Science Based Targets
More and more organisations are beginning to look at setting greenhouse gas emission targets in line with climate science as a way to future-proof growth (the shorthand for this is “Science Based Targets” or SBTs). So far, according to the Science Based Target Initiative, 265 companies are taking action around SBTs, with 44 setting approved targets. These include a range of organisations but there are many big names in the list who will be familiar to a lot of LSA Members. To me, the logic behind the need for SBTs seems relatively simple: (1) Do I accept that anything more than a 2 degree C rise in global temperature will have a disastrous impact on our life on earth? (2) Do I accept that carbon emissions from man-made sources are driving global temperature up? (3) Do I agree that science can help to tell us what reduction in emissions each sector needs to achieve the level of decarbonisation needed to keep temperature rise to below 2 degrees C? (4) Do I agree that setting an appropriate target based on this science makes good sense? If my answer to each of (1) to (4) is YES, then it may be the right time for my firm or organisation to think about setting a science based target.
The steps which the Science Based Target Initiative suggest to set a SBT are pretty straightforward – Commit to doing it; Develop a target; Submit your SBT for scrutiny; Announce you’ve done it. There are plenty of tools, tips and techniques available – we would love to hear the thoughts and experiences of LSA member firms and their clients who may be considering setting a SBT or even done so already.
The Business Case for Sustainability in the Legal Sector
Steve Malkin, CEO of Planet First and Founder of The Planet Mark™
I recently heard a board-level target that sought to increase margins by reducing by a net 1% the cost of travel through resource efficiency, vehicle procurement and behaviour change. These, the board considered, fell into the remit of sustainability because that is where business value was being generating. The company in question has seen double-digit growth whilst reducing its carbon per employee annually for seven years.
The board’s action demonstrated to me that this business really got sustainability; not only is it reducing its operational costs, but it is using these achievements to enhance its reputation and is winning more business as a result.
The company in question is not from the legal profession, but that is not the point. Sustainability works across all sectors primarily because of three challenges faced by any business – and sustainability addresses all three. They are:
1. Reputational enhancement
2. Customer attraction
3. Talent acquisition and retention.
There is a fourth challenge: cost saving. This is often less of challenge in the services sector, then say in manufacturing and construction. Nevertheless, I have not yet experienced a case where cost saving is not seen as a benefit in the service sector, so communicating cost saving and payback periods of sustainability initiatives are always important.
Challenges of the legal profession
Experience tells me that the legal profession is no different from any other sector in terms of facing these common challenges. Where it may differ from other sectors is in its approach to sustainability.
Firstly, I would say that it is crudely split in two when it comes to sustainability: those who have been developing sustainable practices and reporting for some time on them and those that are just starting out. (Apologies for the lack of nuance).
The challenge, as I see it, for the former group is that many think that sustainability is being addressed, that processes are in place and, much like health and safety, it is mainstream. The reality is that sustainable practices are often not embedded and business travel, and especially flights, remain a major issue. The challenge here is often cultural and it is likely that attitudes will not change until driven by either customer demand or when a new generation of partners gain traction.
For legal practices new to sustainability, the issues are often around bandwidth and internal resource. Typically, sustainability is the remit of a service department but it will only be successfully implemented once it has the full commitment from the fee earners.
For both groups, the unifying challenge is often how to shift the culture of an organisation and encourage behaviour change. Fully communicating the business benefits in terms of risk and opportunity is the starting point.
The Planet Mark™ puts forward a business case that directly connects positive impacts on society and the environment with cost savings, alignment with customer values and opportunities to win business. When you set targets and quantify your progress, by reducing your carbon emissions, for example, you provide evidence of your values in action. External verification of your progress in sustainability enables you to communicate with confidence.
Sustainability opens opportunities to talk about the way you do business, your expertise and your company culture. You will see the benefit to your reputation, your talent acquisition and attraction of new customers. Besides which, the world of sustainability needs a well-informed legal sector to navigate the transition to a low carbon, more sustainable future. What better way to play that role than to fully embrace sustainability within your own workplace?
