Climate emergency, ESG, sustainable investment, green transition – these terms have become buzzwords across many industries, not least the legal sector. 

As has been recognised by The Law Society, which in April 2023 released its guidance on the impact of climate change on solicitors, the legal profession can play a crucial role in mitigating the climate crisis. Whether they do this from an ethical point of view or simply to remain competitive in today’s market, legal professionals should leverage the influence they have in society – through lobbying, litigation, and legislation – to accelerate the green transition. 

Different legal actors can make different key contributions towards a more sustainable economy and planet. Whilst law firms bring external expertise, broad industry knowledge, and specialised resources, in-house lawyers can make use of the deep knowledge of their organisations, close collaboration with internal teams, and a wider focus on implementation. For the purposes of this article, I will be focusing on the role of private practice. 

Some law firms have been taking internal steps to mitigate climate change for quite some time. However, both clients and staff, in particular the younger generations who tend to have a greater awareness of environmental issues, are making clear that the implementation of eco-friendly office measures is simply no longer enough. 

Law firms are increasingly aware of this growing demand for action around climate change. As a result, they are taking further measures to demonstrate their commitment to a green transition, and sustainability-focused legal alliances are emerging around the world. In the UK, for example, the Chancery Lane Project aims to decarbonise legal contracts (see also point 3 below), and the recently launched Legal Charter 1.5 sets out eight principles, committing law firms to climate crisis mitigation.  

During my research, I identified six main ways in which legal professionals can make and, in some instances, have been making a positive impact, and accelerating the green transition. I also address in some more detail how lawyers are increasingly being scrutinised for their role in the climate crisis. 

1 – Legal advice, compliance and disclosure 

Lawyers will be crucial in enacting and enforcing the legal framework for a green transition. 

One important way lawyers can help is by providing competent advice to clients while taking into consideration how the latter can achieve their objectives in a way that mitigates the effects of climate change. This includes the identification of any potential risks that may arise from their clients’ operations which negatively contribute to the climate crisis. 

Another crucial task is helping clients understand their obligations and navigate the new wave of environmental compliance requirements – from emissions standards and sustainable business practices to accurate and transparent climate-related disclosures. This is particularly relevant when considering that in recent years the government has set legally binding targets and compliance requirements which will affect most if not all businesses. 

On top of that, almost a third of the UK’s largest businesses have pledged to eliminate their contribution to carbon emissions by 2050, and they will be looking to their lawyers to achieve those goals while remaining compliant and competitive. 

Lastly, another effective response law firms can take to help tackle the climate emergency is to engage in pro bono work – more often than not, organisations pushing for a green change are non-profit and/or under-resourced. 

2 – Driving climate-friendly policies 

Legal professionals have the necessary knowledge and power to influence policy and legislative changes. By actively engaging in advocacy and lobbying to shape environmental and climate-related regulations, they can make a real difference. Their force can be multiplied by collaborating with government organisations, NGOs and advocacy groups, as they can work towards the implementation of climate friendly policies and stronger environmental protection with experts in the field. Examples of this include developing new legal frameworks that promote sustainability, such as legal mechanisms for carbon pricing. 

By working with governments to build new climate and environmental legislation, legal professionals have a huge part to play in dictating how big and small corporations as well as individuals approach environmental matters. 

3 – Structuring sustainable deals 

Legal professionals can help pave the way towards climate crisis mitigation, one contract at a time. After all, lawyers are needed to make deals happen – that can mean anything from the financing of reforestation projects and formalities of green/blue bonds to getting the building permits for new fossil fuel plants (see also point 4 for a further discussion of choosing the right client). 

Lawyers can effectuate change through every contract they draft by promoting climate-aligned contracting. Incorporating climate clauses that promote eco-friendly operations in contracts helps the planet by enabling businesses to take the lead in transitioning to net-zero operations. Again, this is not only beneficial for tackling the climate emergency, but also for businesses to remain competitive in today’s market. Furthermore, it allows firms to deliver practical rapid action and respond to the climate crisis without having to wait for the government to enact laws, thereby taking the lead in a wider societal green transition. 

4 – Choosing the right clients 

While many law firms have long-standing environmental or climate change practices, this isn’t necessarily a positive sign indicating the firm is contributing to a green transition – often, those departments assist fossil fuel clients and pollutants with continuing their ‘ungreen’ business. Law firms are an essential pillar of the fossil fuel industry. They are the ones advising on and facilitating contracts for new pipelines and refineries, lobbying policymakers, and defending clients for environmental violations and/or crimes. 

