Do law firms have a role to play in combating climate change? Should they include environmental accounting in their business plan? The answer is a resounding, fists-slamming-on-the-desk YES.
Evidence shows law firms might just hold the key to Britain becoming Net Zero by 2050. Case in point; law experts recently forced the UK government into explaining its own plan for zero-carbon claims. A big step.
So whether you’re an environmentally-conscious law expert or dipping your toe in, this blog will guide you through steps you can take to protect the environment and your company.
Take on climate-related issues
As companies and governments make climate pledges like “Net Zero by 2050”, law firms will increasingly have a pivotal role to play. Whether defending, or indeed scrutinising these claims, climate issues represent a huge opportunity to expand your legal portfolio.
2021 already saw new ground broken with litigation cases when Shell was found guilty of neglecting their carbon reduction plan. And it was legal experts that helped bring the UK government to court to explain its Net Zero claims.
Coupling this with a program to support career paths for solicitors who wish to transition into distinct disciplines relating to climate change will give your company the competitive edge.
Here, the Law Society outlines key UK policies and updates relating to climate change and net zero.
Climate Change Act 2008 – committing the UK to net zero by 2050.
Sixth Carbon Budget – detailing the target of a 78% reduction in CO2 emissions by 2030.
European Green Deal – making Europe the first carbon-neutral continent by 2050.
Environmental Act 2021 – environment-related laws in the UK.
The Law Society recognises the huge role its members have to play in fighting global warming and published a climate change resolution, detailing how companies can take action.
Include climate clauses in contracts
Another way lawyers and solicitors can protect the environment is by introducing climate clauses in their contracts and encouraging their clients to do the same. After a Hackathon in 2019, The Chancery Lane Project (TCLP) emerged to help lawyers, solicitors and any business around the world to include environmental clauses in contracts.
TCLP’s services and clauses are free to use and have been picked up by 113 different countries. Check out the range of drafts on their website, each labelled with a child’s name to remind us why we need to protect the planet. Their extensive glossary of terms is incredibly useful, especially for drafting climate-related contracts.
Measure your own impact
While the above tips can help fight for environmental rights, law firms should ensure their own house is in order before anything else.
The first step: calculate your greenhouse gas (GHG) emissions and set reduction targets. Measuring your company’s carbon emissions is the only way to know how your business activities impact the environment. Once you have created a GHG inventory, you’ll be able to identify ways you can lower emissions in line with your business goals.
Cutting your emissions will ensure you transition with the rest of the UK to a zero-carbon economy and will also make financial sense. Check out our blog on how renewable energy can save your company money in the short and long term.
Measuring and cutting your carbon footprint will also:
1. Boost your reputation
Creating a climate plan will enhance your reputation. Now more than ever before law firms are under the spotlight regarding the way they run and the type of businesses they represent. Indeed in 2021, students in the US put together a list of companies who were exacerbating climate change.
The firms were assessed on their contribution to climate change, through transactional work, lobbying and litigation and then given a grade of A to F
2. Recruit the best young talent
Generally young people care more about climate change than the older generation (see above). Law firms run the risk of losing current employees and falling behind in the recruitment process if they neglect their environmental impact.
This survey shows that in the UK, 33% of young people consider climate change a major factor when searching for jobs. Meanwhile, 42% of young people said they’d like potential employers to explain about their climate commitment during the job application process.
Finally; choose your clients carefully
Once you start measuring your company’s entire carbon footprint, you’ll soon realise the scope of your emissions. You’ll find your clients matter. Their actions impact you. We are in such a moment where law firms representing fossil fuel companies regularly appear in lists of shame. Don’t be those people!
Imagine the impact law firms could have if they all decided to phase out representing fossil fuel companies? Flip that; what would happen to your law firm if your most valuable clients refused to work with you because you represented fossil fuel companies. Or a more likely scenario; they discover they are unable to work with you as it would jeopardise their own climate commitment.
Although we are not quite there yet, we are fast approaching a time when climate accounting is a must for every law firm. As the Law Society states: there’s never been a better time for the legal profession to take the lead in the race to net zero.
