CZECH REPUBLIC Law and Practice Contributed by: Martin Řanda, Jan Lexa, Vít Fišer and Adam Vopelka, act legal
ments it. This is outlined in Act No. 123/1998 Coll., on the right to information on the environment. Some environmental information is publicly available from the registers listed in 16.1 Disclosure and Report- ing Requirements. Any person seeking environmental information may request its disclosure from public authorities and bod- ies without having to state reasons for the request. Public authorities and bodies under a duty to disclose include: • state administrative bodies, other state organisa- tional units and authorities of territorial self-govern- ing units; • natural and legal persons vested with competenc- es relating directly or indirectly to the environment under special legislation in the exercise of public administration; and • legal entities established, managed or entrusted by the entities referred to above, as well as individuals authorised by them, who, under law or contractual arrangements, provide services that may affect the environment or its components. Requests for disclosure may be refused only on lim- ited grounds, such as where the information is classi- fied or constitutes a trade secret. 16.3 Corporate Disclosure Requirement Large companies, including listed entities and those meeting certain size criteria, are mandated to disclose a sustainability report (see 6.5 ESG Requirements ). 16.4 Green Finance In the Czech Republic, a range of finance arrange- ments in the field of green finance are applied, pri- marily shaped by EU legislation. The key legislation includes the following. Directive (EU) 2022/2464 of the European Parliament and of the Council (the CSRD; see 6.5 ESG Require- ments ) imposes an obligation on large companies to prepare a sustainability report. This obligation has been transposed into Czech law through Act No 563/1991 Coll, on Accounting, as amended.
Regulation (EU) 2019/2088 of the European Parlia- ment and of the Council, referred to as the Sustainable Finance Disclosure Regulation (SFDR), requires that financial market participants and financial advisers (entities) disclose information on: • how they consider external sustainability-related risks that may affect the value and return of their investments; and • the principal adverse impacts (PAIs) that their investments have on sustainability factors (ESG). The SFDR also requires financial market participants to provide a justification for any sustainability-related claims they make in connection with their financial products. Environmental due diligence is gaining significance, as it can help prevent future disputes between parties to a transaction. It is particularly important in transac- tions involving environmental risks, which are most common in sectors such as agriculture, energy and waste management. Such environmental due diligence would primarily include a review of the following areas: • regulatory compliance; • historical records; 17. Transactions 17.1 Environmental Due Diligence
• validity of environmental permits; • assessment of potential liabilities;
• insurance coverage; and • future regulatory risks.
In the case of real estate, the review typically includes an assessment of compliance with the zoning plan, which may set environmental objectives – for exam- ple, in connection with climate change. 17.2 Disclosure of Environmental Information Czech law does not impose a general statutory duty on sellers to disclose environmental information in connection with a transaction.
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