Besides structuring sustainable deals, legal professionals can go a step further and choose to assist clients who are working towards decarbonisation and increased sustainability instead of those who work against it. 

While in an ideal fossil fuel free future, there will be no new oil, gas, and coal projects, it is equally important for firms to choose to help existing fossil fuel businesses transition to greener operations. These companies contribute a significant portion of the UK’s greenhouse gas emissions, and they are not just going to disappear in the near future, as we need materials such as gas for the increasing energy demand. 

As the increase in atmospheric CO2 is still not slowing down (but increasing by 3.5ppm per year), it is crucial that fossil fuel companies don’t keep operating in a way that is harmful to the environment, and law firms can assist them in their transition to greener technologies. Addressing emissions at the source should give us the opportunity to rapidly and drastically reduce carbon emissions, something we desperately must do if we are to have a chance of reaching net zero by 2050. Helping these businesses transition to greener practices can also enhance the public’s and investors’ confidence in them, attracting socially responsible investors and further promoting sustainability in the industry. 

5 – Litigation 

In cases where environmental conflicts arise, legal professionals play a crucial role in determining whether companies will be held accountable for their actions against the environment, including the climate. Lawyers can represent clients in litigation related to environmental damage, pollution, and breaches of environmental regulation, among others. 

Take as an example the recent legal action brought against Shell by Friends of the Earth and other plaintiffs. In 2019, they filed a lawsuit known as the ‘Climate Case’ against Shell, and won, in what is considered the first time a court has legally required a company to align its policies with the goals of the Paris Agreement. As a result of this case, companies worldwide are now in a position where they can be held accountable for the climate crisis, and they know their actions can have legal and financial consequences. This is a major driver for corporations to work towards a greener economy. 

6 – Spreading awareness 

Lawyers and law firms can position themselves as thought leaders and promote awareness around environmental laws and regulations as well as the importance of ESG and sustainability for businesses to clients, the general public, and aspiring lawyers. This can include the hosting of seminars, webinars, workshops, and other events as well as the dissemination of their expertise through publications, podcasts and other media. Many firms have also started engaging with law schools to educate students on the legal implications of the climate crisis. 

Scrutiny as a force for good 

As argued above, lawyers’ actions can have a positive or negative impact when it comes to the green transition, depending on their approach. This fact is increasingly being acknowledged: There is growing scrutiny on lawyers and law firms regarding their involvement in the climate crisis, as they are both being criticised for their fossil fuel and environmental degradation enabling practices or, conversely, recognised for their sustainability and climate change mitigation work. 

For example, The Law Students for Climate Accountability (LSCA) is an organisation created by students that seeks to amplify the roles and responsibilities of the legal industry in our current climate crisis. The group created the LSCA Law Firm Climate Change scorecard in order to understand the role the legal industry plays in the climate crisis. By ranking law firms according to how much fossil fuels work they have taken part in over a five-year period, the scorecard aims to draw awareness to the role that law firms play in creating, implementing, and safeguarding fossil fuel projects, as well as protecting the people who profit off them.  

Legal directories such as The Legal 500 and Chambers and Partners have also started putting climate change and ESG practices under the microscope within their law firm rankings. The Legal 500 Green Guide, which launched in 2021, aims to highlight firms which are making a positive contribution to the green transition. The global guide examines sustainability-related mandates across the entire range of legal practice areas, while also looking at law firms’ internal sustainability measures and initiatives as well as engagement beyond the legal work, such as the provision of resources and tools for clients, and thought leadership on the topic.  

Not only can guides like these help individuals, businesses and organisations identify and choose law firms who are truly experts when it comes to the green transition and have a genuine commitment to sustainability (or help avoid those who don’t), but they will also drive the legal sector’s deeper engagement with the role it has to play in averting the climate crisis and working towards a healthier planet.

2024 marks the third year The Legal 500 will be researching firms’ dedication to sustainability matters and contributions to a green transition. With preparations for the next round of Green Guide editions underway, the depth of information gathered to date presents a unique opportunity to look back, review the results of our efforts, and examine the current state of play with regards to law firms, sustainability and their climate action.

The past year has seen another push towards acknowledging the impact of climate change on lawyers, the role of lawyers in addressing the climate crisis, and the need to work towards climate conscious legal practice. In the UK, in March 2023, a group of lawyers signed a declaration of conscience, ‘Lawyers are Responsible’, calling on legal professionals to act urgently to address the climate and ecological crises, advance a just transition, and withhold services supporting new fossil fuel projects. In April 2023, this was shortly followed by the Law Society issuing guidance for solicitors on incorporating climate change considerations into their practice. Not long after in June 2023, a group of law firms in the UK launched the Legal Charter 1.5, a landmark initiative urging and supporting firms to respond meaningfully to the climate crisis. Similar actions have sprung up elsewhere around Europe and further afield.