About The Planet Mark™: Founded three years ago with the iconic Eden Project in Cornwall, UK, The Planet Mark™ is awarded to businesses, properties, new developments and projects that are committed to reducing their carbon emissions. Since it launched in 2013, The Planet Mark™ has certified over 100 organisations and delivered an average carbon emissions reduction of 5% per employee per annum for its clients. Planet Markcertified businesses have a minimum requirement to reduce their carbon emissions by 2.5% per year. To find out more click here.
NOTE: The LSA and The Planet Mark™ are running specialist workshops from June this year. See more in the Events section of the LSA website. Steve says: “Sustainability programmes are really about good business practice. Doing the right thing delivers fast and far-reaching positive impacts on society, the environment and profitability. These specialist workshops gather the latest expertise and are a must-attend for practices across the UK”
To access a calendar of sustainability events for 2017, click here
Do clients care about CSR when engaging law firms? Maybe…
Dr Steven Vaughan, Law School, University of Birmingham
One of the most striking changes in the legal profession over the last four decades is the shift in the balance of power between lawyers and their clients… in favour of the clients. This is for various reasons, including: (i) increased competition between law firms (partly down to national growth, partly down to globalisation); (ii) the rise of the in-house lawyer community (who are better able to price and scope legal work, and to do some of that work for themselves); and (iii) a ‘more for less’ client agenda on fees post the financial crisis. One of the ways in which this reoriented balance of power manifests itself is in how major corporates and financial institutions, as well as governments and public bodies, seek to impose their own terms of engagement on law firms. A number of clients engage law firms via panels; a competitive process whereby law firms pitch to be one of a number of dedicated lawyers for the client. One of the conditions of these panel processes is often the acceptance of detailed, mandatory sets of terms and conditions (also often known as ‘outside counsel guidelines’). These guidelines cover a variety of matters, from fee arrangements to secondments, IT security, conflicts of interest etc. Other work has shown how these guidelines can be used by clients to gain information (and to improve) a law firm’s policies on diversity: for example, through requiring that a certain number of women lawyers are staffed on matters done for that client. As such, these guidelines can lead to clients having a positive impact on their law firms, and can lead law firms to improve their policies and practices to win client work.
Running alongside the push by clients to get more out of their law firms (through contracting and guidelines) is a push by many clients to improve on their sustainability and corporate social responsibility (CSR). Here, large corporate actors in the West have reported on environmental matters since the 1970s, although a sustained emphasis on environmental disclosures as part of CSR was not apparent until the 1990s. In other work, I have been interested in the extent to which large law firms have engaged in CSR. What I found is that the public commitment of the top 100 law firms in England & Wales to CSR is widespread. The majority say, on their websites, something to the wider world about CSR. However, what is said varies significantly. This is, perhaps, unsurprising. What is more surprising is that so few firms explain why they are committed to CSR. As general trend, the lower ranking of the law firm, the less they say about CSR and the less likely they are to explain their CSR motivations, although there are some notable exceptions to the rule at both ends of the rankings. Consistently, the top ten firms outperform lower ranked firms on all elements of CSR. We might speculate as to why this is so. Such might reflect greater resources devoted to CSR by those firms (a corollary of their size, turnover and reach) and/or a greater desire to make additional work-related offerings to their employees in the form of CSR activities. It might reflect the client base of those firms (who may be more interested than other clients in CSR). These largest firms might also be more susceptible to approaches taken by, and the impacts of cultural differences from, US law firms. Finally, it may be that competition for work is fiercest between these top ten firms compared with other firms.
What we also don’t (as yet) know is the extent which sustainability/CSR is a factor in the commissioning of legal services (the forward slash is there because most of the top 100 law firms speak of CSR or corporate responsibility, with sustainability being part of this: and I am guessing this is the same for other firms too). Does the large, global bank which is committed to sustainability choose Law Firm X over Law Firm Y because of Firm X’s policies and practices on CSR? Does the government agency compel or require Firm X to do A, B, C when it comes to CSR as part of their outside counsel guidelines? Equally, it’s interesting to think about whether business development-savvy law firms are reorienting their CSR policies and practices, and targeting ‘green’ clients specifically in an attempt to win work.
