Environmental Social Governance Archives

The “G” in ESG – Governance

As the cultural climate shifts in the 21st century, focusing on Environmental, Social, and Governance (ESG) factors is essential to every company’s success. Businesses need ESG-driven policies to thrive, including environmentally friendly operations, socially-conscious hiring processes, and transparent decision-making regulations. Law firms must lead the charge in creating and enacting ESG elements. If you run a law firm, hiring ESG experts is vital to help your firm develop ESG policies and support your clients in doing the same. ESG in Law Firms Environmental, Social, and Governance (ESG) is a broad set of metrics, practices, and policies organizations use to operate. 58% of corporate studies regarding ESG show a positive correlation between a company’s financial performance and implementation of ESG factors. The G in ESG refers to the roles, processes, and rules that guide a company’s operations and the decisions made by its board members. Strong governance policies help mitigate issues like corruption, bribery, and fraud. Governance is vital for reducing risk and ensuring protection against mismanagement. Law offices must hire and retain ESG experts to help their clients and themselves mitigate risks. The “G” in ESG Governance policies related to several areas of corporate operations, including: ● Decision-making ● Policy-making ● Distribution of rights ● Distribution of responsibilities Participants affected by governance policies include a company’s stakeholders, shareholders, directors, and managers. Governance affects how the board of directors is structured and how much a company pays its top executives. This factor also plays into the monitoring and oversight policies used to resolve conflicts of interest between company policies and when the board of directors disagrees on an issue. Governance is especially relevant in today’s climate. As political, social, and cultural attitudes change, solid governance policies can prevent problems for your law firm, your clients, and their businesses. How to Quantify Good Governance Policies Companies looking to quantify governance can track specific criteria and data to estimate an economic dimension score (EDS). The EDS is a comprehensive measurement of governance metrics that you can use to understand how a company performs on governance issues. Estimating the EDS involves monitoring and quantifying information from the following areas: ● Corporate governance Put strong policies in place regarding board structure, compensation, and ownership. Also, look at policies that encourage diversity, effectiveness, and experience within the company’s organizational structure. ● Codes of conduct Good governance includes putting procedures and systems in place for identifying and dealing with corruption and bribery. Also, consider how to handle reporting breaches when they occur. ● Risk and crisis management Consider the company’s risk and crisis management policies. How effectively can the company handle risks from internal or external sources? How do the policies deal with liability in the short and long term? Identify policies that allow for stress training and proactively identify and deal with emerging risks. ● Supply chain management Strong governance policies encourage supply chain awareness and implement a supplier code of conduct. They also integrate other ESG factors into the supply chain to promote socially conscious ideals and environmental considerations. ● Tax strategy A company’s governance must include policies regarding taxes. Policies should outline a beneficial tax strategy, ensure proper tax reporting, and promote year-long tax governance to avoid problems during filing. ● Materiality Materiality refers to the governance policies surrounding long-term value creation and the metrics used to report these details. Good governance encourages transparency in reporting future value creation. ● Policy influence Strong governance regarding policy influence includes policies that encourage disclosing large contributions to businesses that influence policies. It also includes adherence to regulations and legislation. ● Impact measurement and valuation Governance policies must help the company assess programs for social needs and how these are impacting society more broadly. They should also account for the social impact that programs may have over time and how to price them into operations. Lack of Governance Policies A lack of solid governance policies can lead to serious issues within a company. Most corporate scandals occur because the business didn’t have or didn’t adhere to governance policies. For instance, Facebook’s misuse of data and the ensuing scandal resulted from a lack of transparency and negatively impacted the company’s shareholders. Not having governance policies in place leaves companies prone to mismanagement. Scandals or risks resulting from this mismanagement can be costly to stakeholders and deter investors who want to protect themselves from scandal. Law Firms Can Help Law firms can help their clients implement ESG elements into their business operations. You can help your clients focus on ESG by: ● Helping establish governance policies ● Creating ESG assessments ● Identifying metrics to track governance performance ● Developing consistent, uniform reporting channels ● Setting an example by implementing strong ESG policies in your law firm Find ESG Experts for Your Law Firm Future-proof your law firm by hiring an ESG expert today. Collier Legal can match your law firm with a qualified candidate knowledgeable in all areas of ESG to ensure your firm enacts up-to-date policies regarding social, environmental, and governance issues. Contact Coller Legal today to find the perfect candidate for your firm.