In turn, this past year, the Green Guide has seen a significant expansion of submitting firms wishing to participate in our research, with submission numbers almost doubling in various jurisdictions. The most recent 2024 EMEA Green Guide saw a 48% increase in the number of submissions and a 42% increase in the number of firms featured. In the 2024 UK Green Guide, we had a 48% growth in featured firms after receiving an 11% increase in submissions. In our Asia-Pacific edition, the number of firms included rose by 74% and submitters by 34%, while in Latin America both featured and submitting firms more than doubled.

Around the world, an increasing number of firms are waking up to the importance of ESG, not only in terms of creating a dedicated client service offering, but also in terms of their own internal operations.

This is of course a business imperative for many firms, with ESG legal advice hot in demand and sustainability credentials good for the brand. Indeed, ESG can strengthen a firm’s reputation, as well as benefit recruitment and retention. But it also comes with risks. As sustainability and climate consciousness are gaining more attention, so is greenwashing. While law firms will see the challenges their clients face in connection with the increased scrutiny on false sustainability and environmental claims, they too are not immune to potential allegations.

On a green mission

During our research for the Green Guide, while we have witnessed an expanding range of firms engaging with sustainability matters, we have also observed an – albeit still small – but growing number of firms for whom ESG is not just business but who truly want to do right by society at large.

Often these are young or newly established firms, who have taken the opportunity of launching a new venture to purposefully write ESG into their DNA. One pioneer is Hong Kong-based Ben McQuhae & Co, which launched in 2021 as a commercial law firm with an explicit focus on ESG and sustainability practices. Self-defined “lawyers for tomorrow” who want to build a sustainable future, the team provides legal support only to projects which make a positive impact through alignment with the UN Sustainable Development Goals (SDGs). In order to enforce this, the firm has developed an SDG tracker to assess and measure the impact of its work against the SDGs. Its work is matched by serious external engagement in ESG thought leadership and an internal commitment to become a carbon net zero firm.

2021 also saw the launch of Sustainable Law in Denmark and 1,5 in Norway. In both cases, the name says it all: the Danish boutique was founded by project development expert Merete Larson who has based her entire business model around people, planet, and profit. 1,5, meanwhile, is an independent and specialist firm established by Jens Naas-Bibow, former head of the renewables department at Thommessen, and Frode Støle, a former judge at the Oslo District Court, with a focus exclusively on renewable energy, infrastructure and sustainability. Viewing law as a tool to help clients combat climate change, it aims to contribute to the 1.5-degree goal via its work.

In the UK, two new firms both launched in 2022 which have committed themselves to building a sustainable future. Paxus, which was founded by ex-Allen & Overy partner Suzanne Spears, was established to provide representation at the intersection of business and human rights, including addressing the climate crisis from a human rights angle. The firm aligns itself with the Law Society’s Climate Change Resolution and has signed the Greener Arbitrations Pledge.

Pallas Partners, another a disputes-focused boutique, was launched by former Boies Schiller Flexner London head Natasha Harrison. Despite its focus on commercial and financial disputes, it has taken on various clients and mandates driving positive change in society and the environment while also committing to the Campaign for Greener Arbitration as well as the Greener Litigation Pledge.

The latest addition to UK-based firms with a grand vision is Gen R Law, whose mission statement is to change the future for the next generation. Joshua Domb, previously a white collar crime and investigations associate at international full-service firms, envisions his new firm to practise law through the lens of addressing climate change, with specialist climate change, environment and green-tech expertise embedded in every practice area. As doors opened in March 2024, he is initially assisting clients with establishing a robust ESG programme by providing board training.

But it is not only a new generation of law firms innovating with new business models. Established firms are also trying to make a difference, such as Burges Salmon in the UK. An early adopter of measuring, managing and reporting on its emissions (since 2008), over the past years, the firm has taken its values to the next level with a rigorous and transparent approach to responsible business, implementing comprehensive measures across all three segments of E, S and G.

City firm Bates Wells has a particular focus on charities and social enterprises, therefore it is not entirely unsurprising that it sits among the more purpose-driven law firms, demonstrating a serious commitment to reducing its impact on the environment and supporting a just transition to net zero. Backing its ethos of putting profit and purpose on an equal footing, the firm was the first in the UK to be certified as B Corp in 2015.