Over the course of this year, I am going to speak to private practice lawyers, and to their clients, to better understand the extent to which sustainability is (or can be, or should be) a driver in the commissioning of legal services. If you work in private practice, you can help me out by filling in this short survey, which is Phase 1 of the project.
Watch this space.
A leap of faith into 2017
At the end of 2016 we (the LSA) decided to take a bit of a leap of faith by running a debating competition for students and undergraduates with the focus on the role the law plays in promoting sustainability. We did this in conjunction with the Woodland Trust and linked the debate to the Charter for Trees, Woods and People which is involving over 50 organisations from across multiple sectors and which will be launched in November this year. We hoped we would hear fresh views and ideas from young people – a group we don’t often hear from – about the law and sustainability.
This was this a leap of faith because engaging younger people in this way is something the LSA has never really done before – we simply weren’t sure what the level of interest would be. What we heard from the 27 teams who participated was hugely encouraging and helped us to look ahead into 2017 and beyond with a real sense of optimism.
We know there are still many challenges ahead (for example, the need to keep focused on tackling climate change through reducing the carbon footprint of all our activities, addressing the pressing need to manage the consumption of natural resources to stay within the capacity of our planet to support, address the growing problem of air quality (particularly in our cities), keeping people engaged in the issue when there are other pressing issues to be dealt with, etc. etc.). What each of the teams demonstrated so ably was that sustainability is by no means a forgotten issue or a done deal. They showed that there is a whole new generation of legal professionals coming through who care passionately about the state of the planet and its impact on people’s quality of life, who recognise the important role the legal system plays in protecting and maintaining these, and who are alive to the opportunities they now have through the interpretation, application and practice of law to make a positive difference.
So, huge congratulations to all who took part in the LSA’s inaugural Student Debating Competition. Here’s to a very positive and sustainable New Year to us all!
Agile Working, Agile Thinking
I was really excited to read a recent article in The American Lawyer about the plans Norton Rose Fulbright’s Global Chief Executive Peter Martyr has to promote a culture of more flexible and ‘agile’ working for partners and other staff at NRF. Named in 2013 by American Lawyer as one of the top 50 innovators, this sort of thinking from him comes as no surprise. In his words “Why can’t someone be called a partner who is working from home for two days a week, or two years?”.
Although more and more firms are recognising that partners and other members of staff can and do work effectively and efficiently away from the office – at home or elsewhere – and that clients indeed may be better served by partners who achieve a better work-life balance, it is not yet universally accepted that ‘out of sight’ does not mean ‘out of mind’.
As firms increasingly look to find ways to become more efficient, reduce the financial cost and carbon footprint of travel, secure and retain top talent, tap into the wealth of skills and abilities in the ‘grey worker’ market, address gender and under-represented group inbalances in their teams and so on, it is encouraging that firms like NRF (an LSA Executive Member firm) are leading the way.
Without doubt, year on year, all firms will face increasing pressure to be more efficient with their resources, to use less energy, to travel less, to demonstrate to clients that they take their responsibility to people and the environment seriously and so on. Ultimately, I think this is all about being sustainable in its broadest sense. It’s about looking into the future, understanding what might lie ahead for the firm – both challenges and opportunities – and setting the right course to avoid the first and grasp the latter. It’s about being an agile thinker and a visionary leader. I raise my hat to Peter Martyr!
Law firms, social media & sustainability
I confess! I am not the world’s most savvy user of social media. I am often shamed by my 96-year old mum telling me about family events and pictures she has seen on Facebook before I even think to log on and check what’s going on. I use LinkedIn and tweet a bit, but that’s about it. Fortunately my colleagues who also host the LSA are much more in tune and we do use social media to communicate about and promote the LSA.