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The “S” in ESG – Social

Blogs / collierlegal

Boosting a law firm’s ability to function in a rapidly changing world where Environmental, Social, and Governance(ESG) capabilities are required is paramount for remaining relevant. Practices that fail to future-proof by hiring knowledgeable ESG attorneys risk losing valuable talent to other firms. At the same time, clients may move to competitors to find proper ESG-knowledgeable legal services. ESG in Law Firms Environmental consciousness, contribution to social justice, and ethical corporate governance are gaining importance with people and corporate entities. ESG deals with how companies operate regarding these issues, bringing them to their core policies and effecting real-world change. Applying ESG facilitates transparent data use and efficient business practices that promote eco-friendliness, fairness, and equitable governance. Law firms need the flexibility to respond to client requests that stem from this triad of factors. For example, an international corporate client may want to conform to human rights practices for employees in the United States and abroad. In a world where many faceless corporations take advantage of human rights imbalances between countries, this social issue can significantly impact the client’s positive public perception. Companies apply ESG by quantifying their outcomes using metrics and changing their practices to meet specific values. For law firms, ESG is becoming increasingly important for keeping clients compliant while mitigating risks for themselves. A recent study shows that 65.8% of Chief Legal Officers expect the focus on ESG to accelerate over the coming years, making it an essential priority for legal practices. The social aspect of ESG is one of the most difficult to quantify. It requires a legal framework for assessing its effectiveness and places heavy emphasis on hiring attorneys with experience in labor and employment law to ensure compliance. The Social Impact The S in ESG emphasizes corporations’ social impact on issues that affect groups of people in the workforce. Being socially conscious arises from actively caring about human rights and diversity issues. Corporations are entities with the ability to effect change in the face of political strife and accommodate the social change that respects a broad range of backgrounds. Social components of ESG affect policies put in place in the workforce, such as diversity, human rights, engagement, equality, training, and employment requirements. They also prioritize safeguarding company data and protecting the privacy of stakeholders. Stakeholders are a vital element of ESG when contemplating adopting the social model. Issues in this category pertain to companies’ corporate cultures as much as they do to customers, and adopting equitable and healthy ‘S’ practices benefits organizations. Hiring an ESG attorney can help your firm implement an ESG framework that highlights your company’s focus on social justice and equality. Promoting this trait engages consumers on a human level and can help you deepen relationships with your clients. Stakeholder Relationship Management Creating socially oriented policies that involve inclusion, diversity, training, and safety issues are at the heart of stakeholder relationship management. Being aware of demographic shifts and how they affect client needs requires an ESG worldview. Balancing local community engagement with overarching global practices calls for corporate legal experts to be flexible in adapting to changes. Stakeholder relationship management is also affected by security and reliability practices by corporations. Protecting secure data from cyber risks and maintaining robust IT protections are necessary. In the competitive legal space where firms vie for top talent, sustainability hinges on finding lawyers who are adept at creating and assessing ESG-focused policies. These experts can work with your firm to promote a socially conscious culture. Law firms should include their social justice initiatives in their recruiting materials to broadcast to as wide a talent pool as possible. Regulatory Risk Mitigation Regulations don’t only affect a company’s environmental and governance compliance but also its ability to act in its stakeholders’ best interest. Companies that build strong corporate cultures and take a proactive stance in adopting policies that promote positive social change and transparent disclosure are less vulnerable to political, regulatory, and reputational risks. A high-level ESG legal expert ensures a company does its due diligence concerning operations, supply chains, contractors, and how these issues relate to human rights and regulatory matters. Remaining on top of regulatory compliance requires a blueprint with which a company monitors the effectiveness of its social policies. Hiring Top ESG Lawyers for Your Firm Law firms seeking to climb to the top of their fields are recruiting top ESG legal experts. Building your firm’s policies around comprehensive ESG policies and framework will prepare your law firm for upcoming regulatory changes regarding ESG. Our highly qualified ESG attorney candidates can help your firm establish meaningful labor agreements that support social causes and advise on social policies and assessment procedures pertaining to ESG. To seize the opportunity to transform your firm with a top ESG expert, work with Collier Legal Search. We have access to a large pool of ESG-qualified candidates who can benefit your firm and ensure you implement ESG policies into your operations.