That same year, Lux Nova Partners launched in the UK as a team of senior lawyers with no offices but one common purpose: advising communities, businesses and governments on clean energy, circular economy and nature based solutions, and an explicit policy of never supporting the fossil fuel industry.

Noteworthy are also two other litigation firms which aim to have a positive impact on the environment through the cases they bring. Pogust Goodhead was created specifically to address environmental wrong doings committed by corporations. The class actions law firm’s origins are tied to the Volkswagen diesel emissions fraud claim and the representation of the victims of the 2015 Mariana dam collapse in Brazil against BHP, and it has secured several precedent setting rulings. Its mission to help individuals, groups and businesses acquire access to justice is inextricably linked to its genuine commitment to the green transition.

Similarly, Leigh Day, despite its origins as a specialist personal injury firm, is now also at the forefront of representing claimants in landmark environmental litigation cases which often lead to crucial reforms in legal frameworks governing the protection of the environment, biodiversity, and wildlife. The firm has also led on some of the biggest group litigation cases, such as the Dieselgate scandal, and has brought the first cases which defined the law for how multinational corporations based in the UK could be held accountable for pollution and massive environmental degradation.

Elsewhere in Europe, for independent Swiss firm id est avocats, advising on green and ESG mandates is not only a growing line of business, but the team has made it part of its mission, consistently advocating for sustainable and responsible business practices and actively supporting green, impact, and ESG initiatives in the country. Its commitment is verified: The firm has also been a B Corp certified business since 2022.

In Austria, environmental boutique Niederhuber, given its background and focus on environmental issues, quite naturally and without much fanfare lives and breathes the green transition. Its dedication to climate action extends from enabling environmentally friendly and sustainable projects for its clients to shaping the legal policy discourse in the country. Forming alliances with the like-minded, the firm has an informal partnership with Austrian procurement specialists Heid & Partner, who specialise in and are big proponents of green procurement. A self-described life cycle law firm, it has built “360 degree sustainability” into its advice from start to finish of every client’s project.

In Germany, von Bredow Valentin Herz lives and breathes green energy. Similar to Lux Nova in the UK, the Berlin-based boutique is not only a specialist in renewable energy but also driven by the conviction that we urgently need to reduce dependence on fossil fuels and implement a comprehensive energy transition. Since the founding of the firm, it has cooperated with the Research Centre for Sustainability and Climate Policy.

Another similar outfit – an energy boutique focusing exclusively on the energy transition – is Angulo Martínez in Colombia. Experts in energy, climate change and sustainability, the firm’s entire business approach is focused on sustainability and helping clients navigate the green transition.

Colombia also houses Mendoza Abogados, a finance boutique founded in 2018 which only advises on projects utilising clean technologies to minimise their negative environmental and social impacts while furthering the government-promoted renewable energy targets. Proud of its high ethical standards, the firm is committed to helping clients develop sustainable projects, promoting ESG factors, and advancing the green transition in the country.

Lastly, in the Dominican Republic, boutique firm Santroni Parsons has also made sustainability its core concern. Its sustainability specialists lead on client work pursuing green development within the tourism industry. While aiming to make the development of investment projects legally and environmentally viable from a compliance perspective, sustainability is considered the main objective.

Fewer emissions? More transitions!

The above mentioned law firms do not form a comprehensive list of those who have truly dedicated themselves to operating a business with the climate emergency in mind, and are merely some of the players we have come across during our research for the Green Guide. There will be other entities which have taken similar steps. There will also be others who have implemented serious and commendable science-based measures to achieve net zero; others with certain teams and departments handling important and impactful work towards a more sustainable planet; and individual lawyers at other firms who are personally committed to climate action. Yet law firms as a whole with ESG inscribed in their DNA remain a small minority.

While more and more firms are putting environmental and sustainability policies in place when it comes to their internal operations, and the bigger demand for sustainability and climate change-related advice has also created growing service offerings in this space, few firms are considering the environmental and climate impact of the work they undertake for clients.

As unsubstantiated green credentials will increasingly be put under the lens, the concept of advised emissions will gain in importance. These are emissions not directly generated by the law firm itself, but generated by the advice given by the firm to its clients. Looking into the future, as businesses are going to be held increasingly accountable for their contributions to the climate crisis, law firms not taking into account their advised emissions may very well start to have the adverse effect of undermining firms’ sustainability efforts elsewhere.

In other words, firms are continuing to take on mandates connected to high-emitting activities while at the same time promoting their sustainability practices. The next big transition in firms’ sustainability journeys will require a closer look not only at operational emissions – which will be comparatively small – and capacity building in relevant areas of practice, but ensuring the provision of climate-aware advice across the board.