Sustainability Law

Course Lecturer/Instructor: Irakli Giviashvili, PhD (Nottingham Trent University, Law School), LLM (University of Heidelberg, Faculty of Law)

Language of Instruction (teaching language): English

Fees: 850 GEL

Note: it is also an option, to pay 250 GEL after registration in order to enrol in a group and then to proceed to payment 6 days before the start date (in such case 250 GEL will be deducted from the overall fee of 600 GEL)

• Start date: 19 May, 2025
• End date: 19 June, 2025
• Lecture days:

Mondays 17.00 – 18.30

Thursdays 17.00 – 18.30

• Lecture duration: 1 hour and a half  
• Lectures per week: 2 (3 hours)
• Total number of lectures: 10 (15 hours)

Course Format: HyFlex (Hybrid-Frexible). HyFlex teaching combines face-to-face and online learning. Each lecture of the course is offered in-person, synchronously online via Zoom, and asynchronously online (through video recordings in Google Drive) i.e. for students who may not be able to connect to Zoom on a given day

Certificates: Certificates will be awarded upon completion of the course

Course Prerequisite: 

Prerequisite knowledge (for example, in legal science or environmental science) not required

Adequate skills of the English language required (however, no exams/tests for admission will be held)

Minimum age: 19

Venue: Sustainability Science Academy, 5 Marjanishvili Street, Tbilisi, 0102, Georgia

Contact Details:

+995577508487

ssa.edu.ge@gmail.com 

1. Introduction

Sustainability law is a new legal subject. 

Sustainability law can be defined as laws and regulations that promote sustainability.  Sustainability law consists of sustainability-related legal requirements. Sustainability law aims to offer normative solutions to sustainability, more specifically, it encompasses laws, norms and policies aimed at sustainability.

Sustainability law integrates norms and regulations of international law and national laws aimed at solution of fundamental environmental, social and governance problems. It also comprises various classification rules, disclosure rules, and performance and liability standards in the field of sustainability. EU law contains detailed provisions on sustainability.

Sustainability law comprises climate change legislation and litigation, including from the human rights perspective. Sustainability law establishes legal basis for an economy that is committed to the principles of sustainability. According to the Paris Agreement, sustainable lifestyles and sustainable patterns of consumption and production, play a significant role in addressing climate change. Sustainability law serves as a legal framework for the achievement of sustainable development. It places focus on law and policy efforts towards the UN Sustainable Development Goals (SDGs).

Sustainability law focuses on laws relevant to commercial enterprises. Sustainability law places priority on the following themes: sustainable business, sustainable finance and circular economy. Sustainability law encompasses legal acts and regulations related to environmental, social, and governance (ESG) matters. The terms „ESG“ and „sustainability“ are often used interchangeably in everyday language and sustainability law has been often used to denote ESG regulatory framework. ESG regulatory framework refers legally binding norms on states, companies/corporations, and individuals with respect to their handling of sustainability/ESG factors.

2. Recent Developments

“Sustainability Law“ (“Nachhaltigkeitsrecht“ in German and “Bærekraftsrett“ in Norwegian) has already become title and subject matter of:

1. master’s programmes at various universities, for example: Leuphana University Lüneburg (“Sustainability Law: Energy, Resources and Environment“); Sorbonne Université Abu Dhabi (“Environmental Sustainability Law and Policies“); SRH University Campus Heidelberg (“ESG and Sustainability Law“); Australian National University (“Environmental and Sustainability Law“);
2. research centres at various universities, for example:  University of Heidelberg (“Forschungsstelle für Nachhaltigkeitsrecht“); University of Oslo (“Bærekraftsrett“);
3. certificate courses, for example: Indiana University (“Sustainability Law and Policy“); Drake University (“Environmental and Sustainability Law“); and
4. law journals, for example: “Nachhaltigkeitsrecht“ (Journal for Law and Sustainable Development, Verlag Österreich);

3. Content of the Course

3.1 International Norms and Regulations   

Paris Agreement

The Paris Agreement is a legally binding international treaty on climate change. It was adopted in 2015 under the framework of the UN and entered into force in 2016. It aims to keep global temperatures increases well below 2 °C above pre-industrial levels. The treaty also states that preferably the limit of the increase should only be 1.5 °C (Article 2 of the Agreement). Currently, the Earth is already about 1.2°C warmer than it was in the late 1800s (pre-industrial levels), and emissions continue to increase. To keep global warming to no more than 1.5°C  this century (by 2100), as called for in the Paris Agreement, emissions need to be reduced by 43 per cent by 2030 compared to 2019 levels and reach net zero by 2050. The Paris Agreement marks the beginning of a shift towards a net-zero emissions world.

