In addition, companies can include demographic information about their lawyers, which many companies need before hiring the firm. [27] Disclosure of information about a firm`s various committees will demonstrate an attitude toward the growing diversity and affinity groups in the legal field and, ultimately, demonstrate efforts to transition to a more inclusive environment. [28] For example, Cravath has information that its current chairman is a partner, the managing partner of the litigation department and the head of the tax department are all women. Similarly, Gibson Dunn, another major law firm, recently announced the appointment of a female president in 2021. [29] Adding this information to an ESG disclosure would be analogous to how Apple, NVIDIA and many other companies have highlighted diversity in leadership positions. Finally, companies can disclose their operational policies and how they drive innovation and inclusion in their structure – this could look like recruitment and student initiatives to hire students from diverse backgrounds. Law360 profiled the company`s sustainability and ESG consulting practice and its rapid growth. First, the environment section of a large law firm should focus on digitizing files and prudently consuming electricity in its offices. Focusing on green business practices would model the approaches taken by tech giants like Apple and NVIDIA to reduce their carbon footprint. Since the law firms themselves do not operate in the production area, most of their electricity consumption comes from their offices themselves, so preparing a formal report on electricity consumption and compiling this data would address the „environmental aspect“. A company could also focus on efforts to reduce business travel, opting instead for greener practices such as encouraging the retention of telecommuting once mandated due to the pandemic. Even in cases where business travel is required, they could highlight efforts to deploy low-emission airlines and select non-stop flights: these practices demonstrate a company`s commitment and awareness of corporate environmental responsibility.
In summary, the „Environment“ section of companies should draw attention to their efforts to embrace digitalization, save energy and invest in energy efficiency in their offices. In 2021, more than 60 leading global companies, including KPMG, Mastercard and Bank of America, announced they would adopt ESG frameworks and information through partnerships with the World Economic Forum. [10] Large law firms could also benefit from this approach and reflect the concerns of their clients, signalling to potential business clients that a firm is adhering to sustainable practices. Research consistently shows that companies at the forefront of ESG efforts can generate tangible returns in terms of profitability when they understand shareholder concerns. [11] A company that publishes a formal and easily accessible ESG statement on its website appears to be more responsive to its clients` needs and shows how proud the firm is on being forward-thinking and inclusive. However, this does not mean that Big Law`s business model needs to be revised. Instead, companies can reorganize the information they already have in a published ESG statement. Freshfields` Wilkins agrees, stating that „Freshfields has structured its sustainability practice to advise clients in four key areas that [the firm] considers strategic priorities“ and to which the firm „brings special technical legal expertise of laws and regulations.“ These areas include: Gibson Dunn`s ESG practice provides clients with holistic and sophisticated advice on their corporate responsibility and environmental, social and governance (ESG) risks and opportunities. In addition, our ESG practice provides tailored training, training and hands-on workshops for executives and directors on a range of topics that support our clients` ESG objectives and provide information on ESG-related best practices and developments, including investigations and enforcement trends, compliance and strategies, and whistleblowing. Members of our practice actively participate in external forums on ESG and ESG topics and support and influence various sustainable nonprofit groups through thought leadership and pro bono work.
Another key challenge is the many facets of ESG, according to HSF`s Goldberg. Due to its multidisciplinary nature, it`s not realistic to have a single person responsible for ESG factors, she explains, and so HSF has a comprehensive management team spanning different regions and pillars. In fact, ESG is a multifaceted practice, and it`s a great metaphor for the „law firm of the future, operating as a multidisciplinary, cross-border organization,“ she adds. As investors and other stakeholders increasingly integrate ESG criteria into their decision-making, mandatory and voluntary environmental, social and governance efforts have become a priority for companies. Skadden takes an interdisciplinary approach, relying on lawyers from various practice groups and offices who share their in-depth knowledge of this evolving field with clients seeking advice on ESG-related issues. We understand sustainability. Lawyers from our environmental, energy regulatory, corporate, tax, project, intellectual property and litigation teams work together to advance our clients` sustainability initiatives and goals. We have helped our clients address the myriad of legal challenges associated with environmental issues such as emissions, climate change, carbon use and storage (CCUS), waste and water, including regulatory and permitting requirements, allocation of responsibilities and property rights. We also help our clients make new investments in technologies, assets and projects that are an integral part of our sustainability strategies.
The launch of Reed Smith`s ESG practice formalizes the firm`s long-standing offering to clients to support and advise them on their environmental, social and governance needs. Our ESG practice is an international multidisciplinary team of lawyers from across the firm working in the areas of litigation, corporate governance, corporate transactions, finance, compensation, information security, tax and business, and human rights. We are committed to continued collaboration and leadership in these disciplines in recognition of the universal nature of these issues for our clients. We offer transparent and integrated advice – in collaboration with our ESG colleagues across the global company. The inclusion of governance disclosures by law firms provides clarification to clients regarding a company`s structure, compensation policies, and hiring and onboarding practices. A company may include information about its summer programs and initiatives to hire and retain talent. While there may be some reluctance to disclose information about hiring practices, transparency would be beneficial in many ways. On the one hand, highlighting a firm`s efforts to improve diversity in the legal field would show how a particular firm is tackling an industry-wide problem, a lack of diversity.
Disclosure of information about the composition`s officers, partners and employees can also demonstrate diversity efforts. Therefore, active attention to this information increases companies` progress on the diversity front by revealing the breadth of race, ethnicity, gender, and other identities it contains. The social factor is easy to translate into an ESG statement for many large companies. There are a variety of ways to reframe current corporate initiatives to address the „social aspect“ of ESG: (1) diversity initiatives; (2) volunteer work; (3) Community engagement and attitude towards social issues. A look at the website of Cravath, Swaine & Moore LLP, for example, shows that pro bono work is an essential part of their practice, and they offer the same standard of representation, whether „the client is a low-income single mother or a coalition of members of the U.S. Congress.“ [24] Other websites of major law firms reveal a facsimile of similar statements about positions on pro bono issues that should be included in an official ESG report. In addition, companies that have established diversity scholarship programs for minority rights students and participate in the NAP should highlight these programs in their disclosures. For example, many companies can model their social approach, according to Reed Smith. In particular, this company promotes diversity by publishing data on diversity and inclusion and has a dedicated diversity, equity and inclusion team, all of which should be highlighted in an ESG report. [25] Finally, companies should include their current community participation initiatives in their ESG reporting.
This could include a brief paragraph on how the company provides pro bono services to local communities and how it engages with them. We bring you international and local perspectives on evolving ESG market pressures and expectations, helping you synthesize and streamline responses to changing regulatory and legal requirements. The firm has formalized its ESG legal capabilities with nearly 60 lawyers specializing in transactions, environment, corporations, regulation and dispute resolution from the firm`s 30 offices, helping clients in various industries with growing compliance and stakeholder obligations. Transparent disclosure sheds light on how the corporate governance structure is „designed to promote principled action, informed and effective decision-making, and appropriate monitoring of compliance and performance“ to ensure that shareholders` long-term goals are taken into account. [15] The disclosure examines the oversight of the board of directors and the company`s various committees, ranging from taxation, privacy and data security to legal and regulatory compliance.
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