reviewof inter alia theCorporate Sus- tainabilityReportingDirective(CSRD) (2) andtheCor- porateSustainabilityDueDiligenceDirective(CS3D), with the first Omnibus simplification package to re- duce sustainability compliance complexities. Market reactions to the proposed simplification re- veal a striking divergence in corporate approaches. Bywayof example, theCSSF’s 2025CSRD– 1st year of reporting by issuers report shows that almost 60%of the reviewedLuxembourg issuers voluntar- ily prepared their reports following ESRS require- ments, a signal that some companies view sustainability reporting as a strategic advantage rather thanmere compliance. Yet challenges persist and COP30, to which the United States (US) did not send a delegation, failed to provide clear signals on fossil fuel phase-out and long-termtransitionpathways,whichmanycompa- nies still perceive as insufficient, leaving the private sectorwithout strong policy signals. In this context, whilemanymarket playerswelcome alighterregulatoryburden,atthesametimetheyem- phasise an urgent need for regulatory certainty and require stable, long-term frameworks to justify sub- stantial sustainability investments. ContrastingRegulatoryApproaches in the EU, US andChina The regulatory landscapes shaping environmental, social, and governance (ESG) obligations in the EU, the US, and China reflect divergent ap- proaches to corporate responsibility amidst intensifying economic scrutiny and global competition over the green transition.The US has taken a step back in its regulatory approach, with the Se- curities and Exchange Commission (SEC) voting inMarch 2025 to end its de- fence of climate disclosure rules adopted just one year earlier. (3) The abandoned SEC rule would have requireddomestic and for- eignparties to include extensive climate-related information in their registration statements andperiodic reports, includ- ingdisclosure of climate-re- lated risks and, in some cases, greenhouse gas emissions. (4) InDecember 2024, theChineseMinistry of Finance, in collaboration with nine other departments, un- veiled theCorporate SustainabilityDisclosure Stan- dards - Basic Standards, which were designed to guide businesses in aligning their sustainability practices with global ESG expectations. (5) These Basic Standards were developed using the ISSB Standards as a base and set out general require- ments for sustainability disclosures over six sec- tions: general provisions, disclosure objectives and principles, information quality requirements, dis- closure elements, additional requirements, and supplementary provisions. These standards incorporateChina-specific consid- erations such as climate change, pollution, rural de- velopment, anti-corruptionmeasures, and support for innovation. The EvolvingRole of ESGService Providers Several types of commercial service providers as- sist and advise financial and non-financial under- takings onESGmatters, including consultants, law firms, proxy advisers and data providers. Within this category, three dominant groups can be found: (i) lawfirms, which guide clients on reg- ulatory compliance, disclosure obligations, and governance structures; (ii) boutique ESG consul- tancies, whichprovide specialised expertise in sus- tainability strategy, impact measurement, and stakeholder engagement and (iii) large accounting and professional services firms, which offer com- prehensive ESGadvisory, assurance, and reporting frameworks. (6) The adoption of the proposed Content Directive wouldhave substantial implications for the consul- tancy business, as it would reduce considerably the number of potential clients in-scope and preclude any future escalation fromlimited assurance to rea- sonable assurance requirements, thereby establish- ing certainty that assurance costs for undertakings within scope will remain stable. More generally, market reactions to the first Om- nibus simplificationpackage reveal a strikingdiver- gence in corporate approaches. This divergence is reflective of two distinct service models for lawyers and consultants: for companies that have integrated a sustainability strategy into their business plan, ad- visors can help them develop and implement their long-term strategy, supporting them in going be- yond minimum compliance to achieve competitive advantage. For companies that are only looking to be compliant, advisors can mostly help them meet sustainabilityrequirementsefficientlyandcost-effec- tivelywithin the streamlined framework. Additionally, ESG