I was really impressed, therefore, when I read an article on law.com about how well a number of LSA member law firms are using social media. The American Lawyer ranked 100 firms on its 2015 Am Law 100 list of the US highest-grossing firms, ranking them on the effectiveness of their use of digital marketing and social media. They looked at social media marketing performance, reach, and engagement on social media (including Twitter, LinkedIn and Facebook) and also measured the firms’ success in “thought leadership content.”
LSA executive firm members DLA Piper and Norton Rose Fulbright both featured in the top five overall, with Hogan Lovells in the top five Twitter users.
The creative and selective use of social media seems to me to be an important way in which law firms and lawyers can play the role of “wise counselors” on sustainability issues which David Rivkin, President of the International Bar Association and partner at Debevoise & Plimpton, highlighted in his recent talk to the LSA. He reiterated what he said in his remarks to the Climate Action 2016: Catalyzing a Sustainable Future conference:
“Lawyers have expertise in developing creative solutions to issues and in working to create certainty in framing parties’ expectations. Those are particularly important skills in the topic we address today: accelerating climate action. Implementing the Paris treaty and moving forward with many of the ideas expressed yesterday and today will require innovative, new forms of agreements, including public-private partnerships, intra-industry and inter-governmental agreements and agreements among governments, corporations and local stakeholders. Lawyers must assist in framing these agreements to serve their goals; as an international arbitration lawyer, we have already begun to think of new forms of dispute resolution that can be effective for such agreements. In doing so, lawyers must think of the broad goals of society as well as their clients’ interests. They must be broad-based ‘wise counselors’ and not view their job simply as advising on the strict dictates of the law.”
In a world which is increasingly connected and influenced by social media, it would be great to see more LSA members using it to be a positive influence on a more sustainable way of life for all.
A short while ago I was in Hong Kong and in a few days I will be in Singapore City. During this time I’ve spent a few days in London, but much of the time working remotely from my home office in sunny Surrey. Not having the keys to a TARDIS, how can this be, you ask? The answer, of course, is that I haven’t done anything more exotic than sitting in a carriage on the Portsmouth-London line or offices in central London but, as a participant in this year’s LSA Travel Challenge Round the World in 30 Days, I am logging a virtual journey based on the number of sustainable real journeys (or saved journeys as a result of working at or closer to home) I make.
A fun way to make a serious point. Unlike the virtual reality of our challenge to journey virtually round the world in 30 days, the threat posed by climate change continues to be very real. That’s why we urge all LSA member firms to take it seriously and make whatever contribution they can to cutting carbon. Although single extreme weather events can’t be put down specifically to climate change, scientists are agreed that our changing climate does significantly increase the likelihood of such events. (See recent Guardian article for more on this).
Maybe time for us all to take off our virtual realty helmets and do something real to help tackle the issue?
(OR…”Embrace Sustainability!” – Rio 2016 and sustainability)
I don’t know about you, but right now I am gripped by Rio fever! (Fortunately, not the yellow or malarial sort – I really hope no one falls ill and the Games end as well as they seem to be going right now). No, I’m gripped by the excitement and spirit of the Games and – let me be honest – the success of Team GB (other teams and affiliations are, of course, available). The choice of Rio as the venue for the 2016 Olympic Games has not been without concern. The country is in the midst of economic and political crisis – some would say that now is not the time to spend billions of dollars on staging the Olympics. There’s a lot of sense in that sentiment, but the feeling I get is that Brazilians are proud that their nation has been able to plan and put on such a great show (against the expectations of many sceptics). One of the more “behind the scenes” aspects of the Games which has impressed me has been the efforts made to make them sustainable. Hopefuly that will leave a legacy long after the energy and buzz has died down. As with any Games, the challenge facing the organisers was massive: 28,500 athletes and support staff arriving by air, 1500 buses to provide ground transport, 6000 tonnes of food, 23.5 million litres of fuel, 17,000 tonnes of waste, procurement of 30 million items – all resulting in a carbon footprint of 3.6 million tCO2e.
