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How law firms and their clients are responding to the environmental, social and governance movement
Wall Street M&A powerhouse Wachtell Lipton Rosen & Katz is not known for making senior lateral hires. Last April, however, it made an important exception, bringing on board as a consultant Leo Strine, the former Delaware chief justice and a leading proponent of governance reform.
“As a judge," he said, “I thought the importance of corporations in our society could not be measured by their stock price, and that it was critical to our nation’s well-being that powerful businesses treat their workers and consumers well, support the communities in which they operate, and focus on environmentally responsible, sustainable wealth creation.”
As the environmental, social and governance (ESG) movement gains momentum, forward-thinking law firms have been positioning themselves to provide ESG advice to their clients while also getting their own houses in order.
As consultant Tony Williams wrote in The Global Legal Post, ESG is a ‘massive business opportunity for lawyers' but also a risk, given that ‘increasingly clients, employees, future employees and regulators will expect law firms to be achieving significant change in their approach to ESG issues’.
In this timeline, which will be updated regularly, we track major developments in ESG and the law by highlighting relevant coverage from The Global Legal Post.
The San Francisco giant brings on board ESG specialist Ashley Walter as a partner from Fenwick & West. It believes he will be the first partner in the US with a near-exclusive focus on advising clients on ESG matters.
Ben McQuhae's new firm will be focused entirely on sustainability and innovation. "We will choose the work we do, and do not do, by reference to the UN Sustainable Development Goals (SDGs). We will assess our mandates and measure our impact against the SDGs,” he said.
The leading Singapore firm launches a sustainability practice led by banking and finance practice partner Lee Weilin and supported by a multi-disciplinary team of lawyers across the firm, including specialists in infrastructure, M&A, trade and environmental law.
The beverage giant unveils a series of diversity targets for its US advisers with the threat that their ability to meet them will be a ‘significant factor’ in determining whether they make its first-ever preferred panel of law firms in 18 months' time. Unveiled by general counsel Bradley Gayton, the guidelines stipulate that firms that fail to meet targets for new matters over two quarters will be levied a non-refundable 30% reduction in their fees from then on until they achieve compliance.
The UK Magic Circle firm sets up an ESG taskforce led by senior partner Jeroen Ouwehand to boost its client work in the field as well as its own sustainability efforts. It is made up of 20 members drawn from across the firm and will oversee the work of more than 400 lawyers and senior personnel already tackling aspects of ESG, according to the firm.
HSF unveils a series of regional people forums to improve the ability of employees to help shape the firm's strategy. They are a ‘key initiative’ of a new People & Culture Advisory Board, which was established in June with a mission ‘to reinforce a culture of engagement, ambition and high performance’.
Ford unveils a four-year law academy programme that aims to boost the number of black students entering the law. It kicks off at the Henry Ford Academy high school in Detroit and will be rolled out in 2021 at another district school, the University Preparatory Academy High School, with the aim of it becoming a nationwide programme.
“Our clients are at differing stages of their sustainability journeys and we want to do all we can to help them achieve their ESG goals given our own depth of experience,” says Paris-based adviser to the luxury sector Alyssa Auberger as she takes up her new role.
The leaders of a host of law firms from across the globe back a United Nations statement on co-operation in support of sustainable development goals. They include Baker McKenzie chief executive Milton Cheng, Linklaters senior partner Charlie Jacobs and Justin D’Agostino, Herbert Smith Freehills’ chief executive.
The firm is among several in 2020 to publish diversity and inclusion targets, regarded as a key requirement of any D&I programme. This includes a commitment to meet minority ethnic targets in the UK and the US, aiming for 15% of new partners and 30% of senior associates and business professionals by 2025.
The launch of the Law Firm Antiracism Alliance springs from the pledges to take action by business law firm leaders on behalf of their firms that followed the killing of George Floyd in Minneapolis in May. ‘Lawyers and law firms are uniquely positioned to analyse and advocate to change laws and policies that encourage, perpetuate or allow racial injustice,’ the charter states.
The Model Statute for Proceedings Challenging Government Failure to Act on Climate Change is launched in London by the International Bar Association's (IBA’s) Climate Change Justice and Human Rights Task Force. It provides judges, policy makers and legislatures with a ready-made legal framework to make it easier for citizens to take climate change-related action against their governments in the courts, a process the taskforce says is currently fraught with difficulty.
Hong Kong-based Anna-Marie Slot, who heads up the firm’s high-yield practice, is tasked with helping clients ‘navigate the strategic challenges and opportunities of regional and multi-jurisdictional sustainability issues’. She will work with London-based strategic director Dave Rome to help both the firm and its clients improve sustainability.
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