According to Preamble of the Paris Agreement, sustainable lifestyles and sustainable patterns of consumption and production, play a significant role in addressing climate change. And according to paragraph 5, Article 10 of the Paris Agreement, “accelerating, encouraging and enabling innovation is critical for an effective, long-term global response to climate change and promoting economic growth and sustainable development.“

The Paris Agreement calls for transformation of production and consumption patterns and for shifting to circular economy. The circular economy involves avoiding excessive consumption, waste and use of fossil fuels by leasing, reusing, repairing and recycling existing materials and products. Decarbonizing the economy consists of reducing greenhouse gas emissions by transforming economic models through sustainable practices and technological innovations. Reallocating investments from fossil fuel to renewable energy will significantly reduce carbon emissions globally.

Sustainable Development Goals (SDGs)

In 2015 a milestone document - Sustainable Development Gaols (SDGs) was adopted by the UN.   The United Nations SDGs are 17 global goals to promote a sustainable and equitable future for all.  The SGDs aim to transform our world. 17 Sustainable Development Goals (SDGs) are accompanied by 169 specific targets. The circular economy holds particular promise for achieving multiple SDGs, including on renewable energy, economic growth, on sustainable cities, on sustainable consumption and production etc.

These goals and targets impose obligations on member states of the UN to adopt relevant laws and policies in order to promote a cause of sustainable development.

Sustainable development presupposes economic development without harm and destruction of ecosystems of the earth. Sustainable development denotes an economic development that takes full account of the environmental consequences of economic activity and is based on the use of resources that can be replaced or renewed. Sustainable Development implies development that does not cost the Earth. There is now a growing recognition that social, environmental and economic needs must be fully integrated if sustainability is to be achieved.

The best business opportunity of the future is environmental sustainability and that the best environmental protection opportunity of the future is economic sustainability.

World Bank’s Environmental and Social Framework (ESF)

In 2016, the World Bank approved the Environmental and Social Framework (ESF) and it became effective on October 1, 2018. The World Bank’s Environmental and Social Framework (ESF) sets out the World Bank’s commitment to sustainability. The ESF protects people and the environment from potential adverse impacts that could arise from World Bank-financed projects, and promotes sustainable development. The ESF places more emphasis on building borrower governments’ own capacity to deal with sustainability.

IFC’s Performance Standards on Environmental and Social Sustainability

The International Finance Corporation (IFC) is the private sector investment arm of the World Bank Group. The IFC lends money to the private sector. The IFC’s Performance Standards on Environmental and Social Sustainability was adopted in 2012. The IFC’s Performance Standards on Environmental and Social Sustainability are directed towards clients, providing guidance on how to identify risks and impacts, and are designed to help avoid, mitigate, and manage risks and impacts as a way of doing business in a sustainable way.

EBRD’s Environmental and Social Policy (ESP)

The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. It is a multilateral developmental investment bank. The EBRD is committed to the promotion of sustainability in the full range of its activities. The Environmental and Social Policy (2024) sets minimum requirements for managing environmental and social impacts and risks associated with EBRD-financed projects.  Therefore, projects that promote sustainability are among Bank’s highest priorities.

3.2 European Union (EU)   

European Green Deal

The European Green Deal was adopted by the European Parliament in 2020. The EU launched the European Green Deal in line with the Paris Agreement goals. It is a comprehensive policy framework initiated by the European Commission, which set the EU on the path to a green transition with ultimate goal of making Europe the world’s first climate-neural continent by 2050.

Therefore, the European Green Deal aims to review each existing law on its climate merits and to introduce new legislation on circular economy, sustainable finance, energy, building renovation, transport, agriculture and biodiversity.  Key components of the European Green Deal include:

EU Climate Law

The European Parliament adopted the EU Climate Law in 2021, which makes legally binding a target of reducing emissions 55% by 2030 compared to 1990 levels and climate neutrality by 2050.

Fit for 55

For the EU to reach the 2030 target of reducing emissions 55% by 2030 compared to 1990 levels, the Commission proposed a package of new and revised legislation known as Fit for 55 in 2021 (formally adopted in 2023), comprising 13 interlinked revised laws and six proposed laws on climate and energy.

EU Circular Economy Action Plan

The European Commission adopted the new circular economy action plan (CEAP) in March 2020. The EU’s transition to a circular economy will reduce pressure on natural resources and will create sustainable growth and jobs guaranteeing less waste. It is also a prerequisite to achieve the EU’s 2050 climate neutrality target and to halt biodiversity loss.

EU Taxonomy

The EU taxonomy is a classification system providing definitions of environmentally sustainable economic activities, in short green activities. The EU Taxonomy Regulation was took effect in  July 2020. Sustainable finance is one of the main pillars of the EU Green Deal and requires the private sector and investors in general to divert their financing towards a green transition. Therefore, the European Commission diverges towards investments having sustainable projects and activities. This action plan then led to the EU taxonomy. 

