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.