Environmental Archives

The “E” in ESG: Environmental

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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Boom of ESG in Legal Consulting

Blogs / collierlegal

Recent years have seen a boom in ESG (Environmental, Social, and Governance) in legal consulting. ESG factors are continually growing in importance to businesses, investors, customers, and suppliers, and the trend shows no signs of stopping. Expected to continue for many years, corporations and law firms are now hiring their own armies of ESG experts, consultants, and advisors. Globally, ESG has taken hold as a central concern in corporate, financial, and legal entities to such a degree that to neglect ESG integration in your business is likely to lose you customers and jeopardize your competitive advantage. The financial industry in the United States today has already fully incorporated ESG, with younger investors, in particular, fueling the development. It follows that there has also been an boom of ESG in legal consulting. If you are a legal firm looking to incorporate ESG into your company structure, look no further than Collier Legal Search. We can draw on our extensive network of legal professionals fully versed in ESG to help overhaul your company to meet modern standards. What is ESG? Business as usual no longer suffices for U.S. companies to compete globally. With the explosion of global interest in ESG and the integration of ESG into the decision-making processes of almost every industry, you cannot afford to ignore it. But what is ESG? ESG stands for Environmental, Social, and (Corporate) Governance, which are intangible assets within an enterprise that nevertheless translate into a kind of social credit for a company: Environmental relates to environmental concerns such as the climate crisis and sustainability. It includes addressing externalities associated with a company’s revenue not strictly measured in market mechanisms. Climate change and sustainability issues factor into investment choices in ways that seek to both maximize revenue and act ethically toward the environment, for example, through investment in renewables and other technologies. Social relates to social concerns and the imperative of a company to act in a socially responsible manner, including in its hiring process. Considerations can include human rights, diversity, consumer protection, and animal welfare, among others. Governance relates to rights and responsibilities in managing a company, relating to corporate ethical standards for the board, the shareholders, and the stakeholders. Examples can include issues such as management structure, employee relations and management, and employee compensation. Each company must decide who holds the responsibility for ESG within it. Usually, it will be the board of directors, often creating unique ESG positions and appointing ESG experts to ensure compliance with its commitments. In addition, it is becoming increasingly common for investors and stakeholders to request reporting on non-financial opportunities and risks. The Head of ESG ensures that reporting is also available for all the company’s externalities and non-financial activities. What is Driving ESG Growth? Companies are beginning to understand value in ways besides financial reporting. Especially among younger generations, the future shareholders and industry leaders, there is a strong imperative to support ESG companies over more traditional ones. Consumers are voting with their wallets. However, there still needs to be convergence between ESG and the company’s bottom line. While this can appear contradictory, incorporating ESG priorities into the corporate values and culture of the company can be complementary to the bottom line, especially today. Some of the benefits of implementing ESG initiatives are: Being seen as a thought leader in your industry, which today is unlikely without an ESG strategy Boosting the company’s social brand and reputation, both in your industry and without Building trust to increase engagement within the communities your business operates in Mitigating ESG risk exposure, e.g., by systematically detecting and assessing significant ESG risks inherent to specific business transactions Fostering a win-win mentality by encouraging more responsible business practices while growing the company’s bottom line in the longer term On the other hand, some of the risks of a wait-and-see approach to ESG are: Waiting too long may result in extra costs if potential regulatory reforms become mandated Not adapting could lead to a loss of competitive advantage, hurting sales and talent attraction and retention Not adjusting damages the company’s brand and reputation merely through the semblance of irrelevance ESG Drives Hiring There is no uniform approach to ESG. It can be industry, company, or issue-specific. Your company can decide which opportunities and risks to address and be measured against by getting ahead of any universal standards or federal mandates on the issue early. Having pre-existing ESG incorporation explicitly tailored to your company can help mitigate any externally mandated demands and costs later. Professional services network PricewaterhouseCoopers (PwC) is an example of a company that invested in ESG early. The result has been that PwC projects that it will expand its workforce by ⅓ over the next five years by hiring 100,000 new employees. PwC plans to seek experienced, qualified workers with a profound, active knowledge of ESG. Futureproofing Your Organization This year, U.S. law firms have begun aggressively building ESG practices into their company structures to anticipate new federal government initiatives and increasing interest from their clients. Law firms are retooling and positioning themselves to provide legal guidance to clients regarding ESG-compliance. A legal consultant can advise on how best to perform ESG reporting according to a company approach. A strong stance on ESG can help you attract the best new employees and retain the valuable ones you already have. Having a law firm on your side can help you smoothly transition to ESG compliance without unsettling your daily operations or upsetting your bottom line. How Collier Legal Staffing Can Help Collier Legal Search offers services in placing associates, partners, and legal professionals of the highest credentials at every level in corporations and law firms. With our extensive connections, experience, and exclusive approach, we have built a candidate database that delivers consistent results and on which our clients have come to depend. We commit ourselves to satisfied clients and successful candidates. If you are considering migrating your company into ESG compliance, discover what we can do for you.

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