Farm to Fork strategy

Parliament welcomed the EU's farm to fork strategy in a resolution adopted in October 2021. The Farm to Fork strategy should guarantee a fair, healthy and environmentally friendly food system, whilst ensuring farmers’ livelihoods. It covers the entire food supply chain, from cutting the use of pesticides and sales of antimicrobials by half and reducing the use of fertilisers to increasing the use of organic farming.

EU Biodiversity Strategy for 2030

The EU Biodiversity Strategy for 2030, presented in May 2020 by the Commission, aims to protect nature, reverse the degradation of ecosystems and halt biodiversity loss, including the potential extinction of one million species.

EU Sustainable Finance Action Plan

The main goal of the EU Sustainable Finance Action Plan is to redirect capital towards sustainable investments. The plan aims to channel financial resources into environmental sustainability, social inclusion, and long-term economic growth. The Plan also aims to ensure that financial markets fully incorporate the long-term risks and opportunities associated with ESG factors.

Sustainable Finance Disclosure Regulation (SFDR)

Sustainable Finance Disclosure Regulation (SFDR) mandates sustainability disclosures that Financial Market Participants need to take into account in investments. The Sustainable Finance Disclosure Regulation (SFDR) imposes mandatory ESG disclosure obligations for asset managers and other financial markets participants with substantive provisions of the regulation effective from 10 March 2021.

Corporate Sustainability Reporting Directive (CSRD) 

In January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This piece of the EU law requires companies above a certain size to disclose information on what they see as the risks and opportunities arising from social and environmental issues. This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies. This is driving improved reporting on ESG to enable shareholders and stakeholders to make better investment decisions. The Corporate Sustainability Reporting Directive (CSRD) extends the reporting requirements on sustainability issues to all large companies, as well as smaller listed companies that are not micro companies with sequential implementation.

Later in July 2023, the Commission adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). This marks another step forward in the transition to a sustainable EU economy. Ten topical standards of the European Sustainability Reporting Standards (ESRS) cover ESG items. The purpose of the EU CSRD is to improve transparency and accountability around corporate ESG performance. This will help investors and other stakeholders have a better understanding of how these companies are addressing ESG issues. The CSRD also seeks to accelerate integration of ESG considerations into corporate business practices to support the transition to a more sustainable, inclusive economy.

On 26 February 2025, the Commission adopted a package of proposals to simplify EU rules and boost competitiveness (Simplification Omnibus) proposing to apply the CSRD only to the largest companies.

Corporate Sustainability Due Diligence Directive (CSDDD) 

As part of the Green Deal, the EU supplemented its legislation on financial service providers on ESG issues: the new Corporate Sustainability Due Diligence Directive (CSDDD) was finally approved in April 2024. The CSDDD applies to large undertakings with more than 1000 employees, which must identify, prevent, mitigate and end any actual or potential adverse impacts of their activities on human rights (such as child labour) and environmental impacts (such as pollution).

Simplification Omnibus package, adopted on 26 February 2025, also amends provisions of the CSDDD that are not yet enforced.

3.3 Human Rights Law and Sustainability

It has been recognized worldwide that climate change may result in violation of various human rights. Growing number of judgments of national and international courts establish violations of human rights as a result of negative effects of climate change. Therefore, this has resulted in widespread recognition of the potential of a human rights-based approach to tackling climate change.

For example, the European Court of Human Rights and national courts of the European states have produced a body of environmental jurisprudence in which links between human rights and climate changes are recognized, implying, inter alia, states’ obligation of decarbonisation of economy. 

Verein KlimaSeniorinnen Schweiz and Others v. Switzerland (2024)

On 9 April, 2024 the European Court of Human Rights (ECtHR) rendered truly landmark and historic judgement on the case Verein KlimaSeniorinnen Schweiz and Others v. Switzerland. The case concerned a complaint by a Swiss association about the consequences of climate change. Applicants argued that the increase in heatwaves posed a health risk to them. 

The European Court held that there had been a violation of Article 8 of the Convention. The Court found that the right to respect for private life and for home (Article 8) of the European Convention (ECHR) encompasses a right to effective protection from the serious adverse effects of climate change on lives, health, well-being and quality of life. The Swiss government had failed to comply with its own targets for cutting greenhouse gas emissions and had failed to set a national carbon budget. Thus, the European Court declared that Article 8 i. encompasses a right to protection from the effects of climate change; and ii. imposes a new duty on states to adopt measures to mitigate and adapt to effects of climate change.