literature emphasises the grow- ing importance of addressing serviced emissions, i.e. the indirect emissions linked to client activities influenced by professional advice. Best practice frameworks suggest, for instance, six key actions: mapping client emissions and setting reduction tar- gets; embeddingboard-level oversight and climate- aligned incentives; integrating climate considera- tions intodue diligence; engaging clients on climate issues throughout service delivery; tracking and transparently reporting progress; and advocating for supportive regulatory changes. (7) At the same time, structural changes inprofessional services, drivenby artificial intelligence, are reshap- ing the traditional “pyramid” model of consulting firms. These dynamics intersectwithESGpriorities as firms are increasingly integrating sustainability into technology-driven advisory models, reinforc- ing their role as strategic advisers (8) . Although it is different innature fromother service providers due to the legal duties inherent to their profession, the role of lawyers in helping clients re- duce their emissions is increasingly critical as busi- nesses face mounting regulatory and societal pressure to address climate change. The duty of loyalty and independencemeans that lawyersmust provide objective, legally sound advicewithout al- lowing their personal convictions to dictate out- comes. Unlike activists or policymakers, lawyers are not moral arbiters; their role is to interpret and apply the law, not to enforce ideological agendas. This distinction is crucial because moralising and pressuring clients to adopt certain values beyond legal requirements, can undermine trust, compro- mise professional integrity, and blur the line be- tween advocacy and activism. (9) Despite these constraints, lawyers can impact emis- sions reduction through pragmatic, law-driven strategies such as regulatory compliance, riskman- agement, contractual innovation, disclosure and re- porting. In that regard, more than a dozen international law firms have united under Legal Charter 1.5, thus committing to limit global temper- ature increases to nomore than 1.5°Cabove pre-in- dustrial levels. (10) Another example is TheChancery Lane Project: a collaborative initiative of lawyers fromaround theworld that creates climate-aligned contract clauses to help businesses and govern- ments reach net-zero emissions. These joint efforts mark a significant shift in how the legal sector ap- proaches its environmental responsibilities. (11) LookingAhead The EU’s simplification initiatives seek to stream- line andharmonise sustainability regulations, with service providers playing a critical role in guiding companies through this evolving framework. The growing prominence of ESG advisory firms and the integration of sustainability into consulting models underscore the complexity of this ecosys- tem, where influence extends beyond operational footprints to shaping client behaviour andmarket standards. Meanwhile, divergent regulatory approaches in the EU, US, and China position ESG as an economic battleground, balancing compliance costs against strategic opportunities. In this context, the challenge for advisors is tonavigate this complexitywith legal rigour and independence, while equipping busi- nesses tomake informeddecisions that are resilient to regulatory change and aligned with a credible long-term sustainability trajectory. Corporate Social Responsibility and the Evolving Role of Advisors 1)Draghi,M.(2024). TheFutureofEuropeanCompetitiveness—A Competitiveness Strategy for Europe , https://short.do/qJjYPk 2)Directive(EU)2022/2464oftheEuropeanParliamentandof the Council of 14 December 2022 amending Regulation (EU) No537/2014,Directive2004/109/EC,Directive2006/43/ECand Directive 2013/34/EU, as regards corporate sustainability re- porting 3)Acting SECChairmanMarkUyeda characterised the rules as “ costly and unnecessarily intrusive, ” effectively abandoning regulation requiring public companies to disclose climate-re- latedrisksandgreenhousegasemissionsfollowinglegalchal- lenges fromRepublican state attorneys general and business groups;A.Pinedo,L.WalshandC.Juarez,RegulatoryClimate Shift: Updates on the SEC Climate-Related Disclosure Rules, Harvard Law School Forum on Corporate Governance, https://short.do/80Tldc ; https://short.do/LR1U7h ; urlr.me/wdngrY 4)TheEnhancementandStandardizationofClimate-Related Disclosures for Investors, SEC, urlr.me/zaKjnY ; urlr.me/wu7nWs 5) https://short.do/CmiRZX ; urlr.me/fgcz3Q ; https://short.do/Crd-jT 6)Madlberger, M. (2024). Sustainability in the Service Sector – Status Quo in Service Research. In: Bruhn, M., Hadwich, K. (eds) Sustainable Service Management. Forum Dienstleis- tungsmanagement. