Key trends in international corporate law for H1-2025.
Our thoughts. | Blog posts. | June 4, 2025. | Written by Sebastiaan D. Smit, Esq.
The first half of 2025 is proving to be a dynamic period for international corporate law, with businesses navigating a complex interplay of evolving regulations, technological advancements, and shifting geopolitical landscapes. For corporate legal departments and practitioners, staying ahead of these currents is not just advisable, but essential for compliance and strategic growth. Several key themes are dominating the agenda:
ESG takes center stage with stricter mandates.
Environmental, Social, and Governance (ESG) considerations have firmly moved from a peripheral concern to a core component of corporate legal obligations. The European Union is a key driver, with the Corporate Sustainability Reporting Directive (CSRD) entering its initial reporting phases for many companies. This mandates detailed disclosures on sustainability impacts. Closely linked is the Corporate Sustainability Due Diligence Directive (CSDDD), which, though facing some revisions and phased roll-outs, is pushing companies to identify and mitigate adverse human rights and environmental impacts within their value chains.
Beyond the EU, jurisdictions like California (with SB 253 and SB 261 on climate disclosures) and Australia (with its Sustainability Reporting Standards – ASRS) are implementing their own mandatory ESG reporting regimes. The focus is increasingly on verifiable data, robust climate-related financial disclosures, and a crackdown on “greenwashing.”
The era of AI governance and heightened tech scrutiny.
Artificial Intelligence (AI) continues its rapid integration into business operations, and regulators are catching up. The EU AI Act, with its risk-based approach, will see more of its provisions become applicable in the first half of 2025. This landmark legislation imposes significant obligations on developers and deployers of AI systems, particularly those deemed “high-risk.” Key concerns for corporations include establishing robust AI governance frameworks, ensuring data privacy in AI applications, addressing ethical considerations, and navigating the impact of AI on intellectual property. Alongside AI, broader digital transformation and evolving e-commerce regulations continue to demand legal attention.
Intensified focus on data privacy and cybersecurity.
Building on established frameworks like the GDPR, the first half of 2025 sees an even greater emphasis on data privacy and cybersecurity. Regulators are signaling stricter enforcement of existing laws, and the complexities of cross-border data transfers remain a significant hurdle for multinational corporations. The ever-present threat of sophisticated cyber-attacks means businesses must continually upgrade their defenses and be prepared for an increase in cybersecurity-related disputes.
Navigating a fragmented global regulatory and geopolitical landscape.
The global regulatory environment is increasingly complex and, in some areas, fragmented. Businesses are grappling with shifting international trade dynamics, varying labor laws across jurisdictions, and more stringent foreign investment screening processes. Geopolitical instability continues to cast a long shadow, leading to instances of increased protectionism and a more challenging operational environment for companies with global footprints. This necessitates a proactive and adaptable approach to global compliance.
Evolving corporate governance and board accountability.
Corporate governance codes are also seeing updates. For instance, revisions to the UK Corporate Governance Code emphasize enhanced board accountability, a stronger focus on diversity and inclusion, and more detailed reporting on executive remuneration, including malus and clawback provisions. In some regions, identity verification requirements for company directors and Persons with Significant Control (PSCs) are being tightened to improve transparency.
Looking ahead.
The first half of 2025 demands that international corporations be agile and well-informed. Proactive engagement with these evolving legal trends is crucial. This includes investing in robust ESG reporting mechanisms, developing comprehensive AI governance strategies, reinforcing data protection and cybersecurity measures, and maintaining a keen awareness of the shifting geopolitical and regulatory tides. As M&A activity is anticipated to pick up in certain sectors like technology, healthcare, and energy, thorough due diligence incorporating these evolving legal risks will be more critical than ever. Alternative dispute resolution mechanisms are also expected to see continued growth as a means of navigating the increasing potential for complex cross-border disputes.