Carbon footprint: Many firms well underway on sustainbility journeys
While 48 out of the top 50 UK law firms are publicly committed to climate-related targets, only nine have disclosed time-bound carbon reduction targets by 2030 or net zero targets by 2050, researchers have found.
With a third of them failing to publish responsible business reports, there appeared to be “a missed opportunity for many firms to clearly communicate their sustainability goals to their clients”.
Researchers from accountants Saffery said that across the top 50 law firms, many were “well underway on their sustainability journeys”.
However, setting and then meeting carbon reduction and net zero targets “may require significant strategic shifts, investments and potentially even a re-evaluation of operations”.
The low number committed to a time-bound target could suggest that “most firms haven’t yet developed a strategy or aren’t yet equipped” to achieve their long-term commitments.
“With a surge in demand for sustainability guidance, many law firms are seizing the opportunity to promote their sustainability credentials to clients, but firms should be careful to avoid ‘greenwashing’.”
Among the two-thirds of the top 50 that published an annual responsible business report or similar were some “well-structured and comprehensive” documents; but a “notable gap” across many of them was the absence of a sustainability materiality assessment, with only seven doing so. These assessments help businesses prioritise sustainability challenges.
While publishing a responsible business report was “a positive step”, the lack of such an assessment suggested that “firms may be missing a critical opportunity to strengthen the credibility of their reports and ensure that sustainability efforts are focused and strategically aligned”.
Saffery studied publicly available information in March this year for the report Sustainability and ESG – a review of the top 50 law firms [1].
They divided the top 50 firms into a top tier, comprising the top third by size (1-17), a mid tier (18-34) and a lower tier (35-50).
Researchers said independent verification of carbon emissions data by third-party organisations was important in “enhancing its credibility and ensuring stakeholders can rely on its accuracy”.
While 49 out of 50 firms tracked and reported their carbon footprints, only 71% of top tier firms obtained verification and just 35% of mid-tier firms.
Researchers warned that there was “a reputational risk associated with making public sustainability claims without credible data to support them” and firms ran the risk of greenwashing, “which could undermine client and stakeholder trust and potentially damage a firm’s brand”.
Meanwhile, 39 out of the 50 firms required suppliers and partners to adhere to sustainability standards.
There was a mixed picture on reporting emissions from suppliers, with 94% of top-tier firms, 59% of mid-tier firms and 76% of lower-tier firms publicly reporting their Scope 3 emissions – emissions from activities not owned or controlled by the law firms.
Researchers said law firms might be asked to provide this data “by clients or suppliers as part of their own sustainability requirements, making early data collection and reporting essential.”
They added: “Sustainability is increasingly vital for business success. Strong credentials in this area enhance reputation, build stakeholder trust, and help identify and manage long-term risks.
“Strong sustainability performance also attracts and retains clients and talent who prioritise ethical and sustainable values.
“As regulation and market expectations evolve, integrating a sustainability strategy in your firm ensures competitiveness and resilience.”