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-45146-2_5 7)As defined inMcGivern,A. , Rajan,A., Ranjita, Catalysing climate action: The role of professional providers in realizing a net zero future (2024), serviced emissions are the greenhouse gas (GHG) emissions arising from or impacted by client activi- ties that are informed and/or enabled by the advice and/or services of a professional service provider. https://short.do/wjJPeQ 8) https://short.do/swqQDp ; Jambor, Attila & Zanócz, Anett. (2023). The Diversity of Environmental, Social, and Gover- nance Aspects in Sustainability: A Systematic Literature Re- view. Sustainability. 15. https://doi.org/10.3390/su151813958 9) Loi du 10 août 1991 sur la professiond’avocat ;Article 1.2 of the Règlementintérieurdel’ordredesavocatsdubarreaudeLuxem- bourgadoptéparleConseildel’Ordrele9janvier2013telquemodifié parlerèglementadoptéparleConseildel’Ordrele14septembre2016 , urlr.me/Utb7hQ 10) https://legalcharter1point5.com/ 11) urlr.me/RBen3P ; https://short.do/aNLBoQ ; https://short.do/H2hl3Z F inance&TechnologyLuxembourg (FTL) a réuni le 26 novembre l’ensemble de sesmembres, partenaires institution- nels et acteurs du secteur financier à l’occa- sionde sa conférence annuelle, placée sous le signe de l’innovation, de l’ouverture interna- tionale et du renouveau identitaire. L’événe- ment s’est ouvert enprésence deGillesRoth, ministre des Finances, dont la participation témoigne du soutiendes autorités publiques audéveloppement du secteur financier et technologique luxembourgeois. Faceàuneaccélérationdesmutationstechnologiques et réglementaires (DORA, NIS2), FTL réaffirme son rôle central d’accompagnement et de représentation des sociétés de services technologiques et/oude sup- portàdestinationdesacteursdessecteursfinancieret de l’assurance, notamment les PSFde support. Son président, Jean-François Terminaux, a souligné l’importance d’investir dans les compétences exis- tantes et de préparer l’écosystème à l’intégration de l’intelligence artificielle, tout en maintenant la com- pétitivité dupays sur la scène internationale. Mappingdes services : une vitrine pour l’expertise luxembourgeoise Momentfortdel’événement,laprésentationdunou- veau mapping des services offerts par les membres de FTL aux institutions financières, dévoilé lors du keynote d’Anne-Sophie Morvan. Ce mapping met en lumière la diversité et la qualité des prestations proposées : services opérationnels et IT, gestion des risques et conformité, support client, excellence opé- rationnelle et services financiers. Accessible sur le nouveau site internet, il facilite l’identification des partenaires de confiance pour les acteurs locaux et internationaux. Le PSFde support : un atout stratégique pour l’international FTL publie également un document de référence expliquantlestatutdePSFdesupport,véritableavan- tage compétitif pour les entreprises étrangères sou- haitant s’implanter au Luxembourg. Ce statut, reconnupour sa robustesse enmatièrede cybersécu- rité,deconformitéetderésiliencedigitale,répondaux exigences croissantes des institutions financières à l’échelle européenne etmondiale. Table ronde : l’excellence luxembourgeoise à l’international Laconférenceaétéponctuéeparunetableronderéu- nissant des experts du secteur, qui ont partagé leurs expériencesdedéveloppementinternational,lesdéfis réglementaires et les opportunités offertes par le modèle luxembourgeois. Les échanges ont confirmé que le statut de PSF de support,lacapacitéd’innovationetlastabilitédupays constituent des atoutsmajeurs pour attirer et accom- pagner les institutions financières étrangères. Nouvelle identité visuelle et site internet FTL adopte une nouvelle identité visuelle, incarnée par un logo modernisé qui conserve le lion, sym- bole du Grand-Duché, tout en intégrant les codes de l’ère numérique. Le nouveau site internet https://www.financeandtechnology.lu , plus intuitif et orienté services, reflète cette dynamique de trans- formation et d’ouverture. La conférence annuelle 2025 de FTL a été organisée grâce au soutien et au sponsoring de Banque Raiffeisen, que FTL remercie chaleureusement pour son engagement aux côtés de l’écosystème financier et technologique luxembourgeois. Finance &Technology Luxembourg dévoile ses ambitions internationales ©FTL