The Judgment in State of the Netherlands v. Urgenda Foundation (2019)

This is the first decision by any court in the world ordering state to limit greenhouse gas emissions for human rights reasons. A Dutch environmental group, the Urgenda Foundation, and 900 Dutch citizens sued the Dutch government to require it to take additional  measures to prevent climate change. According to judgment of the Supreme Court of the Netherlands (dated 20 December 2019), by failing to reduce greenhouse gas (GHG) emissions by at least 25% by end-2020, the Dutch government was acting unlawfully in contravention of its duty of care under Articles 2 (the right to life) and 8 (right to respect for private life and for home) of the ECHR. The court determined that the Dutch government had an obligation under the ECHR to protect these rights from the threat of climate change.

VZW Klimaatzaak v Kingdom of Belgium & Others (2023)

Similar to the Urgenda case, this case was brought by an organization of citizens, and 58,000 citizen co-plaintiffs, arguing that Belgian law required the Belgian government's approach to reducing greenhouse gas emissions (GHG) to be more effective. In VZW Klimaatzaak case, plaintiffs called for greenhouse gas emissions reductions of 42 to 48% in 2025 and at least 55 to 65% in 2030. According to judgment of the Court of Appeal of Brussels (dated 30 November 2023), articles 2 and 8 of the ECHR were breached. It ordered authorities to reduce their greenhouse gas GHG emissions of 55% compared to the 1990 level by 2030.

Neubauer v Germany (2021)

A group of German youth filed a legal challenge to Germany's Federal Climate Protection Act (“Bundesklimaschutzgesetz” or “KSG”) in the Federal Constitutional Court, arguing that the KSG's target of reducing GHGs by 55% until 2030 from 1990 levels was insufficient. The complainants alleged that the KSG therefore violated their human rights as protected by the Germany's constitution. On April 29, 2021, the Federal Constitutional Court published its decision declaring parts of the KSG as incompatible with fundamental rights for failing to set sufficient provisions for emission cuts beyond 2030. For the first time in its jurisprudence, the Court stated that human rights afford protection against the greenhouse gas reduction burdens imposed by Art. 20a of the Constitution. In response to the decision, the federal lawmakers passed a bill approving an adapted KSG that requires, at a minimum, reduction of 65% in GHGs from 1990 levels by 2030.

3.4 Voluntary Sustainability/ESG Frameworks

Equator Principles

In 2003 ten leading banks adopted the Equator Principles. The Equator Principles are a set of policies and procedures developed by banks for assessing, managing and monitoring social and environmental issues in project finance lending. The adoption of the Equator Principles is voluntary for banks. The Equator Principles (EPs) are a fundamental framework in sustainable finance, guiding financial institutions in assessing and managing environmental and social risks in project financing. By adhering to the EPs, banks and financial entities can align their project financing decisions with broader sustainability goals. 

Sustainability Accounting Standards Board (SASB)

Voluntary reporting systems for sustainability/ESG were developed by the Sustainability Accounting Standards Board (SASB). SASB standards enable organisations to provide industry-based disclosures about sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, access to finance or cost of capital. SASB Standards identify the sustainability-related issues most relevant to investor decision-making in 77 industries. Global investors recognise SASB Standards as essential requirements for companies seeking to make consistent and comparable sustainability disclosures. As of August 2022, the International Sustainability Standards Board (ISSB) of the IFRS Foundation assumed responsibility for the SASB Standards.

Global Reporting Initiative (GRI)

Global Reporting Initiative (GRI) provides standards and tools to enable companies to harness the skills, capabilities and data they need to create sustainable value. The GRI Standards represent voluntary best practice for reporting publicly on a range of economic, environmental and social impacts. Sustainability reporting based on the Standards provides information about an organization’s positive or negative contributions to sustainable development.

Greenhouse Gas Protocol (GHG Protocol)

GHG Protocol supplies the world's most widely used greenhouse gas accounting standards and guidance. The standards and guidance are designed to provide a voluntary framework for businesses, governments, and other entities to measure and report their greenhouse gas emissions in ways that support their missions and goals. It provides the accounting platform for virtually every corporate GHG reporting program in the world. 

UN Global Compact

The UN Global Compact was launched in 2000 and is a policy platform and a practical framework for companies committed to sustainability and responsible business practices. It is voluntary (non-mandatory) corporate sustainability initiative. It entails ten universally accepted principles on human rights, labour, environment and anti-corruption.

ISO Standards  

The International Organization for Standardization (ISO), an influential international standard-setting body, has elaborated several standards in the field of sustainability, namely: ISO 14001: Environmental Management Systems; ISO 14064-1: Greenhouse Gases; ISO 59040: Circular Economy, etc. Businesses that meet these standards may receive ISO certifications, which confers a number of advantages on the certified firm.

3.5 Georgian Context