Earlier this year the Rio 2016 Organising Committee’s Embrace Sustainability (“Abraça Sustentabilidade”) programme deservedly achieved certification against ISO20121, the international standard for sustainable events. In pulling together their sustainability goals and plans the Committee asked themselves five key questions:
- How can we have clean and lean operations?
- How can we deliver the best sporting experience to the spectators, whilst at the same time using less non-renewable resources?
- How do we encourage people to adopt more sustainable behaviour?
- How do we use sustainability to drive changes in the Brazilian economy by using our supply-chain as a multiplier?
- How do we use technology to mitigate our environmental impact and create opportunities for other economic sectors?
I think these are great questions which, with suitable modification to suit the context of running a sustainable law firm, could apply equally well to LSA members. Read more about the Rio 2016 Olympic Games sustainability approach here.
Sustainability and the law: 3 take-ways from David W Rivkin “in conversation” with the LSA on COP21
Steve Malkin – CEO Planet First and Founder of The Planet Mark
The 2015 Paris Climate Talks (COP21) and the subsequent steps that need to be taken to enshrine the Paris goals into international and national laws, demonstrates the critical role the legal profession has to play in climate change. But is the legal profession doing enough and could it do things better?
The Legal Sustainability Alliance (LSA) describes itself as “a movement of legal firms and organisations committed to working collaboratively to take action to improve the environmental sustainability of their operations and activities”. Earlier this month, the LSA held an evening “in conversation” with David W Rivkin, President of the International Bar Association. David led the debate at COP21 on the critical role of international arbitration in developing the legal framework of the post COP21, highlighting the “huge potential to consider how the existing use of international arbitration and ADR mechanisms in resolving climate change related disputes may be advanced and expanded, both in the context of contractual obligations and treaty mechanisms.”
Here are our three takeaways from the LSA event:
- The first was that a fully engaged legal profession will accelerate progress at all levels. From drafting the Paris agreement to bring nations together to green leases bridging the landlord-tenant divide, the legal team are central to providing an agreement that is both binding and enabling.
- Secondly, is the ability of the legal team to provide a more proactive approach in meeting their clients’ needs. Here, David Rivkind described guidance on questions that counsel can put to clients and outlined in the IBA report Achieving Justice and Human Rights in an Era of Climate Disruption.
- Finally, was the reminder that lawyers, and specifically those in arbitration, can create an environment for not only cooperation but, perhaps most profoundly, collaboration. Here their skillsets can bring parties to co-create and deliver new ways of working and the agreements that these rely on.
In our work with customers who have achieved The Planet Mark certification, we are seeing collaboration and co-creation for more sustainable outcomes becoming more common place. This is particularly evident within the supply chain where circular economy concepts are becoming reality.
This is certainly a period of significant transformation. The boundaries and way we do business are shifting, for the better and with a seemingly irresistible momentum. Organisations are going to need wise counsel to bring parties together for mutually beneficial outcomes and sustainable business.
Chocolate rewards for the energy savers!
This June energy conscious staff at the HQ of LSA member firm Burges Salmon went into work to find a delicious chocolate on their desk – but only if they had remembered to turn off their monitor the night before! This sweet reward was just one of the many incentives and fun ideas that make up the firm’s annual Green Week timed to coincide with Bristol’s focus on the environment and part of the wider legacy of the Bristol Green Capital of Europe 2015 campaign which saw an upsurge in environmental awareness and activity across the city. Burges Salmon has over 700 staff in its Bristol office and, while not all of them got involved, the range and scope of activities on offer were sufficient to tempt many. Whether it was smoothie bikes, clothes swops or free breakfast for cyclists (who braved the hills and the less than summery conditions and took to their bikes for their daily commute) the BSustainable committee encouraged staff to think green for the week in the hope of changing habits.
Green Week aims to engage and interest staff from across the firm: it is supported by a team of volunteers, and floor reps, who promote sustainable working throughout the year. For firms interested in setting up their own green week, the LSA and Burges Salmon are producing a Green Week Guide full of tips and hints, good practice and experience of what works and what doesn’t. Contact us to let us know you would like to receive a free copy when it is available.