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The “E” in ESG: Environmental

Blogs / collierlegal

The legal consulting industry is witnessing a rapid expansion in demand for Environmental, Social, and Governance (ESG) consulting. Corporations anticipate new environmental regulations related to ESG and are turning to their retained law firms for guidance. In addition, law firms must implement environmentally-conscious practices to meet ESG compliance. A continued increase in the importance of corporate environmental responsibility means law firms need to build up their ESG consulting capabilities or risk losing business, talent, and positive public perception. Implementing a clear, environmentally conscious ESG plan and hiring ESG consultants to assist clients to do the same is necessary for today’s social climate. ESG and Why it Matters to Law Firms ESG is a term that refers to how companies run their business in accordance with environmental responsibility, social justice concerns, and ethical corporate governance. ESG-focused business methods promote transparency through data collection and reporting and implementing practices that benefit the environment, social justice, and ethical governance. Law firm clients need help developing ESG practices and implementing them into their corporate operations. For instance, if a company wants to increase gender inclusivity with more women in management positions, they may look to law firms to advise them on the legality of hiring goals compared to hiring quotas. In addition to looking to law firms for consulting, corporations expect law firms to establish their own ESG policies. A study showed that 87% of law firms received proposal requests regarding their environmental responsibility practices. This expectation makes it crucial for law firms to implement ESG policies to mitigate risk to their clients and themselves. E – Environmental The E in ESG represents how corporation practices affect every aspect of the natural world. Greenhouse gas emissions, water conservation, waste reduction, and climate change are the most significant focus of environmental factors facing businesses. Depending on a law firm’s clientele, the firm’s ESG consultant should have specific expertise in preventing environmental disasters and performing material disposal. According to the Law Firm Sustainability Network, firms looking to make environmentally conscious changes can incentivize responsible commuting and implement paper-reduction policies. They can also invest in energy star lighting, windows, and other equipment to create a green building for a less harmful impact on the environment. Hiring an ESG consultant to make such policy shifts helps develop a sense of stewardship for businesses as they work to care for the natural world around them. Sustainable Practices and Brand Reputation Brand reputation is key to continued growth for law firms and their clients. Consumers demand environmentally sustainable business operations, and corporations must make ecologically conscious changes and be prepared to document and report them using established practices. Reporting helps decide environmentally-focused next steps for a business, builds a positive brand reputation, and attracts great talent. In a competitive legal field where attracting talented lawyers is the key to sustaining a firm, it is beneficial to include its green initiatives in recruiting materials. Sound environmental policies are the key to a positive public perception among clients and new talent. Firms that invite their employees to participate in eco-friendly practices stand out. Mitigating Regulation Risks The Securities and Exchange Commission is developing a new proposal that may require public companies to report climate risks, which is an example of the ESG regulations that may occur more frequently in the future. Both firms and their clientele need to be ready to quickly adhere to new requirements to continue working without significant disruptions. Companies must develop frameworks for measuring environmental impact to ensure a seamless transition before implementing governmental regulations. They should also have established plans for unexpected ecological events to help them mitigate issues and prevent detrimental consequences to brand reputation. ESG consultants create risk-mitigating programs and frameworks to ensure firms and their clients are ready for what lies ahead. Hire ESG Consultants for Your Firm ESG support consultants are already significant parts of a law firm and will soon be necessary assets. They help firms and their clients by consulting on all aspects of ESG, sifting through anticipated regulations, and developing strategic plans to meet them. If you need an ESG consultant at your firm, contact Collier Legal Search. Our knowledge of legal trends leads to compatible placements for both candidates and law firms. Work with our team to find the right ESG candidates to help your firm create meaningful and comprehensive ESG policies that prepare your business for changes to come.

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ESG and Future-Proofing Your Organization

Blogs / collierlegal

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.

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