There is an increasing focus on ESG for all industries across the globe. In 2020, the total amount invested in assets with sustainable principles reached $17 trillion, a 42% increase over the numbers in 2018.
For law firms, a focus on ESG is essential to future success. 65.8% of chief legal officers believe interest in ESG will continue to accelerate for the unforeseeable future, making it necessary for firms to recruit and retain ESG experts to thrive.
Discover why ESG and future-proofing your organization can happen by recruiting ESG experts with the help of Collier Legal Search.
What is ESG?
ESG, or Environmental, Social, and Governance, refers to a set of metrics, values, and practices that a company uses to operate. A company’s focus on ESG is vital to its success. Investors, clients, and potential employees are likely to consider ESG when investing, partnering, or working with a company.
The breakdown of the individual ESG elements is as follows:
Environmental
The environmental element of ESG refers to ethical, environmental practices. Companies focusing on ESG promote sustainability and are conscious of climate change issues. They seek sustainable ways of operating and, depending on the industry, attempt to limit their carbon footprint or partner with like-minded businesses.
Social
ESG’s social component refers to a company’s responsibility to act in a socially conscious manner that respects and values all people. This aspect reflects in a company’s policies and interactions with people on a public and personal level. An ESG-focused business outwardly supports and promotes equality, diversity, and human rights.
Governance
Governance in the context of ESG relays how a business operates. It promotes transparency in business operations and reporting, focusing on ethical corporate management through a clear set of standards that shareholders and board members must follow.
Building ESG Practices for Your Firm
The need to focus on ESG and future-proofing your organization has never been greater for law firms. Clients are looking for firms that implement ESG factors as a matter of principle. According to one survey, 87% of law firms indicated that potential clients ask for environmental effort information in their proposals. This indicates that your firm’s stance and implementation of ESG factors affect your ability to attract and retain corporate clients.
Clients also need firms that retain ESG experts on staff to aid them with developing SEC regulations regarding ESG reporting. The SEC, or U.S. Securities and Exchange Commission, announced that it is developing a Climate and ESG Task Force as part of their Division of Enforcement as of 2021.
Although work on establishing a government task force and its rules continue, recent developments point to a significant future need for ESG legal experts. These developments also indicate that your firm will need an in-house team of ESG experts to ensure compliance with new reporting regulations.
In addition to these elements, developing ESG and future-proofing your law firm is essential to recruit and retain new employees. Candidates consistently show an interest in firms’ policies and actions regarding equity, inclusion, diversity, and the environment.
As older employees retire, leaving positions open for new talent, your firm must focus on ESG factors to attract and keep qualified candidates of the younger generation.
Prepare to Provide ESG Guidance to Client
As all regulatory levels push for ESG reporting, your firm must prepare to provide ESG guidance to clients. Your firm needs to hire qualified candidates to navigate this exciting and fast-evolving legal landscape to succeed in this area.
Consider hiring candidates with ESG experience who:
- Can establish detailed ESG policies
- Have a legal background in environmental, social, and governance areas
- Are comfortable with regulatory reporting
- Promote ESG values within the company on a persona and professional level
- Understand the importance of ESG to investors and clients
If you succeed in retaining the right legal talent, your firm gains an advantage over others who are not focusing on ESG matters.
Strong ESG Benefits for Your Clients and Your Firm
With a strong focus on ESG, your clients and your firm experience an array of benefits. These include attracting :
- A high level of talent among new employees
- New ESG conscious clients
- Investors to your firm and for your clients
There is a strong link between ESG and profitability. One meta-analysis reports that 58% of corporations experienced a positive relationship regarding ESG practices and profitability, indicating that the more your firm focuses on ESG, the better returns you’ll see.
Partner With Collier Legal to Strengthen Your ESG Focus
If your firm is looking for ESG qualified candidates to strengthen your ESG focus, Collier Legal Search can help. We’ll connect you with legal professionals with experience in ESG matters so that you can proactively address issues related to ESG within your firm and for your clients.
Future-proof your firm with staffing services from Collier Legal Search. Contact us today to learn how to get started.